AI-Enhanced Supply Chain Management Systems Make Exception Handling Easier

Deliveries delayed due to weather conditions. Freezers suddenly stop working. How can grocery store managers handle unforeseen events all while protecting their food quality for customers and their profit margins? Supply chain operations involve a constant series of responses to “Disruptions” like these. Ultimately, the only solution is to prepare and proactively prevent events like these. But what should guide those choices? And who or what supports that decision‑making? Operational success depends on how quickly teams understand what’s happening in the field, make informed decisions, and execute.

Panasonic Group supports the supply chain end-to-end through software that leverages AI to support planning and decision-making, and physical solutions that help create greater visibility for food retail operations. Let’s examine the winning strategy.

In recent years, Panasonic Group has been focusing on a solution-based business that combines data utilization and service provision. In this business model, subscriptions and operational maintenance generate ongoing revenue, and the utilization of data with continuous updates helps encourage customer retention. This approach helps businesses be less affected by price competition and increases profit margins.

Supply chain management is becoming increasingly important, because uncertainty is growing, driven by supply shocks and shifting trends in supply and demand. Understanding supply chains holistically, for monitoring and control purposes, is becoming a strategic cornerstone of corporate management. The software market that supports supply chain management is expected to continue growing. However, the adoption of standardized software and migration to the cloud are still in progress, leaving significant room for changes going forward.

Seizing this opportunity, Panasonic Group is planning to expand its business centered on integrated SaaS^*1 supply chain management. Leading this effort is Blue Yonder, which is deploying supply chain solutions globally for Panasonic Group. Blue Yonder leverages AI-powered solutions to enhance supply chain decision-making and planning, offering end-to-end visibility and fostering cross-functional collaboration.

*1. SaaS (Software as a Service) is a way of delivering software over the internet, where the application lives on the provider’s servers rather than the users’ devices.

For stores—the endpoints of the supply chain—Hussmann, a Panasonic Group company that provides refrigeration solutions for the food retail industry, addresses on-site challenges.

At CES 2026, Blue Yonder and Hussmann each showcased their solutions, demonstrating Panasonic Group’s initiatives in the supply chain management business.

In supply chain operations, days when things go according to plan are few and far between. “There are a lot of challenges—a lot of what we see in the supply chain are exceptions to the norm,” says Matt Wagner from Blue Yonder’s Mobility and Automation Team, which is responsible for validating and testing software implementation for customers.

Sudden shifts in demand, stockouts, and shipping delays—these daily “Disruptions” create gaps between plans and execution. They leave operational teams constantly scrambling to make decisions. The bottleneck lies in how quickly they can grasp the impact of those exceptions and determine appropriate responses.

Blue Yonder tackles this challenge using AI—not merely as an analytical tool, but as a catalyst for advancing decision-making when handling exceptions.

For example, a delayed incoming shipment can have ripple effects on related orders. Should the shipment be rerouted from another distribution center, the inventory be reallocated from another warehouse, or customers be notified of a change in delivery schedule? AI generates multiple options, enabling the operations team to quickly make well-informed decisions.

AI-driven decisions are supported by vast amounts of data that are accumulated daily. Data points from every part of the supply chain—external factors like weather patterns and traffic issues, sales trends in stores, inventory levels, and warehouse inbound and outbound shipments—are all feeding into AI. “We gather 27 billion data points a day in some cases,” Wagner states.

This data is used on an integrated platform that spans various software systems, including demand planning, supply planning, warehouse management, and transportation management. That interface is “Blue Yonder Cognitive Solutions.” On this foundation, AI agents cross-reference various operational areas and assist in handling exceptions.

The integrated platform further connects with suppliers and carriers, forming an end-to-end network. This enables real-time collaboration across all segments of the supply chain, further enhancing AI-driven support for decision-making.

So, how is this data captured in the field?

Edge devices fulfill this role, connecting field operations with Blue Yonder’s software. “Edge devices are critical. They are the last mile,” Wagner emphasizes.

Through various means—such as robots, computer vision, RFID and RF terminals^*2, voice, and augmented reality (AR)—on-site activities are captured as data. The acquired data is consolidated by edge devices, integrated into the system, and passed to AI agents. Edge technology underpins the entire process.

*2. RFID and RF terminals: RFID is automatic identification technology that utilizes radio waves to read and write information on IC tags without physical contact. RF terminals are devices that can read and write information on RFID tags.

At CES, Blue Yonder showcased a tabletop demo visualizing how edge devices capture on-site data and feed it to AI agents. 

For example, in a warehouse demonstration, robots responsible for receiving, storing, and picking goods served as data acquisition points (endpoints). When an exception occurred, the information was shared in real time with the WMS (Warehouse Management System) and AI agents. Without capturing such on-site data through edge technology, AI could not be used effectively.

Retail stores are the final destination in the supply chain. For retailers, ensuring stable operation of equipment for displaying products and maintaining product quality are always top priorities. Particularly in food retail, malfunctions in refrigerated and frozen food display cases can quickly lead to food waste or stockouts. Recovery efforts place burdens on store staff and negatively impact the in-store shopping experience.

Hussmann’s innovative solutions address these challenges.

With nearly 120 years of history, Hussmann has provided integrated support for food retailers—from designing and manufacturing refrigerated and frozen food display cases to installation and maintenance services. In recent years, Hussmann has expanded its solutions to enhance store operations.

At its core is StoreConnect, an IoT-powered remote monitoring and refrigeration management solution. Sarah Greenwood, Senior Vice President of Connected Solutions at Hussmann, says, “What distinguishes StoreConnect from traditional monitoring systems is its ability to provide actionable insights by collecting and analyzing extensive data to be more predictive when detecting early warning signs of malfunction.”

Detecting potential problems at the early stages makes it easier to avoid equipment shutdowns and product waste. This reduces emergency dispatch calls and allows limited maintenance resources to be more effectively allocated to critical equipment, thereby lowering maintenance costs. Greenwood explains, “If a strawberry or meat display case goes down, you lose all of the product,” emphasizing the loss of product and the negative impact on shopping experiences that accompany equipment downtime.

StoreConnect also addresses technician shortages. Monitoring the operational status of equipment and detecting early warning signs of potential problems through the data allows for proactive, prioritized responses.

Furthermore, early detection of signs of refrigerant leaks helps reduce environmental impact. Greenwood cited retailers on average achieved more than a 30% reduction in refrigerant leaks within their first year.

Along with showcasing StoreConnect at CES 2026, Hussmann featured refrigerated and frozen food display cases that use R290, a natural refrigerant. This technology does not only offer a low global warming potential (GWP), but it’s also highly energy-efficient compared to traditional alternatives, helping customers meet sustainability goals and comply with regulations.

Additionally, the electronic shelf label system Aperion drew significant attention at CES. The system makes it easy to update display prices immediately at the shelf edge. This eliminates the hassle of printing and replacing price tags during price revisions or promotions, freeing store staff to focus on customer service and merchandising. Furthermore, real-time data integration with a store’s e-commerce platform makes it easier to locate products when picking items for online orders, contributing to operational efficiency. At CES, visitors expressed interest in seeing these features in action at stores where they are already implemented.

At the core of these solutions is a strong customer focus, designing equipment and operations to match the unique needs of each customer and store. Hussmann’s role is to support “uninterrupted operations” at the final point of contact—food retail stores—by focusing on IoT solutions that leverage equipment and operational data.

Through the initiatives of Blue Yonder and Hussmann, you can see Panasonic Group’s efforts in taking a cross-functional approach to supply chain challenges, starting with data generated in the field.

Technical collaboration across the group is also advancing.

Blue Yonder leverages Panasonic Group’s camera image recognition technology to deploy yard management solutions at logistics hubs. Cameras capture trailer identification numbers, and this information is recorded in Blue Yonder’s WMS (Warehouse Management System), enabling shipment tracking. Data obtained in this way is also used on Blue Yonder’s integrated platform to support handling exceptions.

Furthermore, possibilities for future data-level collaboration between systems are also being explored.

For example, if Blue Yonder can integrate failure prediction data from Hussmann’s refrigerated and frozen food equipment, it would enable data-driven decision-making. If equipment at a store is at risk of shutting down, decisions could be made in advance about how to handle shipments to that store—whether to send more stock or redirect it to another location.

“The more data points we can pull from our partners, the better off we are as a whole,” Wagner stated. He indicated that Panasonic Group’s approach is to make wider use of data to enhance resilience throughout entire supply chains.

Exceptions and uncertainties cannot be eliminated. However, it is possible to build systems for uninterrupted operations while keeping those possibilities in mind. With the collection of field data, the utilization of AI, and the resulting optimization of operations, Panasonic Group will continue to support supply chains with both software and physical systems.