What I Learned About Warehouse Inefficiencies at Manifest (And Why It Matters)

When I walked into Manifest, I knew my understanding of warehouses, warehouse operations, and warehouse tech was, at best, basic. But after attending, I quickly realized just how much more there is to learn. (Cue Aladdin’s A Whole New World playing in the background.) So, it’s time for another series, this one diving into warehousing, the challenges that come with it, the tech that’s available to help, and the operations behind it all.

One of the biggest takeaways from my discussions at Manifest was just how prevalent warehouse inefficiencies are and how they impact operations of all sizes. And the numbers? They’re staggering.

Did you know that, on average, it takes four hours to find a missing item in a warehouse? When Bob from DotAI dropped that stat, I was floored. Four hours. That’s half a workday wasted on a single misplaced item. It sounded unreal, but as I met with more warehouse tech companies, they all backed it up. Warehouse inefficiencies like bad warehouse layout, lack of real-time visibility and manual inventory tracking don’t just slow things down, they cost businesses serious money, create delays, and frustrate workers and customers alike.

Luckily, tech companies are stepping up to tackle these problems head-on. AI-powered solutions, robotics, and automation tools are transforming warehouse operations, eliminating waste, and driving efficiency. Companies are rolling out real-time visibility, autonomous tracking, and AI-driven automation that reduce errors and improve overall workflow.

The Hidden Costs of Warehouse Inefficiencies

Warehouse inefficiencies go way beyond just misplaced inventory. They create a domino effect of problems:

  • Wasted Time & Labor: Workers spend hours searching for lost items, slowing down operations and driving up labor costs.

  • Delayed Shipments: Poor organization and inefficient picking processes cause delays that ripple through the entire supply chain.

  • Customer Dissatisfaction: Late or incorrect shipments lead to unhappy customers, bad reviews, and lost business.

  • Financial Drain: To compensate for inefficiencies, warehouses often overstock inventory, tying up capital and increasing storage costs.

With inefficiencies draining time and money, it’s clear that warehouses need a smarter approach. This is where technology comes in.

How Tech Can Help

Thankfully, warehouses no longer have to rely on outdated, manual processes. Technology is completely reshaping warehouse management in several key ways.

AI, Robotics & Inventory Automation

Autonomous robots, drones, and AI-powered systems are eliminating inefficiencies in inventory tracking and order fulfillment. Dexory’s automated data capture solutions provide real-time inventory visibility, reducing human error and saving significant operational time. Corvus Robotics' autonomous drones scan and update stock levels overnight, ensuring inventory data remains accurate without disrupting daily operations.

For example, MSI Surfaces used Corvus Robotics' drone technology to speed up cycle counting by 20x, recover over $1M in lost goods, and improve inventory accuracy to 99%, all while reallocating over $100,000 in labor costs to more strategic tasks.

AI-powered tracking is also making a huge impact. DotAI, in partnership with Würth Industry North America (WINA), is rolling out AI-driven tracking to improve inventory accuracy and streamline manufacturing operations. Their system automates replenishment, prevents shortages, and helps warehouses avoid overstocking. By leveraging AI’s predictive capabilities, businesses can catch potential supply chain issues before they turn into costly problems.

Optimizing Inventory Accuracy with AI

Inventory accuracy is one of the biggest pain points for warehouses. Dexory’s AI-driven digital twin solution helps warehouses maintain 99% stock accuracy, prevent production delays, and reduce WMS errors by 15%. Warehouses using Dexory’s system have saved up to six hours per day by eliminating time spent searching for misplaced inventory.

Another standout solution I saw firsthand at Manifest was Corvus Robotics' Corvus One Autonomous Inventory Management System. This AI-powered drone solution is refining cycle counts, improving pallet storage, reducing discrepancies, and optimizing picking accuracy, all without relying on labor-intensive manual processes.

What This Means for Your Business

Warehouse technology isn’t just for massive distribution centers. Businesses of all sizes can benefit from automation and AI-driven solutions:

  • For Small & Mid-Sized Warehouses: Cloud-based AI solutions and modular automation tools (autonomous robots, automated sorting systems, even conveyors) make it easier than ever for smaller warehouses to implement smart tech without massive upfront investments. Some robotics companies even offer subscription-based models to keep costs manageable for businesses that aren’t at the enterprise level.

  • For Enterprise-Level Operations: Large-scale warehouses can integrate AI, robotics, and predictive analytics to manage thousands of SKUs more efficiently, reduce waste, and increase throughput.

  • The ROI Factor: While implementing new technology requires an investment, companies that embrace automation see dramatic reductions in labor costs, fewer errors, and faster operations, proving that smart warehouse solutions offer long-term savings and a competitive edge.

The Future of Warehousing is Smart, Not Scattered

Going to Manifest and learning directly from people who spend their days in warehouses was an incredible experience. While I still have a lot to learn, one thing is clear, AI, robotics, and automation are game-changers. These tools aren’t replacing personnel; they’re helping them work more effectively, eliminating repetitive tasks so they can focus on more strategic activities. If you’re still relying on outdated warehouse processes, now’s the time to explore smarter solutions. The future of warehousing isn’t just about keeping up, it’s about staying ahead.

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