How AI is Changing the Way Starbucks Manages its Inventory

Starbucks is the world’s largest coffee company, with more than 11,000 stores across North America as well as thousands more overseas.

When it comes to global coffee culture, the US chain is the most dominant force around.

But with such a sprawling geography, such a large supply chain and such a glut of stock comes the kind of operational complexity that can be difficult to manage.

In recent years, Starbucks has found that its inventory management processes have been less reliable and streamlined than it would have ideally liked, often leading to stock takes that are both inaccurate and lengthy.

Now, the world’s premier caffeine merchant is turning to technology to address this issue.

This month, Starbucks has announced that it plans to roll out a new form of AI-powered inventory management technology (produced by a firm named NomadGo) across all its North American sites.

But why exactly has Starbucks chosen to partner with NomadGo?

The start-up’s patented AI system has been proven to deliver inventory counting that is eight times faster than traditional methods, with 99% accuracy.

It will come as no surprise that this represents a vast improvement on the current industry standard for these kinds of practices.

Is ‘spacial vision’ technology the future of inventory management?

So, how does it work?

NomadGo’s Inventory AI core technology, Spatial Vision, combines on-device 3D spatial intelligence, computer vision and augmented reality.

The system processes and extracts real-time data from physical spaces, enabling automated inventory management through smartphones or tablets, enabling staff to immediately adjust stock levels and modify purchasing orders as they need.

“The deployment of NomadGo’s Inventory AI across Starbucks owned and operated coffeehouses in North America is a strong validation of our patented technology,” says David Greschler, NomadGo’s CEO.

“Our technology streamlines inventory management and delivers frequent, highly accurate data that prevents out-of-stock situations and lowers cost of goods sold,” he adds.

“Businesses can now match supply to demand with unprecedented precision.”

A true digital transformation

The technology surpasses traditional inventory methods, which typically achieve 80-85% accuracy and require substantial manual labour.

The new system allows staff to scan entire shelves in 30 seconds, reducing inventory count times significantly.

Deb Hall Lefevre, Starbucks Chief Technology Officer, explains: “This technology streamlines a critical but time-intensive task.

“With faster, more accurate inventory counts, our partners can focus on crafting high-quality beverages and connecting with customers.”

The solution operates across various storage units, including shelves, refrigerators, thaw racks and display cases, requiring only a smartphone or tablet.

The role of AI in tomorrow’s supply chains

NomadGo’s technology will enhance Starbucks’ management of essential items such as milk jugs and coffee bags.

The system’s improved accuracy enables more precise purchasing orders, preventing overstocking and stockouts.

“At Starbucks, technology creates meaningful efficiencies that preserve and strengthen craft and connection,” says Deb.

“With automated counting, we’re delivering a better experience for partners and a more consistent experience for customers.”

The complete rollout of Inventory AI across Starbucks owned and operated coffeehouses in North America will finish by September 2025. This upgrade aims to improve supply chain visibility, enhance operational efficiency and maintain consistent customer satisfaction levels.