Insight Bite: Blue Yonder deal highlights AI’s march into the retail supply chain

JDA Software has acquired retail intelligence platform Blue Yonder for an undisclosed sum.

Blue Yonder provides AI solutions to retailers, including UK supermarket chain WM Morrisons. Blue Yonder’s solutions work to automate complex decisions in an effort to boost profits and deliver improved customer value. The deal points to how data-driven insights are increasingly vital in the retail space, as technology providers aim to further automate the supply chain.

JDA plans to use the Blue Yonder technology to accelerate growth.

“Major digital transformation of supply chains is underway and the ability to quickly access intelligent, actionable data and insights will determine the future winners and losers,” Girish Rishi, CEO of JDA, said in a statement.

JDA plans to couple its end-to-end solution portfolio with Blue Yonder’s AI and machine learning capabilities in order to deliver an autonomous solution through the supply chains.

The trade sale came as PE house Warburg Pincus sought to exit its investment, having initially invested $75 million in Germany-based Blue Yonder in 2014. Blue Yonder was originally launched with an anchor investment from Otto Group, and the e-commerce giant remains closely involved to this day.

“This step requires a strategic partner with whom the ambitious growth targets can be better achieved,” said Dr Rainer Hillebrand from Otto Group.

This deal is yet another piece of evidence that shows AI is permeating every industry. There are significant efficiencies to be gained in the retail supply chain. As software providers are keen to grab market share, we expect to see more deals in the same vein in the years to come.

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