Content adapted from this Zerohedge.com article : Source
by Tyler Durden
Whole Foods' new inventory management system aimed at improving efficiency and cutting down on waste is taking a toll on employees, who say the system's stringent procedures and graded "scorecards" have crushed morale and led to widespread food shortages, reports Business Insider.
The new system, called order-to-shelf, or OTS, "has a strict set of procedures for purchasing, displaying, and storing products on store shelves and in back rooms. To make sure stores comply, Whole Foods relies on "scorecards" that evaluate everything from the accuracy of signage to the proper recording of theft, or "shrink."
Some employees, who walk through stores with managers to ensure compliance,** describe the system as onerous and stress-inducing**. Conversations with 27 current and recently departed Whole Foods workers, including cashiers and corporate employees — some of whom have been with the company for nearly two decades — say the system is seen by many as punitive. -BI
Terrified employees report constant fear over losing their jobs over the OTS "scorecards," which anything below 89.9% can qualify as a failing score - resulting in possible firings.
'Seeing someone cry at work is becoming normal': Employees say@WholeFoods uses "scorecards" to punish employees for failing to comply with its inventory management system pic.twitter.com/m16jHKznnW
— Business Insider (@businessinsider) February 1, 2018
Store managers test employees twice weekly, according to company documents, while corporate employees from the store's Austin, Texas headquarters conduct monthly walkthroughs which stores must themselves pass.
"I wake up in the middle of the night from nightmares about maps and inventory, and when regional leadership is going to come in and see one thing wrong, and fail the team," a supervisor at a West Coast Whole Foods told Business Insider. "The stress has created such a tense working environment. Seeing someone cry at work is becoming normal."
Despite the heart-palpitating shortcomings of the OTS system, employees, supervisors and industry analysts have said that Whole Foods' previous inventory management system was inefficient and needed to be updated.
"Whole Foods had a very decentralized approach, which adds complexity, and complexity adds cost," said Jim Holbrook, CEO of private label and retail consultancy Daymon Worldwide, which recently started working with Whole Foods.
Under the old system, buyers at the store and regional levels had more sway over what to sell. With OTS, however, those decisions have been shifted to the Austin corporate offices - a similar approach to conventional supermarkets like Safeway and Kroger.
It remains to be seen whether this business model — and OTS — will work for Whole Foods. Holbrook believes it will. He said Amazon, which purchased Whole Foods last year for $13.7 billion, would be able to help Whole Foods work out the kinks with OTS.
"Amazon is very good at managing logistics behind the scenes," Holbrook said. "Whole Foods will be a better shopping experience as a result."
Many employees are also hopeful that Amazon will fix the new system.
"We all just hope that Amazon will walk into some stores and see all the holes on the shelf," a 12-year employee of a Midwest Whole Foods said. -BI
In their defense, Whole Foods says it's order-to-shelf (OTS) system allows employees more time to engage with customers - a poorly thought out response.
"The team members are really excited about" order-to-shelf, said Whole Foods EVP of operations David Lannon last year on a call with investors, adding "They're really proud when they're able to achieve that, which is lower out-of-stocks, less inventory in the store, being able to be on the sales floor talking to customers and selling more products."
Boston Whole Foods (Paul Fantoni)
Whole Foods employees around the country thought that was hilarious. One such disaffected West Coast supervisor said "On my most recent time card, I clocked over 10 hours of overtime, sitting at a desk doing OTS work," adding "Rather than focusing on guest service, I've had team members cleaning facial-care testers and facing the shelves, so that everything looks perfect and untouched at all times."
Many Whole Foods employees at the corporate and store levels still don't understand how OTS works, employees said.
"OTS has confused so many smart, logical, and experienced individuals, the befuddlement is now a thing, a life all its own," an employee of a Chicago-area store said. "It's a collective confusion — constantly changing, no clear answers to the questions that never were, until now."
An employee of a North Carolina Whole Foods said: "No one really knows this business model, and those who are doing the scorecards — even regional leadership — are not clear on practices and consequently are constantly providing the department leaders with inaccurate directions. All this comes at a time when labor has been reduced to an unachievable level given the requirements of the OTS model."
Other employees have complained about a lack of training as a key reason as to why the OTS system is failing.
"The problem lies in lack of training and the fact that every single member of management from store level to corporate is over tasked and overburdened," according to one former corporate employee who conducted walkthroughs at East Coast locations.
Some even suggested that Whole Foods corporate had no clue about working in stores - and that the new OTS protocols were absurd.
"In the beginning, we actually had a checklist where one task was to initial that you initialed off another task."
I worked at Whole Foods several years ago and left right as they were implementing on the spot quizzes and inspections for all departments. That family feeling was going away as team leaders left due to poor scores. I think Amazon just added to the issues.
— Bullet Proof Uncle (@BikingTech) February 3, 2018
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When companies implement things like this worker satisfaction and efficiency go way down. Even if the shelves look a little bit nicer, is it really worth it?
This is a company that's supposed to be promoting health, but with this type of thing they are negatively impacting mental helath for the people closest to it. I would not be surprised if this ends up causing them a lot of problems, people who shop can see if employees enjoy the work, and if they don't it might cause them to not come back.
I'd really like to see companies like this, who I actually want to buy products from, start taking care of their people first and their profits second. Profits almost always come when employees are taken care of anyways.
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Thanks for sharing this very interesting article @zer0hedge. Honestly, after reading it I am very surprised at what has happen.
This is a prime example of how not to integrate technology with people for the automation of processes. In this example, it is clear that the technology is having an overall negative effect on staff, and their morale.
This paints a very bad picture for whole foods to the public, and I really hope that it is resolved soon for the sake of the staff and Wholefoods as a company.
Scorecards is another thing that I do not agree with in this sense. The gamification of society is something that I would like to see integrated slowly, through subtle processes, not just straight up giving employees a score like the one above, with such a high fail percentage.
This has given me a good insight in to this company that I did not have before, and I'm glad that I know about this now! Thanks as always for sharing.
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The order-to-shelf system looks to have been incurred by the management of Whole Foods without agreeing with employees who too are part of the company. The employees' services have strengthened the bond customers have got with whole foods. And such a decision without involving them is being unjust to them.
Losing employees who are two decades old with the company over this OTS scorecard shows the company is starting to move to a wrong direction. There is a reason why these employees gave a deaf ear to the new OTS system and this the company should look into to avoid an embarrassing long term damage they will soon get.
Indeed training of management should come into play as such decisions that ought to be taken by the company as a whole will continue being decided wrongly. Customers won't get the 100% service from employees if the employees are working out of fear. And no company wants such a scenario which will affect it's sales.
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"People need to stop producing and stop contributing."
Exactly what they are hoping for. 95 million already beat you to it.
The answer is to produce MORE for ourselves, not them. Build and maintain our own homes and gardens, or work cooperatively with others. The beast is government and you starve it by cutting off it's revenues before it has everyone dependently in it's grasp.
It's not easy. It's HARD. It's WORK.
Not begging for job security and benefits as mandated by government, ensuring that everyone evolves into working for some mega Corp agent representative of big government, is the path less taken.
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First thanks for sharing this article @zer0hedge
Second:-Whole Foods targets upscale clientele. The wealthy trophy wives of Beverly Hills and Newport Beach will still shop there even if it is manned by robots.
The hipster workers that no longer work there would not be able to shop there anyway.
In other words, Amazon was smart by buying Whole Foods rather than, say, Stater Bros., when the robots eliminate jobs. There will always be the rich. Even in Caracas, there are rich, high-ranking members of the Socialist Party while the masses starve. I think it was here on ZeroHedge where there was an article about how some bakeries in Venezuela were using their small allotment of flour to make expensive pastries instead of bread.
Bezos knows what's up.
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@Zer0hedge..bro The snowflakes are melting under the stress of being. They need a safe place to collect themselves, but that would be on company time. So they melt?
Are we suppose to feel sorry for them or is this an examination of the end of the American work ethic?
I believe the term snowflake is appropriate for this new era. From the New Normal era to the Snowflake era. It's a good example of the constant insanity foisted upon the American mind.
Communist defeatism is now chanted loud and clear across the nation, but realist continue living their lives, leaving the communist behind.thank you for sharing with us..
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I Had a food business for years. Employees working at that level are totally unaccountable, lazy, careless....... no matter what you do they will fuck up your business!!!!! You have no idea how bad it is
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Styles in running the management in reality different from each other. Sometimes a burdensome style, but good for business sustainability. I personally prefer people oriented leadership
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The pressure and stress that an employee is submitted to is unbelievable. The salary is important for sustainability, but if you lose your job, nowadays you are very susceptible at never getting one ever again, especially if you are over 35 years old.
So the days get harder and harder to pass and the individual gets frustrated and tired, which is reflected in the suicide rate.
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If the employees only think about highscores they won't do very good work. These kind of things are usually done as a reason to fire people, not to increase sales or productivity. Thank for posting @zer0hedge!
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well post dear, i like it,,,thanks for shareing.
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well post keep it up..... thanks for shareing
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Bullet Proof Uncle tweeted @ 03 Feb 2018 - 00:42 UTC
Business Insider tweeted @ 01 Feb 2018 - 15:52 UTC
Disclaimer: I am just a bot trying to be helpful.
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Employees have 10 hours overtime to fill in score cards. Sounds like a total waste of time from a business perspective.
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Micromanagement is never a good thing at it is only going to make things more tyranic. WTC crypto may change this but i don't think Amazon will adopt the tech any soon. Amazon bought a company with thin profit margins and they are only going to suffer because they left their home grounds so that they can create world domination.
FAANG stocks ste all reaching for an end very fast very soon. I petso ally think Apple would be the last yo fall.
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Great read! Did the OTS card system increase or decrease the sales? I dont think customers like crying employees or a stressed atmosphere.
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In our society , food is a enjoyment & opportunity for creativity but many part of the world food is necessity
That is too rare for the hunt to be enjoyment .
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That’s what happens when the bean counters end up running the factory.
Been there done that.
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restemeed and upvote
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good post dear thanks for sharing..i like your all.post...
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