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Starbucks discontinued an automated inventory system supplied by NomadGo after nine months. The company cited accuracy issues and employee feedback. It has returned to a single manual counting model.
Starbucks ended use of an AI-powered inventory management application nine months after deployment. The system, supplied by NomadGo, scanned beverage components such as milk and syrups to track shortages. The company confirmed the change to Fortune and said it decided to return to a single manual counting model. Reuters first reported the discontinuation this week.
Starbucks shift supervisor Carl Addison said the app required stores to rearrange storage areas and produced inconsistent counts. When the system recorded too much stock, stores received fewer replacement items; when it recorded too little, stores received excess shipments.
” Some baristas submitted comments stating the interface helped view inventory levels, while others noted execution difficulties.
A Starbucks spokesperson said the company tests tools, reviews partner feedback, and adjusts operations to improve consistency. NomadGo did not respond to a request for comment. The decision follows other AI deployments under the company’s turnaround plan, including an order-sequencing tool and a recipe-assistance application. S. 5 billion.
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