CA2471286A1 - Production planning and vendor managed inventory system - Google Patents
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- CA2471286A1 CA2471286A1 CA002471286A CA2471286A CA2471286A1 CA 2471286 A1 CA2471286 A1 CA 2471286A1 CA 002471286 A CA002471286 A CA 002471286A CA 2471286 A CA2471286 A CA 2471286A CA 2471286 A1 CA2471286 A1 CA 2471286A1
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- G—PHYSICS
- G06—COMPUTING; CALCULATING OR COUNTING
- G06Q—INFORMATION AND COMMUNICATION TECHNOLOGY [ICT] SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES; SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL OR SUPERVISORY PURPOSES, NOT OTHERWISE PROVIDED FOR
- G06Q10/00—Administration; Management
- G06Q10/08—Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
- G06Q10/087—Inventory or stock management, e.g. order filling, procurement or balancing against orders
Abstract
Published without an Abstract
Description
PRODUCTION PLANNING AND VENDOR MANAGED INVENTORY SYSTEM
FIELD OF THE INVENTION
(Ol] This invention relates generally to production planning and inventory control for merchandisers and suppliers of goods. More particularly, the present invention provides a method and system for optimizing inventory control and for providing improved production plans for future sales of goods.
DESCRIPTION OF THE RELATED ART
FIELD OF THE INVENTION
(Ol] This invention relates generally to production planning and inventory control for merchandisers and suppliers of goods. More particularly, the present invention provides a method and system for optimizing inventory control and for providing improved production plans for future sales of goods.
DESCRIPTION OF THE RELATED ART
[02] It is well known in the business world that suppliers and merchandisers of goods can increase profits with inventory control and accurate planning for fixture sales.
Suppliers do not want to overproduce products and merchandisers do not want to have in stock more items than they can sell. In addition, it is a goal of merchandisers to have an inventory that efficiently meets the demands of the customers. Correspondingly, suppliers desire to produce products at a rate that meets the demand of the merchandisers.
Suppliers do not want to overproduce products and merchandisers do not want to have in stock more items than they can sell. In addition, it is a goal of merchandisers to have an inventory that efficiently meets the demands of the customers. Correspondingly, suppliers desire to produce products at a rate that meets the demand of the merchandisers.
[03] It is a drawback of current business methods that suppliers either produce too much or too little of a product, while merchandisers either do not have enough product on hand to meet sales or have product and goods left over in inventory at the end of a retail season.
[04] Thus there is a need for an improved method and system for product planning and inventory control of goods for both suppliers and merchandisers.
SUMMARY OF THE INVENTION
[OS] The present invention overcomes the problems and limitations of the prior art by providing methods and systems that allow for accurate inventory control and planning for future sales. Suppliers and merchandisers can use computer systems to assists in control and planning functions. The disclosed systems and methods t allow the suppliers and merchandisers to accurately and efficiently control inventory and plan for future sales.
[06J In a first embodiment, the invention provides a computer-implemented method for establishing an inventory plan. A computer server receives a sales trend from a merchandiser, wherein the sales trend includes expected future sales by the merchandiser. The server receives a first notification from a supplier, wherein the first notification includes an indication that the sales trend is approved.
The server receives an intake plan from the supplier, and the server receives a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
[07) In another embodiment, there is a computer-implemented method of managing an inventory. A computer server receives a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data. The server receives notification that the merchandiser and a supplier have approved the sales trend.
The server receives an updated intake plan from the supplier, and receives a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
[08] In one embodiment of another aspect of the invention, there is a data processing system for establishing an inventory level. The data processing system includes a processor and memory for storing computer readable instructions that, when executed by the processor, cause the data processing system to perform a set of steps. The system receives a sales trend from a merchandiser, wherein the sales trend includes expected future sales by the merchandiser. The system receives a first notification fi-om a supplier, wherein the first notification includes an indication that the sales trend is approved. The system receives an intake plan from the supplier, and receives a second notification from the merchandiser, wherein the second notification includes an indication that the intake plan is approved.
[09] In another embodiment, there is a data processing system for managing an inventory, including a processor and a memory for storing computer readable instructions that, when executed by the processor, cause the system to perform a set of steps. The system receives a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data. The system receives notification that the merchandiser and a supplier have approved the sales trend.
The system receives an updated intake plan from the supplier, and receives a notification from the merchandiser, wherein the notification includes an indication that the intake plan is approved.
[10] In some embodiments, a contract between the supplier and the merchandiser may be based on the sales trend and intake plan.
[11] In some embodiments, when the supplier and merchandiser do not agree on the sales trend or intake plan, an alternate trend or plan may be suggested.
[12] The sales trend and intake plans may be respective to a specific style and color combination of a retail product_ [13] In other embodiments, the present invention can be partially or wholly ' implemented on a computer-readable medium, for example, by storing computer-executable instructions or modules, or by utilizing computer-readable data structures.
[14] Of course, the methods and systems of the above-referenced embodiments may also include other additional elements, steps, computer-executable instructions, or computer-readable data structures. In this regard, other embodiments are disclosed and claimed herein as well.
[15] The details of these and other embodiments of the present invention are set forth in the accompanying drawings and the description below. Other features and advantages of the invention will be apparent from the description and drawings, and from the claims.
BRIEF DESCRIPTION OF THE DRAWINGS
[17] The present invention is illustrated by way of example and not limited in the accompanying figures in which like reference numerals identify Like elements and in which:
[18] Figure 1 illustrates a flowchart of initialization procedures of an embodiment of the invention.
[19] Figure 2 illustrates a flowchart of a production planning method according to an embodiment of the invention.
[20] Figure 3 illustrates a flowchart of production planning method according to an embodiment of the invention, and depicts roles that a merchandiser and supplier may perform in the method.
[21] Figure 4 illustrates a block diagam of an embodiment of the invention.
[22] Figure 5 illustrates a detailed flowchart of a product planning method according to an embodiment of the invention.
[23] Figure 6 illustrates a flowchart of a vendor managed inventory method according to an embodiment of the invention.
[24] Figure 7 illustrates a screenshot of a login screen.
(25] Figure 8 illustrates a screenshot of a production planning VMI Overview screen.
[26] Figure 9 illustrates a sereenshot of a selection screen.
[27] Figure 10 illustrates a workstation and communication connections.
[28] Figure 11 illustrates a screenshot of a production planning Merchandiser Overview screen.
[29] Figure 12 illustrates a screenshot of a production planning Create VMI
Plan screen.
[30] Figure 13 illustrates a screenshot of a production planning style/color screen for all channels according to an embodiment of the invention.
(31] Figure 14 illustrates a screenshot of a production planning style/color screen for a one channel according to an embodiment of the invention.
[32] Figure 15 illustrates a screenshot of a production planning SKU screen for one channel according to an embodiment of the invention.
[33] Figure 16 illustrates a .screenshot of a vendor managed inventory style/color screen for all channels according to an embodiment of the invention.
[34] Figure 17 illustrates a screenshot of a vendor managed inventory style/color screen for a channel according to an embodiment of the invention.
[35] Figure 18 illustrates a screenshot of another vendor managed inventory style/color screen for a channel according to an embodiment of the invention.
[36] Figure 19 illustrates a screenshot of yet another vendor managed inventory style%olor screen for a channel according to an embodiment of the invention.
[37] . Figure 20 illustrates a screenshot of still another vendor managed inventory styleJcolor screen for a channel according to an embodiment of the invention.
[38] Figure 21 illustrates a screenshot of yet still another vendor managed inventory style/color screen.
[39] Figure 22, illustrates a block diagram of a computer readable medium storing computer software according to an embodiment of the invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[40J The present invention provides a method and system for providing production planning and inventory control for merchandisers and suppliers of goods. With the present invention, production planning capabilities allow a supplier to provide a low level production plan, taking into account an assortment of goods and season estimates, and allow a supplier and merchandiser to bargain and agree on sales trends and inventory intake plans. The production plan may be developed at a styleJcolor level, and can be shared with the supplier during a pre-season.
That is, the plan is developed for each particular style and color of a consumer good so that suppliers can efficiently provide merchandisers with an appropriate quantity of each good at the beginning of a retail season. The plan is then monitored and re-forecast during the season based on actual sales and re-forecast data via a vendor management inventory process, such that suppliers provide a more accurate quantity of goods to merchandisers throughout the retail season, based on consumer buying trends. Although the present invention may be utilized with any type of goods in any area of business, it is particularly advantageous for use in manufacturing and selling of clothing. Styles and colors of clothing typically change from one season to another and thus, production planning and inventory control are extremely important for merchandisers and suppliers in the retail industry.
[41] Elements of the present invention may be implemented with computer systems, such as the system 1100 shown in F1G. 10. Computer 1100 includes a central processor 1110, a system memory 1112 and a system bus 1114 that couples various system components including the system memory 1112 to the central processor unit 1110. System bus 1114 may be any of several types of bus structures including a memory bus or memory controller, a peripheral bus, and a local bus using any of a variety of bus architectures. The structure of system memory 1112 is well known to those skilled in the art and may include a basic input/output system (BIOS) stored in a read only memory (ROM) and one or more program modules such as operating systems, application programs and program data stored in random access memory (RAM).
[42] Computer 1100 may also include a variety of interface units and drives for reading and writing data. In particular, computer 1100 includes a hard disk interface 1116 and a removable memory interface 1120 respectively coupling a hard disk drive 1118 and a removable memory drive 1122 to system bus 1114.
Examples of removable memory drives include magnetic disk drives and optical disk drives. The drives and their associated computer-readable media, such as a floppy disk 1124 provide nonvolatile storage of computer readable instructions, data structures, program modules and other data for computer 1100. A single hard disk drive I 118 and a single removable memory drive 1122 are shown for illustration purposes only and with the understanding that computer 1100 may include several of such drives. Furthermore, computer 1100 may include drives for interfacing with other types of computer readable media.
[43] A user can interact with, computer 1100 with a variety of input devices.
Figure I 1 shows a serial port interface 1126 coupling a keyboard 1128 and a pointing device 1130 to system bus 1114. Pointing device 1128 may be implemented with a mouse, track ball, pen device, or similar device. Of course one or more other input devices (not shown) such as a joystick, game pad, satellite dish, scanner, touch sensitive screen or the like may be connected to computer 1100.
[44] Computer 1100 may include additional interfaces for connecting devices to system bus 1114. Figure 11 shows a universal serial bus (USB) interface 1132 coupling a video or digital camera 1134 to system bus 1114. An IEEE 11394 interface 1136 may be used to couple additional devices to computer 1100.
Furthermore, interface 1136 may configured to operate with particular manufacture interfaces such as FireWire developed by Apple Computer and i.Link developed by Sony. Input devices may also be coupled to system bus 1114 through a parallel port, a game port, a PCI board or any other interface used to couple and input device to a computer.
[45] Computer 1100 also includes a video adapter I 140 coupling a display device 1142 to system bus 1114. Display device 1142 may include a cathode ray tube (CRT), liquid crystal display (LCD), field emission display (FED), plasma display or any other device that produces an image that is viewable by the user. Additional output devices, such as a printing device (not shown), may be connected to computer 1100.
[46] Sound can be recorded and reproduced with a microphone 1144 and a speaker 1166. A sound card 1148 may be used to couple microphone 1144 and speaker 1146 to system bus 1114. One skilled in the art will appreciate that the device connections shown in figure 11 are for illustration purposes only and that several of the peripheral devices could be coupled to system bus 1114 via alternative interfaces. For example, video camera 1134 could be connected to IEEE 11394 interface 1136 and pointing device 1130 could be connected to USB interface 1132.
[47) Computer 1100 can operate in a networked environment using logical connections to one or more remote computers or other devices, such as a server, a router, a network personal computer, a peer device or other common network node, a wireless telephone or wireless personal digital assistant. Computer 1100 includes a network interface I 1 SO that couples system bus 1114 to a local area network (LAN) I 152. Networking environments are commonplace in offices, enterprise-wide computer networks and home computer systems.
[48) A wide area network (WAN) 1154, such as the Internet, can also be accessed by computer 1100. Figure 11 shows a modem unit 1156 connected to serial port interface l 126 and to WAN 1154. Modem unit 1156 may be located within or external to computer 1100 and may be any type of conventional modem such as a cable modem or a satellite modem. LAN 1152 may also be used to connect to WAN 1154. Figure 11 shows a router 1158 that may connect LAN 1152 to WAN
1154 in a conventional manner.
[49] It will be appreciated that the network connections shown are exemplary and other ways of establishing a communications link between the computers can be used. The existence of any of various well-known protocols, such as TCP/IP, Frame Relay, Ethernet, FTP, HTTP and the like, is presumed, and computer 1100 can be operated in a client-server configuration to permit a user to retrieve web pages from a web-based server. Furthermore, any of various conventional web browsers can be used to display and manipulate data on web pages.
[50] The operation of computer 1100 can be controlled by a variety of different program modules. Examples of program modules are routines, programs, objects, components, data structures, etc., that perform particular tasks or implement particular abstract data types. The present invention may also be practiced with other computer system configurations, including hand-held devices, multiprocessor systems, microprocessor-based or programmable consumer electronics, network PCS, minicomputers, mainframe computers, personal digital assistants and the like. Furthermore, the invention may also be practiced in distributed computing environments where tasks are performed by remote processing devices that are linked through a communications network. In a distributed computing environment, program modules may be located in both local and remote memory storage devices.
[51) In one embodiment, with reference to Figure 4, the product planning procedure may be performed by a web-based application 407, facilitating the distribution of the application to supplier and merchandiser sites 41 S and 419, and enabling effective, secure communication of business data. A web server 401 includes a processor 403 and a memory 405. The memory may store web server software 409, application software 407, and trend library data 411. Merchandisers and suppliers may be connected to the web server directly, such as through-direct connection 413, or they may connect through one or more networks, such as the Internet 417. As stated above, merchandisers and suppliers may use product planning procedures to facilitate agreement on pre-season demand forecasts and intake plans. An intake plan may be derived from the estimate of demand for each color and style of retail goods, and details the supply schedule for that color and style from the supplier to the merchandiser.
[52] Similarly, the vendor managed inventory procedures may also be embodied in a web-based application. The vendor managed inventory procedure allows suppliers to view relevant stock data (e.g., quantity of an item in the supplier's warehouse that can be delivered to merchandisers), contract data and sales data online via a web browser. Using this in conjunction with their knowledge of the retail marketplace, the suppliers will be able to adjust their production and intake plans to suit merchandiser needs.
[53] Figure 1 illustrates a flow chart of initial log on procedures in an embodiment of the invention. As depicted in Figure 1, a user, such as a merchandiser or supplier, logs on in an initial step 100. In step 102, the user selects either the product planning or vendor managed inventory. When the user selects product planning, it is initiated in step 104 and the product planning plan is then formulated in step 106 between the merchandiser and supplier, as further described below. When the vendor managed inventory is selected, it is initiated in step 108 and then implemented in step 110 between the supplier and merchandiser with regards to the commitment and intake of products, respectively. The product planning plan formulated in step 106 is formulated relative to intake requirements and capacities of the merchandiser and supplier, respectively.
[54] Figure 2 illustrates a more detailed flowchart for a production planning procedure, referred to above in step 106. The merchandiser provides an initial sales trend in step 200. The initial sales trend is the merchandiser's sales estimate of the quantity of each item to be sold, and optionally includes time periods during which the merchandiser expects to sell specified quantities of goods. The sales trend estimates a predicted trend profile for the retail season and represent a forecast of expected sales for a given item or style. Suppliers generally offer views of complete market trends while merchandiser trends generally offer a view of only their own market. Thus the trends may not match in the initial instance, and the supplier and merchandiser must agree on a combined sales trend. This combined trend often provides very useful information as a result of the combined viewpoints.
[55] A supplier reviews the initial sales trend and either approves or disapproves of the trend in step 202. If the supplier approves the trend, the procedure proceeds to step 208. If, however, the supplier does not approve the trend in step 202, the supplier suggests an alternative trend in step 204, which the merchandiser may either approve or disapprove in step 206. If the merchandiser approves the trend, the procedure proceeds to step 208. If the merchandiser does not approve the trend in step 206, the procedure proceeds back to step 200 where the merchandiser may provide another trend. This cycle may continue until the merchandiser and supplier agree on the sales trend to be used.
[56] Once the supplier and merchandiser agee on the sales trend, the supplier applies an intake plan in step 208. In step 210, the merchandiser either approves or disapproves of the intake plan. If the merchandiser does not approve the intake plan, the procedure returns to step 208 where the supplier may apply another intake plan. If the merchandiser approves the intake plan, the general product planning procedure is done.
(57] Intake plans may vary for a variety of reasons, including that there are multiple possible intake plans that may accommodate the same sales trend. The supplier intake plan represents the delivery dates and quantities that a supplier suggests will meet the needs of the retailer based on the sales trend and his own production/distribution schedules. The supplier intake plan may for example consist of several large deliveries over a period of months - rather than a weekly delivery of the theoretical volume required for that individual week, as may be requested by the merchandiser. In addition, distribution center capabilities may also affect scheduling of deliveries.
[58] Figure 3 illustrates a flow chart of an embodiment, depicting the roles that a merchandiser and supplier may play in a production planning procedure.
Initially (not shown), when a user logs on to the system, the system authenticates and identifies the user as a merchandiser or supplier using his or her user name and password. The system is configured to then present each user with appropriate displays, menus, and functions as are appropriate to his or her role (i.e., merchandiser vs. supplier). In the merchandiser role, merchandisers view and work with all suppliers and products, apply trends, define new trends, approve supplier-suggested trends, approve supplier intake plans, and agree to hard contract plans. Suppliers, however, only view and work with their own products, as well as review trends, apply alternative trends, define new trends and suggest intake plans.
[59] More specifically, in Figure 3, high-level production planning parameters are identified in step- 300. High-level production parameters may include the supplier, style, color, and trend, in addition to other parameters discussed below.
The user specifies these parameters in order to provide basic information that defines which supplier and product they would like to work with. After identifying high-level production parameters, the merchandiser selects a production-planning supplier in step 302. That is, the merchandiser identifies a supplier with which to formulate a production plan. The merchandiser then identifies a product of the selected supplier in step 304, and applies a trend profile from a library in step 306. Alternatively (not shown), the supplier may create and apply a new trend. The supplier reviews the trend profile and generates an intake plan in step 308. Optionally, the user may suggest alternative trends from the library (or create new trends) in step 310. The trend library may be used to store actual historical trends from which a present trend may be selected.
[60] The merchandiser considers the trend presented by the supplier in step 312. If the merchandiser does not agree with the supplier's suggested trend, then there is a return to step 306. When agreement is reached in step 314 the merchandiser publishes the generated intake plan in step 316. The user is able to review the generated intake plan in step 318 and in step 320 enters a supplier intake plan.
The merchandiser then reviews the supplier intake plan in step 322 and if the merchandiser does not agree in step 324, then there is a return to step 316.
When agreement is reached a contract may be formed between the merchandiser and supplier in step 326. Step 328 is an optional selling period preview during which the product is put on sale for a trial period. This may result in a different selling period total forecast and all or some of the elements may be reviewed and the process may be restarted.
[61] Figure 5 illustrates a flowchart for an embodiment of a production planning method. After a login by a user in step 500, high level production planning parameters are identified in step 502. High level production parameters may include a desired channel, a selling period, a number of weeks in the selling period, start date, end date, and the like, as well as those parameters discussed above.
[62] The term channel is used to refer to a sales channel. For instance, one sales channel may be a traditional bricks and mortar store or chain of stores, where customers can physidally go to buy a retail item or service using the merchandiser's traditional point of sale (POS) systems. Another channel may be a catalogue channel, where a merchandiser mails or otherwise delivers catalogues to customers, from which the customers may order merchandise for delivery through the mail or other delivery service. Catalogues allow merchandisers to easily alter their selections of goods by merely producing and sending an updated catalogue to customers, e.g., seasonally. Yet another channel may be an interactive channel, such as WebTV, DTV, the Internet, and other similar mediums. Using an interactive channel, customers may browse a merchandiser's web site, WebTV or DTV channel (actual channel on a TV versus a sales channel as used herein). The customer may purchase an item directly through the interactive channel, without requiring the customer to either visit the merchandiser's traditional store or to read the merchandiser's catalogue. It should be readily apparent to those of skill in the relevant art that other channels may easily be envisioned. The disclosure herein is intended to include all sales channels through which a merchandiser may sell goods and/or services to consumers.
[63] Outputs from step 502 may include the channel identification, and season and selling period identified for the plan. In step 508 a user inputs his or her selection of the product planning supplier. In step 514 the user selects a product by the selected supplier. Assortment planning for the selected product may be automatically performed in step 516. Assortment planning may be performed by l3 the user or may be performed automatically by the product planning system.
Assortment planning is a precursor to the Production planning phase and may be a separate process utilizing separate planning capabilities. User input in step may include the product description and other product identification, as well as an estimate of the product's quantity of sales. The user applies a trend profile in step 522, optionally selected from a trend library. The system applies the selected trend to provide a weekly breakdown of the sales estimate.
[64] In step 528, the system (or optionally, the user) determines whether the product is a stock item or a direct dispatch item. A stock item is an item that is manufactured in bulk and surplus inventory is readily available to ship to merchandisers. A direct dispatch item is an item that is only manufactured to the extent it is ordered, while manufactured items are typically shipped immediately to the ordering merchandiser. If the product is a stock item, in step 530 the user inputs information pertaining to low level production plan parameters, such as channel requirements and supplier requirements. Outputs from step 530 may include the number of weeks of stock cover, carryover stock figures, and lead time. In step 536 a stock intake plan is generated from user input that may include the number of weeks of stock cover required, carryover stock figures, and lead time, amongst others. Output from step 536 may include the stock plan calculated by week. In step 542, the merchandiser shares the sales profile and stock intake plan with the supplier for the supplier to review. In step 548 the merchandiser seeks agreement with the supplier. If no agreement is reached, then a return to step 522 occurs. In step 528, if the product is not a stock item then the process goes to the step 548.
[65] Afler step 548, if the product is not a stock item, then the merchandiser may create a hard contract where appropriate, in step 566, so as to confirm the purchaser of the non-stock item(s). If the product is a stock item, then the merchandiser generates a revised sales intake plan in step 552 and receives a supplier intake proposal in step 558, In step 564, if the supplier intake proposal is not acceptable, a return is made to step 558, otherwise a hard contract may be created where appropriate in step 566, such as when a merchandiser needs or wants a guaranteed supply of a style/color. Step 572 determines whether the product is in preview. If the product is in preview then a preview estimate is made at step 574. The preview estimate is based in part on monitored preview sales. The preview estimate may also be shared with the supplier. Return is then made to step 522 of applying a trend profile. If the product is not in preview then the system may begin providing result information, in step 580, to other processes such as contracting and ordering, pipeline procedures, warehouse information, supplier information, payment information, and style%olor management.
[66] After the product planning phase is complete, inventory may be continually managed and updated using a vendor managed inventory (VMI) system, as further described below. The VMI system allows suppliers to monitor relevant stock information, contract information, and sales date online via a web browser, such that they are able to adjust their production and intake plans to better suit consumer demand as it fluctuates throughout a sales season.
[67J Figure 6 illustrates a flow chart for a typical sales trend revision process within the VMI system. In step 600, the merchandiser provides an original or initial selling period sales trend. This sales trend may be entirely based on actual sales data of the same or similar goods. Alternatively, the merchandiser may apply a sales trend profile from a sales trend library. In step b02, the supplier and merchandiser both review the current trend. If the supplier does not approve of the trend in step 604, then the supplier may provide an alternative trend in step 606, and the process goes back to step 602. If the supplier approves the trend in step 604, the merchandiser is given the opportunity to approve the trend in step 608. If the merchandiser approves the trend, then the new trend may be used by the supplier, in step 610, to base production of the product in question. If the new trend is not approved in step 608, the procedure goes to step 606 where the supplier may provide an alternative trend.
[68] After the merchandiser and supplier agree on a sales trend, an intake plan may be updated based on the new sales trend. In step 612 the supplier creates or provides an intake plan. 7fie merchandiser reviews the plan in step 614, and approves or rejects the proposed intake plan. If the intake plan is disapproved, the process returns to step 612 where the supplier may provide or create an alternative intake plan. If the merchandiser approves the intake plan in step 614, then a contract may be prepared in step 616. Once the contract is ratified or accepted, the system sends information to other processes and modules, such as to contracting and ordering modules, pipeline procedures, a warehouse, suppliers, and payment modules. It should be appreciated by those skilled in the art that the above steps, as with other disclosed methods, may be performed in other than the recited order and by other than the recited performer.
[69] As stated above, each user logs in using a login ID, password, and optional connect string that identifies the database to which the user desires to connect.
The database is the underlying application data structure that the user uses.
Of course, in alternative embodiments, users may login with other parameters that might not include a password.or connect string, or may include just a login and password, and the database identification may be performed automatically based on the login >D. Figure 7 illustrates a screenshot of a login screen that may be used. After the user logs.in to the system, the user selects whether to perform product planning or vendor manages inventory procedures. Figure 9 illustrates a screenshot of a selection screen that may be used. The system displays menus and provides fimctionality according to each user's role, e.g., supplier vs.
merchandiser.
[70] When a merchandiser logs in to the system and selects VMI procedures, the merchandiser is shown a list of all available suppliers associated with the merchandiser, such as is illustrated in Figure 11. The merchandiser overview screen allows a merchandiser to select suppliers by season, or allows merchandisers to create a new VMI. The user may also exit the VMI system from the merchandiser overview screen. When a user selects to create a new VMI, the system displays the Create VM1 Plan screen, as illustrated in Figure 12. The user inputs information associated with a VMI plan, including information such as the season (or season ID), the supplier, the style/color of the item, and a description of the item. The Create VMI Plan screen is generally only available to merchandisers. However, one of skill in the art may easily envision an embodiment where suppliers also create a VM1 plan, such as when a merchandiser owns retails stores and also acts as a merchandiser.
[71] Upon selecting a supplier and pressing the associated 'Go' button on the merchandiser overview screen, the system displays the VMI Overview screen for the selected supplier, such as that illustrated in Figure 8. The VMI Overview screen displays a list of stock items by style%olor, and may include a description of each item and various trends associated with the item(s). Pressing the 'Go' button associated with a style/color on the VMI Overview screen causes the system to display an all channel styleJcolor screen for the selected style/color, such as that shown in Figure 13.
[72J The all channel style/color screen includes summary information pertaining to the selected style%olor across all selling channels (i.e., physical store, catalogue, etc.) for the selected style%olor/supplier combination, optionally including status information across all the channels, as well as a season estimate of the stock required for the entire season across all the channels. Additional information may also be displayed for each week within the season. This information may include the original product plan estimate, a weekly gross demand forecast, cumulative gross demand/forecast, gross estimates, weekly net actuals/forecast, net estimates, stock actualslforecast, contracted intake, and proposed weekly intake, among others. From the all channel style/eolor screen, the user may select to view detail information for other style/color screens, as well as go back to the overview screen.
[73J Figure 14 illustrates a screenshot of a styleJcolor screen for a single channel, but which is otherwise similar to the all channel style/color screen, above.
Figure 15 illustrates a SKU screen for a selected style/color/supplier within a single channel.
The SKU screen provides current trading positions for each SKU within the selected style/color/supplier combination selected for analysis. The user may view additional screens for each channel (not shown), similar to those illustrated in Figures 14 and 15. Additional channels for which screens may display information include a physical store channel, a catalogue channel, an interactive channel, and the like.
[74] When the user selects Product Planning (PP) from the selection screen (Figure 9), the system displays a PP Overview screen similar to the VMI Overview, above (not shown). Upon selecting a specific supplier and style/color (e.g. by pressing an associated 'Go' button), the system may display the all channel style/color screen for the selected combination, such as is shown in Figure 16. Similar screens may be displayed, each showing only the information for a single channel within the distribution system, such as are shown in Figures 17-2I .
(75] Figure 22 illustrates a block diagram of a computer readable medium 2201 storing computer software according to an embodiment of the invention. The computer readable medium may be any data storage device or article, including but not limited to system memory 1112, hard disk drive 1118, or a removable storage device such as floppy disk I 124. The computer readable medium may include software modules 2203-2213 for performing carious portions of the invention method within the PP/VMI system. There may be on ore more of a login/security module 2203 for performing user administration and security, a product planning module 2205, a vendor managed inventory module 2207, a database module 2209, web server module 2211, and trend I'brary module 2213. Additional or difference modules may also be used depending on design choices, system configuration, and the specific industry for which the system is being used.
[76] The above described method and system allows retailers to perform collaborative planning, forecasting, and replenishment of stock levels before and during a retail is season. In this manner retailers may dynamically modify stock intake plans based on shifting sales trends throughout a retail season.
[77] While the present invention has been described in connection with the illustrated embodiments, it will be appreciated and understood that modifications may be made without departing from the true spirit and scope of the present invention.
For example, an invention can be used with any type of goods that are to be sold by merchandisers and manufactured by suppliers. Relevant parameters of such goods (for example size, color, etc.) are utilized with the present invention.
SUMMARY OF THE INVENTION
[OS] The present invention overcomes the problems and limitations of the prior art by providing methods and systems that allow for accurate inventory control and planning for future sales. Suppliers and merchandisers can use computer systems to assists in control and planning functions. The disclosed systems and methods t allow the suppliers and merchandisers to accurately and efficiently control inventory and plan for future sales.
[06J In a first embodiment, the invention provides a computer-implemented method for establishing an inventory plan. A computer server receives a sales trend from a merchandiser, wherein the sales trend includes expected future sales by the merchandiser. The server receives a first notification from a supplier, wherein the first notification includes an indication that the sales trend is approved.
The server receives an intake plan from the supplier, and the server receives a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
[07) In another embodiment, there is a computer-implemented method of managing an inventory. A computer server receives a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data. The server receives notification that the merchandiser and a supplier have approved the sales trend.
The server receives an updated intake plan from the supplier, and receives a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
[08] In one embodiment of another aspect of the invention, there is a data processing system for establishing an inventory level. The data processing system includes a processor and memory for storing computer readable instructions that, when executed by the processor, cause the data processing system to perform a set of steps. The system receives a sales trend from a merchandiser, wherein the sales trend includes expected future sales by the merchandiser. The system receives a first notification fi-om a supplier, wherein the first notification includes an indication that the sales trend is approved. The system receives an intake plan from the supplier, and receives a second notification from the merchandiser, wherein the second notification includes an indication that the intake plan is approved.
[09] In another embodiment, there is a data processing system for managing an inventory, including a processor and a memory for storing computer readable instructions that, when executed by the processor, cause the system to perform a set of steps. The system receives a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data. The system receives notification that the merchandiser and a supplier have approved the sales trend.
The system receives an updated intake plan from the supplier, and receives a notification from the merchandiser, wherein the notification includes an indication that the intake plan is approved.
[10] In some embodiments, a contract between the supplier and the merchandiser may be based on the sales trend and intake plan.
[11] In some embodiments, when the supplier and merchandiser do not agree on the sales trend or intake plan, an alternate trend or plan may be suggested.
[12] The sales trend and intake plans may be respective to a specific style and color combination of a retail product_ [13] In other embodiments, the present invention can be partially or wholly ' implemented on a computer-readable medium, for example, by storing computer-executable instructions or modules, or by utilizing computer-readable data structures.
[14] Of course, the methods and systems of the above-referenced embodiments may also include other additional elements, steps, computer-executable instructions, or computer-readable data structures. In this regard, other embodiments are disclosed and claimed herein as well.
[15] The details of these and other embodiments of the present invention are set forth in the accompanying drawings and the description below. Other features and advantages of the invention will be apparent from the description and drawings, and from the claims.
BRIEF DESCRIPTION OF THE DRAWINGS
[17] The present invention is illustrated by way of example and not limited in the accompanying figures in which like reference numerals identify Like elements and in which:
[18] Figure 1 illustrates a flowchart of initialization procedures of an embodiment of the invention.
[19] Figure 2 illustrates a flowchart of a production planning method according to an embodiment of the invention.
[20] Figure 3 illustrates a flowchart of production planning method according to an embodiment of the invention, and depicts roles that a merchandiser and supplier may perform in the method.
[21] Figure 4 illustrates a block diagam of an embodiment of the invention.
[22] Figure 5 illustrates a detailed flowchart of a product planning method according to an embodiment of the invention.
[23] Figure 6 illustrates a flowchart of a vendor managed inventory method according to an embodiment of the invention.
[24] Figure 7 illustrates a screenshot of a login screen.
(25] Figure 8 illustrates a screenshot of a production planning VMI Overview screen.
[26] Figure 9 illustrates a sereenshot of a selection screen.
[27] Figure 10 illustrates a workstation and communication connections.
[28] Figure 11 illustrates a screenshot of a production planning Merchandiser Overview screen.
[29] Figure 12 illustrates a screenshot of a production planning Create VMI
Plan screen.
[30] Figure 13 illustrates a screenshot of a production planning style/color screen for all channels according to an embodiment of the invention.
(31] Figure 14 illustrates a screenshot of a production planning style/color screen for a one channel according to an embodiment of the invention.
[32] Figure 15 illustrates a screenshot of a production planning SKU screen for one channel according to an embodiment of the invention.
[33] Figure 16 illustrates a .screenshot of a vendor managed inventory style/color screen for all channels according to an embodiment of the invention.
[34] Figure 17 illustrates a screenshot of a vendor managed inventory style/color screen for a channel according to an embodiment of the invention.
[35] Figure 18 illustrates a screenshot of another vendor managed inventory style/color screen for a channel according to an embodiment of the invention.
[36] Figure 19 illustrates a screenshot of yet another vendor managed inventory style%olor screen for a channel according to an embodiment of the invention.
[37] . Figure 20 illustrates a screenshot of still another vendor managed inventory styleJcolor screen for a channel according to an embodiment of the invention.
[38] Figure 21 illustrates a screenshot of yet still another vendor managed inventory style/color screen.
[39] Figure 22, illustrates a block diagram of a computer readable medium storing computer software according to an embodiment of the invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[40J The present invention provides a method and system for providing production planning and inventory control for merchandisers and suppliers of goods. With the present invention, production planning capabilities allow a supplier to provide a low level production plan, taking into account an assortment of goods and season estimates, and allow a supplier and merchandiser to bargain and agree on sales trends and inventory intake plans. The production plan may be developed at a styleJcolor level, and can be shared with the supplier during a pre-season.
That is, the plan is developed for each particular style and color of a consumer good so that suppliers can efficiently provide merchandisers with an appropriate quantity of each good at the beginning of a retail season. The plan is then monitored and re-forecast during the season based on actual sales and re-forecast data via a vendor management inventory process, such that suppliers provide a more accurate quantity of goods to merchandisers throughout the retail season, based on consumer buying trends. Although the present invention may be utilized with any type of goods in any area of business, it is particularly advantageous for use in manufacturing and selling of clothing. Styles and colors of clothing typically change from one season to another and thus, production planning and inventory control are extremely important for merchandisers and suppliers in the retail industry.
[41] Elements of the present invention may be implemented with computer systems, such as the system 1100 shown in F1G. 10. Computer 1100 includes a central processor 1110, a system memory 1112 and a system bus 1114 that couples various system components including the system memory 1112 to the central processor unit 1110. System bus 1114 may be any of several types of bus structures including a memory bus or memory controller, a peripheral bus, and a local bus using any of a variety of bus architectures. The structure of system memory 1112 is well known to those skilled in the art and may include a basic input/output system (BIOS) stored in a read only memory (ROM) and one or more program modules such as operating systems, application programs and program data stored in random access memory (RAM).
[42] Computer 1100 may also include a variety of interface units and drives for reading and writing data. In particular, computer 1100 includes a hard disk interface 1116 and a removable memory interface 1120 respectively coupling a hard disk drive 1118 and a removable memory drive 1122 to system bus 1114.
Examples of removable memory drives include magnetic disk drives and optical disk drives. The drives and their associated computer-readable media, such as a floppy disk 1124 provide nonvolatile storage of computer readable instructions, data structures, program modules and other data for computer 1100. A single hard disk drive I 118 and a single removable memory drive 1122 are shown for illustration purposes only and with the understanding that computer 1100 may include several of such drives. Furthermore, computer 1100 may include drives for interfacing with other types of computer readable media.
[43] A user can interact with, computer 1100 with a variety of input devices.
Figure I 1 shows a serial port interface 1126 coupling a keyboard 1128 and a pointing device 1130 to system bus 1114. Pointing device 1128 may be implemented with a mouse, track ball, pen device, or similar device. Of course one or more other input devices (not shown) such as a joystick, game pad, satellite dish, scanner, touch sensitive screen or the like may be connected to computer 1100.
[44] Computer 1100 may include additional interfaces for connecting devices to system bus 1114. Figure 11 shows a universal serial bus (USB) interface 1132 coupling a video or digital camera 1134 to system bus 1114. An IEEE 11394 interface 1136 may be used to couple additional devices to computer 1100.
Furthermore, interface 1136 may configured to operate with particular manufacture interfaces such as FireWire developed by Apple Computer and i.Link developed by Sony. Input devices may also be coupled to system bus 1114 through a parallel port, a game port, a PCI board or any other interface used to couple and input device to a computer.
[45] Computer 1100 also includes a video adapter I 140 coupling a display device 1142 to system bus 1114. Display device 1142 may include a cathode ray tube (CRT), liquid crystal display (LCD), field emission display (FED), plasma display or any other device that produces an image that is viewable by the user. Additional output devices, such as a printing device (not shown), may be connected to computer 1100.
[46] Sound can be recorded and reproduced with a microphone 1144 and a speaker 1166. A sound card 1148 may be used to couple microphone 1144 and speaker 1146 to system bus 1114. One skilled in the art will appreciate that the device connections shown in figure 11 are for illustration purposes only and that several of the peripheral devices could be coupled to system bus 1114 via alternative interfaces. For example, video camera 1134 could be connected to IEEE 11394 interface 1136 and pointing device 1130 could be connected to USB interface 1132.
[47) Computer 1100 can operate in a networked environment using logical connections to one or more remote computers or other devices, such as a server, a router, a network personal computer, a peer device or other common network node, a wireless telephone or wireless personal digital assistant. Computer 1100 includes a network interface I 1 SO that couples system bus 1114 to a local area network (LAN) I 152. Networking environments are commonplace in offices, enterprise-wide computer networks and home computer systems.
[48) A wide area network (WAN) 1154, such as the Internet, can also be accessed by computer 1100. Figure 11 shows a modem unit 1156 connected to serial port interface l 126 and to WAN 1154. Modem unit 1156 may be located within or external to computer 1100 and may be any type of conventional modem such as a cable modem or a satellite modem. LAN 1152 may also be used to connect to WAN 1154. Figure 11 shows a router 1158 that may connect LAN 1152 to WAN
1154 in a conventional manner.
[49] It will be appreciated that the network connections shown are exemplary and other ways of establishing a communications link between the computers can be used. The existence of any of various well-known protocols, such as TCP/IP, Frame Relay, Ethernet, FTP, HTTP and the like, is presumed, and computer 1100 can be operated in a client-server configuration to permit a user to retrieve web pages from a web-based server. Furthermore, any of various conventional web browsers can be used to display and manipulate data on web pages.
[50] The operation of computer 1100 can be controlled by a variety of different program modules. Examples of program modules are routines, programs, objects, components, data structures, etc., that perform particular tasks or implement particular abstract data types. The present invention may also be practiced with other computer system configurations, including hand-held devices, multiprocessor systems, microprocessor-based or programmable consumer electronics, network PCS, minicomputers, mainframe computers, personal digital assistants and the like. Furthermore, the invention may also be practiced in distributed computing environments where tasks are performed by remote processing devices that are linked through a communications network. In a distributed computing environment, program modules may be located in both local and remote memory storage devices.
[51) In one embodiment, with reference to Figure 4, the product planning procedure may be performed by a web-based application 407, facilitating the distribution of the application to supplier and merchandiser sites 41 S and 419, and enabling effective, secure communication of business data. A web server 401 includes a processor 403 and a memory 405. The memory may store web server software 409, application software 407, and trend library data 411. Merchandisers and suppliers may be connected to the web server directly, such as through-direct connection 413, or they may connect through one or more networks, such as the Internet 417. As stated above, merchandisers and suppliers may use product planning procedures to facilitate agreement on pre-season demand forecasts and intake plans. An intake plan may be derived from the estimate of demand for each color and style of retail goods, and details the supply schedule for that color and style from the supplier to the merchandiser.
[52] Similarly, the vendor managed inventory procedures may also be embodied in a web-based application. The vendor managed inventory procedure allows suppliers to view relevant stock data (e.g., quantity of an item in the supplier's warehouse that can be delivered to merchandisers), contract data and sales data online via a web browser. Using this in conjunction with their knowledge of the retail marketplace, the suppliers will be able to adjust their production and intake plans to suit merchandiser needs.
[53] Figure 1 illustrates a flow chart of initial log on procedures in an embodiment of the invention. As depicted in Figure 1, a user, such as a merchandiser or supplier, logs on in an initial step 100. In step 102, the user selects either the product planning or vendor managed inventory. When the user selects product planning, it is initiated in step 104 and the product planning plan is then formulated in step 106 between the merchandiser and supplier, as further described below. When the vendor managed inventory is selected, it is initiated in step 108 and then implemented in step 110 between the supplier and merchandiser with regards to the commitment and intake of products, respectively. The product planning plan formulated in step 106 is formulated relative to intake requirements and capacities of the merchandiser and supplier, respectively.
[54] Figure 2 illustrates a more detailed flowchart for a production planning procedure, referred to above in step 106. The merchandiser provides an initial sales trend in step 200. The initial sales trend is the merchandiser's sales estimate of the quantity of each item to be sold, and optionally includes time periods during which the merchandiser expects to sell specified quantities of goods. The sales trend estimates a predicted trend profile for the retail season and represent a forecast of expected sales for a given item or style. Suppliers generally offer views of complete market trends while merchandiser trends generally offer a view of only their own market. Thus the trends may not match in the initial instance, and the supplier and merchandiser must agree on a combined sales trend. This combined trend often provides very useful information as a result of the combined viewpoints.
[55] A supplier reviews the initial sales trend and either approves or disapproves of the trend in step 202. If the supplier approves the trend, the procedure proceeds to step 208. If, however, the supplier does not approve the trend in step 202, the supplier suggests an alternative trend in step 204, which the merchandiser may either approve or disapprove in step 206. If the merchandiser approves the trend, the procedure proceeds to step 208. If the merchandiser does not approve the trend in step 206, the procedure proceeds back to step 200 where the merchandiser may provide another trend. This cycle may continue until the merchandiser and supplier agree on the sales trend to be used.
[56] Once the supplier and merchandiser agee on the sales trend, the supplier applies an intake plan in step 208. In step 210, the merchandiser either approves or disapproves of the intake plan. If the merchandiser does not approve the intake plan, the procedure returns to step 208 where the supplier may apply another intake plan. If the merchandiser approves the intake plan, the general product planning procedure is done.
(57] Intake plans may vary for a variety of reasons, including that there are multiple possible intake plans that may accommodate the same sales trend. The supplier intake plan represents the delivery dates and quantities that a supplier suggests will meet the needs of the retailer based on the sales trend and his own production/distribution schedules. The supplier intake plan may for example consist of several large deliveries over a period of months - rather than a weekly delivery of the theoretical volume required for that individual week, as may be requested by the merchandiser. In addition, distribution center capabilities may also affect scheduling of deliveries.
[58] Figure 3 illustrates a flow chart of an embodiment, depicting the roles that a merchandiser and supplier may play in a production planning procedure.
Initially (not shown), when a user logs on to the system, the system authenticates and identifies the user as a merchandiser or supplier using his or her user name and password. The system is configured to then present each user with appropriate displays, menus, and functions as are appropriate to his or her role (i.e., merchandiser vs. supplier). In the merchandiser role, merchandisers view and work with all suppliers and products, apply trends, define new trends, approve supplier-suggested trends, approve supplier intake plans, and agree to hard contract plans. Suppliers, however, only view and work with their own products, as well as review trends, apply alternative trends, define new trends and suggest intake plans.
[59] More specifically, in Figure 3, high-level production planning parameters are identified in step- 300. High-level production parameters may include the supplier, style, color, and trend, in addition to other parameters discussed below.
The user specifies these parameters in order to provide basic information that defines which supplier and product they would like to work with. After identifying high-level production parameters, the merchandiser selects a production-planning supplier in step 302. That is, the merchandiser identifies a supplier with which to formulate a production plan. The merchandiser then identifies a product of the selected supplier in step 304, and applies a trend profile from a library in step 306. Alternatively (not shown), the supplier may create and apply a new trend. The supplier reviews the trend profile and generates an intake plan in step 308. Optionally, the user may suggest alternative trends from the library (or create new trends) in step 310. The trend library may be used to store actual historical trends from which a present trend may be selected.
[60] The merchandiser considers the trend presented by the supplier in step 312. If the merchandiser does not agree with the supplier's suggested trend, then there is a return to step 306. When agreement is reached in step 314 the merchandiser publishes the generated intake plan in step 316. The user is able to review the generated intake plan in step 318 and in step 320 enters a supplier intake plan.
The merchandiser then reviews the supplier intake plan in step 322 and if the merchandiser does not agree in step 324, then there is a return to step 316.
When agreement is reached a contract may be formed between the merchandiser and supplier in step 326. Step 328 is an optional selling period preview during which the product is put on sale for a trial period. This may result in a different selling period total forecast and all or some of the elements may be reviewed and the process may be restarted.
[61] Figure 5 illustrates a flowchart for an embodiment of a production planning method. After a login by a user in step 500, high level production planning parameters are identified in step 502. High level production parameters may include a desired channel, a selling period, a number of weeks in the selling period, start date, end date, and the like, as well as those parameters discussed above.
[62] The term channel is used to refer to a sales channel. For instance, one sales channel may be a traditional bricks and mortar store or chain of stores, where customers can physidally go to buy a retail item or service using the merchandiser's traditional point of sale (POS) systems. Another channel may be a catalogue channel, where a merchandiser mails or otherwise delivers catalogues to customers, from which the customers may order merchandise for delivery through the mail or other delivery service. Catalogues allow merchandisers to easily alter their selections of goods by merely producing and sending an updated catalogue to customers, e.g., seasonally. Yet another channel may be an interactive channel, such as WebTV, DTV, the Internet, and other similar mediums. Using an interactive channel, customers may browse a merchandiser's web site, WebTV or DTV channel (actual channel on a TV versus a sales channel as used herein). The customer may purchase an item directly through the interactive channel, without requiring the customer to either visit the merchandiser's traditional store or to read the merchandiser's catalogue. It should be readily apparent to those of skill in the relevant art that other channels may easily be envisioned. The disclosure herein is intended to include all sales channels through which a merchandiser may sell goods and/or services to consumers.
[63] Outputs from step 502 may include the channel identification, and season and selling period identified for the plan. In step 508 a user inputs his or her selection of the product planning supplier. In step 514 the user selects a product by the selected supplier. Assortment planning for the selected product may be automatically performed in step 516. Assortment planning may be performed by l3 the user or may be performed automatically by the product planning system.
Assortment planning is a precursor to the Production planning phase and may be a separate process utilizing separate planning capabilities. User input in step may include the product description and other product identification, as well as an estimate of the product's quantity of sales. The user applies a trend profile in step 522, optionally selected from a trend library. The system applies the selected trend to provide a weekly breakdown of the sales estimate.
[64] In step 528, the system (or optionally, the user) determines whether the product is a stock item or a direct dispatch item. A stock item is an item that is manufactured in bulk and surplus inventory is readily available to ship to merchandisers. A direct dispatch item is an item that is only manufactured to the extent it is ordered, while manufactured items are typically shipped immediately to the ordering merchandiser. If the product is a stock item, in step 530 the user inputs information pertaining to low level production plan parameters, such as channel requirements and supplier requirements. Outputs from step 530 may include the number of weeks of stock cover, carryover stock figures, and lead time. In step 536 a stock intake plan is generated from user input that may include the number of weeks of stock cover required, carryover stock figures, and lead time, amongst others. Output from step 536 may include the stock plan calculated by week. In step 542, the merchandiser shares the sales profile and stock intake plan with the supplier for the supplier to review. In step 548 the merchandiser seeks agreement with the supplier. If no agreement is reached, then a return to step 522 occurs. In step 528, if the product is not a stock item then the process goes to the step 548.
[65] Afler step 548, if the product is not a stock item, then the merchandiser may create a hard contract where appropriate, in step 566, so as to confirm the purchaser of the non-stock item(s). If the product is a stock item, then the merchandiser generates a revised sales intake plan in step 552 and receives a supplier intake proposal in step 558, In step 564, if the supplier intake proposal is not acceptable, a return is made to step 558, otherwise a hard contract may be created where appropriate in step 566, such as when a merchandiser needs or wants a guaranteed supply of a style/color. Step 572 determines whether the product is in preview. If the product is in preview then a preview estimate is made at step 574. The preview estimate is based in part on monitored preview sales. The preview estimate may also be shared with the supplier. Return is then made to step 522 of applying a trend profile. If the product is not in preview then the system may begin providing result information, in step 580, to other processes such as contracting and ordering, pipeline procedures, warehouse information, supplier information, payment information, and style%olor management.
[66] After the product planning phase is complete, inventory may be continually managed and updated using a vendor managed inventory (VMI) system, as further described below. The VMI system allows suppliers to monitor relevant stock information, contract information, and sales date online via a web browser, such that they are able to adjust their production and intake plans to better suit consumer demand as it fluctuates throughout a sales season.
[67J Figure 6 illustrates a flow chart for a typical sales trend revision process within the VMI system. In step 600, the merchandiser provides an original or initial selling period sales trend. This sales trend may be entirely based on actual sales data of the same or similar goods. Alternatively, the merchandiser may apply a sales trend profile from a sales trend library. In step b02, the supplier and merchandiser both review the current trend. If the supplier does not approve of the trend in step 604, then the supplier may provide an alternative trend in step 606, and the process goes back to step 602. If the supplier approves the trend in step 604, the merchandiser is given the opportunity to approve the trend in step 608. If the merchandiser approves the trend, then the new trend may be used by the supplier, in step 610, to base production of the product in question. If the new trend is not approved in step 608, the procedure goes to step 606 where the supplier may provide an alternative trend.
[68] After the merchandiser and supplier agree on a sales trend, an intake plan may be updated based on the new sales trend. In step 612 the supplier creates or provides an intake plan. 7fie merchandiser reviews the plan in step 614, and approves or rejects the proposed intake plan. If the intake plan is disapproved, the process returns to step 612 where the supplier may provide or create an alternative intake plan. If the merchandiser approves the intake plan in step 614, then a contract may be prepared in step 616. Once the contract is ratified or accepted, the system sends information to other processes and modules, such as to contracting and ordering modules, pipeline procedures, a warehouse, suppliers, and payment modules. It should be appreciated by those skilled in the art that the above steps, as with other disclosed methods, may be performed in other than the recited order and by other than the recited performer.
[69] As stated above, each user logs in using a login ID, password, and optional connect string that identifies the database to which the user desires to connect.
The database is the underlying application data structure that the user uses.
Of course, in alternative embodiments, users may login with other parameters that might not include a password.or connect string, or may include just a login and password, and the database identification may be performed automatically based on the login >D. Figure 7 illustrates a screenshot of a login screen that may be used. After the user logs.in to the system, the user selects whether to perform product planning or vendor manages inventory procedures. Figure 9 illustrates a screenshot of a selection screen that may be used. The system displays menus and provides fimctionality according to each user's role, e.g., supplier vs.
merchandiser.
[70] When a merchandiser logs in to the system and selects VMI procedures, the merchandiser is shown a list of all available suppliers associated with the merchandiser, such as is illustrated in Figure 11. The merchandiser overview screen allows a merchandiser to select suppliers by season, or allows merchandisers to create a new VMI. The user may also exit the VMI system from the merchandiser overview screen. When a user selects to create a new VMI, the system displays the Create VM1 Plan screen, as illustrated in Figure 12. The user inputs information associated with a VMI plan, including information such as the season (or season ID), the supplier, the style/color of the item, and a description of the item. The Create VMI Plan screen is generally only available to merchandisers. However, one of skill in the art may easily envision an embodiment where suppliers also create a VM1 plan, such as when a merchandiser owns retails stores and also acts as a merchandiser.
[71] Upon selecting a supplier and pressing the associated 'Go' button on the merchandiser overview screen, the system displays the VMI Overview screen for the selected supplier, such as that illustrated in Figure 8. The VMI Overview screen displays a list of stock items by style%olor, and may include a description of each item and various trends associated with the item(s). Pressing the 'Go' button associated with a style/color on the VMI Overview screen causes the system to display an all channel styleJcolor screen for the selected style/color, such as that shown in Figure 13.
[72J The all channel style/color screen includes summary information pertaining to the selected style%olor across all selling channels (i.e., physical store, catalogue, etc.) for the selected style%olor/supplier combination, optionally including status information across all the channels, as well as a season estimate of the stock required for the entire season across all the channels. Additional information may also be displayed for each week within the season. This information may include the original product plan estimate, a weekly gross demand forecast, cumulative gross demand/forecast, gross estimates, weekly net actuals/forecast, net estimates, stock actualslforecast, contracted intake, and proposed weekly intake, among others. From the all channel style/eolor screen, the user may select to view detail information for other style/color screens, as well as go back to the overview screen.
[73J Figure 14 illustrates a screenshot of a styleJcolor screen for a single channel, but which is otherwise similar to the all channel style/color screen, above.
Figure 15 illustrates a SKU screen for a selected style/color/supplier within a single channel.
The SKU screen provides current trading positions for each SKU within the selected style/color/supplier combination selected for analysis. The user may view additional screens for each channel (not shown), similar to those illustrated in Figures 14 and 15. Additional channels for which screens may display information include a physical store channel, a catalogue channel, an interactive channel, and the like.
[74] When the user selects Product Planning (PP) from the selection screen (Figure 9), the system displays a PP Overview screen similar to the VMI Overview, above (not shown). Upon selecting a specific supplier and style/color (e.g. by pressing an associated 'Go' button), the system may display the all channel style/color screen for the selected combination, such as is shown in Figure 16. Similar screens may be displayed, each showing only the information for a single channel within the distribution system, such as are shown in Figures 17-2I .
(75] Figure 22 illustrates a block diagram of a computer readable medium 2201 storing computer software according to an embodiment of the invention. The computer readable medium may be any data storage device or article, including but not limited to system memory 1112, hard disk drive 1118, or a removable storage device such as floppy disk I 124. The computer readable medium may include software modules 2203-2213 for performing carious portions of the invention method within the PP/VMI system. There may be on ore more of a login/security module 2203 for performing user administration and security, a product planning module 2205, a vendor managed inventory module 2207, a database module 2209, web server module 2211, and trend I'brary module 2213. Additional or difference modules may also be used depending on design choices, system configuration, and the specific industry for which the system is being used.
[76] The above described method and system allows retailers to perform collaborative planning, forecasting, and replenishment of stock levels before and during a retail is season. In this manner retailers may dynamically modify stock intake plans based on shifting sales trends throughout a retail season.
[77] While the present invention has been described in connection with the illustrated embodiments, it will be appreciated and understood that modifications may be made without departing from the true spirit and scope of the present invention.
For example, an invention can be used with any type of goods that are to be sold by merchandisers and manufactured by suppliers. Relevant parameters of such goods (for example size, color, etc.) are utilized with the present invention.
Claims (25)
1. A computer implemented method for establishing an inventory plan, comprising the steps of:
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend comprises expected future sales by the merchandiser;
(ii) the server receiving a first notification from a supplier, wherein the first notification comprises an indication that the sales trend is approved;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend comprises expected future sales by the merchandiser;
(ii) the server receiving a first notification from a supplier, wherein the first notification comprises an indication that the sales trend is approved;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
2. The method of claim 1, wherein the sales trend corresponds to a style and color combination of a consumer product (style/color).
3. The method of claim 1, wherein the sales trend is selected from a trend library.
4. The method of claim 1, further comprising the steps of:
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
5. The method of claim 2, further comprising the steps of:
(v) receiving an indication that the style/color is in a sales preview; and (vi) modifying at least one of the sales trend and intake plan based on results from the sales preview.
(v) receiving an indication that the style/color is in a sales preview; and (vi) modifying at least one of the sales trend and intake plan based on results from the sales preview.
6. A computer implemented method of managing an inventory, comprising the steps of:
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) the server receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) the server receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
7. The method of claim 6, wherein sales trend corresponds to a style and color combination of a consumer product (style/color).
8. The method of claim 6, further comprising the step of, when the merchandiser and supplier do not agree on the sales trend, the server receiving a new sales trend from the supplier.
9. The method of claim 8, wherein the sales trend is selected from a trend library.
10. The method of claim 7, further comprising the steps of:
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
11. A data processing system for establishing an inventory level, comprising:
a processor, and memory for storing computer readable instructions that, when executed by the processor, cause the data processing system to perform the steps of:
(i) receiving a sales trend from a merchandiser, wherein the sales trend comprises expected future sales by the merchandiser;
(ii) receiving a first notification from a supplier, wherein the first notification comprises an indication that the sales trend is approved;
(iii) receiving an intake plan from the supplier; and (iv) receiving a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
a processor, and memory for storing computer readable instructions that, when executed by the processor, cause the data processing system to perform the steps of:
(i) receiving a sales trend from a merchandiser, wherein the sales trend comprises expected future sales by the merchandiser;
(ii) receiving a first notification from a supplier, wherein the first notification comprises an indication that the sales trend is approved;
(iii) receiving an intake plan from the supplier; and (iv) receiving a second notification from the merchandiser, wherein the second notification comprises an indication that the intake plan is approved.
12. The system of claim 11, wherein the sales trend corresponds to a style and color combination of a consumer product (style/color).
13. The system of claim 11, wherein the sales trend is selected from a trend library.
14. The system of claim 11, wherein the computer readable instructions further cause the data processing system to perform the steps of:
(v) sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the sales trend and intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
(v) sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the sales trend and intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
15. The system of claim 12, wherein the computer readable instructions further cause the data processing system to perform the steps of:
(v) receiving an indication that the style/color is in a sales preview; and (vi) modifying at least one of the sales trend and intake plan based on results from the sales preview.
(v) receiving an indication that the style/color is in a sales preview; and (vi) modifying at least one of the sales trend and intake plan based on results from the sales preview.
16. A data processing system for managing an inventory, comprising:
a processor; and memory for storing computer readable instructions that, when executed by the processor, cause the system to perform the steps of:
(i) receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) receiving an intake plan from the supplier; and (iv) receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
a processor; and memory for storing computer readable instructions that, when executed by the processor, cause the system to perform the steps of:
(i) receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) receiving an intake plan from the supplier; and (iv) receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
17. The system of claim 16, wherein sales trend corresponds to a style and color combination of a consumer product (style/color).
18. The system of claim 16, wherein the computer readable instructions further cause the data processing system to perform the step of, when the merchandiser and supplier do not agree on the sales trend, receiving a new sales trend from the supplier.
19. The system of claim 18, wherein the sales trend is selected from a trend library.
20. The system of claim 17, wherein the computer readable instructions further cause the data processing system to perform the steps of:
(v) sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the sales trend and intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
(v) sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the sales trend and intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
21. A computer readable medium storing computer readable instructions that, when executed by a processor, cause a computer system to execute the steps of:
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) the server receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
(i) a computer server receiving a sales trend from a merchandiser, wherein the sales trend is based at least in part on current sales data;
(ii) the server receiving notification that the merchandiser and a supplier have approved the sales trend;
(iii) the server receiving an intake plan from the supplier; and (iv) the server receiving a notification from the merchandiser, wherein the notification comprises an indication that the intake plan is approved.
22. The computer readable medium of claim 21, wherein the sales trend corresponds to a style and color combination of a consumer product (style/color).
23. The computer readable medium of claim 21, wherein the computer readable instructions further cause the computer to execute the step of, when the merchandiser and supplier do not agree on the sales trend, the server receiving a new sales trend from the supplier.
24. The computer readable medium of claim 23, wherein the sales trend is selected from a trend library.
25. The computer readable medium of claim 7, wherein the computer readable instructions further cause the computer to execute the steps of:
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
(v) the server sending a contract to the supplier and merchandiser, wherein the contract contains terms corresponding to the intake plan; and (vi) receiving a notification of agreement from each of the supplier and merchandiser.
Applications Claiming Priority (3)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| US2369201A | 2001-12-21 | 2001-12-21 | |
| US10/023,692 | 2001-12-21 | ||
| PCT/IB2002/005585 WO2003054758A2 (en) | 2001-12-21 | 2002-12-23 | Production planning and vendor managed inventory system |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2471286A1 true CA2471286A1 (en) | 2003-07-03 |
Family
ID=21816647
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA002471286A Abandoned CA2471286A1 (en) | 2001-12-21 | 2002-12-23 | Production planning and vendor managed inventory system |
Country Status (4)
| Country | Link |
|---|---|
| EP (1) | EP1459226A1 (en) |
| AU (1) | AU2002348750A1 (en) |
| CA (1) | CA2471286A1 (en) |
| WO (1) | WO2003054758A2 (en) |
-
2002
- 2002-12-23 WO PCT/IB2002/005585 patent/WO2003054758A2/en not_active Application Discontinuation
- 2002-12-23 CA CA002471286A patent/CA2471286A1/en not_active Abandoned
- 2002-12-23 EP EP02781700A patent/EP1459226A1/en not_active Withdrawn
- 2002-12-23 AU AU2002348750A patent/AU2002348750A1/en not_active Abandoned
Also Published As
| Publication number | Publication date |
|---|---|
| WO2003054758A2 (en) | 2003-07-03 |
| AU2002348750A1 (en) | 2003-07-09 |
| EP1459226A1 (en) | 2004-09-22 |
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| FZDE | Discontinued |