Enabling artificial intelligence systems, particularly large language models, to update knowledge and flexibly apply it during reasoning remains a central challenge. Existing knowledge editing approaches emphasize atomic facts, improving factual recall but often failing to integrate updated information into a coherent framework usable across contexts. In this work, we argue that knowledge update is fundamentally a reasoning problem rather than a memorization problem. Consequently, a model should be trained in situations where the new information is instrumental to solving a task, combined with pre-existing knowledge, and exercised through multi-step reasoning. Based on this insight, we propose a training strategy based on three principles. First, new knowledge is introduced as a coherent background story that contextualizes novel facts and explains their relation to existing knowledge. Second, models are trained using self-generated multi-hop questions that require multi-step reasoning involving the new information. Third, training is done using knowledge distillation, forcing a student model to internalize the teacher’s reasoning behavior without access to the novel information. Experiments show that models trained with this strategy effectively leverage newly acquired knowledge during reasoning and achieve remarkable performance on challenging questions that require combining multiple new facts.

Warehouse operations are governed by Standard Operating Procedures (SOPs) that encode complex, multi-system decision logic, which must be executed reliably under strict time constraints, yet LLM agents lack mechanisms to enforce procedural compliance and degrade under the context overload full SOP specifications introduce. We present Eluna, a production-deployed agentic system for reliable SOP execution. Eluna is a graph-guided, multi-agent framework that encodes SOPs as directed acyclic graphs with progressive disclosure and delegates independent tasks to parallel sub-agents, each with persistent code execution and live data access. To meet production latency and accuracy needs, we use asymmetric episodic distillation where a strong teacher is improved through episodic error memories, then a smaller student is fine-tuned on the corrected trajectories with memory stripped, internalizing corrections without inference-time overhead. On a 13-task benchmark and two production applications, our fine-tuned models match or exceed their teacher, beat all larger off-the-shelf baselines, and reach 94% expert agreement on the ticket processing application.

Production LLM agents often waste latency and reliability by regenerating code for the same procedural steps on every request. We replace this inference-time coding loop with an agentic tool-making pipeline that compiles repeated SOP steps into validated, versioned tools before deployment. The tool-maker grounds synthesis in the live environment as it collects execution traces, observes backend schemas and values, generates candidate tools, and repairs them against labeled cases. At runtime, the production agent calls these tools directly and falls back to code generation only when needed. We deploy the approach in a Fulfillment Center alarm-triage system, where an agent diagnoses alarms against a 44-node SOP over heterogeneous metric backends. In production, tool calls reduce p50 latency by 42%. On 1500 historical alarms, they reduce end-to-end error rate by up to 53% by suppressing run-to-run variance in repeated steps. Because tools return compact structured verdicts, they also enable a simpler direct-call architecture, reducing p50 latency by a further 62% in a controlled ablation. Versioned tools also improve auditability and expose specification gaps and upstream data drift. Our results show that agents that build and maintain their own tool libraries, a key element of self-evolving agents, can make industrial LLM systems faster, more reliable, and easier to operate.