Supply chains are becoming increasingly fragmented, facing a growing array of disruptions, and warehouses are feeling the strain, writes guest columnist Andrei Danescu (pictured, below), CEO and Co-Founder, Dexory.
Warehouses sit at the core of global supply chains and are the backbones of these systems, but most simply weren’t built for today’s level of complexity. Labour shortages, volatile demand, and outdated infrastructure are exposing serious weaknesses, and businesses are starting to feel the impact of slower deliveries, rising costs, and mounting inefficiencies.
Geopolitical tensions, shifting customer expectations and tariffs are driving companies to adopt new technologies to stay competitive. It’s why leaders are investing heavily in automation and robotics, with projections showing these technologies could save businesses billions. Yet for most businesses, such transformation doesn’t happen overnight.
These disruptions are prompting organisations to re-evaluate how their warehouses operate. In a world of constant change, the modern warehouse needs to become adaptive, enabling operations to respond to evolving demands in real time. Adaptability and resilience are no longer optional, warehouses need to stay one step ahead by being proactive rather than reactive. To stay competitive, warehouses must shift from operating blindly to becoming truly adaptive – using data, automation, and real-time insight to stay ahead of disruption.
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.
With no automated data-gathering or live insights, decisions are slow, reactive, and prone to error. While these warehouses benefit from lower upfront technology costs and minimal training requirements, they are increasingly vulnerable to inefficiencies, disruptions, and lost revenue. As customer expectations rise, the drawbacks of manual, disconnected processes are becoming more costly than the technologies they seek to avoid.
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. RFID tags enable an increase in inventory accuracy. With autonomous data-gathering systems warehouses are able to reach a new level of visibility and data capture at scale. However, while data collection improves dramatically, insight generation and decision-making still rely on humans. These systems operate in silos, requiring teams to interpret data and take action manually.
Empowering Decisions
In the intelligent warehouse, the introduction of AI and machine learning transforms data into proactive insights. 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 is still required to validate insights and decisions, the process becomes far more agile and scalable. Forecasting errors are reduced, costs are better controlled, and warehouse operations become more responsive to market shifts.
The adaptive warehouse represents the final stage: a self-optimising environment where AI agents act autonomously to manage operations in real time. These intelligent agents can assign tasks, adjust workflows and reroute operations in response to disruptions, all without human intervention. Rather than allocating truck gates based on fixed rules, adaptive systems assess real-time conditions and dynamically assign slots to reduce dwell time. Inventory slotting strategies are updated automatically based on live demand and predicted patterns, and worker schedules can be adjusted in real time to meet changing needs.
Applying AI-driven forecasting to supply chain management can reduce errors, underscoring the potential for adaptive systems to significantly improve responsiveness and accuracy. This model not only boosts efficiency and accuracy but also supports workforce transformation. As manual tasks are automated, employees shift into supervisory or innovation-focused roles. Additionally, adaptive systems contribute to sustainability by minimising waste and energy use.
Powering Smarter Warehouses
The ever-changing supply chain landscape means warehouse demands will continue to evolve. Companies that build flexibility, agility, and smarter decision-making into their warehouse operations will be the ones that stay ahead. Key ingredients for success include tools like real-time data and AI-driven automation, which are no longer optional – they’re essential for staying competitive and meeting new standards for accuracy, speed, and resilience. Many companies begin their journey operating as blind warehouses. What truly matters is taking the right steps to transform into intelligent, adaptive warehouses capable of responding to change and maintaining a strong competitive edge.
