Whole Foods is causing its own stocking issues – but Amazon needs to fix the problem (AMZN)

pulse

January 19, 2018 3:56 PM

Whole Foods stores are suffering from a food shortage that’s creating empty aisles and unhappy customers, and its inventory management system may be to blame

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Whole Foods stores are suffering from a food shortage that’s creating empty aisles and unhappy customers, and its inventory management system may be to blame,according toBusiness Insider.

Employees and customers alike have reported stocking issues at Whole Foods, and employees have pointed to the “order-to-shelf” inventory management system the grocer rolled out in early 2017 as the cause.

That timing would mean that Amazon, which acquired Whole Foods over the summer, did not have a hand in the new system, but it will need to handle its issues now.

The order-to-shelf inventory management system was introduced to improve Whole Foods’ wasteful system.
While order-to-shelf has been successful in reducing excess inventory, it appears to be leading to empty shelves and low morale among employees.

Amazon didn't introduce order-to-shelf, but it will have to fix its problems, along with other issues that have cropped up with the acquisition.

A big part of Whole Foods’ value when Amazon acquired it was its committed customer base that loved its organic selection and locally sourced products. But with stocking issues from order-to-shelf, its move awayfrom local suppliers, and questions about product quality, that value may be fading. Amazon needs to solve these problems, or it may find that integrating its grocery business with Whole Foods wasn't worth the $13.7 billion it paid for the grocer.

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