Retail warehouse optimisation: visibility to intelligence

Warehouse space is not just about storing and moving products. Making every square metre and every process perform under pressure is what matters. This pressure is increasing. E-commerce is growing, labour costs are rising, and global uncertainty and tariffs are making operations less predictable.

Customer expectations are climbing too. 56% of online shoppers aged 18–34 expect same-day delivery.

71% are willing to pay extra for next-day delivery. Warehouse space is also getting more expensive. In the U.S., average costs rose from $7.96 per-square-foot in 2022 to $8.31 in 2024.

Planning and staying competitive through all this is challenging without complete, real-time data and agile decision-making. Inaccurate information is costly. In environments with frequent peaks and volatile demand, it leads to higher costs, slower processes, fines, and a poor customer experience.

This article explores how retail warehouse managers can adapt using advanced technologies like robotics and AI.

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A new level of visibility

Retail warehouses operate in highly dynamic environments. During Black Friday 2024, e-commerce shipments nearly doubled compared to a normal day. In the days after Christmas, returns increased by up to 50%.

Stock errors has a direct revenue impact.

That gap hits the bottom line fast. Imagine a product that goes viral on TikTok. If you think you have $10 million of stock but only have $7 million, the revenue impact is immediate.

Having products in stock is not enough on its own. Teams need to know exactly where each product is. For groceries, that means having stock ready in the right order - oldest first based on expiry date.

In fast-moving retail warehouses, not having the right stock in the right place at the right time creates a cascade of problems. Instead of a 2-3 minute pick, teams must log the issue. Then pull a forklift driver off another task, locate the pallet, and replenish the position. That's “rework” - activity that generates no revenue.

Manual inventory scanning and “partial automation” solutions are no longer enough. Barcodes and RFID tags can't keep up with the demands of modern retail warehouses.

These traditional tools have served the industry for decades. They rely heavily on human input and are prone to errors. Over time data decays - becomes outdated, incomplete, or inconsistent.

Automation, AI, and robotics are enabling real-time visibility. Teams can now move toward fully data-driven operations.

Our autonomous robot operates at heights of up to 18 metres. It moves through the warehouse constantly scanning its surroundings, processing up to 10,000 pallets per hour, day or night. It gathers thousands of data points. DexoryView processes them through an AI-powered platform that creates a live digital twin of the warehouse.

This replica reflects real-time conditions. Teams can monitor inventory, track space use, and identify bottlenecks - without interrupting daily operations.

The data is highly granular. Teams can filter by expiry date, lot number, or specific product. They can locate an XS brown jacket and pinpoint its exact storage location.

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From visibility to warehouse intelligence

Real-time visibility is only the first step. The next stage is warehouse intelligence. That means using high-quality data and AI-driven insights to make faster, data-driven decisions across the entire business.

With access to continuous, reliable data, teams can move from reactive problem-solving to proactive operations. Instead of identifying issues after they impact performance, they can detect and resolve them as they emerge. Real-time data is valuable across the whole organisation. It gives floor teams, demand forecasting, procurement, and analysts actionable insights to identify trends.

This is especially critical during peak periods, when demand spikes, order volumes increase, and returns add further complexity. Better data and insights means better decisions. Teams can focus on fast-moving SKUs, optimise picking paths, and keep high-demand products in the right place.

The result is better planning, fewer investigations, lower waste costs, and smoother workflows across the warehouse.

Ultimately, this shift transforms how retail warehouses operate. The focus shifts from knowing what’s in stock to using real-time insights to optimise performance.

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Real-life financial impact

Transitioning to an intelligent warehouse isn't just a technological upgrade; it’s a financial one. It reduces operational costs and unlocks measurable savings. According to a Total Economic Impact™ (TEI) study by Forrester Consulting, DexoryView can unlock significant savings over three years:

• $639,748 saved over three years by reducing fines from delayed or incomplete orders
• $216,370 saved through improved space use
• $293,868 saved by reducing racking damage through faster issue detection.

Real-world operations reflect these numbers today. Company Shop Group (CSG) used DexoryView to achieve a level of accuracy previously thought impossible. During the trial period alone, they identified and added over 300 "hidden" pallets to their Warehouse Management System (WMS).

Martin Upton, Operations Director at Company Shop Group, said: “Fast, flexible, and integrates seamlessly with our existing WMS. The system has also significantly increased visibility into our Dispatch area - something we had limited access to before. This has dramatically increased efficiency and enabled smoother product flow throughout our operation.”

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Conclusion

We are conscious that implementing these technologies comes with its challenges. One critical lesson from our partners: solutions must be trusted and must improve people's daily work without disrupting it.

Speed matters, but so does performance. Our robots are non-intrusive and move at walking speed. They detect people from 3 meters away and can operate between shifts or at night.

Retail warehouses are dynamic and complex. Any tool introduced must answer a real need, be intuitive, reliable, and built for the long-term. It has to feed into the rest of the tech stack, and that is exactly what Dexory does. 

High-quality data is fundamental to performance. We also know that robotics and AI can still feel like new territory. We work closely with customers, test solutions together, and are committed to advancing the industry sustainably and at scale. 

To learn more about our technology, check out this overview video on how our robots and digital product works.