CA2416386A1 - Electronic commodity transaction services for the food supply chain - Google Patents
Electronic commodity transaction services for the food supply chain Download PDFInfo
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- CA2416386A1 CA2416386A1 CA002416386A CA2416386A CA2416386A1 CA 2416386 A1 CA2416386 A1 CA 2416386A1 CA 002416386 A CA002416386 A CA 002416386A CA 2416386 A CA2416386 A CA 2416386A CA 2416386 A1 CA2416386 A1 CA 2416386A1
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Abstract
A computer based method for facilitating electronic processing relating to commodity transactions is disclosed. The method comprises steps of: (a) collecting data relating to the commodity transaction; (b) reporting information on an individual or aggregate basis relating to the commodity transaction; (c) tracing the movement of product shipments across multiple links in a supply chain relating to the commodity transaction; and (d) retracing the movement of a product from any point in the chain back to its source relating to the commodity transaction. The commodity transaction includes one related to a food supply chain, an agricultural commodity supply chain, a grains and oilseeds supply chain, a grains supply chain, a livestock supply chain, or a horticultural supply chain.
Description
Electronic Commodity Transaction Services for the Food Supply Chain FIELD OF THE INVENTION
The present invention relates: to a computer based method for facilitating s electronic processing gelating to commodity transactions, which include one related to a food supply chain, an agricultural commodity supply chain, a grains and oilseeds supply chain, a grains supply chain; a livestock supply chain, or a horticultural supply.
io BACKGROUND OF THE INVENTION
There are multiple organizations participating in the food supply chain in Canada, bothnon-profit (e.g: commodity and government organizations) and for-profit (e:g. crop producers; elevator operators, processors and exporters).
The purchase and sale transactions relating to the commodities, the movement of the is commodities and the payment for commodities are processes that today are almost entirely paper-based; cumbersome, involve redundant entry and maintenance-of data and are highly prone to human error.
There are many factors that effect the determination of the amount to be 20 paid for a commodity transaction including, for example, the timing of the delivery and the manner in which crop production has been financed.
Furthermore, the settlement for a shipment of a commodity can involve several parties and require multiple cheque payments to independent parties.
2s The conventional commodity transaction process embraces many disadvantages and problems as follows:
1. Costly Paper-Based Processing: Many of the participants in the food supply chain are surviving on narrow margins and are unable, individually, to afford the computer facilities required to convert from high cost paper-based 3o processing to e-business processing.
The present invention relates: to a computer based method for facilitating s electronic processing gelating to commodity transactions, which include one related to a food supply chain, an agricultural commodity supply chain, a grains and oilseeds supply chain, a grains supply chain; a livestock supply chain, or a horticultural supply.
io BACKGROUND OF THE INVENTION
There are multiple organizations participating in the food supply chain in Canada, bothnon-profit (e.g: commodity and government organizations) and for-profit (e:g. crop producers; elevator operators, processors and exporters).
The purchase and sale transactions relating to the commodities, the movement of the is commodities and the payment for commodities are processes that today are almost entirely paper-based; cumbersome, involve redundant entry and maintenance-of data and are highly prone to human error.
There are many factors that effect the determination of the amount to be 20 paid for a commodity transaction including, for example, the timing of the delivery and the manner in which crop production has been financed.
Furthermore, the settlement for a shipment of a commodity can involve several parties and require multiple cheque payments to independent parties.
2s The conventional commodity transaction process embraces many disadvantages and problems as follows:
1. Costly Paper-Based Processing: Many of the participants in the food supply chain are surviving on narrow margins and are unable, individually, to afford the computer facilities required to convert from high cost paper-based 3o processing to e-business processing.
2. Multiple identifiers for a single entity: Each trading party maintains its own customer and supplier lists with distinct identifiers. Frequently, a single producer is identified in multiple different ways creating confusion for the producer and increasing the potential for human error in data entry.
3. Delays in valuing transactions: When a producer ships product to a s buyer or an intermediary, the truck is weighed full and then empty. The difference determines the tonnage shipped by the producer and is used to determine the price. The producer is not aware of the value of what has been shipped until this information is communicated-either the producer calls in an inquiry or is called with the data.
io 4. Complex and Sensitive Financing Arrangements: The intermediary in a commodity transaction (for example, an elevator) is often involved in repayment of financing provided to the producer. The financing may be in the form of a loan or an advance and may be provided by any one of multiple sources. It is a is cumbersome and time-consuming process for an intermediary to verify whether a repayment is involved for a particular producer and for a particular commodity and this often involves the transfer of sensitive data in paper form between parties.
2a 5. Limited Ability #o Trace Contaminated Commodities to Source: With incidents such as mad cow disease; or (recall of produce and inoculation of grocery store customers) there is growing concern over the systems for prevention of food contamination and the ability to trace the source of a contaminated product.
SUMMARY OF THE INVENTION
According to one aspect of he present invention, there is provided a computer based method for facilitating electronic processing relating to commodity transactions. The method comprises steps of: (a) collecting data 3o relating to the commodity transaction; (b) reporting information on an individual or aggregate basis relating to the commodity transaction; (c) tracing the , movement of product shipments across multiple finks in a supply chain relating to the commodity transaction; and (d) retracing the movement of a product from any point in the chain back to its source relating to the commodity transaction.
The commodity transaction includes one related to a food supply chain, an agricultural commodity supply chain, a grains and oilseeds supply chain, a grains supply chain, a livestock supply chain, or a horticultural supply chain.
The above computer based method is completely Web-based with a thin-client user interface. The participants in the supply chain are identified by a unique identifier regardless of commodity transacted. The producers in the supply chain are identified by aunique identifier regardless of commodity io produced. The participants in the supply chain are identified by a unique identifier regardless of role in the supply chain.
Multiple participants in the transaction can leverage the unique identifier to facilitate processing without transferring sensitive information such as is financing arrangements:.
XML is used to insulate distinct data formats generated by client operations from the data validation processing; database update and application processing, wherein many-to-one conversion from distinct client formats to a 2o common XML-compiant interface format enabling the use of a single algorithm to validate and further process information transmitted by a client. XML is used to insulate distinct data formats required by client operafiions from the data export and application processing conducted on the server, wherein one-to-many conversion from a common XML-compliant interface to distinct client formats 2s enabling the use of a single export algorithm and code base for service provision.
Users are authenticated by a password and, in some cases; a physical token such as a smartcard. User sessions are protected through secure 3o communications, for example, secure socket layer (SSL). User documents are digitally signed and can be authenticated through digital signature verification.
The user may connect via a physical (wire) service or via a wireless service.
Transaction data is maintained in a database. Users are only permitted access to data for transactions in which they participated or aggregate data.
A purchasing and a selling party may contract online. The contract is s digitally signed by one or both parties. A third party financing entity can participate via a network connection, for example, via the Internet, and commit financing.
The present invention can facilitate end-to-end electronic processing of to food commodity transactions reducing paper flow, eliminating the need for disclosure of sensitive data to intermediary parties, and streamlining transaction processing. The invention may be used to trace the origin of a commodity from a participant further down the chain (e.g. a buyer or a grocery chain) back to the origin (the producer) and then trace other shipments by that producer forward is down the chain. Also, the invention may be used to provide aggregated statistical data to government organizations (e.g. Statistics Canada) and other industry groups.
BRIEF DESCRIPTION OF THE DRAUUINGS
ao The embodiments of the invention will now be described with reference to the accompanying drawings, in which:
Fig. 1 illustrates one possible example of food supply chain;
2s Fig. 2 illustrates a real-time transacting and status reporting capability of a food supply chain leveraging an electronic business service according to the present invention;
Fig. 3 depicts a possible logical implementation involving an n-tier 3o architecture and insulation of particular key data and processes;
Fig. 4 shows one embodiment according to the present invention;
Fig: 5 shows another embodiment according to the present invention; and Fig. 6 shows yet another embodiment according to the present invention.
DETAILED DESCRIPTION OF THE EMBODIMENT (S) s To assist the reader, the following glossary of term is provided, which will be used in this description and in the appended claims.
Food Supply Chain: the parties and processes involved in the growing, production and processing of all forms of food, including, for example, livestock 1o (e.g. pigs, cattle, sheep), dairy products (e.g: milk, butter), crops (wheat, com, fruits, vegetables) from the farm through to delivery to the end consumers, for example, through a grocer or a restaurant. Intermediary parties may include;
for example, shippers, slaughterhouses, elevators operators, processors, financers, exporters, commodity organizations and government organizations. Processes is may include purchase and sale processing, financing arrangements, payment processing, contracting; storage etc.
Livestock Supply Chain: a subset-of the Food Supply Chain limited to the parties and processes involved in the raising and processing of livestock (e.g.
2o pigs, cattle, sheep) from the farm through to delivery to the end consumers.
Horticultural Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of horticultural commodities (e.g. fruits and vegetables) from the farm through to 2s delivery to the end consumers.
Agricultural Commodity Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of agricultural commodities (e:g. grains, oilseeds, fruits, vegetables) from the farm 3o through to delivery to the end consumers.
Grains & Oilseeds Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of grains and oilseeds (e.g. wheat, corn, soybeans) from the farm through to delivery to the end consumers.
Grains Chain: a subset of the Food Supply chain limited to the parties and processes involved in the production and processing of grains (e.g. wheat, corn) from the farm through to delivery to the end consumers.
Fig. 1 illustrates a diagram of a possible food supply chain, and Fig. 2 is a diagram illustrating a real-time transacting and status reporting capability of the io food supply chain leveraging an electronic business service (eBS) according to one embodiment of the invention. As is shown in Figs. 2 and 3, the present invention involves a Web-based service leveraging a system architecture that segregates the user interface, presentation logic, business logic, services and data. The present invention provides a flexible foundation for converting the .
is current paper flow between transacting parties to an electronic flow reflecting the same point-to-point data transfers but allows for modification of the data flow as appropriate to take advantage of electronic processing.
Fig. 3 illustrates a possible logical implementation involving an n-tier 2o architecture and illustrates the insulation of particular key data and processes.
The present invention supports processes between transacting parties in the food supply chain and could begin at any point in the supply chain independent of earlier or subsequent processing. Referring to Fig. 2, several embodiment of the present invention will be described below Fig. 4 shows one embodiment according to the present invention, which represents the flow of information between a producer (P), an elevator (E}, a Buyer (B), a commodity organization (G) that has provided an advance to the producer, an ePayment Service (ePS} and an eBu~iness Service (eBS) that operates a service according to the invention. Referring to Fig. 4, this embodiment will be explained step by step as follows:
Step 1: The Elevator provides information regarding a commodity transaction identifying the producer, the buyer and transaction details, which may include, for example, date, producer ID, buyer ID, commodity, grade, tonnage, identity preserve. This information may be transmitted electronically from the Elevator's systems via, forexample File Transfer Protocol {FTP), or may be entered through a secure Web connection to the eBS.
Step 2: The eBusiness Service maintains a comprehensive directory of participants (entities) in the upply chain independent of commodity and role:
Each entity has a unique identifier. The unique identifier is used to look up entries in other tables maintained by the eBS on behalf of its members; for to example, commodity purchase contracts or financing arrangements. In this way the eBS can determine price, financing repayments and distribution of payments to be made to effect settlement of the transaction. This data can then be presented to the Elevator for approval. Again, the provision of this data could be effected in many ways including a file FTP or an email to the Elevator indicating is that the payment data is visible through a secure Web view for approval.
Step 3: The Elevator approves the payment signaling to the eBS its authorization to initiate the transfer of funds. An authorized user at the Elevator may communicate this approval, for example, through a digital signing of the 2o payment data.
Step 4: The eBS aufiomatically validates the payment approval, for example by accessing the Elevator's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the 2s ePayment Service Provider (ePS) to initiate a transfer of funds to the account of the Producer and/or, where appropriate, to the account of the Commodity Organization or financing party. The ePS could be a third party service provider or a bank.
3o Step 5: The ePS transrrfits a confirmation report or reports any problems preventing settlement (e.g. a closed account or insufficient funds).
Step 6: The: status of the transaction is available to the transacting parties at all times throughout the transaction via a secure; password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example, need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P has received payments for the commodity.
s Fig. 5 shows another embodiment according to the presenfi invention, which represents the flow of information between a producer (P), an elevator (E), a Buyer (B), a commodity organization (C) that has provided an advance to the producer, an ePayment Service (ePS) and an eBusiness Service (eBS) that io operates a service according to the invention. This embodiment illustrates the flow for the purchase of grain from an elevator by a buyer - a little further down the supply chain than the previous embodiment. Referring to Fig. 5, this embodiment will be explained step by sfep as follows:
is Step 1: The Buyer provides information regarding a commodity transaction identifying theelevator, the transaction details, which may include, for example, date, producer ID; .buyer ID; commodity, grade, tonnage, identity preserve. This information may be transmitted electronically from the Elevator's systems via, for example File Transfer Protocol (FTP); or may be entered 20 through a secure Web connection to the eBS.
Step 2: The eBusiness Service maintains a comprehensive directory of participants (entities) in the supply chain independent of commodity and role.
Each entity has a unique identifier: The unique identifier is used to lookup Zs entries in other tables maintained by the eBS on behalf of its members; for example, commodity purchase contracts or financing arrangements. In this way the eBS can determine price, financing repayments and distribution of payments to be made to effect settlement of the transaction. This data can then be presented to the Buyer for approval: Again; the provision of this data could be 3o effected in many ways including a file FTP or an email to the Buyer indicating that the payment data is visible through a secure Web view for approval.
Step 3: The Buyer approves the payment signaling to the eBS its authorization to initiate the transfer of funds. An authorized user at the Buyer c may communicate this approval, for example, through a digital signing of the payment data.
Step 4: The eBS automatically validates the payment approval, for s example by accessing the Buyer's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the ePayment Service Provider (ePS) to initiate a transfer of funds to the Product and to the Commodity Organization. The ePS could be a third party service provider or a bank.
io Step 5: The ePS transmits a confirmation report or reports any problems preventing settlement (e.g. a closed account or insufficient funds).
Step 6: The status of the transaction is available to the transacting parties is at all times throughout the transaction via a secure, password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example; need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P-has received payments for the commodity.
Fig. 6 shows yet another embodiment according to the present invention, which represents the flow of information between a producer (P), an elevator (E), two potential Buyers (B1 and B2), a commodity organization (C) that has provided an advance to the producer, an ePayment Service (ePS) and an 2s eBusiness Service (eBS) that operates a service according to the invention.
This embodiment illustrates a possible sales transaction flow for the purchase of grain from a producer by a buyer - a little earlier in the supply chain than the previous two embodiments. Referring to Fig. 6, this embodiment will be explained step by step as follows:
Step 1: The Producer has previously delivered crop to an elevator (E) which is holding it for him but it has not been sold. The Producer communicates a price asked (per tonne) for the crop. Grade details etc. are available through the eBS.
1~
r Step 2: A number of buyers may submit bid prices: Steps one and two may be repeateduntil an agreement has been reached between the buyer and the producer in which case the transaction details are presented to the buyer for s confirmations. Note that it is not necessary that either the buyer or the producer know the other party. The elevator may attest to the grade of the produce through the eBS system.
Step 3: The Buyer approves the payment signaling to the eBS its io authorization to initiate the transfer of funds: An authorized user at the Buyer may communicate this,approval; for example; through a digital signing of the payment data.
Step 4: The eBS automat~callyvalidates the payment approval; for is example by accessing the Buyer's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the ePayment Service Provider (ePS) to initiate a transfer of funds to the Product and to the Commodity Organization: The ePS could be a third party service provider or a bank.
Step 5: The ePS transmits a confirmation report or reports any problems preventing settlement (e:g. a closed account or insuffiicient funds).
Step 6: The status of the transaction is available to the transacting parties 2s at all times throughout the transaction via a secure, password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example, need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P has received payments for the commodity. .
While the present invenfiion has been described with reference to specific embodiments, the description is illustrative of the invention and is not to be construed as limiting the invention. Various modifications may occur to those skilled in the art without departing from the true spirit and scope of the invention as defined. by the appended claims.
io 4. Complex and Sensitive Financing Arrangements: The intermediary in a commodity transaction (for example, an elevator) is often involved in repayment of financing provided to the producer. The financing may be in the form of a loan or an advance and may be provided by any one of multiple sources. It is a is cumbersome and time-consuming process for an intermediary to verify whether a repayment is involved for a particular producer and for a particular commodity and this often involves the transfer of sensitive data in paper form between parties.
2a 5. Limited Ability #o Trace Contaminated Commodities to Source: With incidents such as mad cow disease; or (recall of produce and inoculation of grocery store customers) there is growing concern over the systems for prevention of food contamination and the ability to trace the source of a contaminated product.
SUMMARY OF THE INVENTION
According to one aspect of he present invention, there is provided a computer based method for facilitating electronic processing relating to commodity transactions. The method comprises steps of: (a) collecting data 3o relating to the commodity transaction; (b) reporting information on an individual or aggregate basis relating to the commodity transaction; (c) tracing the , movement of product shipments across multiple finks in a supply chain relating to the commodity transaction; and (d) retracing the movement of a product from any point in the chain back to its source relating to the commodity transaction.
The commodity transaction includes one related to a food supply chain, an agricultural commodity supply chain, a grains and oilseeds supply chain, a grains supply chain, a livestock supply chain, or a horticultural supply chain.
The above computer based method is completely Web-based with a thin-client user interface. The participants in the supply chain are identified by a unique identifier regardless of commodity transacted. The producers in the supply chain are identified by aunique identifier regardless of commodity io produced. The participants in the supply chain are identified by a unique identifier regardless of role in the supply chain.
Multiple participants in the transaction can leverage the unique identifier to facilitate processing without transferring sensitive information such as is financing arrangements:.
XML is used to insulate distinct data formats generated by client operations from the data validation processing; database update and application processing, wherein many-to-one conversion from distinct client formats to a 2o common XML-compiant interface format enabling the use of a single algorithm to validate and further process information transmitted by a client. XML is used to insulate distinct data formats required by client operafiions from the data export and application processing conducted on the server, wherein one-to-many conversion from a common XML-compliant interface to distinct client formats 2s enabling the use of a single export algorithm and code base for service provision.
Users are authenticated by a password and, in some cases; a physical token such as a smartcard. User sessions are protected through secure 3o communications, for example, secure socket layer (SSL). User documents are digitally signed and can be authenticated through digital signature verification.
The user may connect via a physical (wire) service or via a wireless service.
Transaction data is maintained in a database. Users are only permitted access to data for transactions in which they participated or aggregate data.
A purchasing and a selling party may contract online. The contract is s digitally signed by one or both parties. A third party financing entity can participate via a network connection, for example, via the Internet, and commit financing.
The present invention can facilitate end-to-end electronic processing of to food commodity transactions reducing paper flow, eliminating the need for disclosure of sensitive data to intermediary parties, and streamlining transaction processing. The invention may be used to trace the origin of a commodity from a participant further down the chain (e.g. a buyer or a grocery chain) back to the origin (the producer) and then trace other shipments by that producer forward is down the chain. Also, the invention may be used to provide aggregated statistical data to government organizations (e.g. Statistics Canada) and other industry groups.
BRIEF DESCRIPTION OF THE DRAUUINGS
ao The embodiments of the invention will now be described with reference to the accompanying drawings, in which:
Fig. 1 illustrates one possible example of food supply chain;
2s Fig. 2 illustrates a real-time transacting and status reporting capability of a food supply chain leveraging an electronic business service according to the present invention;
Fig. 3 depicts a possible logical implementation involving an n-tier 3o architecture and insulation of particular key data and processes;
Fig. 4 shows one embodiment according to the present invention;
Fig: 5 shows another embodiment according to the present invention; and Fig. 6 shows yet another embodiment according to the present invention.
DETAILED DESCRIPTION OF THE EMBODIMENT (S) s To assist the reader, the following glossary of term is provided, which will be used in this description and in the appended claims.
Food Supply Chain: the parties and processes involved in the growing, production and processing of all forms of food, including, for example, livestock 1o (e.g. pigs, cattle, sheep), dairy products (e.g: milk, butter), crops (wheat, com, fruits, vegetables) from the farm through to delivery to the end consumers, for example, through a grocer or a restaurant. Intermediary parties may include;
for example, shippers, slaughterhouses, elevators operators, processors, financers, exporters, commodity organizations and government organizations. Processes is may include purchase and sale processing, financing arrangements, payment processing, contracting; storage etc.
Livestock Supply Chain: a subset-of the Food Supply Chain limited to the parties and processes involved in the raising and processing of livestock (e.g.
2o pigs, cattle, sheep) from the farm through to delivery to the end consumers.
Horticultural Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of horticultural commodities (e.g. fruits and vegetables) from the farm through to 2s delivery to the end consumers.
Agricultural Commodity Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of agricultural commodities (e:g. grains, oilseeds, fruits, vegetables) from the farm 3o through to delivery to the end consumers.
Grains & Oilseeds Supply Chain: a subset of the Food Supply Chain limited to the parties and processes involved in the production and processing of grains and oilseeds (e.g. wheat, corn, soybeans) from the farm through to delivery to the end consumers.
Grains Chain: a subset of the Food Supply chain limited to the parties and processes involved in the production and processing of grains (e.g. wheat, corn) from the farm through to delivery to the end consumers.
Fig. 1 illustrates a diagram of a possible food supply chain, and Fig. 2 is a diagram illustrating a real-time transacting and status reporting capability of the io food supply chain leveraging an electronic business service (eBS) according to one embodiment of the invention. As is shown in Figs. 2 and 3, the present invention involves a Web-based service leveraging a system architecture that segregates the user interface, presentation logic, business logic, services and data. The present invention provides a flexible foundation for converting the .
is current paper flow between transacting parties to an electronic flow reflecting the same point-to-point data transfers but allows for modification of the data flow as appropriate to take advantage of electronic processing.
Fig. 3 illustrates a possible logical implementation involving an n-tier 2o architecture and illustrates the insulation of particular key data and processes.
The present invention supports processes between transacting parties in the food supply chain and could begin at any point in the supply chain independent of earlier or subsequent processing. Referring to Fig. 2, several embodiment of the present invention will be described below Fig. 4 shows one embodiment according to the present invention, which represents the flow of information between a producer (P), an elevator (E}, a Buyer (B), a commodity organization (G) that has provided an advance to the producer, an ePayment Service (ePS} and an eBu~iness Service (eBS) that operates a service according to the invention. Referring to Fig. 4, this embodiment will be explained step by step as follows:
Step 1: The Elevator provides information regarding a commodity transaction identifying the producer, the buyer and transaction details, which may include, for example, date, producer ID, buyer ID, commodity, grade, tonnage, identity preserve. This information may be transmitted electronically from the Elevator's systems via, forexample File Transfer Protocol {FTP), or may be entered through a secure Web connection to the eBS.
Step 2: The eBusiness Service maintains a comprehensive directory of participants (entities) in the upply chain independent of commodity and role:
Each entity has a unique identifier. The unique identifier is used to look up entries in other tables maintained by the eBS on behalf of its members; for to example, commodity purchase contracts or financing arrangements. In this way the eBS can determine price, financing repayments and distribution of payments to be made to effect settlement of the transaction. This data can then be presented to the Elevator for approval. Again, the provision of this data could be effected in many ways including a file FTP or an email to the Elevator indicating is that the payment data is visible through a secure Web view for approval.
Step 3: The Elevator approves the payment signaling to the eBS its authorization to initiate the transfer of funds. An authorized user at the Elevator may communicate this approval, for example, through a digital signing of the 2o payment data.
Step 4: The eBS aufiomatically validates the payment approval, for example by accessing the Elevator's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the 2s ePayment Service Provider (ePS) to initiate a transfer of funds to the account of the Producer and/or, where appropriate, to the account of the Commodity Organization or financing party. The ePS could be a third party service provider or a bank.
3o Step 5: The ePS transrrfits a confirmation report or reports any problems preventing settlement (e.g. a closed account or insufficient funds).
Step 6: The: status of the transaction is available to the transacting parties at all times throughout the transaction via a secure; password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example, need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P has received payments for the commodity.
s Fig. 5 shows another embodiment according to the presenfi invention, which represents the flow of information between a producer (P), an elevator (E), a Buyer (B), a commodity organization (C) that has provided an advance to the producer, an ePayment Service (ePS) and an eBusiness Service (eBS) that io operates a service according to the invention. This embodiment illustrates the flow for the purchase of grain from an elevator by a buyer - a little further down the supply chain than the previous embodiment. Referring to Fig. 5, this embodiment will be explained step by sfep as follows:
is Step 1: The Buyer provides information regarding a commodity transaction identifying theelevator, the transaction details, which may include, for example, date, producer ID; .buyer ID; commodity, grade, tonnage, identity preserve. This information may be transmitted electronically from the Elevator's systems via, for example File Transfer Protocol (FTP); or may be entered 20 through a secure Web connection to the eBS.
Step 2: The eBusiness Service maintains a comprehensive directory of participants (entities) in the supply chain independent of commodity and role.
Each entity has a unique identifier: The unique identifier is used to lookup Zs entries in other tables maintained by the eBS on behalf of its members; for example, commodity purchase contracts or financing arrangements. In this way the eBS can determine price, financing repayments and distribution of payments to be made to effect settlement of the transaction. This data can then be presented to the Buyer for approval: Again; the provision of this data could be 3o effected in many ways including a file FTP or an email to the Buyer indicating that the payment data is visible through a secure Web view for approval.
Step 3: The Buyer approves the payment signaling to the eBS its authorization to initiate the transfer of funds. An authorized user at the Buyer c may communicate this approval, for example, through a digital signing of the payment data.
Step 4: The eBS automatically validates the payment approval, for s example by accessing the Buyer's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the ePayment Service Provider (ePS) to initiate a transfer of funds to the Product and to the Commodity Organization. The ePS could be a third party service provider or a bank.
io Step 5: The ePS transmits a confirmation report or reports any problems preventing settlement (e.g. a closed account or insufficient funds).
Step 6: The status of the transaction is available to the transacting parties is at all times throughout the transaction via a secure, password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example; need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P-has received payments for the commodity.
Fig. 6 shows yet another embodiment according to the present invention, which represents the flow of information between a producer (P), an elevator (E), two potential Buyers (B1 and B2), a commodity organization (C) that has provided an advance to the producer, an ePayment Service (ePS) and an 2s eBusiness Service (eBS) that operates a service according to the invention.
This embodiment illustrates a possible sales transaction flow for the purchase of grain from a producer by a buyer - a little earlier in the supply chain than the previous two embodiments. Referring to Fig. 6, this embodiment will be explained step by step as follows:
Step 1: The Producer has previously delivered crop to an elevator (E) which is holding it for him but it has not been sold. The Producer communicates a price asked (per tonne) for the crop. Grade details etc. are available through the eBS.
1~
r Step 2: A number of buyers may submit bid prices: Steps one and two may be repeateduntil an agreement has been reached between the buyer and the producer in which case the transaction details are presented to the buyer for s confirmations. Note that it is not necessary that either the buyer or the producer know the other party. The elevator may attest to the grade of the produce through the eBS system.
Step 3: The Buyer approves the payment signaling to the eBS its io authorization to initiate the transfer of funds: An authorized user at the Buyer may communicate this,approval; for example; through a digital signing of the payment data.
Step 4: The eBS automat~callyvalidates the payment approval; for is example by accessing the Buyer's Public Key and performing a digital signature validation, and transmits corresponding epayment requests to the ePayment Service Provider (ePS) to initiate a transfer of funds to the Product and to the Commodity Organization: The ePS could be a third party service provider or a bank.
Step 5: The ePS transmits a confirmation report or reports any problems preventing settlement (e:g. a closed account or insuffiicient funds).
Step 6: The status of the transaction is available to the transacting parties 2s at all times throughout the transaction via a secure, password protected Web link. The information provided is restricted to the information that the party is entitled to know. The buyer, for example, need not know the specific financing arrangements, but can be informed that the Elevator has received X tonnes of commodity Y and that Producer P has received payments for the commodity. .
While the present invenfiion has been described with reference to specific embodiments, the description is illustrative of the invention and is not to be construed as limiting the invention. Various modifications may occur to those skilled in the art without departing from the true spirit and scope of the invention as defined. by the appended claims.
Claims (25)
1. A computer based method for facilitating electronic processing relating to commodity transactions, the method comprising steps of:
(a) collecting data relating to the commodity transaction;
(b) reporting information on an individual or aggregate basis relating to the commodity transaction;
(c) tracing the movement of product shipments across multiple links in a supply chain relating to the commodity transaction; and (d) retracing the movement of a product from any point in the chain back to its source relating to the commodity transaction.
(a) collecting data relating to the commodity transaction;
(b) reporting information on an individual or aggregate basis relating to the commodity transaction;
(c) tracing the movement of product shipments across multiple links in a supply chain relating to the commodity transaction; and (d) retracing the movement of a product from any point in the chain back to its source relating to the commodity transaction.
2. A method according to claim 1, wherein the commodity transaction includes one related to a food supply chain.
3. A method according to claim 1, wherein the commodity transaction includes one related to an agricultural commodity supply chain.
4. A method according to claim 1, wherein the commodity transaction includes one related to a grains and oilseeds supply chain.
5. A method according to claim 1, wherein the commodity transaction includes one related to a grains supply chain.
6. A method according to claim 1, wherein the commodity transaction includes one related to a livestock supply chain.
7. A method according to claim 1, wherein the commodity transaction includes one related to a horticultural supply chain.
8. A method according to any one of claims 1 to 7, wherein the computer based method is completely Web-based with a thin-client user interface.
9. A method according to any one of claims 1 to 7, wherein the participants in the supply chain are identified by a unique identifier regardless of commodity transacted.
10. A method according to any one of claims 1 to 7, wherein the producers in the supply chain are identified by a unique identifier regardless of commodity produced.
11. A method according to any one of claims 1 to 7, wherein the participants in the supply chain are identified by a unique identifier regardless of role in the supply chain.
12. A method according to any one of claims 1 to 7, wherein multiple participants in the transaction can leverage the unique identifier to facilitate processing without transferring sensitive information such as financing arrangements.
13. A method according to any one of claims 1 to 7, wherein XML is used to insulate distinct data formats generated by client operations from the data validation processing, database update and application processing, wherein many-to-one conversion from distinct client formats to a common XML-compliant interface format enabling the use of a single algorithm to validate and further process information transmitted by a client.
14. A method according to any one of claims 1 to 7, wherein XML is used to insulate distinct data formats required by client operations from the data export and application processing conducted on the server, wherein one-to-many conversion from a common XML-compliant interface to distinct client formats enabling the use of a single export algorithm and code base for service provision.
15. A method according to anyone of claims 1 to 7, wherein users are authenticated by a password.
16. A method according to any one of claims 1 to 7, wherein users are authenticated by a password and a physical token such as a smartcard.
17. A method according to claim 16, wherein user sessions are protected through secure communications, for example, secure socket layer (SSL).
18. A method according to claim 16, wherein user documents are digitally signed and can be authenticated through digital signature verification.
19. A method according to claim 16, wherein the user connects over a wireless service.
20. A method according to any one of claims 1 to 7, wherein transaction data is maintained in a database.
21. A method according to any one of claims 1 to 7, wherein users are only permitted access to data for transactions in which they participated.
22. A method according to any one of claims 1 to 7, wherein users are only permitted access to data for transactions in which they participated or aggregate data.
23. A method according to any one of claims 1 to 7, wherein a purchasing and a selling party may contract online.
24. A method according to claim 23, wherein the contract is digitally signed by one or both parties.
25. A method according to claim 23, wherein a third party financing entity can participate via a network connection, for example, via the Internet, and commit financing.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA002416386A CA2416386A1 (en) | 2003-01-16 | 2003-01-16 | Electronic commodity transaction services for the food supply chain |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA002416386A CA2416386A1 (en) | 2003-01-16 | 2003-01-16 | Electronic commodity transaction services for the food supply chain |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2416386A1 true CA2416386A1 (en) | 2004-07-16 |
Family
ID=32660921
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA002416386A Abandoned CA2416386A1 (en) | 2003-01-16 | 2003-01-16 | Electronic commodity transaction services for the food supply chain |
Country Status (1)
| Country | Link |
|---|---|
| CA (1) | CA2416386A1 (en) |
Cited By (2)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| CN113052700A (en) * | 2021-03-26 | 2021-06-29 | 深圳前海微众银行股份有限公司 | Method and device for determining micro-service call chain |
| US20220188763A1 (en) * | 2014-02-14 | 2022-06-16 | Farm-Logix, Llc | Distributed Computing System That Practically Applies Networked Computing Technology and Machine-Readable Indicia to Support Traceability of Products from Providers to Clients |
-
2003
- 2003-01-16 CA CA002416386A patent/CA2416386A1/en not_active Abandoned
Cited By (3)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20220188763A1 (en) * | 2014-02-14 | 2022-06-16 | Farm-Logix, Llc | Distributed Computing System That Practically Applies Networked Computing Technology and Machine-Readable Indicia to Support Traceability of Products from Providers to Clients |
| US11861548B2 (en) * | 2014-02-14 | 2024-01-02 | Farm-Logix, Llc | Distributed computing system that practically applies networked computing technology and machine-readable indicia to support traceability of products from providers to clients |
| CN113052700A (en) * | 2021-03-26 | 2021-06-29 | 深圳前海微众银行股份有限公司 | Method and device for determining micro-service call chain |
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