> For the complete documentation index, see [llms.txt](https://kb.theloops.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://kb.theloops.io/digitalworkers/ifs-loops-digital-workers/digital-worker-guides/sourcing-manager/core-concepts/fundamentals.md).

# Fundamentals

## Overview&#x20;

The Sourcing Manager is an AI-powered Digital Worker that manages the end-to-end PR-to-RFQ sourcing workflow, from determining when sourcing is required to preparing structured, policy-aligned recommendations for supplier selection. It converts purchase requisitions into RFQs, identifies and invites eligible suppliers, distributes RFQs and manages supplier communications, parses and normalizes incoming quotes, and prepares a sourcing recommendation, routing exceptions for human review when policy or confidence thresholds aren’t met.&#x20;

The Sourcing Manager is designed to support buyers, sourcing specialists, and procurement teams across the full sourcing event, from the moment a requisition needs sourcing through to a purchase order for the selected supplier.&#x20;

## Key Benefits&#x20;

**Faster sourcing decisions:** From requisition to supplier selection with less coordination and fewer handoffs.&#x20;

**Better supplier responses:** Structured RFQs improve quote completeness and comparability across suppliers.&#x20;

**Lower sourcing effort:** Reduces the time spent creating RFQs, managing outreach, and tracking responses as volumes grow.&#x20;

**High sourcing discipline:** Enforces consistent rules across sourcing events regardless of buyer or region.&#x20;

**Clear, defensible outcomes:** Recommendations are structured and easy to review and audit, with the reasoning behind each supplier selection documented.&#x20;

## The Challenge It Solves&#x20;

Procurement teams often receive purchase requisitions that require sourcing across fragmented supplier networks, inboxes, and systems. Creating RFQs, identifying eligible suppliers, chasing responses, and comparing quotes is highly manual and time-consuming. As sourcing volume increases, teams struggle to respond quickly, apply sourcing rules consistently, evaluate bids consistently, and make confident sourcing decisions without delays or errors.&#x20;

Sourcing teams spend their days chasing suppliers across scattered inboxes, spreadsheets, and disconnected systems, creating RFQs by hand and comparing quotes line by line. That manual effort slows down responses, makes supplier evaluations inconsistent, and leaves buyers making decisions without full visibility into where things stand.&#x20;

## Before and After&#x20;

**Before**&#x20;

Before the Sourcing Manager, running a sourcing event requires manual effort at every stage:&#x20;

{% stepper %}
{% step %}
Identify potential suppliers manually for each requisition&#x20;
{% endstep %}

{% step %}
Create and distribute RFQs by hand to each supplier&#x20;
{% endstep %}

{% step %}
Follow up with suppliers individually for responses&#x20;
{% endstep %}

{% step %}
Collect and consolidate quotations as they arrive&#x20;
{% endstep %}

{% step %}
Compare pricing, lead times, and terms in spreadsheets
{% endstep %}

{% step %}
Recommend a supplier and obtain approvals
{% endstep %}

{% step %}
Create the purchase order and notify the selected supplier&#x20;
{% endstep %}
{% endstepper %}

**After**&#x20;

With the Sourcing Manager, the same process runs automatically:&#x20;

{% stepper %}
{% step %}
Sourcing requests are received from a buyer or system and requirements are extracted and structured&#x20;
{% endstep %}

{% step %}
Qualified and approved suppliers are identified and matched based on category, capability, location, and performance&#x20;
{% endstep %}

{% step %}
RFQs are created with terms, specifications, and attachments, and distributed to shortlisted suppliers&#x20;
{% endstep %}

{% step %}
Supplier inquiries are managed, reminders sent, responses tracked, and active participation ensured&#x20;
{% endstep %}

{% step %}
Supplier quotes are collected, pricing and lead times extracted, and responses normalized for comparison&#x20;
{% endstep %}

{% step %}
Quotes are compared on price, lead time, quality, risk, and performance to recommend the best-value supplier&#x20;
{% endstep %}

{% step %}
An award recommendation is created, routed for approvals, and the selected supplier is notified&#x20;
{% endstep %}

{% step %}
A purchase order is created for the awarded supplier, the ERP is updated, and the sourcing event is closed with a full audit trail&#x20;
{% endstep %}
{% endstepper %}

## How It Works&#x20;

The Sourcing Manager follows an eight-step workflow for every sourcing event, from request to award.&#x20;

**Sourcing Request Intake & Planning:** The purchase requisition is extracted from IFS Cloud, and the status of the PR lines is checked to determine when sourcing is required.&#x20;

**Supplier Identification & Matching:** Qualified and approved suppliers are identified based on category, capability, location, and performance.&#x20;

**RFQ Creation & Distribution:** RFQs are created with terms, specifications, and attachments, and distributed to the shortlisted suppliers.&#x20;

**Supplier Communication & Follow-ups:** Supplier inquiries are managed, reminders sent, responses tracked, and active participation ensured throughout the sourcing event.&#x20;

**Quote Collection & Parsing:** Supplier quotes are collected, pricing, lead times, and terms extracted, and responses normalized for consistent comparison.&#x20;

**Quote Evaluation & Supplier Recommendation:** Quotes are compared on price, lead time, quality, risk, and performance to recommend the best-value supplier.&#x20;

**Award Management & Approvals:** An award recommendation is created, routed for the required approvals, and the selected supplier is notified.&#x20;

**Purchase Order Creation:** A purchase order is created for the awarded supplier, the ERP is updated, and the sourcing event is closed with a full audit trail.&#x20;

## What Triggers the Sourcing Manager&#x20;

**A purchase requisition needing sourcing:** A sourcing request, PR, or specification received from a buyer or system triggers the Sourcing Manager to assess whether sourcing is required.&#x20;

**A supplier response to an RFQ:** An incoming supplier quote, whether submitted through a portal or emailed as an attachment, triggers extraction and matching back to the correct RFQ line.&#x20;

**An RFQ deadline:** Once the response window closes, the approval flow runs to evaluate the quotes received and recommend a supplier.&#x20;

**A policy or confidence threshold not met:** Sourcing exceptions are flagged and routed for human review whenever a decision falls outside the configured policy or confidence thresholds.&#x20;