Automation Workflow for By-Product Valorization and Secondary Market Matching

This foundational agent ingests production run data, lab analyses, and batch records from MES/ERP systems (e.g., SAP, Oracle) to profile by-products. It uses LLMs to extract material properties (chemical composition, moisture, particle size) and maps them to standardized ontologies (e.g., ECHA, UNSPSC). Output is a machine-readable spec sheet that populates the internal valorization catalog.

A search and match agent queries B2B ingredient platforms (e.g., Ingredients Network), biofuel exchanges, and cosmetic raw material databases via their APIs. It uses vector similarity to match material specs against buyer RFPs and historical transaction data. The agent generates a ranked shortlist of potential buyers with estimated price ranges and contact pathways, initiating outreach via templated messages.

This control agent validates that a matched deal meets internal quality thresholds and external regulatory requirements. It cross-references buyer requirements against Certificates of Analysis, checks for allergen or contamination risks, and ensures documentation (e.g., TDS, SDS) is complete and accurate. It routes deals requiring human review to a quality manager and blocks non-compliant matches automatically.

Upon deal initiation, this agent evaluates logistical feasibility. It checks available storage capacity, calculates freight costs using integrated TMS data (e.g., Blue Yonder), models shelf-life constraints, and reserves transportation. For complex moves, it can trigger a micro-auction for carrier slots. It ensures the physical movement is profitable and updates the deal's net revenue projection.

This agent manages the commercial closure. It generates draft sales agreements with key terms (volume, price, Incoterms, quality tolerances) by pulling from approved templates. It integrates with e-signature platforms (e.g., DocuSign) and posts the confirmed transaction to the financial ERP for invoicing. The agent also updates the internal ledger to reflect the conversion of a waste cost center into a revenue line.

Not an agent, but a critical component. This is the centralized monitoring layer built on tools like Grafana or Datadog. It tracks key metrics: total valorized volume, revenue captured, average sales price per stream, match-to-close cycle time, and agent error rates. It provides alerts for pipeline stalls (e.g., no new specs generated in 48 hours) and feeds into a business intelligence platform for ROI reporting.

The workflow's foundation is a real-time feed from ERP (SAP, Oracle) and MES systems, extracting live production data on by-product volume, composition (e.g., Brix for whey, fiber content for peels), and batch/lot identifiers. An agent validates this against internal quality specs and enriches it with regulatory and safety data (e.g., allergen status, heavy metal screens) from a Quality Management System (QMS). This creates a standardized, market-ready material specification, eliminating manual data compilation from spreadsheets and lab reports.

A dedicated orchestration agent submits the enriched material profile to multiple B2B ingredient and commodity marketplaces (e.g., Exchange, Ingredients Network) via their APIs. It uses a retrieval-augmented generation (RAG) layer to parse buyer requests and historical transaction data, scoring potential matches based on material compatibility, geographic proximity, and price targets. This automates the manual search and outreach process, presenting procurement teams with a ranked shortlist of qualified buyers within minutes of by-product generation.

Upon match selection, the workflow triggers the creation of a new opportunity in the CRM (Salesforce, HubSpot) and drafts a term sheet using a Contract Lifecycle Management (CLM) system like Icertis or DocuSign CLM. An agent populates the draft with key terms from the material spec and standard legal clauses, routing it for internal review (Legal, Quality) via defined approval gates. This ensures compliance and accelerates negotiation, moving from match to draft agreement in hours instead of days.

Once a deal is confirmed, the system automatically generates a shipping plan. It interfaces with the Transportation Management System (TMS) to book carriers with the correct equipment (e.g., refrigerated, food-grade) and with the Warehouse Management System (WMS) to trigger pick/pack operations for the specific lot. The workflow provides real-time tracking data back to the buyer portal and flags any transit delays that could impact material quality, enabling proactive communication.

The final integration layer closes the financial loop. Upon proof of delivery confirmation from the TMS, the workflow creates an invoice in the ERP's Accounts Receivable module and posts the revenue against the correct internal cost center for by-product sales. It simultaneously updates ESG and sustainability reporting platforms with metrics on waste diverted and new revenue generated, providing auditable data for corporate sustainability reports and internal P&L analysis.

The entire orchestration is monitored by a central observability agent built on frameworks like LangGraph or Temporal. It logs every agent decision, API call, and approval state change, creating a defensible audit trail for quality and financial audits. The layer includes configurable alerting for process exceptions (e.g., no marketplace matches found, quality spec failure) and performance dashboards showing key metrics like match rate, revenue per ton, and cycle time, enabling continuous optimization of the valorization program.