What are the main supply chain problems at Starbucks?

Starbucks faces chronic shortages due to outdated technology, a fragmented supplier network, inaccurate inventory counting, and significant product waste from perishables and limited storage.

How is Starbucks addressing its supply chain issues?

CEO Brian Niccol is implementing modernization efforts, including AI-ready platforms and improved forecasting, but these have shown limited success. Past initiatives by previous CEOs also aimed to fix these problems.

Why does Starbucks experience product waste and shortages?

Product waste and shortages occur because Starbucks' cafes have less storage space than competitors, combined with a growing reliance on perishable food items and an inability to scale the supply chain effectively.

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Starbucks Supply Chain Chaos: Outdated Tech & Dodgy Suppliers

27 Jan

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Summary

Less than a third of truck deliveries to Starbucks' distribution centers were on time and full.
Outdated IBM computer hardware from 1997 still processes store inventories and orders.
Starbucks faces significant waste due to perishable items and limited storage space.

Starbucks Supply Chain Chaos: Outdated Tech & Dodgy Suppliers

Starbucks' supply chain, plagued by chronic shortages, is hampered by deeply rooted issues including outdated technology and a fragmented supplier network. In early 2026, less than a third of crucial truck deliveries to distribution centers were on time and fully stocked, indicating systemic dysfunction. The company relies on IBM computer hardware dating back to 1997 for inventory processing, a significant bottleneck.

CEO Brian Niccol's efforts to modernize systems with AI and improve forecasting have yielded limited success. Initiatives like automated inventory counting have faced inaccuracies, confusing similar products or missing items entirely. Furthermore, Starbucks' business model, with less backroom storage than competitors and a growing reliance on perishable food items, contributes to substantial waste.