Mediocre Starbucks must invest in the supply chain: our most read retail technology articles from last week
Check out the articles on this here website that caught your fancy last week, including Tesco, Thanks, Vinted, Nothing, Castore, Ocado, Sainsbury's, Carrefour Belgium, and Reckon.ai.
Under pressure: Here's why Starbucks' broken supply chain is killing the global coffee giant
Starbucks is saddled with Stone Age supply chain technology, according to Brittain Ladd, a consultant and former Amazon executive.
In a LinkedIn post, he said that he had spent the last week communicating, off the record, with current and former executives, directors and managers from Starbucks, specifically, the individuals responsible for the supply chain part of the business.
He commented: "I approached the discussions with a preconceived notion: Starbucks former CEOs; Howard Schultz, Kevin Johnson, and Laxman Narasimhan, all failed to invest the necessary capital to design and equip Starbucks with the optimal supply chain.”
“Based on the discussions, I was right. I place the blame for the Stone Age supply chain primarily at the feet of Schultz. Johnson had minimal understanding of the importance of supply chain technology, and Narasimhan was out of his depth the minute he became CEO."
Over the years, former Chief Supply Chain Officers, VPs and SVPs, had clearly outlined the gaps in Starbucks supply chain related to technology and the sub optimised logistics network, Ladd observed.
"On multiple occasions, funding was promised to close the gaps only to be withdrawn. This forced the supply chain organisation to have to keep Starbucks mediocre supply chain operating without the right software tools, logistics facilities, and budget."
Chairman and CEO Brian Niccol is making the right moves, Ladd believes. However, he has to do more than proclaim that it takes too long to get products to the stores, and that the stores run out of inventory too frequently. In short, he must invest in the supply chain
Starbucks should replace its antiquated supply chain software with best-in-class tech with a focus on DeepSeek AI, Manus, and Solvoyo. The company is using software from o9 Solutions. "Why are Starbucks locations still running out of products so frequently? Is it the platform or is Starbucks not using the platform correctly? It’s inexcusable that it can’t keep products stocked in their stores," Ladd said.
He added: "I strongly suggest that Brian Niccol meet with Leo Laranjieria of MIT, to discuss the supply chain that Starbucks must have to meet customer demand and eliminate stores running out of inventory. Dr. Laranjeira should be hired as an advisor reporting directly to Niccol."
'Out of touch' Tesco under fire for large trolley checkout scales trial at grocery giant's Gateshead store
Tesco is testing out giant trolley checkout scales at its Gateshead Trinity Square Extra store.
The aim is to identify items that customers may have missed or duplicated while using the retailer's Scan as You Shop service, which is exclusive to Clubcard members.
In a LInkedIn post, Lee Coopersmith, Director of Business Development at Cleveron, said: "Before joining Cleveron, I had the privilege of being a key contributor to this Tesco project, and like many, I find it tough to leave behind something I’ve invested so much effort into (over three years!), especially when I know it’s bound for success. A huge congratulations to Bizerba and Supersmart for making this happen in the UK. Excited to see where this journey takes them next."
There have been mostly negative reactions to the trial among customers on social media, with one user on Reddit likening the experience to “border control”.
Another quipped: “No Clubcard? Deported!”
Over on X, meanwhile, @BradChuck said: "Having fallen foul to the @Tesco policy of making you look like a criminal every time you use the scanner to shop, for them to then not belive you and rescan all your shopping again whilst making you look like a shoplifter, these new weight measuring gates are nothing new."
And @ClareBeveridge commented: "So now you have to have your trolley weighed after self scan in @Tesco, how much has that cost? You just don’t get it do you? Bring back proper checkout tills."
Customers fume as Ocado once again cancels grocery delivery orders due to operation issues
Ocado experienced operation issues earlier this month, resulting in a large number of customers having their orders cancelled.
Customers have taken to social media to hit out at the online retailer, with one fuming on X: “Abysmal service @Ocado just cancelling orders, no explanation no reason just cancelled, you can rebook for tomorrow with a voucher. Great, but I need the shopping today! No answer from your customer service number either!”
Another commented: “@Ocado this is more than inconvenient. How do I tell my boss I didn’t make it to the mega important meeting because ‘Ocado was late’ lol I will be fired. There should be an option to change delivery to a convenient time or cancel the delivery.”
“Any @ocado orders in the midlands I’ve just spoken to customer service and their warehouse outside Tamworth has had operational issues, 5,000 orders cancelled! What a great start,” another said.
An Ocado customer service representative responded: “We are sorry to hear that your order has been cancelled due to operation issues and due to this your voucher has expired and you are unable to get another delivery. We would love to look into this further, if you could please send us a DM?”
Ocado lays claim to the most advanced grocery automation in the world and is well known in the retail tech world for its customer fulfilment centres (CFCs).
A spokesperson told RTIH: “Unfortunately, we’ve had an operational issue at one of our sites and this has resulted in the cancellation of some customer orders. We’re working hard to get this resolved as soon as possible and we’re really sorry about the inconvenience this has caused to customers.”
Sainsbury's Next Level strategy sees roll-out of new Local high street convenience store format
Sainsbury's has taken the wraps off a new look Local convenience store format.
This launched at its refurbished Pudsey Town Local store in Leeds, which reopened in late February. Variations were rolled out to two new openings in London last week, at Bermondsey Square and Sloane Avenue Locals.
It is part of the retailer's Next Level strategy, which aims to enhance its c-store offering in line with evolving customer needs.
Ocado Intelligent Automation announces debut of Porter AMR autonomous pallet moving robot
Ocado Intelligent Automation (OIA), part of Ocado Group, has introduced Porter AMR, a pallet moving AMR that navigates warehouses to automate several warehouse workflows such as cross-docking, bulk-item picking, putaway, and pallet movement.
OIA’s patented system directed software orchestrates each Porter autonomous pallet moving robot–or a whole fleet of them - to reduce travel times and avoid warehouse congestion. Ocado’s Fulfillment Execution System (FES) groups orders to maximise case picking, optimise route plans and reduce steps between picks. Meanwhile, machine learning prioritises and plans pallet stacking intelligently to avoid product damage.
“Porter from OIA automates low value, manual tasks and fosters a more productive workplace by supporting associates, increasing case picking rates, and automating the movement of high volumes of inventory,” says Jeff Larson, Director of Solutions Design for Ocado Mobile Robot System at OIA.
“Companies in third-party logistics, retail, e-commerce, distribution, and healthcare can maximise warehouse productivity and scale operations up or down easily without depending on manual forklifts and expensive certified forklift drivers.”
Reckon.ai powered Carrefour BuyBye interactive fridge deployed at Auderghem, Belgium hypermarket
Carrefour Belgium has developed a new autonomous micro-store concept, Carrefour BuyBye, in association with Reckon.AI, with the aim of tapping into opportunities beyond traditional retail.
The initiative has now seen a trial of an interactive fridge section at an Auderghem hypermarket.
"We’re proud to mark a new milestone with Carrefour Belgium, bringing smart stores to one of the largest hypermarkets in Auderghem - unlocking new revenue streams with ease," says Ana Pinto, CEO at Reckon.ai. "Trusted by Carrefour, our solution is live at HQ, franchised stores, and Publicis, with roll-outs expanding to hospitals, stations, and universities, driving growth and creating value together."
Matthieu Ullens, Director E-commerce, Data and Digital Transformation at Carrefour, comments: "This is the future of shopping - the interactive fridge that lets you buy and say bye in one seamless move.Developed with our amazing Innovation team, this new concept is designed to revolutionise the way our customers shop, combining convenience with cutting-edge technology."
He adds: "After successful technical tests, we’re now diving into financial viability assessments to measure its potential impact. The journey has already begun with Carrefour BuyBye units up and running at our Service Centre in Zaventem, in franchised stores, at our partner Publicis, and in other strategic locations such as hospitals, offices, and more.”
“We’re excited to see how the latest test at the Auderghem hypermarket unfolds. A huge thank you to all the teams who brought this idea to life. Your dedication is paving the way for a more innovative and effortless shopping experience. This is just the beginning as we continue to build the future for our customers."
Retail media startup Thanks bags $2.6 million in seed funding and adds eBay and Zip to partner list
Ad network specialist Thanks has announced both $2.6 million in seed funding from venture firms Peak XV Partners, Founder Collective and Side Stage Ventures, alongside multinational partnerships with eBay and Zip.
“We’re all customers at the end of the day, and we all navigate - and often avoid - the constant bombardment of ads. We built Thanks because we believe the relationship between advertisers and customers should be rewarding, but it must be delivered in a way that respects the customer and adds value to their day,” says Steven Tesoriero, Co-CEO and Co-founder at Thanks.
“Acquisition is broken - retention is everything! Customers want to feel valued when they buy, which is why brands like Sezzle and eBay partner with Thanks,” says Amanda Herson, General Partner at Founder Collective. “We back founders, not just ideas, and I’m incredibly impressed by Thanks' vision to scale while keeping customer delight and brand authenticity at the core."
Fashion rules as Vinted CEO Adam Jay once again bags top spot in RTS Retail Disruptors Report
Adam Jay, CEO at controversial fashion resale platform Vinted, has once again taken top spot in the Retail Disruptors & Innovators report, released today by Retail Technology Show.
This is an annual report championing progressive individuals from across the sector, who are driving seismic change across the retail landscape.
Jay holds on to his number one position for the second year in a row, for continuing to grow Vinted’s pre-loved marketplace at pace while simultaneously putting second hand and circular retail models back at the forefront of fashion.
He was followed by Carl Pei, Founder and CEO at Nothing, a challenger smartphone and tech brand that’s aiming to make tech and gadgets “fun again” in second place, while third place was shared by brothers and co-founding duo of performance sportswear brand, Castore.
Fashion performed strongly within the top ten disruptors, with high end DTC only fashion brand ME+EM’s Founder, Clare Hornby, coming in fourth, following expansion into the US and a first UK flagship store opened in London.
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