17 June 2025

What we Learned building our Vertical

Going from an abstract vision of “AI that works for supply chain” to a functional, compliant, production-ready AI stack is harder than it sounds

Some lessons from our Journey

Going from an abstract vision of “AI that works for supply chain” to a functional, compliant, production-ready AI stack is harder than it sounds. At verticallm.ai, we embarked on this journey with one goal: build an AI that truly understands supply chain data, processes, and decisions—not just a generic model that spits out averages.

First, we learned that Modular design is everything. The temptation to build a monolithic system that does it all is strong—but it’s a trap. Modular design lets you integrate with existing ERP and planning systems, swap components, and scale individual pieces as your needs evolve. For supply chains, where every company’s data and processes are different, this flexibility will be very important.

Second, Observability and Transparency isn’t just a nice-to-have. When your AI is making decisions that impact inventory levels, supplier risk, or customer orders, you need to know how it got there. We invested heavily in monitoring, logging, and traceability—so that we can explain AI decisions, tune performance, and catch unexpected behaviors before they become business risks.

Third, we discovered that Low-code integration matters more than we thought. Not every company has an army of data engineers waiting to deploy a new model. A vertical AI needs to plug into existing systems with minimal friction. That means investing in connectors, API endpoints, and configuration layers that make the AI accessible to business users—not just the IT team.

Finally, scaling is a marathon, not a sprint. We had to balance fast iteration in a sandbox with governance, compliance, and performance testing before going live. Each step required hard choices: how much data to train on, how to manage regulatory requirements, how to deploy in on-premise or VPC environments for maximum security. Every decision impacted the overall resilience and reliability of the stack.

It’s been an eye-opening experience. If you’re thinking about building your own stack, or adapting AI to your industry, this post gives you a front-row seat.

Now, with our own vertical AI stack in place, we’re helping our first development partners build theirs—without the hard lessons we had to learn the hard way. We’ve gone from vision to reality, and we’re excited to help others do the same. If you’re exploring how to build or adapt AI for your industry—whether it’s supply chain, finance, or any other domain—let’s talk. We’d love to share what we’ve learned and help you build an AI stack that works for you.

What is a vertical AI model

Unlike general-purpose AI models, a Vertical LLM is designed to understand and generate insights within a specific domain. For a supply chain company, this means an AI that deeply understands logistics, demand planning, procurement, and supplier risk management—not just general business concepts.

A Vertical AI must grasp the terminology, concepts, and specific aspects of the industry context in which the company operates. Since supply chains are driven by numbers, it must be integrated with numerical data. Without this foundation, even the most sophisticated AI remains generic—relying on averages that can lead to risky decisions. Instead of providing textbook responses to generic queries like “best inventory practices,” a Vertical AI model can access your historical supply chain data and patterns, is trained on the unique terminology and constraints of your industry, understands key regulations affecting your operations, and integrates seamlessly with existing ERP and planning systems.

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