SourcifAI – Installation Guide

SourcifAI is a procurement and sourcing platform powered by SAP BTP. It streamlines Tail Spend Management by automating sourcing events, supplier selection, and the full procurement cycle from requisition to purchase order.

1 · Introduction

SourcifAI is a procurement and sourcing platform developed by Kyyte, powered by SAP Business Technology Platform (SAP BTP). It is specifically designed to streamline Tail Spend Management by automating procurement processes for low-value, high-frequency purchases.

Scope: This guide covers installation, configuration, and administration of SourcifAI v3.0 on SAP BTP.

2 · Overview

SourcifAI is designed to streamline Tail Spend Management, focusing on automating procurement processes for low-value, high-frequency purchases. Once triggered, it executes the full sourcing cycle automatically:

Creates sourcing events
Applies event rules
Awards contracts
Invites relevant suppliers
Publishes sourcing events
Generates purchase orders

Result: Increased efficiency, cost savings, and a structured procurement process.

3 · Key Features

Sourcing Automation

Automates vendor selection and sourcing events based on predefined rules and procurement requirements

Tail Spend Management

Optimizes procurement spend on low-value, high-frequency purchases that bypass strategic sourcing

Automated RFP & Supplier Selection

Region-specific auto RFP rules and AI-driven supplier evaluation

Real-Time Analytics & Reporting

Comprehensive dashboards for sourcing events, spend analysis, and supplier performance

SAP Integration

Seamless integration with SAP Ariba Guided Buying, Guided Sourcing, SAP ECC, and S/4HANA

4 · System Architecture

SourcifAI follows a distributed, microservices-based architecture to ensure scalability and reliability.

4.1 System Components

Component	Technology	Description
Frontend	React	Intuitive UI for sourcing and procurement workflows
Backend	Node.js + Python	Business logic, AI processing, and procurement automation microservices
Database Layer	PostgreSQL	Structured storage for sourcing events, supplier data, and transaction history
Cloud Hosting	SAP BTP (Cloud Foundry)	API-driven microservices architecture on SAP Business Technology Platform
SAP Integration	Ariba + ECC/S4HANA	End-to-end procurement data exchange

4.2 Workflow Diagram

Layer	Components
User Interaction	Dashboard, Sourcing Events, Process Flow Visibility, Standard Reporting
API Layer	REST APIs handling all client requests
Processing Layer	Business Logic, Heuristic AI/ML Model
Database Layer	PostgreSQL storing sourcing and supplier data
SAP Integration	Sync with SAP Ariba Guided Buying, SAP ECC/S4HANA

Fig 1 · SourcifAI System Architecture Diagram

5 · Prerequisites

5.1 Assumptions

A BTP Global Account must be available and provisioned
Required BTP Services: BTP Cloud Foundry, PostgreSQL DB, Job Scheduler, Cloud Logging, Connectivity Services (Free), Destination Services (Free), XSUAA (Free)
Ariba Quick Sourcing Project must be created and ready
Required Ariba APIs: Event Management API, Supplier Data API with Pagination, Document Approval API, Import Requisition(s) Webservice
SMTP details must be available for email communications

5.2 Dependencies & Constraints

Prerequisite	Details
SAP BTP Sub-Account	Must be created and shared, or details of an existing sub-account provided
Entitlements	All necessary SAP BTP entitlements must be added
Cloud Connector	SAP Cloud Connector with Gateway must be configured for secure on-premise connectivity
API Credentials	Application Key and OAuth credentials must be provided
User Permissions	A dedicated background user for SAP Ariba and SAP must be created
Master Data	Essential procurement master data must be provided
SMTP Configuration	Requires API Key, Username, and SMTP Server details

Note: If the customer does not support SMTP with basic authentication, SourcifAI supports alternative authentication mechanisms.

5.3 Access and Authorization for SAP Ariba APIs

5.3.1 SAP Ariba APIs - Integration Purpose

API / Webservice	Purpose in SourcifAI
Event Management API	Automate quick sourcing activities and event creation
Supplier Data API with Pagination	Fetch supplier qualification data from SAP Ariba
Document Approval API	Fetch requisitions from Ariba Guided Buying based on thresholds
Ariba Requisition Import Webservice	Push sourcing-related changes back to Ariba Guided Buying

5.3.2 Activation of APIs & Web Services

All four APIs must be activated in SAP Ariba Procurement & Sourcing. See the SAP Ariba Developer Portal - API Enable Guide.

5.4 Access and Authorization for SAP ECC/S4H

Hub System - Required Transactions

Transaction	Purpose
/IWFND/MAINT_SERVICE	Activate and maintain OData services
/IWFND/GW_CLIENT	Gateway Client for testing OData services
/IWFND/TRACES	Gateway Trace
/IWFND/ERROR_LOG	Error Log for OData services
/IWFND/APPS_LOG	Check application logs for deployed apps
/IWFND/CACHE_CLEANUP	Cleanup Gateway metadata cache

Backend System - Required Transactions

Transaction	Purpose
SEGW	OData Service Builder
SE80 / SE38	ABAP Workbench / Program Editor
SE24	Class Builder (for DPC_EXT, MPC_EXT)
SE11	Data Dictionary
SE93	Create or adjust transactions

6 · Configurations

The following configurations are performed to enable SourcifAI in SAP Business Technology Platform (BTP).

6.1 Pre-Installation Steps

BTP Sub Account Setup A sub-account needs to be set up if not already configured.
Fig 2 · BTP Sub Account creation
Fig 3 · Sub Account setup details
Add Necessary Entitlements Add all necessary entitlements required for SourcifAI.
Fig 4 · Adding entitlements
Fig 5 · Entitlement list
Enable Cloud Foundry Environment Ensure the Cloud Foundry environment is enabled.
Fig 6 · Enable Cloud Foundry
Fig 7 · CF environment settings
Fig 8 · CF runtime configuration
Fig 9 · CF environment enabled
Create Space Create the required Cloud Foundry space for deployment.
Fig 10 · Create new CF space
Fig 11 · Space configuration

6.2 Deployment Responsibility

Important: Since the SourcifAI code is proprietary to KYYTE, the KYYTE team is solely responsible for building and deploying the application. KYYTE oversees all deployments to ensure optimal functionality.

Fig 12 · Deployed application instances in Cloud Foundry

6.3 Post-Installation Steps

6.3.1 Role Collection Creation & Assignment

Assign role collections to users who require access to SourcifAI.
Fig 13 · Role collection assignment
Fig 14 · Role configuration

6.3.2 Cloud Connector Configuration for ERP/ECC

Cloud Connector configuration must be handled by the customer to enable connectivity between SourcifAI and the on-premise ERP/ECC system.

6.3.3 Destinations Configuration

Configure the following 8 destinations in SAP BTP:

Auth Token Destination For generating authentication tokens for the Supplier Pagination API.
Fig 15 · Auth token destination
Supplier Pagination Destination To consume Supplier Pagination APIs in SCTECCApp.
Fig 16 · Supplier Pagination destination
Ariba Event Sourcing Destination To consume Ariba Event Sourcing APIs in AutoRFQApp.
Fig 17 · Ariba Event Sourcing destination
SLP Data Lake Destination To consume SLP data via the data lake service.
Fig 18 · SLP data lake destination
OData/API Destination To facilitate OData and API in SAPECCService by Auto RFQ App.
Fig 19 · OData/API destination
ECC Gateway Destination For connecting SourcifAI with ECC backend through the Gateway Server.
Fig 20 · ECC Gateway destination
SMTP Email Destination For sending emails from SourcifAI using SMTP credentials.
Fig 21 · SMTP email destination

Important: The ECC Cloud Connector destination must be configured separately for both the hub system and the backend system.

Fig 22 · Hub system destination

Fig 23 · Backend system destination

6.3.4 Master Data Import

Upload initial master data to SourcifAI. The following 12 master data entities must be configured:

#	Master Data Entity
1	Regions
2	Commodities / Categories
3	Suppliers
4	Supplier Users
5	Partition Suppliers
6	Commodity to Regions Mapping
7	Commodity to Suppliers Mapping (Preferred Suppliers)
8	Tail Spend Suppliers
9	Material Group to Commodity Mapping
10	Plan-to-Ship Address Mapping
11	Country-to-Region Mapping
12	UOM to ISO Mapping

Sample CSV files can be downloaded and modified before uploading.

Fig 24 · Master Data import UI
Fig 25 · Download sample CSV
Fig 26 · Upload master data
Fig 27 · Master data list view
Fig 28 · Imported master data

6.3.5 Site Control Parameters Configuration

Configures all essential system parameters within SourcifAI. BTP destinations are configured here and functionalities can be enabled/disabled based on business requirements.

Fig 29 · Site Control Parameters

6.3.6 Sourcing Administrator Settings

Allows customization of demand custom fields (PR) and SMTP configurations.

Fig 30 · Sourcing Administrator Settings

6.3.7 Event Logs

Application-level logs that store reasons for any auto-RFP event failures. Used for troubleshooting and auditing.

Fig 31 · Event Logs screen

6.3.8 Background Jobs Scheduling

All scheduled jobs can be monitored using the SAP Job Scheduling Dashboard.

Fig 32 · Job Scheduling Dashboard
Fig 33 · Job execution details
Fig 34 · Job log view
Fig 35 · Job status monitoring
Fig 36 · Error log detail

6.3.9 Auto Event Rules

Configure and manage automated event rules based on procurement workflows and sourcing requirements.

Fig 37 · Auto Event Rules list
Fig 38 · Create new event rule
Fig 39 · Event rule configuration

7 · Background Jobs and Automated Process

SourcifAI processes transactions using background jobs on SAP BTP. Each job ensures data consistency and seamless SAP integration.

Job Name	Area	Frequency	Description
Sync Supplier from Ariba	SourcifAI	8 Hours	Synchronizes supplier details from SAP Ariba into SourcifAI.
Sync Supplier from Ariba & Update ERP ID	SourcifAI	8 Hours	Fetches suppliers from Ariba and updates their ERP ID.
Sync Supplier Contacts from Ariba	SourcifAI	8 Hours	Updates supplier contact details.
Fetch PR from Ariba Guided Buying / P2O	SourcifAI	1 Hour	Retrieves purchase requisitions (PRs) from Ariba.
Fetch RFQ from SAP ECC to SourcifAI	SCTECC	1 Hour	Pulls Request for Quotation (RFQ) data from SAP ECC.
Check & Create RFP Handles	SourcifAI	1 Hour	Creates RFP processes based on defined thresholds.
Create & Publish Demands	SourcifAI	1 Hour	Generates demand records and publishes them.
Initiate the Award Procedure (optional)	SourcifAI	1 Hour	Automates the award process.
Fetch Award Details back to SourcifAI (optional)	SourcifAI	1 Hour	Retrieves award details and updates the database.
Update Supplier & Awarded Data to Source of Demands	SourcifAI	1 Hour	Updates procurement sources with awarded supplier details.
Initiate PO Creation in ECC (optional)	SourcifAI	1 Hour	Generates purchase orders in SAP ECC.

8 · AI/ML Functionality in SourcifAI

8.1 Objective

Heuristic-driven AI/ML model designed to automate supplier recommendations
Identifies best-fit suppliers for specific commodities within a selected region
Especially useful for tail-spend sourcing events where manual sourcing is inefficient
Analyzes commodity and regional parameters for smart, explainable recommendations

8.2 Eligibility Filtering

Filters by Commodity ID(s) selected by the user
Filters by single region (e.g., NAMER, EMEA)
Applies configurable rules: supplier activity status, minimum qualification criteria

8.3 Input Data Sources

Transactional Data - Frequency, recency, and monetary value of past purchases
Feedback Data - Ratings and qualitative input from users after transactions

8.4 Scoring Logic

Weighted scores using transactional metrics and user feedback, per region and commodity
Heuristic model - not deep learning-based; no complex model training
Ensures explainability, speed, and auditability

8.5 Recommendation Engine

Dynamically generates recommendations at the time of event creation
Ranks and suggests top n suppliers based on user input
Every recommendation includes a natural language explanation for transparency

8.6 Feedback Loop Integration

Updates supplier scores automatically from real-time post-transaction ratings
Refines future recommendations continuously (adaptive intelligence)

8.7 Design Considerations

Operational efficiency - low processing time
Transparency - clear, explainable scoring logic
Traceability - full auditability of all recommendations

8.8 Example

8.8.1 Sample JSON Payload

{
  "CommodityID": ["80101706"],
  "RegionId": "NAMER",
  "number_of_vendors_required": 2
}

8.8.2 Sample Response

[{
  "CommodityID": "80101706",
  "Rating": 5.0,
  "Reason": "You have transacted with this supplier in the last 0 days... frequency in the last 6 months (2)"
}]