"After being acquired by Amazon in August 2017, the grocer introduced an “order-to-shelf” (OTS) system that moves products straight from delivery trucks to store shelves, bypassing backrooms. The change was meant to cut costs and reduce food waste and employees report it has indeed lowered spoilage, but it has also produced frequent out-of-stocks and empty shelves for staples such as bananas, onions, and potatoes, prompting customer complaints. Managers say inventory metrics look healthy because backstock is minimized, yet front-of-store availability has suffered; executives have publicly praised OTS while anecdotal reports suggest replenishment problems remain. Other retailers like Target are trying similar approaches, and many observers think Amazon’s logistics capabilities may be required to fully solve the stocking issues." - Whitney Filloon