Incident: Warehouse System Upgrade Leads to Stock Shortages at Waterstones

Published Date: 2022-08-09

Postmortem Analysis
Timeline 1. The software failure incident at Waterstones happened when the retailer upgraded to a new system called Blue Yonder several weeks ago, leading to stock shortages [131129]. 2. Published on 2022-08-09. 3. The software failure incident at Waterstones likely happened in June or July 2022.
System 1. Blue Yonder technology system [131129]
Responsible Organization 1. Waterstones' decision to upgrade to the new system called Blue Yonder without proper implementation planning and testing [131129]
Impacted Organization 1. Waterstones chain, including its staff, authors, and customers [131129] 2. Publishers, especially authors whose books were impacted by the distribution issues [131129]
Software Causes 1. The software cause of the failure incident at Waterstones was the upgrade to a new system called Blue Yonder, which led to problems with warehouse technical systems and stock shortages [131129].
Non-software Causes 1. Under-buying of some titles by the booksellers, which was not related to the new system upgrade [131129]. 2. Ordering glitches leading to stock shortages [131129].
Impacts 1. Delays in fulfilling customer orders and stock shortages at Waterstones stores, leading to frustrated staff, authors, and customers [131129]. 2. Authors experiencing a devastating impact on book sales and promotion due to distribution issues, with some books not being in stock at Waterstones despite being featured as book of the month [131129]. 3. Smaller publishers facing challenges due to the distribution issues caused by the software failure incident [131129].
Preventions 1. Conducting thorough testing and quality assurance before implementing the new Blue Yonder system at Waterstones to identify and address any potential issues [131129]. 2. Providing comprehensive training to staff members on how to use the new system effectively to minimize errors and disruptions during the transition period [131129]. 3. Implementing a phased rollout of the new system to mitigate the risk of creating a backlog of orders and ensuring a smoother transition process [131129].
Fixes 1. Conduct a thorough review and testing of the Blue Yonder system to identify and rectify any bugs or issues that are causing the backlog of orders and stock shortages [131129]. 2. Implement a temporary solution to process the backlog of orders quickly and efficiently while the main system is being fixed [131129]. 3. Provide additional training and support to staff members to navigate and work around the system issues until a permanent solution is in place [131129].
References 1. Waterstones spokesperson 2. Sam Missingham, publishing commentator and founder of The Empowered Author book marketing service 3. Waterstones booksellers 4. Edinburgh-based author Sara Sheridan 5. Susannah Wise, author 6. Customers 7. Smaller presses 8. The article itself [131129]

Software Taxonomy of Faults

Category Option Rationale
Recurring one_organization (a) The software failure incident having happened again at one_organization: - Waterstones experienced a software failure incident related to their warehouse technical systems after upgrading to a new system called Blue Yonder [131129]. (b) The software failure incident having happened again at multiple_organization: - There is no specific mention in the provided article about similar incidents happening at other organizations.
Phase (Design/Operation) design, operation (a) The software failure incident in the Waterstones case can be attributed to the design phase. The article mentions that Waterstones upgraded to a new system called Blue Yonder, which led to stock shortages and a backlog of unfulfilled orders. The spokesperson from Waterstones acknowledged that the backlog of orders was created during the implementation period of the new system [131129]. (b) Additionally, there are indications of operational issues contributing to the software failure incident. Waterstones staff and authors reported that the system upgrade led to problems with deliveries, order processing, and stock availability. One bookseller mentioned that orders were not matching up properly on the system, resulting in difficulties in getting books for customers. This suggests that operational challenges, such as outdated systems and order processing issues, played a role in the failure [131129].
Boundary (Internal/External) within_system (a) within_system: The software failure incident at Waterstones was primarily within the system, as it was caused by the upgrade to a new system called Blue Yonder for managing stock distribution from the warehouse [131129]. The backlog of unfulfilled orders and stock shortages were a result of issues with the new system implementation, causing delays in getting stock out to shops and fulfilling customer orders. The problems with deliveries and order processing were mentioned to be a result of the upgrade and issues within the system [131129]. The software upgrade led to orders not matching up properly on the system, resulting in the inability to get books for customers and stock for the stores [131129]. (b) outside_system: There is no explicit mention in the articles of the software failure incident at Waterstones being caused by contributing factors originating from outside the system. The primary focus of the incident was on the challenges and issues arising from the internal system upgrade to Blue Yonder and the resulting backlog of orders and stock shortages within the system [131129].
Nature (Human/Non-human) non-human_actions, human_actions (a) The software failure incident at Waterstones was primarily due to non-human actions, specifically the upgrade to the new system called Blue Yonder which led to stock shortages and a backlog of unfulfilled orders [131129]. The issues with the warehouse technical systems and stock distribution were a result of the system upgrade rather than direct human error. (b) Human actions also played a role in the software failure incident at Waterstones. The decision to upgrade to the new system, as well as potential issues with under-buying certain titles, were choices made by humans within the organization [131129]. Additionally, the frustration expressed by staff, authors, and customers on social media highlighted the impact of human decisions and actions on the situation.
Dimension (Hardware/Software) hardware, software (a) The software failure incident occurring due to hardware: - The article mentions that Waterstones experienced stock shortages and fulfillment issues after upgrading to a new system called Blue Yonder, indicating a problem with the warehouse technical systems [131129]. - The upgrade to the new system led to a backlog of unfulfilled orders, suggesting issues with the hardware or technical infrastructure supporting the new system [131129]. (b) The software failure incident occurring due to software: - The article highlights that Waterstones upgraded the system that manages stock distribution to Blue Yonder technology, which resulted in stock flow issues and a backlog of orders [131129]. - The problems with deliveries and order processing were attributed to outdated systems being upgraded, leading to issues with orders not matching up properly on the system [131129]. - The software failure incident was exacerbated by glitches in the new system, causing delays in book deliveries and impacting authors and publishers [131129].
Objective (Malicious/Non-malicious) non-malicious (a) The software failure incident at Waterstones does not appear to be malicious. It was a non-malicious failure caused by issues with the upgrade to the new system called Blue Yonder, leading to stock shortages and backlog of unfulfilled orders [131129]. The failure was attributed to technical issues and challenges in implementing the new system, rather than any intentional harm to the system.
Intent (Poor/Accidental Decisions) poor_decisions (a) The software failure incident at Waterstones seems to have elements of poor_decisions. The article mentions that some of the stock issues were not solely due to the new system but also because of under-buying certain titles. The spokesperson mentioned, "Unfortunately, no amount of sophisticated new warehouse systems changes the fact that as booksellers we choose what to buy, sometimes being a little too reticent, sometimes too enthusiastic" [131129]. This indicates that the software failure incident was exacerbated by decisions made in the selection and ordering process, contributing to the stock shortages.
Capability (Incompetence/Accidental) development_incompetence, accidental (a) The software failure incident at Waterstones appears to have occurred due to development incompetence. The article mentions that the retailer upgraded to a new system called Blue Yonder, but faced challenges in getting stock out to shops and fulfilling customer orders. The spokesperson from Waterstones acknowledged that a backlog of orders was created during the implementation period, leading to delays in processing orders. Additionally, there were issues with orders not matching up properly on the system, resulting in difficulties in getting books to customers and shops [131129]. (b) The software failure incident at Waterstones also seems to have elements of accidental factors contributing to the failure. The article mentions that the problems with the warehouse systems' upgrade led to very few books being delivered to shops, impacting authors whose newly released books were not in stock at the chain. The issues with distribution had a devastating impact on authors, with some running out of books due to ordering glitches. The timing of these distribution issues around the release of new books was described as bad timing, affecting promotions and availability of new releases [131129].
Duration temporary (a) The software failure incident in the Waterstones case appears to be temporary rather than permanent. The issue arose after the retailer upgraded to a new system called Blue Yonder, which led to a backlog of unfulfilled orders and stock shortages. The spokesperson mentioned that the backlog of orders was created during the implementation period of the new system, indicating that the failure was due to specific circumstances related to the upgrade process [131129]. Additionally, the article mentions that the chain expects to have caught up with the backlog by the end of August and anticipates benefiting from the new platform in September, suggesting that the failure is not permanent but rather a temporary setback caused by the system upgrade [131129].
Behaviour crash, omission, other (a) crash: The software failure incident at Waterstones resulted in a backlog of unfulfilled orders due to a problem with the warehouse technical systems, leading to stock shortages. The new system upgrade to Blue Yonder caused a backlog of orders, preventing the system from performing its intended function of managing stock distribution efficiently, resulting in a crash scenario where the system was not able to fulfill customer orders as expected [131129]. (b) omission: The software failure incident also led to the system omitting to perform its intended functions at instances. For example, booksellers reported not receiving deliveries for over a month, having to order emergency stock directly from publishers, and facing issues with orders not matching up properly on the system. This omission of expected functions caused disruptions in the supply chain and affected the availability of books in Waterstones stores [131129]. (c) timing: While the system eventually started operational with stock flowing to bookshops and customers, the timing of the incident was off. The backlog of orders created during the implementation period caused delays in processing orders, resulting in customers experiencing long waits of four to six weeks and preorders not being delivered on publication day. This timing issue indicates that the system was performing its intended functions but too late, causing inconvenience to customers and authors [131129]. (d) value: The software failure incident did not directly result in the system performing its intended functions incorrectly. The issues primarily stemmed from the backlog of orders, stock shortages, and delays in processing, rather than the system providing incorrect information or executing functions inaccurately [131129]. (e) byzantine: The software failure incident did not exhibit characteristics of a byzantine failure where the system behaves erroneously with inconsistent responses and interactions. The primary issues were related to the backlog of orders, stock shortages, and delays in processing, rather than the system providing conflicting or inconsistent information to different stakeholders [131129]. (f) other: The other behavior observed in this software failure incident was the impact on authors and publishers due to the system issues. Authors like Sara Sheridan and Susannah Wise faced challenges with their book releases as Waterstones ran out of stock due to ordering glitches. This additional consequence of the software failure incident highlights the broader implications beyond just the operational disruptions within Waterstones [131129].

IoT System Layer

Layer Option Rationale
Perception None None
Communication None None
Application None None

Other Details

Category Option Rationale
Consequence delay, non-human, theoretical_consequence, other (a) unknown (b) unknown (c) unknown (d) unknown (e) delay: The software failure incident led to delays in fulfilling customer orders, with a backlog of orders being created during the implementation period [131129]. (f) non-human: The software failure impacted the distribution of books to Waterstones shops, resulting in stock shortages and affecting authors whose newly released books were not in stock at the chain [131129]. (g) unknown (h) theoretical_consequence: There were potential consequences discussed, such as the impact on authors whose books were not in stock at Waterstones due to the distribution issues caused by the software failure [131129]. (i) other: The software failure incident also had a knock-on effect on publishers, particularly smaller presses, who were unable to weather the distribution issues as well as larger publishers [131129].
Domain information (a) The failed system in the Waterstones incident was related to the production and distribution of information. The article mentions that Waterstones upgraded its system that manages stock distribution to a new system called Blue Yonder, which led to stock shortages and a backlog of unfulfilled orders [131129]. The issues with the new system caused delays in getting stock out to shops and fulfilling customer orders, impacting the distribution of books and other products in the information industry. Additionally, the problems with the warehouse systems' upgrade resulted in very few books being delivered to shops, affecting authors whose newly released books were not in stock at the chain [131129].

Sources

Back to List