Whole Foods (NASDAQ: WFM) is facing a food shortage leading to empty aisles and unhappy shoppers while the inventory management system faces stocking issues. Back in early 2017, the order to shelf system was introduced to help improve Whole Foods’ wasteful system. Before that, the company wasted a huge amount of inventory. With the new system, it ensures that stores only order what was needed to meet demand and fill aisles. Employees would also take orders straight from delivery tucks to the aisles, skipping stock rooms entirely. Managers will complete their duties of checking the store to make sure nothing is overstocked and that all products are correctly placed. Following the implementation of the system, costs have been successfully cut as well as reduced waste.
However, the order to shelf system has recently lead to empty shelves and low morale amongst workers. There has been an increase in delivery issues while shopping aisles have been empty due to excess demand and no extra inventory. This has lead to missed sales, unhappy shoppers, and employees due to increased stress from strict and high stakes inventory checking tests.