Blue Yonder unveils AI upgrades for retail supply chains

Blue Yonder has rolled out new AI-driven updates across its retail supply chain planning and execution products, with a focus on forecasting, inventory management, order orchestration, returns handling, warehouse operations and logistics.

The company said retailers face higher costs and operational complexity. It also pointed to fragmented processes across planning, merchandising, fulfilment and returns.

"Increasing customer demands for speed, personalization and convenience are driving the need for connected, data-driven supply chain solutions that deliver speed and precision while protecting a company's bottom line," said Duncan Angove, CEO, Blue Yonder. "By leveraging AI-driven capabilities, unified decisioning and an intelligent multi-enterprise network, our latest innovations help retailers adapt to market volatility, optimize resources and deliver delightful customer experiences at scale."

Planning updates

Blue Yonder said it has expanded the use of AI agents in planning. The company positioned the work as part of a broader effort to link planning decisions more closely with operational execution.

The updates cover Merchandise Financial Planning and Assortment Planning. Blue Yonder said the agents identify profit risks and recommend actions. It also said the tools build assortments using trend analysis.

Blue Yonder also introduced a mobile companion app for Allocation and Replenishment. The company said planners can review daily store orders and adjust allocations using a mobile device. It also said the app supports quantity confirmation while away from a desk.

The company updated its Inventory Ops Agent. Blue Yonder said the agent evaluates whether inventory strategies meet business outcomes. It also said the agent provides suggestions for changes.

Blue Yonder added natural language prompts for multi-sourcing setup in the Inventory Ops Agent. The company said this change speeds up updates to sourcing configurations.

Blue Yonder also described enhancements to its Shelf Ops Agent for micro-space planning. The company said the agent can automate planogram edits and product substitutions using natural language. It also said the agent provides visibility into performance.

Orders and returns

Blue Yonder has also expanded features in order management and returns. The company said it aims to provide real-time inventory visibility across channels and more consistent fulfilment decisions.

Blue Yonder updated its sourcing simulator and rebalancer. It said the changes support order-driven demand planning across fulfilment nodes. The company also said the tools can redistribute orders across locations. It added that this work improves order placement and fill rates.

The company also updated its Smart Disposition engine. Blue Yonder said it added new AI models that predict resale value across locations. It also said the engine routes returned inventory to a location it identifies as optimal for margin recovery.

Blue Yonder said it has also enhanced Order Management with native AI agents. It introduced a fulfilment agent. The company said the agent provides real-time inventory visibility and automated recommendations for sourcing and fulfilment issues.

Blue Yonder also described a customer service agent within Order Management. The company said the agent supports customer-facing teams in handling inquiries and resolving order issues.

Blue Yonder cited performance data from the 2025 Thanksgiving weekend. It said it surfaced inventory availability to customers in as quickly as 10-12 milliseconds. It also said it estimated delivery dates for over 1.2 billion SKUs.

Store merchandising

In merchandising, Blue Yonder said its Micro Space Planning product now uses AI-based orchestration and recommendations. The company said the product generates shelf and display plans that reflect assortment decisions at store level.

Blue Yonder described planogram optimisation using its built-in machine learning engine. It said the system uses rough-cut assortment data and market-specific demand requirements to generate localised planograms at scale.

For execution, Blue Yonder introduced a mobile app for store associates. The company said associates receive planograms on their phones and can carry out implementations with more accuracy.

For compliance, Blue Yonder said the same app lets associates take an image of a new display and send it back to planners. The company said management can access this information instantly and use it in future store-specific planograms.

Warehouse and logistics

On the execution side, Blue Yonder said it has updated its Warehouse Management Solution for retailers in soft-lines, grocery and general merchandise. The company said the system supports pull-based streaming. It also said the approach improves agility, increases capacity utilisation and supports continuous operations.

Blue Yonder said it enhanced its Warehouse Ops Agent. It said the agent provides explainable insights and pre-shift reviews. It also said the agent supports resource and slotting plan adjustments designed to maximise throughput.

The company also referenced integration with 3D load-building and transportation route and load optimisation. It did not provide detail on product packaging or commercial terms.

Blue Yonder said it optimised over 23 million human tasks in warehouses in the first 10 months of 2025.

In logistics, Blue Yonder said it has enhanced its Logistics Ops Agent. The company said it added a modern, persona-based user experience. It also said the agent can flag issues such as unrouteable loads and suggest resolutions such as backhaul opportunities.

An IDC analyst framed the updates as part of a wider shift towards tighter coordination of retail planning and execution.

"By embedding AI across its end-to-end solutions, Blue Yonder enables retailers to unlock greater value and agility across their operations," said Jordan Speer, Research Director, Worldwide Retail Product Sourcing, Fulfilment and Sustainability Strategies, IDC. "Through innovations that allow planning and execution to work essentially in tandem by letting AI uncover constraints, disruptions, accurate inventory counts, and so forth, Blue Yonder surfaces actionable intelligence for quick, optimal decisions that cut waste and cost while creating opportunity to serve the customer better while driving profitable growth."

Blue Yonder also pointed to its Blue Yonder Network, which it said connects retailers with more than 172,000 global trading partners. The company said it will show the latest updates at NRF 2026: Retail's Big Show.