Starbucks is saying goodbye to its artificial intelligence inventory management system about nine months after its debut, writes Supply Chain Dive (June 4, 2026) . The tool, which used computer vision to track some parts of the chain’s inventory, was announced in September (see Supply Chain Dive (Sept. 3, 2025)as a method to simplify inventory record-keeping and prevent stockouts.
At that time, Starbucks’ CTO wrote: “The tech is currently live across thousands of coffeehouses, and will be in use across the chain’s entire North American system by the end of September. At cafes using the AI systems inventory is now counted 8 times more frequently, giving us real-time visibility and enabling faster, more precise replenishment.”
Now, however, the coffee giant is ending its computer vision inventory counting system — which employees called “unreliable” — in favor of traditional stock-keeping methods.
Starbucks has “moved to a single, consistent process across all inventory counts. This approach supports accuracy and product availability in our coffeehouses,” wrote the company. “We will continue to invest in technology and refine our tools over time.”
Starbucks shared negative internal employee comments on the changes to its inventory system –such as these two: “Very grateful our thoughts about AI count were heard.” And “Thank you for trusting the partners over unreliable spatial recognition to handle these counts.”
“We’re going to have daily replenishment by the end of 2026,” said the CEO. “If we’re going to do the food program that we want to do, we gotta have that. Because if we’re going to put items on our menu, we gotta be in-stock with those items.” He added the chain previously struggled with stockouts, which left some consumers feeling as if they were rolling the dice on the availability of key menu items.
Classroom discussion questions:
- Did AI fail in this case?
- What are the strengths and weaknesses of vision systems?






The first weekend in May, Delta canceled hundreds of flights after minor weather disruptions, while other airlines ran relatively smoothly. Only the now-defunct Spirit Airlines scrubbed more. Delta’s cancellations related to pilot availability are more than 10 times historical levels and account for 35% of mainline flight cancellations, up from 7% in 2024.
Temple U. Professor Misty Blessley raises a timely issue with her monthly Guest Post.
Roughly 1/3 of global seaborne fertilizer normally moves through this chokepoint. With passage through the Strait at a standstill, the concern is whether farmers will have access to adequate and affordable fertilizer during this planting season.
The solution, developed by the company in collaboration with Google Cloud, uses computer vision and the Gemini platform to support quality inspectors in distribution centers.
In operations management, achieving a competitive advantage relies heavily on a well-executed Operations Strategy. a topic we stress in Chapter 2. When Apple introduced its new $599 MacBook Neo to challenge Google’s dominance in the low-priced laptop market, many asked a familiar question: Why not assemble it in the U.S.?
Pods are the next step in an ongoing project management organization evolution. In recent decades, so-called scrum teams—cross-functional groups focused on deploying and iterating quickly—have replaced a slower, step-by-step project management methodology known as “waterfall,” which is noted in Chapter 3 of your Heizer/Render/Munson text.
Now Siemens has just revealed Eigen, an AI agent that can replace manual coding or programming for programmable logic controllers, distributed control systems, and robotics applications, updating code or instructions to reflect new priorities and goals.
The business impact is measurable: reduced downtime, lower mobilization costs, reduced safety risk and faster response to problem detection. In the energy and utilities sector, drone-based inspection has been estimated to reduce inspection costs by 70% and downtime by 90%.
Dr. Jon Jackson is Associate Professor of Operations Management at the Providence College School of Business. He has created a series of AI exercises for each chapter in our text.
ASCS opens Amazon’s vast global logistics network not just to its own marketplace sellers, but to businesses operating across competing marketplaces and in B2B channels. As Peter Larsen, vice president of Amazon Supply Chain Services, puts it, the platform is “available to any business of any shape or size.”

Food and beverage products led all stolen commodity categories, followed by agriculture, electronics, automotive parts, construction materials, and metals.