Global supply chains have grown to become highly complex and expansive over the years, and warehouses – central to these operations – are feeling the effects of this fragmentation, writes Andrei Danescu, CEO and Co-Founder at Dexory. The combination of tariffs, onshoring, and a host of other external factors is putting immense pressure on the warehouse, which was never designed to handle this kind of tension. They’re feeling the strain from all sides, whether it’s volatile demand, shifting customer expectations, or persistent labour shortages – all of which are creating a mountain of inefficiencies.
To cope with these strains, companies like Amazon are investing huge amounts in automation and robotics. Morgan Stanley estimates these technologies could save businesses up to $10 billion annually by 2030. However, these challenges can’t be solved overnight by chucking money at them. For real change to take effect, there needs to be a transformation of the warehouse to become adaptive and respond in real time. In this environment, proactivity is far more valuable than reactivity, and adaptability and resilience are essential for survival. To remain competitive, modern warehouses must apply data, automation, and real-time insights to shift from operating blindly to continuously adapting to change.
Beginning with the blind warehouse
Many traditional warehouses still operate with limited real-time visibility. Inventory is tracked using paper-based systems or spreadsheets, and stock counts are updated only during periodic audits. This leads to frequent errors such as misplaced items, stockouts, and overstocking.
Without automated data or live insights, decisions are slow, reactive, and error prone. While these warehouses have lower upfront technology costs and training requirements, they face growing inefficiencies, disruptions, and lost revenue. As customer expectations rise, manual processes now cost more than the technology they avoid.
Unlocking clearer insights with an observable warehouse
The first step toward modernisation is visibility. In the observable warehouse, real-time tracking tools such as autonomous inventory systems, barcodes, and warehouse management systems replace manual processes and provide more accurate views of stock and space.
While autonomous data-gathering systems significantly enhance visibility and data capture, insights and decisions still rely on human interpretation. These systems only operate in silos, requiring manual action, which keeps decision-making reactive.
Enhancing decision-making through the intelligent warehouse
In the intelligent warehouse, the introduction of artificial intelligence and machine learning transforms data into proactive insights. AI models forecast demand, flag anomalies, and recommend resource allocation strategies, helping teams act faster and more accurately.
This stage introduces basic automation of repetitive tasks like inventory tracking and slotting – freeing employees for higher-value activities. While human oversight remains necessary, processes become more agile and scalable. Forecasting errors are reduced, costs are better controlled, and warehouse operations respond more effectively to market shifts. Realising full autonomy in the adaptive warehouse The adaptive warehouse is the final stage: a self-optimising environment where AI agents autonomously manage and improve operations in real time. These intelligent agents assign tasks, adjust workflows, and reroute operations without human intervention. For example, instead of allocating truck gates based on fixed rules, adaptive systems assess real-time conditions to reduce dwell time. Inventory slotting strategies automatically based on demand forecasts, and worker schedules adjust dynamically to meet changing needs.
According to McKinsey & Company, applying AI-driven forecasting can reduce supply chain errors by 20-50%, underscoring the potential of adaptive systems to improve responsiveness and accuracy. Beyond efficiency gains, automation shifts employees into supervisory and innovation focused roles.
Enabling smarter warehouses with technology
Businesses that are adaptive, flexible, and agile will be the ones to survive in today’s ever-changing supply chain environment. Real-time data and AI-driven automation are no longer optional, or just hype – they’re essential to meeting modern operational demands.
Every company starts somewhere, often as a ‘blind’ warehouse with limited visibility. What matters is taking continuous steps towards becoming adaptive and being able to respond to change quickly and effectively to stay competitive.
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