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Blue Yonder, the AI company for supply chain, today announced its Model Training Factory, built on NVIDIA Nemotron, to accelerate the development of specialized AI agents for the autonomous supply chain. Unveiled at ICON, Blue Yonder's annual customer conference, the Model Training Factory is a repeatable system for fine-tuning and testing highly specialized supply chain models.
Blue Yonder develops Model Training Factory on NVIDIA Nemotron for specialized supply chain AI agents.
Trained models execute complex multi-step supply chain workflows across warehouse management, planning, transportation, merchandising, and network operations.
Hybrid approach: frontier models where breadth needed, custom supply chain models for precision and speed at lower cost.
First models target warehouse management workflows including WMS allocation shorts, inventory exceptions, due-time urgency.
Blue Yonder serves more than 3,000 retailers, manufacturers, and logistics service providers.
First models expected to enter customer production later this year.
"Supply chain has always been an AI domain. Our research into how agentic models perform on real warehouse and planning decisioning is exactly why we know where frontier models hit a wall," said Duncan Angove, CEO, Blue Yonder. "Working with NVIDIA, we're building owned intelligence, not rented intelligence—supply chain models trained on the workflows, telemetry, and decision logic that actually run a warehouse or a planning system. This isn't a one-off fine-tuned model. It's a factory, and it produces purpose-built agents at the speed, precision and cost the autonomous supply chain demands."
Blue Yonder and NVIDIA are working together, fine-tuning Nemotron open-source models for agent development, to build and deploy a system that combines NVIDIA's Nemotron open-source models and NeMo AI tools with Blue Yonder's four decades of supply chain decisioning, data and operational expertise.
Blue Yonder is using NVIDIA's agentic AI stack to build the Model Training Factory: Nemotron open models as the foundation and the NVIDIA NeMo Agent Toolkit for building, evaluating and orchestrating agents. Nemotron's family of model sizes lets Blue Yonder match model size to the job, from compact models tuned for high-frequency warehouse decisions to larger models built for complex multi-step planning.
Each model is trained to become an expert in specific tasks, deliver specific outcomes of agentic decisioning and is held to strict evaluation criteria before deployment and as it improves over time. Models are trained on synthetic data, not customer data. Blue Yonder is also using NVIDIA AI Enterprise for the Model Training Factory, combining the microservices, frameworks and libraries for AI development with advanced GPU orchestration and infrastructure management.
“The next phase of enterprise AI for supply chains requires specialized, affordable and accurate domain-trained agents that can operate within the workflows that run a business,” said Azita Martin, Vice President and General Manager, Retail and CPG, NVIDIA. “Blue Yonder is leveraging NVIDIA Nemotron, the NVIDIA NeMo Agent Toolkit and NVIDIA AI Enterprise to build a Model Training Factory that fine-tunes models with proprietary supply chain data, enabling them to build agentic AI systems for some of the world's largest and most complex supply chains.”
Blue Yonder plans to roll out the first models against warehouse management workflows, including WMS allocation shorts, inventory exceptions, due-time urgency and inventory across yard and receiving trailers. These are high-frequency warehouse decisions where speed and accuracy directly drive on-time performance, inventory shortages and order cycle times. Subsequent models will extend to the broader Blue Yonder solution portfolio.
Inside a warehouse, a shift can fall apart fast. A plan set in the morning is routinely upended by late trucks, equipment failures and shifting priorities. A specialized agent can weigh hundreds of trade-offs in seconds, where a human typically considers a handful, and do it cheaply enough to run continuously across every warehouse, every day.
Blue Yonder is the AI company for supply chain. As the world leader in end-to-end digital supply chain transformation, Blue Yonder offers a unified, AI-driven platform and multi-tier network that empowers businesses to operate sustainably, scale profitably, and delight their customers—all at machine speed. Blue Yonder's modern innovations and unmatched industry expertise help more than 3,000 retailers, manufacturers, and logistics service providers confidently navigate supply chain complexity and disruption.
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