Blue Yonder Develops Model Training Factory to Power the Autonomous Supply Chain With NVIDIA

Purpose-built AI agents will drive the everyday decisions that keep warehouses, factories and stores moving, at the speed and cost autonomous operations demand

DALLAS & SAN DIEGO--(BUSINESS WIRE)--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. Trained to consistently perform high-value tasks at the level of supply chain subject matter experts, these models are fine-tuned and built to execute complex, multi-step supply chain workflows, working alongside human operators and then graded to ensure high-quality outcomes. Accessed via agentic AI, they will ultimately enable supply chain processes to run autonomously, driving decisions across warehouse management, supply and demand planning, transportation, merchandising and network operations.

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.

Why it matters

Supply chain decisioning is extremely complicated, demanding real-time analysis and coordination across globally distributed teams. It requires extreme precision at very low latency across thousands of warehouses, lanes and stores.

The next generation of AI assistants will help organizations analyze what is happening in the supply chain faster, with more advanced and precise AI, and faster speed only possible with agentic AI. Enterprises are moving from AI assistants to teams of specialized agents that can perceive, reason, use tools and act alongside human operators at machine speed. The economics of doing that at scale are shifting fast. As coding agents drive a surge in demand for inference, the cost of running large frontier models in production keeps climbing.

The model factory addresses these problems with a hybrid approach: frontier models where their breadth is needed, and custom supply chain models trained to work alongside them, delivering the precision and speed individual workflows demand at a fraction of the cost.

"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."

Inside the model factory

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 in a fully supported, production-ready commercial software solution.

“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.”

First proof points in the warehouse

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, forcing constant reallocation against the clock. 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.

A repeatable advantage

The model factory turns operational expertise into reusable AI training signals, encoding that intelligence across domains in a repeatable way that can scale across the supply chain. Blue Yonder’s advantage lies in the loop itself: workflows, decision logic, telemetry, subject-matter experts, evaluations, and governed retraining that competitors cannot easily recreate. The first models are expected to enter customer production through Blue Yonder Cognitive Solutions later this year.

NVIDIA is helping Blue Yonder build the foundation for a new generation of supply chain AI: open at the model layer, specialized at the workflow layer and built to scale across the enterprises that move the world’s goods.

Additional Resources

• Learn more about Blue Yonder Cognitive Solutions
• Learn more about Blue Yonder’s AI Innovation
• Learn more about NVIDIA Nemotron
• Learn more about NVIDIA AI Enterprise

About Blue Yonder

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. A pioneer in applying AI solutions to the most complicated supply chain challenges, 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. blueyonder.com

“Blue Yonder” is a trademark or registered trademark of Blue Yonder Group, Inc. Any trade, product or service name referenced in this document using the name “Blue Yonder” is a trademark and/or property of Blue Yonder Group, Inc. All other company and product names may be trademarks, registered trademarks or service marks of the companies with which they are associated.