From Blind to Observable: The first step towards smarter warehousing
July 9, 2025
In the modern age of logistics, the warehouse is no longer a static storage space - it’s a dynamic environment at the heart of the supply chain. Yet, many warehouses today still operate in the dark. These "blind warehouses" lack the visibility, data, and systems needed to react quickly, predict disruptions, or make data-informed decisions.
Limited visibility with Blind warehouses
Blind warehouses are characterised by limited visibility into operations. Inventory counts may be outdated, workflows are manual, and decisions rely on human guesswork or historical trends rather than real-time insights.
Why Blind warehouses fall behind:
- Inventory inaccuracies: 46% of small to medium sized warehouses report that inaccurate inventory counts cause major fulfilment delays.
- Lost productivity: Employees spend unnecessary hours locating stock or manually inputting data.
- Delayed decisions: Without a clear operational picture, response times to disruptions are slow.
- Cost inefficiencies: Overstocking or stockouts often occur due to poor forecasting and limited data.
- Fragmented data: Warehouses often gather data in pieces, leading to disconnected insights that fail to represent the full picture.
The reality is clear: a lack of visibility is no longer sustainable. As customer expectations around speed and accuracy rise, blind decision-making becomes a liability.
What does it mean to become an Observable warehouse?
An Observable warehouse collects and records real-time data from all parts of its operations. This includes:
- Inventory movement and placement
- Autonomous robot paths and performance
- Warehouse environmental conditions
- Inbound/outbound logistics and cycle times
- Labour allocation and productivity
Being observable doesn’t require full automation overnight. It means implementing systems that can provide visibility through sensors, IoT devices, AMRs (Autonomous Mobile Robots), computer vision, or digital twin platforms.
Key shift: Observable warehouses turn static assets into dynamic sources of insight.
"The disruption caused by moving from a blind to an observable warehouse is significant. It’s a complete change of paradigm." The Journey to Adaptive Warehouses (2025), Dexory
The benefits of visibility
Becoming an Observable warehouse is the foundation for all other advancements. Here are several benefits:
- Faster, smarter decisions: Managers gain immediate insights to prioritise tasks or reroute workflows.
- Increased productivity: Time spent searching, scanning, and checking can be replaced with actionable data.
- Reduced waste and errors: Real-time data reduces the risk of duplication, overstocking, or misplaced inventory.
- Foundation for AI and automation: Visibility enables the implementation of intelligent systems that require real-time data to operate effectively.
For example: manual processes typically yield 1 error per 300 items counted - compared to just 1 error per 3 million scans with barcode systems.(1)
"Without visibility, AI can’t function. And without AI, true warehouse adaptation isn’t possible." The Journey to Adaptive Warehouses (2025), Dexory
Industry trends driving the need for observability
A few big changes in the industry are driving the move toward more Observable warehouses:
- E-commerce growth: Faster delivery expectations mean warehouses must be more agile.
- Labour shortages: Observable warehouses help optimise limited human resources.
- Supply chain volatility: Data visibility enables real-time responsiveness.
According to a 2025 McKinsey report(2), companies that invested in real-time warehouse visibility were 33% more likely to exceed customer expectations and reduce fulfilment costs.
Don’t let lack of visibility hold you back
Warehouses can no longer afford to operate without clarity. The first step toward transformation is simple: see clearly. When you do, every other improvement becomes not just possible, but inevitable.
Dexory is already helping warehouses across industries make this critical shift. The journey from blind to observable isn’t just a technology upgrade - it’s a mindset shift toward continuous improvement.
(1)https://www.finaleinventory.com/barcode-inventory-system/warehouse-barcode-scanner
(2)https://www.mckinsey.com/capabilities/operations/our-insights/supply-chain-4-0-in-consumer-goods