SUPPLY CHAIN SOLUTIONS A
midst this, warehouse demand is surging, adding even more strain to operations. Though largely invisible to consumers, warehouses form the backbone of a product’s
journey. Yet most were not built to meet today’s complex and rising demands. Under mounting pressure, critical flaws in warehouses are coming to light, from outdated systems to volatile demand and a shortage of skilled labour. In response to evolving customer demands, and ongoing disruptions, companies are increasingly embracing new technologies to maintain a competitive edge. Major players such as Amazon have invested over $25 million in robotics and AI to streamline operations. But, not every company has the capital to transform instantly, with most needing to navigate a longer, more gradual process. To stay competitive, modern warehouses
must respond in real time. Waiting to react to problems puts a warehouse behind competitors who have built resilience and adaptability into their operations. Smooth operations are no longer enough, true advantage comes from speed, scalability and agility. This edge is only achievable with an adaptive warehouse.
BEGINNING WITH VISIBILITY GAPS IN THE 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-gathering or live insights, decisions are slow, reactive and prone to human 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 costlier than the technologies companies seek to avoid.
ENHANCING OPERATIONS 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. A study by Auburn University’s RFID Lab
found RFID tags can raise inventory accuracy from 63 per cent to 95 per cent. This is just one piece of the broader toolkit. 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. As
UNLOCKING THE POWER OF ADAPTIVE WAREHOUSES TO BUILD
SUPPLY CHAIN RESILIENCE By Andrei Danescu, CEO and Co-Founder, Dexory
Supply chains are braced for further disruptions, from geopolitical tensions and tariffs to labour shortages and other pressing issues
a result, decision-making remains reactive, though more informed.
OPTIMISING DECISIONS WITH AN 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 such as 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.
DRIVING COMPLETE AUTONOMY THROUGH AN ADAPTIVE WAREHOUSE The adaptive warehouse represents the final stage: a self-optimising environment where AI agents act autonomously to manage and improve operations in real time. These intelligent agents can assign tasks, adjust workflows and reroute operations in response to disruptions. All without human intervention. For example, 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
30 SEPTEMBER 2025 | FACTORY&HANDLINGSOLUTIONS
on live demand and predicted patterns, and worker schedules can be adjusted in real time to meet changing needs. According to McKinsey & Company,
applying AI-driven forecasting to supply chain management can reduce errors by 20-50 per cent, 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. Adaptive systems also support sustainability by minimising waste, energy use and resource consumption.
TECHNOLOGY AS THE DRIVER FOR A SMARTER WAREHOUSE
Global supply chains are becoming more complex, requiring companies to embed smarter decision-making, flexibility and agility into their warehouses to stay competitive. With AI-driven automation and real-time data, businesses can ride the challenges while staying competitive in a fast-moving market. Most businesses don’t start with an adaptive warehouse. By treating failures as learning opportunities, they can lay the foundation for long-term success. The focus should be on sustainable gains rather than quick wins.
Dexory
www.dexory.com
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