Agentic AI has become a catchphrase and discussion point for logistics teams in just about every industry today, as well as logistics service providers (LSPs) . But what does it really mean?
Artificial intelligence is a broad concept—and Blue Yonder has proven AI capabilities that span everything from top-level strategic planning to returns management. But it’s helpful to think of agentic AI as more focused, hands-on and task-oriented when compared to these wide-ranging AI capabilities.
AI agents, including those offered by Blue Yonder, are specialists. They’re autonomous, intelligent software applications that are built and trained to execute specific supply chain tasks with minimal human intervention. AI agents observe events and ingest data, recognize patterns, develop contextual insights and execute an optimal action, based on predefined rules and parameters. Even better? They learn and continuously improve, based on the results of their previous actions.
As corporate logistics teams and LSPs grow their physical footprints and expand their distribution capabilities, AI agents are becoming a critical solution. Even when operating in very complex conditions—including extreme demand shifts, seasonal peaks and evolving trade regulations—AI agents help logistics teams act intelligently, with machine speed and precision. In mere seconds, they recognize changes across the supply chain network and pivot the execution of tasks accordingly. They’re continuously acting to maximize profits, service, sustainability and other positive outcomes, while also minimizing waste and other negative impacts.
Because AI agents exceed the ability of humans to ingest data and make rapid decisions, they help logistics teams make faster, more accurate decisions when compared with manual analysis. They also guide human workers in prioritizing and executing tasks most efficiently. In today’s environment of labor shortages, AI agents are an ideal complement to the human logistics workforce, amplifying their efforts and ensuring scarce resources are maximized.
Agentic AI has applications across logistics operations, but let’s focus first on its potential to optimize the warehouse. Blue Yonder’s dedicated Warehouse Ops Agent is purpose-built to deliver value in the warehouse, building on the power of Blue Yonder Warehouse Management, Warehouse Execution, Warehouse Labor Management and other solutions. Let’s explore some examples for corporate logistics teams and LSPs.
Capitalizing on agentic AI in the warehouse
As LSPs expand their managed distributions business and companies grow their order volumes, warehouses are becoming busier, faster-paced, more packed with associates and inventory, and more cost-intensive. The stakes are higher, as more and more decisions must be made—and more tasks must be completed—with lightning speed and accuracy.
Success depends on the ability of logistics teams to adapt to real-time changes and make informed decisions at both the strategic and operational levels. Inventory and labor must be managed optimally at a high level, while every order needs to be picked, packed and shipped with precision and cost control. The Blue Yonder Warehouse Ops Agent manages both strategic and tactical considerations with ease. It’s been developed based on our decades of warehouse experience and our hundreds of customer success stories in distribution optimization.
Just a few of its capabilities—developed to address logistics teams’ most pressing challenges—include:
- Dynamically reallocating labor in response to shifting priorities
- Optimizing warehouse layouts based on predictive demand and supply insights
- Identifying outbound risks early to prevent customer delays
- Streamlining trailer unloading, according to content urgency and staffing levels
- Proactively mitigating risks associated with on-time in-full (OTIF) compliance
By intelligently coordinating highly interdependent tasks, the Warehouse Ops Agent enables faster, more confident decision-making. For example, late inbound delivery affects many downstream activities such as unloading and order fulfillment. Blue Yonder’s smart AI agent considers all these impacts and adjusts downstream tasks accordingly.
While the Warehouse Ops Agent is powerful and sophisticated, Blue Yonder has designed a simple, accessible user experience (UX) that makes it easy for warehouse employees at all levels to apply. Distribution teams can take action from anywhere, at any time, thanks to a mobile interface. And real-time push notifications and alerts from the agent provide a quick overview of developments, allowing teams to prioritize actions effectively and promptly address urgent matters. Warehouse data, activities and statuses are presented in a highly visual manner that simplifies the complexity of the modern distribution center.
A case in point: Managing product expiration
Product shelf life and freshness are key considerations for many warehousing and distribution teams today. From packaged consumer goods to fresh produce and pharmaceuticals, distribution success often depends on observing shelf-life constraints and expiration dates with exacting precision. In the case of managed distribution, product waste not only means lost sales for the warehousing customer but could cause irreversible relationship damage for the LSP that was trusted to manage expiration carefully.
Product expiration is just one practical problem that can be solved with speed and accuracy by the Blue Yonder Warehouse Ops Agent. The agent is trained to ingest and analyze volumes of data on product freshness, shelf life and stock movements. Then it provides intelligent stock rotation recommendations that minimize waste and shrinkage.
The agent also identifies inventory with an incorrect status or location, locked stock and incorrect units of measure (UOMs) to prevent spoilage. It flags products at risk, alerts key stakeholders and prescribes specific corrective actions. Days or weeks of manual analysis focused on product expiration are replaced by rapid, AI-enabled optimization and continuous improvement via machine learning.
Whatever your challenge, we’ve got an AI agent to address it
This is just one small example of the incredible power and scope of the Blue Yonder Warehouse Ops Agent, which can be quickly launched and adding value for LSPs and corporate logistics teams, right out of the box. Through our Agent Activation Advisory program, as well as our partnership with Microsoft’s Azure AI Foundry, Blue Yonder also builds customized AI agents to meet targeted customer needs.
Worldwide, over 3,000 companies across industries and 175 LSPs leverage Blue Yonder software every day. That provides us with a deep understanding of the challenges you’re facing—and enables us to address those challenges with innovative, value-added digital solutions. Don’t be intimidated by the buzz and hype around agentic AI. It’s a practical, accessible tool that delivers tactical execution support for your managed warehousing business.
Learn more about the Warehousing Ops Agent, explore our AI and ML capabilities, or contact us to schedule a one-on-one conversation. The value of agentic AI is there. Don’t miss your chance to capitalize on it.
