Blue Yonder adds AI retail tools for returns & stock

Blue Yonder has introduced new retail software features that use agentic AI across forecasting, inventory planning, fulfilment, customer service and returns. The additions are part of its Cognitive Solutions portfolio.

The update targets two of retail's costliest operational problems: products being unavailable when shoppers want them and merchandise being returned after purchase. The new functions bring together decisions often handled in separate systems, linking planning with order execution and returns handling on Blue Yonder's platform.

Retailers have long worked to improve demand forecasting, stock allocation and order fulfilment, but many still manage these tasks in separate workflows. Blue Yonder's latest release aims to connect those activities so changes in expected demand can inform sourcing, fulfilment and returns decisions within the same environment.

According to IHL Group figures cited by Blue Yonder, out-of-stocks cost retailers roughly USD $1.2 trillion a year in lost sales. The release adds predictive fulfilment intelligence and inventory network visibility to Blue Yonder's order management products, helping retail teams identify risks, bottlenecks and other issues across inventory, sourcing and network operations.

These changes are designed to support fulfilment decisions across stores, distribution centres and online channels. The tools are intended to improve fill rates and service levels while reducing missed delivery or collection promises.

A separate part of the release introduces a single workspace for customer service and assisted selling. The interface combines customer identification, product discovery, inventory visibility, pricing, fulfilment options, payment capture and order management, giving store and service staff a broader view of each transaction.

Returns management is also central to the update. Returns remain a major cost burden for the sector, with US consumers expected to return nearly USD $850 billion of merchandise in 2025, equal to about 15.8% of sales, according to National Retail Federation data cited by Blue Yonder.

The new returns functions cover online, warehouse and in-store processes. They include personalised returns experiences, customer-specific returns policies, store credit options, receiving and receipt controls, disposition settings, test-and-grade workflows and unit-level simulation of disposition outcomes.

Blue Yonder says these changes are intended to reduce losses on returned goods, support resale, limit fraud and improve customer satisfaction. It adds that users of Blue Yonder Returns Management move returned products back into sellable inventory about 25% faster on average, which can help improve in-stock levels and reduce overall inventory holdings.

Gurdip Singh, Chief Product Officer at Blue Yonder, said the company is trying to move retailers from visibility into operations to faster execution.

"Many retailers can already see what's happening. The hard part is acting on it before the moment passes. With this release, we're putting agentic AI into the flow of retail decisions. Forecasting, inventory, fulfillment and returns start working as one system instead of a chain of handoffs. That's how you turn insight into action at the speed retail demands, with the precision to protect margins while you improve the customer experience," said Gurdip Singh, Chief Product Officer at Blue Yonder.

Analyst view

Industry analysts say retailers are under pressure to connect systems that have often been bought and run separately. Rising consumer expectations around delivery speed, product availability and easy returns have made fragmented fulfilment operations more costly.

"Fulfilment networks are getting more complex, and customers aren't waiting for retailers to catch up. Winning retailers are connecting inventory visibility, order management, returns, warehouse and transportation into one AI-driven decision engine, not five different engagement platforms. That's the difference between fast, profitable fulfillment and margin bleed. There's no more room for disconnected execution," said Ananda Chakravarty, VP Research, Retail at IDC.

Another part of the release expands Blue Yonder Orchestrator, which serves as the interaction layer for workflows, insights and guided actions. Blue Yonder has added a new navigation model that combines conventional software menus with a prompt-based interface, allowing users to move more directly between planning, execution and network operations tasks.

Further updates also extend to assortment planning, allocation and replenishment, and space planning. In assortment planning, Blue Yonder has added strategy and scoring guidance, demand explainability, in-season sales and inventory planning, and placeholder store workflows.

Within allocation and replenishment, the release adds returns projections, multichannel forecasting improvements and automated supply distribution when inventory reaches the distribution centre. Space planning now includes planogram execution and compliance functions intended to connect planning decisions with what is actually placed on store shelves.

Singh said the returns element goes beyond processing unwanted goods and aims to guide the next step for each item.

"For most retailers, a return is a cost to absorb. I'd argue it's a chance to reimagine the customer experience, save the sale and optimize inventory. Now, the system doesn't just initiate and process the return. It recommends the best decision for that item and allows users to act on it, from routing to receipt to resale. That's an agent that does the work and helps recover more margin without adding headcount," said Singh.