ReAct AGENTS: FROM REASONING TO ACTION (SPA Rebates Example)

We’ve seen the arc so far:

• •Computer-using Agents follow strict instructions to perform basic tasks, without reasoning or adaptation: When Your ERP Works for You, Not the Other Way Around
• •CodeAct Agents write and refine logic: CodeAct: Automation That Thinks in Logic
• •Self-Reflection Agents review and improve their own work: The Intelligence That Doesn’t Trust Its First Answer
• •Voice Agents extend reflection into natural conversation: Conversations Powered by Reflection
• •ReAct Agents reason and act in one continuous loop: (this post)

Now comes the layer that fuses it all together.

ReAct Agents: systems that reason and act in one continuous loop.
Most automation either thinks or does. One runs scripts. The other provides answers.
The gap? Adaptability in messy, exception-heavy environments.

ReAct Agents close that gap. They don’t just reason. They don’t just act.
They reason while acting, and act while reasoning.

WHAT IF YOUR AGENT COULD THINK AND DO AT THE SAME TIME?

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HOW THEY WORK

• •Observe: Gather signals from systems, documents, or environments
• •Reason: Interpret signals, plan next steps, surface uncertainties
• •Act: Execute queries, updates, calculations
• •Reflect: Check results, refine logic, adjust plan
• •Loop: Continue until converging on a valid outcome

Instead of “an agent that answers” or “an agent that executes,” you get one that adapts on the fly, closing loops instantly.

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DISTRIBUTION EXAMPLE

Before
A distributor's rebate analyst reconciles Special Pricing Agreements (SPAs):

• •Match POS data against multiple vendor SPA contracts with different terms
• •Verify customer eligibility and product groups across expired/renewed agreements
• •Calculate deviations between into-stock price and end-customer price
• •Submit claims in each vendor's unique format and timeline
• •10–30% of eligible rebates go unclaimed due to missing documentation

After
The analyst instructs the ReAct Agent:
“Reconcile Q4 SPA claims, identify missing rebates, and prepare vendor submissions.”

The agent:

• •Observes POS transactions, SPA contracts, and claim histories
• •Reasons through eligibility rules, product group mappings, and date ranges
• •Acts by calculating deviations, flagging expired agreements, and generating claims
• •Delivers vendor-ready claim files with full audit trails

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OUTCOME

• •Hybrid reasoning + execution closes loops in real time
• •Less swivel-chair work across fragmented systems
• •Adaptive intelligence that handles exceptions, not just happy paths

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REALITY CHECK

ReAct without Self-Reflection = blind execution.
Self-Reflection without action = analysis paralysis.
The power stems from the tight loops between the two.

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DEVELOPMENT ESSENTIALS

Foundation

• •Reliable observation: direct access to system signals
• •Structured reasoning: transparent, explainable logic

Execution

• •Safe action: guardrails for system writes and updates
• •Reflection loop: validation against expected outcomes

Control

• •Iteration limits: prevent infinite loops
• •Convergence checks: ensure resolution

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Distribution tech has been stuck choosing between analysis and execution.
The winners build agents that handle both at once.

When your agent reasons through vendor rebate exceptions in real-time, you’ve built something worth trusting.