CA2322383A1 - Procurement management system - Google Patents
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- CA2322383A1 CA2322383A1 CA 2322383 CA2322383A CA2322383A1 CA 2322383 A1 CA2322383 A1 CA 2322383A1 CA 2322383 CA2322383 CA 2322383 CA 2322383 A CA2322383 A CA 2322383A CA 2322383 A1 CA2322383 A1 CA 2322383A1
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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
- G06Q30/00—Commerce
- G06Q30/06—Buying, selling or leasing transactions
Abstract
A procurement management system includes a product request receiver, a product transaction database, a transaction processor in communication with the request receiver and the product transaction database, and a sales completion receiver in communication with the transaction processor. The product request receiver is configured to receive over a network respective product requests from each of a number of vendors. The product transaction database includes a plurality of transaction records, each record being associated with a respective one of the vendors. The transaction processor is configured to secure a quantity of product in accordance with the received product requests and the transaction history records and to assign each of the vendors a respective allocation of the quantity of the ordered product. The sales completion receiver is configured to receive over the network consumer purchase data to update the transaction history records.
Description
PROCUREMENT MANAGEMENT SYSTEM
FIELD OF THE INVENTION
The present invention relates to a system for managing product procurement decisions. In particular, the present invention relates to a product procurement system which bases global procurement decisions on predicted localized market demands.
BACKGROUND OF THE INVENTION
Enterprise product procurement decisions are typically based on a top-down theory of procurement management. According to this approach to procurement management, enterprise procurement decisions for each of a number of distributors in distinct geographic markets are based on an assessment of the product demand in a representative geographic market. The selected product is then targeted for distribution to consumers in each geographic market by the local distributors.
This approach to product procurement is advantageous since it facilitates the establishment of goodwill by providing uniformity of product quality and selection to consumers in each geographic market. Also, this approach allows the enterprise to realize economies of scale by procuring sufficient product for distribution in all the relevant geographic markets. However, this approach to product procurement suffers from a number of deficiencies.
First, since the procurement decision is based on an assessment of product demand in a representative geographic market, the viability of the decision is predicated on the correlation of the product demands in the target geographic markets with the representative geographic market, and the predictive capabilities and market knowledge of the enterprise procurement officer. Also, as procurement decisions are based on an assessment of product demand over a single sample period, the top-down theory is unable to respond to changes in product demand in localized geographic markets without significantly impacting scale economies. Therefore, there remains a need for a procurement management system which is substantially insensitive to correlative variances in predicted product demand between a target geographic market and a representative geographic market, and allows an enterprise to avail itself of scale economies while also responding to changes in local product demand.
SUMMARY OF THE INVENTION
According to a first aspect of the invention, there is provided a procurement management system and method which addresses deficiencies of the prior art.
The procurement management system, according to the first aspect of the present invention, includes a product request receiver, a product transaction database, a transaction processor in communication with the request receiver and the product transaction database, and a sales completion receiver in communication with the transaction processor. The product request receiver is configured to receive over a network respective product requests from each of a number of vendors. The product transaction database includes a plurality of transaction records, each record being associated with a respective one of the vendors. The transaction processor is configured to secure a quantity of product in accordance with the received product requests and the transaction history records and to assign each of the vendors a respective allocation of the quantity of the ordered product. The sales completion receiver is configured to receive over the network consumer purchase data to update the transaction history records.
The method of procurement, according to the first aspect of the present invention, includes the steps of (i) receiving over a network respective product requests from each of a plurality of vendors; (ii) securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor; (iii) assigning each of the vendors a respective allocation of the quantity of ordered product; and (iv) updating the product transaction histories in accordance with the consumer purchase data received from the network users over the network.
FIELD OF THE INVENTION
The present invention relates to a system for managing product procurement decisions. In particular, the present invention relates to a product procurement system which bases global procurement decisions on predicted localized market demands.
BACKGROUND OF THE INVENTION
Enterprise product procurement decisions are typically based on a top-down theory of procurement management. According to this approach to procurement management, enterprise procurement decisions for each of a number of distributors in distinct geographic markets are based on an assessment of the product demand in a representative geographic market. The selected product is then targeted for distribution to consumers in each geographic market by the local distributors.
This approach to product procurement is advantageous since it facilitates the establishment of goodwill by providing uniformity of product quality and selection to consumers in each geographic market. Also, this approach allows the enterprise to realize economies of scale by procuring sufficient product for distribution in all the relevant geographic markets. However, this approach to product procurement suffers from a number of deficiencies.
First, since the procurement decision is based on an assessment of product demand in a representative geographic market, the viability of the decision is predicated on the correlation of the product demands in the target geographic markets with the representative geographic market, and the predictive capabilities and market knowledge of the enterprise procurement officer. Also, as procurement decisions are based on an assessment of product demand over a single sample period, the top-down theory is unable to respond to changes in product demand in localized geographic markets without significantly impacting scale economies. Therefore, there remains a need for a procurement management system which is substantially insensitive to correlative variances in predicted product demand between a target geographic market and a representative geographic market, and allows an enterprise to avail itself of scale economies while also responding to changes in local product demand.
SUMMARY OF THE INVENTION
According to a first aspect of the invention, there is provided a procurement management system and method which addresses deficiencies of the prior art.
The procurement management system, according to the first aspect of the present invention, includes a product request receiver, a product transaction database, a transaction processor in communication with the request receiver and the product transaction database, and a sales completion receiver in communication with the transaction processor. The product request receiver is configured to receive over a network respective product requests from each of a number of vendors. The product transaction database includes a plurality of transaction records, each record being associated with a respective one of the vendors. The transaction processor is configured to secure a quantity of product in accordance with the received product requests and the transaction history records and to assign each of the vendors a respective allocation of the quantity of the ordered product. The sales completion receiver is configured to receive over the network consumer purchase data to update the transaction history records.
The method of procurement, according to the first aspect of the present invention, includes the steps of (i) receiving over a network respective product requests from each of a plurality of vendors; (ii) securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor; (iii) assigning each of the vendors a respective allocation of the quantity of ordered product; and (iv) updating the product transaction histories in accordance with the consumer purchase data received from the network users over the network.
According to a second aspect of the invention, there is provided a product distribution system and method which addresses deficiencies of the prior art.
The product distribution system, according to the second aspect of the present invention, includes a product request receiver, product transaction database, and a transaction processor in communication with the request receiver and the product transaction database. The product request receiver is configured to receive over a network respective product requests from each of a number of vendors. The product transaction database includes a plurality of transaction history records, each record being associated with a respective one of the vendors. The transaction processor is configured to secure a quantity of product in accordance with the received product requests and the transaction history records; to assign each of the vendors a respective allocation of the quantity of the ordered product in accordance with the respective transaction history records; and to provide network users with respective portions of the secured product in accordance with consumer purchase data received over the network from the vendors.
The method of distribution according to the second aspect of the present invention, includes the steps of (i) receiving over a network respective product requests from each of a plurality of vendors; (ii) securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor; (iii) assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective product transaction histories; (iv) receiving over the network consumer purchase data from the vendors for respective portions of the secured product to be purchased by network users; and (v) providing the network users with the respective product portions.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will now be described, by way of example only, with reference to the drawings, in which:
The product distribution system, according to the second aspect of the present invention, includes a product request receiver, product transaction database, and a transaction processor in communication with the request receiver and the product transaction database. The product request receiver is configured to receive over a network respective product requests from each of a number of vendors. The product transaction database includes a plurality of transaction history records, each record being associated with a respective one of the vendors. The transaction processor is configured to secure a quantity of product in accordance with the received product requests and the transaction history records; to assign each of the vendors a respective allocation of the quantity of the ordered product in accordance with the respective transaction history records; and to provide network users with respective portions of the secured product in accordance with consumer purchase data received over the network from the vendors.
The method of distribution according to the second aspect of the present invention, includes the steps of (i) receiving over a network respective product requests from each of a plurality of vendors; (ii) securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor; (iii) assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective product transaction histories; (iv) receiving over the network consumer purchase data from the vendors for respective portions of the secured product to be purchased by network users; and (v) providing the network users with the respective product portions.
BRIEF DESCRIPTION OF THE DRAWINGS
The present invention will now be described, by way of example only, with reference to the drawings, in which:
Fig. 1 is a schematic view of the product distribution system, according to the present invention, depicting a network interface terminal, a vendor network server, and the procurement management system;
Fig. 2 is a schematic view of one of the consumer terminals shown in Fig. 1, depicting the display device, the data interface and the data processing unit;
Fig. 3 is a schematic view of the procurement management system shown in Fig.
1, depicting the product request receiver, the transaction processor, the sales completion receiver, the vendor identification database, the purchaser identification database, the product information database, and the product transaction database; and Figs. 4a to 4f are schematic views of display screens presented on the network interface terminal while executing the process effected by the product distribution system.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Turning to Fig. l, a product distribution system, denoted generally as 100, is shown comprising the network interface terminal 102, the vendor network server 104, the procurement management system 106 and a communications network 108 interconnecting the network interface terminal 102, the vendor network server and the procurement management system 106 for facilitating electronic communication therebetween. The product distribution system 100 also includes a product supplier network 110 in communication with the procurement management system 106 for supplying the procurement management system 106 with a quantity of requested product. As shown in Fig. 1, the procurement management system 106 communicates with the product supplier network 110 over a communications link distinct from the communications network 108. However, it should be understood that the procurement management system 106 may instead communicate with the product supplier network 110 over the communications network 108 if desired.
Fig. 2 is a schematic view of one of the consumer terminals shown in Fig. 1, depicting the display device, the data interface and the data processing unit;
Fig. 3 is a schematic view of the procurement management system shown in Fig.
1, depicting the product request receiver, the transaction processor, the sales completion receiver, the vendor identification database, the purchaser identification database, the product information database, and the product transaction database; and Figs. 4a to 4f are schematic views of display screens presented on the network interface terminal while executing the process effected by the product distribution system.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT
Turning to Fig. l, a product distribution system, denoted generally as 100, is shown comprising the network interface terminal 102, the vendor network server 104, the procurement management system 106 and a communications network 108 interconnecting the network interface terminal 102, the vendor network server and the procurement management system 106 for facilitating electronic communication therebetween. The product distribution system 100 also includes a product supplier network 110 in communication with the procurement management system 106 for supplying the procurement management system 106 with a quantity of requested product. As shown in Fig. 1, the procurement management system 106 communicates with the product supplier network 110 over a communications link distinct from the communications network 108. However, it should be understood that the procurement management system 106 may instead communicate with the product supplier network 110 over the communications network 108 if desired.
Preferably, the communications network 108 comprises an open land-based network, such as the Internet. However, the communications network 108 may instead comprise an open wireless network for communicating with wireless devices.
Typically the product distribution system 100 includes a number of network interface terminals 102 and a number of vendor network servers 104. However, for clarity, only a single network interface terminal 102 and a single vendor network server 104 are shown in Fig. 1.
Also, preferably the product distribution system 100 includes a number of distinct procurement management systems 106, with each procurement management system 106 having a network address which would typically be accessed by vendors and potential purchasers in defined geographic markets. For instance, preferably the product distribution system 100 includes a procurement management system 106 which would be accessed by vendors and potential purchasers in Canada, another procurement management system 106 which would be accessed by vendors and potential purchasers in the United States, another procurement management system 106 which would be accessed by vendors and potential purchasers in Korea, and so.
Further, the product distribution system 100 includes a top-level network server (not shown) which interconnects all the procurement management systems 106. As will be explained below, this arrangement allows the product distribution system 100 to avail itself of economies of scale based on global purchasing decisions while, at the same time, being cognisant of product interest trends in specific countries and in local geographic markets in each country. However, as above, for clarity, only a single procurement management system 106 is shown in Fig. 1.
The network interface terminals 102 are configured to interface with the vendor network servers 104 and the procurement management system 106 over the communications network 108 so as to allow consumers to make purchases of product advertised over the vendor network servers 104, and to allow vendors to make product selections of product advertised over the procurement management system 106.
Typically each network interface terminal 102 is provided as a single electronic communications device, such as a desktop or portable computer. As shown in Fig. 2, the network interface terminal 102 comprises a network interface 112 for transmitting and receiving electronic data via the communications network 108, a data entry device 114 (such as a keyboard), a data display device 116 (such as a CRT or LCD), and a data processing unit 118 in communication with the network interface 112, the data entry device 114 and the data display device 116. The data processing unit 118 comprises a microprocessor 120, and a memory device 122 in communication with the microprocessor 120 and is configured to facilitate data communication between the user of the network interface terminal 102 and the vendor network servers 104 and the procurement management system 106.
The vendor network servers 104 are configured to interface with the network interface terminals 102 and the procurement management system 106 over the communications network 108 so as to display product advertising to potential purchasers and to relay purchase requests from actual purchasers to the procurement management system 106.
Preferably, each vendor network server 104 is operated by a vendor in local geographic market, and the advertising displayed on the vendor's network server 104 is designed to target the potential purchasers residing in the vendor's local geographic market. In this manner, potential purchasers are more likely to receive advertising tailored to their unique preferences and interests, and vendors are able to respond more rapidly to changes in those preferences and interests than prior art product distribution systems.
Typically, each vendor network server 104 is provided as a single electronic communications device, such as a mainframe computer, and comprises a network interface (not shown) for transmitting and receiving electronic data over the communications network 108, and a data processing unit (not shown) in communication with the network interface for displaying the target advertising on the network interface terminals 102 and for facilitating data communication between users of the network interface terminals 102 and the procurement management system 106. As such data processing units are well known to those of ordinary skill, no further description of the data processing unit will be necessary.
The procurement management system 106 is configured to receive product requests from the vendor network servers 104 identifying product which vendors predict will sell in their respective local geographic markets, and to make purchase decisions based on the received product requests and the prediction transaction history of each vendor. Preferably, the procurement management system 106 is also configured to make purchase decisions based on previous purchase requests received from purchasers, and to update each vendor's prediction transaction history in accordance with the amount of product requested by the vendor which the vendor actually sells.
In this manner, the procurement management system 106 is able to obtain economies of scale by manufacturing or placing orders for large quantities of one or more products, while also reducing the risk of such large-scale manufacturing/ordering decisions by taking into account the predictive abilities of each vendor, as demonstrated by each vendor's transaction history, and the past purchasing patterns of consumers for similar product.
Preferably, the procurement management system 106 is provided as a single electronic communications device, such as a mainframe computer. As shown in Fig. 3, the procurement management system 106 comprises a network interface 124, a central processing unit (CPU) 126 in communication with the network interface 124, and a non-volatile memory (ROM) 128 (such as a magnetic disk memory or a semiconductor memory) and a read/write memory (RAM) 130 both in communication with the CPU 126.
The ROM 128 includes a vendor identification database 132, a purchaser identification database 134, a product information database 136 and a product transaction database 138. The vendor identification database 132 includes a plurality of records, each being uniquely associated with a respective vendor and including a vendor ID and password for providing the vendor with access to the procurement management system 106; and bank account authorization codes data for crediting the vendor for product sold. Preferably, the vendor identification database 132 also includes biographical information associated with the vendor, such as the vendor's name, age, address and occupation. As will be explained below, the biographical information can be used by the procurement management system 106 to assess the vendor's ability to predict product demand for products in the vendor's geographic market.
The purchaser identification database 134 includes a plurality of records, each including consumer purchase data, such as credit card information / bank account authorization codes for debiting the purchaser for product purchased; the purchaser's name; the purchaser's shipping address; the products purchased by the purchaser, and the price paid for each product. Preferably, the consumer purchase data stored in the purchaser identification database 134 also includes demographic information associated with the purchaser, identifying factors such as the purchaser's purchasing habits and preferences. As will be explained below, the demographic information can be used by the procurement management system 106 to predict product demand for products in the purchaser's geographic market.
The product information database 136 includes a plurality of records, each providing information about a product proposed to be offered for sale, including a description of the product, a product code, the proposed unit sale price of the product to the purchaser, the proposed commission payable to a vendor for the sale of the product, and a product group ID and a product category ID associated with the product.
The product group ID identifies the class of the particular product (eg.
cosmetics, perfume, jewelry, hardware), and is used by the procurement management system 106 to predict sales of the product in each geographic product market. The product category ID either identifies the product as a seasonal product or as a non-seasonal product. To act as an incentive for a vendor to place advertisements on the vendor's network server 104 for the sale of seasonal product, preferably the commission payable to the vendor _g_ for products identified as being seasonal is greater than the commission payable for products identified as being non-seasonal.
Preferably, the product information database 136 includes market valuation indicators for the product, such as the existence of any anticipated barriers to entry for the product, whether the product will act as a replacement for existing product, whether the product will enjoy a monopoly in the geographic market, whether there any advantages associated with the product which would impact on the product's appeal, and consumer profile data for the product (eg. the predicted age, income level, purchasing habits of a likely purchaser of the product). As will be explained below, the market valuation indicators can be used by the procurement management system 106 to predict product demand for a product.
The product transaction database 13 8 includes a plurality of records, each being uniquely associated with a respective vendor and identifying a product code, the product group ID and the quantity of the associated product requested by the vendor, the quantity of the product allocated to the vendor, and the quantity of the product actually sold by the vendor. As will be explained below, the procurement management system 106 uses the product transaction database records to make purchase decisions based on the predictive product sales capabilities of each vendor in the vendor's geographic product market. Also, since seasonal products typically must be heavily discounted for sale outside the seasonal product's typical sales period, preferably the procurement management system 106 does not credit a vendor for the sale of any seasonal product unless the vendor sells all of the quantity of seasonal product which the vendor was allocated so as to reduce the likelihood of the procurement management system 106 having a surplus of seasonal unsold product outside the seasonal product's typical sales period.
Preferably, the ROM 128 also includes processor instructions for the CPU 126 which establish in the RAM 130 a memory object defining a product request receiver 140 for receiving product requests from the vendor network servers 104 over the communications network 108, a memory object defining a transaction processor in communication with the product request receiver 140, and a memory object defining a sales completion receiver 144 in communication with the transaction processor 142 for updating the transaction history records of the product transaction database 13 8 in accordance with consumer purchase data received over the communications network 108 from network users of the network interface terminals 102. Alternately, the product request receiver 140, the transaction processor 142 and the transaction processor 142 need not be implemented as memory objects, but instead may be implemented in electronic hardware, if desired.
The transaction processor 142 is configured:
(i) to provide the network interface terminals 102 with information concerning the products offered for sale;
(ii) to determine projected sales figures for each of a number of product based on the product requests received from the vendor network servers 104 and the transaction database records associated with each vendor;
(iii) to secure a quantity of product from the product supplier network 110, with the quantity of product ordered being determined in accordance with product requests and the transaction database records;
(iv) to determine an appropriate quantity of the product to allocate to each vendor and to place entries in the product transaction database 138 indicating the quantity of product allocated to each vendor;
(v) to receive purchase data from purchasers using the network interface terminals 102 and to update the transaction database records with the received purchase data;
(vi) to debit the purchasers and to credit the vendors for the product sold;
and (vii) to arrange for delivery of the product to the purchasers.
Preferably, the transaction processor 142 is also configured to determine projected sales figures for each product based on the vendors' respective biographical information, as stored in the vendor identification database 132, and the purchaser demographic data, as stored in the purchaser identification database 134.
Also, preferably the transaction processor 142 is configured to determine the product allocations in accordance with the respective transaction history records.
Further, preferably the transaction processor 142 is configured to establish a secure communications path (such as via SSL 3.0 over the Internet) with each purchasers using the network interface terminals 102 (with the communications path excluding the vendor network servers 104), and to receive the purchasers financial information (eg. credit card information / bank account access codes) over the secure communications path.
The method of operation of the product distribution system 100, including the transaction processor 142, will now be described with reference to the terminal display screens shown in Figs. 4a to 4~ Initially, a network user uses the network interface terminal 102 to access the procurement management system 106 operating in the geographic market in which the network user resides. The procurement management system 106 displays a screen 200 on the data display device 116 of the network interface terminal 102. As shown in Fig. 4a, the display screen 200 displays a vendor registration link 300, a number of product icons 302 representing products which are available for purchase, a clearance centre link 304 which allows the network user to purchase any of the products associated with the product icons 302, and a pull-down list 306 of vendor network servers 104.
If the network user is interested in becoming a vendor, the network user selects the vendor registration link 300 using the data entry device 114, and the transaction processor 142 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen 202 on the data display device 116. As shown in Fig. 4b, the display screen 202 displays a number of data fields 308 which the network user must complete, and a completion button virtual 310. The data fields request information including the network user's sex, occupation, education, preferred language of communication, and credit card / bank account information. Upon completion of all the fields 308, the network user selects the completion virtual button 310 using the data entry device 114, and then transmits the requested information to the procurement management system 106 over the secure communications path. The transaction processor 142 stores the received vendor information in the vendor identification database 132, and then assigns the network user with a vendor ID and password for subsequently accessing the procurement management system 106. As will be discussed below, the network user (vendor) must supply the procurement management system 106 with the vendor ID and password in order to select product for sale over the vendor's network server 104.
Typically, the products associated with the product icons 302 are items which were previously available for sale at vendor network servers 104, but were unsold and are offered for sale at the top-level server at a discount. If instead of becoming a vendor, the network user wishes to purchase one of the displayed clearance products, the network user selects the clearance centre link 304 using the data entry device 114.
The procurement management system 106 then establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, secure from the vendor network servers 104, and then displays a screen (not shown) on the data display device 116 which displays data fields requesting consumer purchase data from the network user necessary for completion of the sale, such as the network user's name, shipping address, and credit card / bank account access codes.
Preferably, the data fields also request demographic information from the network user, such as the network user's sex, occupation and income level. As discussed above, the demographic information is used by the procurement management system 106 to predict product demand for other products. The sales completion receiver 144 receives the demographic data, the product code assigned to the selected product, and the sale price of the selected product, and the transaction processor 142 stores the information in the purchaser identification database 134 as the aforementioned f consumer purchase data. The transaction processor 142 then debits the network user's account for the purchase, and arranges for delivery of the selected product to the specified shipping address.
However, if the network user wishes to view the products which are offered for sale by the purchaser's local vendor, the network user selects one of the vendor network servers 104 from the pull-down list 306 using the data entry device 114. The network interface terminal 102 is then directed to the network address of the selected vendor network server 104. The selected vendor network server 104 displays a screen 204 on the data display device 116. As shown in Fig. 4c, the display screen 204 displays product icons 312 representing products which are available for purchase from the local vendor, information virtual buttons 314 for obtaining information on each product associated with the product icons 312 (including a description and the price of the product) from the product information database 134, a payment/delivery virtual button 316, a vendor account link 318, and a product selection virtual button 320. As discussed above, the products associated with the product icons 312 and the manner in which these products are advertised over the vendor network server 104 are dictated by the vendor associated with the vendor network server 104, with the intention that the product selection and the advertisement are tailored to the interests of potential purchasers in the vendor's geographic market.
If the network user wishes to purchase one of the displayed products associated with the product icons 312, the network user chooses the desired one of the products icons 312, and then selects the paymentldelivery virtual button 316 using the data entry device 114. The vendor network server 104 then redirects the network interface terminal 102 to the network address of the parent procurement management system 106, and transmits to the parent procurement management system 106 the vendor's vendor ID and the product code associated with the selected product. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, secure from the vendor network servers 104, and then displays a screen (not shown) on the data display device 116 which displays data fields requesting information from the network user necessary for completion of the sale, such as the network user's name, shipping address, and credit card / bank account access codes. Preferably, the data fields also request demographic information from the network user, such as the network user's sex, occupation and income level. As discussed above, the demographic information is used by the procurement management system 106 to predict product demand for other products in the purchaser's geographic market. The completion information, the demographic data, the product code assigned to the selected product, and the sale price of the selected product are received by the sales completion receiver 144, and then stored in the purchaser identification database 134 by the transaction processor 142 as the aforementioned consumer purchase data.
The transaction processor 142 then debits the network user's account for the purchase, credits the vendor's account for the sale (based on the commission associated with the product), updates the product transaction database 138 using the product code and the vendor's vendor ID to reflect the sale of the selected product 312 by the vendor, and arranges for delivery of the selected product to the specified shipping address. As discussed above, if the product category ID associated with the selected product identifies the product as a seasonal product, the transaction processor 142 does not credit the vendor's account for the sale of the product until the vendor sells all of the quantity of seasonal product which the vendor requested (as stored in the product transaction database 138). After delivery of the product, preferably the procurement management system 106 contacts the network user by e-mail for comments on the product purchased, and then includes the received information as demographic data in the purchaser identification database 134 and/or as market valuation data in the product information database 136. As will become apparent below, this feedback information can be used by the procurement management system 106 in rendering future purchasing decisions.
If the network user is the vendor associated with the vendor network server 104, and the vendor wishes to view his/her sales record, the vendor selects the vendor account link 318 using the data entry device 114, and the vendor network server 104 redirects the network interface terminal to the network address of the parent procurement management system 106. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen (not shown) on the data display device 116 requesting the vendor enter the assigned vendor ID and password. The vendor ID and password are transmitted to the procurement management system 106 over the secure communications path. The procurement management system 106 then verifies the received vendor ID and password with the records of the vendor identification database 132 and, if the received data is correct, the procurement management system 106 accesses the vendor's account from the product transaction database 138 and displays the account information on the data display device 116.
If the network user is the vendor associated with the vendor network server 104, and the vendor wishes to select product for sale via the vendor's network server 104, the vendor selects the product selection virtual button 320 using the data entry device 114, and the vendor network server 104 redirects the network interface terminal to the network address of the parent procurement management system 106. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen (not shown) on the data display device 116 requesting the vendor enter the vendor's assigned vendor ID and password. The vendor ID and password are transmitted to the procurement management system 106 over the secure communications path. The procurement management system 106 then verifies the received vendor ID and password with the records of the vendor identification database 132 and, if the received data is correct, the procurement management system 106 displays a screen 206 on the data display device 116. As shown in Fig. 4d, the display screen displays a number of product icons 322 representing products which the procurement management system 106 proposes to make available for sale, and a date field indicating the date by which product selections must be made by vendors.
If the vendor believes that one of the products associated with the product icons 324 would sell in the vendor's geographic product market, the vendor selects the desired one of the product icons 324 using the data entry device 114. The product request receiver 140 receives this initial product selection, and the transaction processor 142 accesses the product information database 136 and displays a display screen 208 on the data display device 116 which, as shown in Fig. 4e, provides a graphic representation 326 of the product together with additional product information on the product (such as the product's manufacturer, other products previously sold by the manufacturer), and a product purchase virtual button 328.
If, after reviewing the product information, the vendor remains interested in marketing the selected product in the vendor's geographic market, the vendor selects the product purchase virtual button 328 using the data entry device 114. The product request receiver 140 receives the product selection, and the transaction processor 142 accesses the product information database 136 and the product transaction database 138, and based on the product group ID, the product category ID and the market valuation indicators for the product, the transaction processor 142 calculates sales projection data for the selected product for the period of time over which the product is proposed to be sold. The transaction processor 142 then displays a screen 210 on the data display device 116 which, as shown in Fig. 4f, displays a sales projection chart 328 using the sales projection data calculated for the product, commission data identifying the commission payable for sales of the product and the date by which the product must be sold, and a product order field 332. As discussed above, seasonal products typically must be heavily discounted for sale outside the seasonal product's typical sales period. Therefore, where the selected product is a seasonal product, the commission data 330 clearly indicates that the vendor will not receive a credit for the sale of any of the selected product unless the vendor sells all of the quantity of seasonal product which the vendor requests.
If, after reviewing the sales projection chart 328 and the commission data 330, the vendor remains interested in marketing the selected product in the vendor's geographic market, the vendor enters in the product order field 332 the number of units of the selected product which the vendor expects to be able to sell.
Based on the number of units requested by each vendor and the transaction history records of each vendor for other product having the same product group ID (as stored in the product transaction database 138), the transaction processor 142 determines the quantity of each product displayed in display screen 206 to secure from the product supplier network 110. Preferably, the transaction processor 142 also accesses the vendor identification database 132, the purchaser identification database 134, and the product identification data, and uses the vendor biographic data, the purchaser demographic data, and the market valuation indicators (in addition to the transaction history records data) to determine the quantity of each product to secure. Further, preferably all the procurement management systems 106 comprising the product distribution system 100 are in communication with one another via the top-level network server (discussed above) so as to allow the purchasing decisions of each procurement management system 106 to be co-ordinated and the product distribution system 100 to avail itself of global economies of scale.
After the transaction processor 142 determines the quantity of each product to secure, the transaction processor 142 allocates to each vendor a portion of the quantity of each product secured in accordance with the transaction history records associated with each vendor. The transaction processor 142 then updates the product transaction database 138 with the respective product allocation amounts for each vendor.
The vendor's account and the product transaction database 138 is then updated in accordance with the number of products actually sold by each vendor, as determined by the received consumer purchase data, as discussed above.
After the vendor manages to sell all the allocated quantity of any of the products selected for sale by the vendor, the vendor is permitted to select additional product.
However, until the due date (as set out in the date field 324) by which product selections must be made by vendors has expired, preferably each vendor is only able to select additional quantities of the products which the vendor previously selected, and may not select product (using the product icons 322) which the vendor did not previously select. This requirement prevents vendors from selecting for sale products which other vendors have successfully marketed, and thereby take advantage of other vendors' marketing efforts, and forces each vendor to focus their marketing energies on the products they selected initially.
As will be appreciated from the foregoing discussion, the product distribution system 100 is able to base procurement decisions on the average sales predictive capabilities and marketing capabilities of each vendor requesting product and thereby reduce the financial impact of a speculative purchase decision. Further, since each vendor caters to prospective purchasers in an assigned local geographic market, the product distribution system 100 is able to make purchasing decisions based on product interest trends in local geographic markets while still availing itself of significant economies of scale.
The present invention is defined by the claims appended hereto, with the foregoing description being illustrative of the preferred embodiment of the present invention.
Those of ordinary skill may envisage certain additions, deletions or modifications to the described embodiment which, although not explicitly described or suggested herein, do no depart from the spirit or scope of the invention, as defined by the appended claims.
Typically the product distribution system 100 includes a number of network interface terminals 102 and a number of vendor network servers 104. However, for clarity, only a single network interface terminal 102 and a single vendor network server 104 are shown in Fig. 1.
Also, preferably the product distribution system 100 includes a number of distinct procurement management systems 106, with each procurement management system 106 having a network address which would typically be accessed by vendors and potential purchasers in defined geographic markets. For instance, preferably the product distribution system 100 includes a procurement management system 106 which would be accessed by vendors and potential purchasers in Canada, another procurement management system 106 which would be accessed by vendors and potential purchasers in the United States, another procurement management system 106 which would be accessed by vendors and potential purchasers in Korea, and so.
Further, the product distribution system 100 includes a top-level network server (not shown) which interconnects all the procurement management systems 106. As will be explained below, this arrangement allows the product distribution system 100 to avail itself of economies of scale based on global purchasing decisions while, at the same time, being cognisant of product interest trends in specific countries and in local geographic markets in each country. However, as above, for clarity, only a single procurement management system 106 is shown in Fig. 1.
The network interface terminals 102 are configured to interface with the vendor network servers 104 and the procurement management system 106 over the communications network 108 so as to allow consumers to make purchases of product advertised over the vendor network servers 104, and to allow vendors to make product selections of product advertised over the procurement management system 106.
Typically each network interface terminal 102 is provided as a single electronic communications device, such as a desktop or portable computer. As shown in Fig. 2, the network interface terminal 102 comprises a network interface 112 for transmitting and receiving electronic data via the communications network 108, a data entry device 114 (such as a keyboard), a data display device 116 (such as a CRT or LCD), and a data processing unit 118 in communication with the network interface 112, the data entry device 114 and the data display device 116. The data processing unit 118 comprises a microprocessor 120, and a memory device 122 in communication with the microprocessor 120 and is configured to facilitate data communication between the user of the network interface terminal 102 and the vendor network servers 104 and the procurement management system 106.
The vendor network servers 104 are configured to interface with the network interface terminals 102 and the procurement management system 106 over the communications network 108 so as to display product advertising to potential purchasers and to relay purchase requests from actual purchasers to the procurement management system 106.
Preferably, each vendor network server 104 is operated by a vendor in local geographic market, and the advertising displayed on the vendor's network server 104 is designed to target the potential purchasers residing in the vendor's local geographic market. In this manner, potential purchasers are more likely to receive advertising tailored to their unique preferences and interests, and vendors are able to respond more rapidly to changes in those preferences and interests than prior art product distribution systems.
Typically, each vendor network server 104 is provided as a single electronic communications device, such as a mainframe computer, and comprises a network interface (not shown) for transmitting and receiving electronic data over the communications network 108, and a data processing unit (not shown) in communication with the network interface for displaying the target advertising on the network interface terminals 102 and for facilitating data communication between users of the network interface terminals 102 and the procurement management system 106. As such data processing units are well known to those of ordinary skill, no further description of the data processing unit will be necessary.
The procurement management system 106 is configured to receive product requests from the vendor network servers 104 identifying product which vendors predict will sell in their respective local geographic markets, and to make purchase decisions based on the received product requests and the prediction transaction history of each vendor. Preferably, the procurement management system 106 is also configured to make purchase decisions based on previous purchase requests received from purchasers, and to update each vendor's prediction transaction history in accordance with the amount of product requested by the vendor which the vendor actually sells.
In this manner, the procurement management system 106 is able to obtain economies of scale by manufacturing or placing orders for large quantities of one or more products, while also reducing the risk of such large-scale manufacturing/ordering decisions by taking into account the predictive abilities of each vendor, as demonstrated by each vendor's transaction history, and the past purchasing patterns of consumers for similar product.
Preferably, the procurement management system 106 is provided as a single electronic communications device, such as a mainframe computer. As shown in Fig. 3, the procurement management system 106 comprises a network interface 124, a central processing unit (CPU) 126 in communication with the network interface 124, and a non-volatile memory (ROM) 128 (such as a magnetic disk memory or a semiconductor memory) and a read/write memory (RAM) 130 both in communication with the CPU 126.
The ROM 128 includes a vendor identification database 132, a purchaser identification database 134, a product information database 136 and a product transaction database 138. The vendor identification database 132 includes a plurality of records, each being uniquely associated with a respective vendor and including a vendor ID and password for providing the vendor with access to the procurement management system 106; and bank account authorization codes data for crediting the vendor for product sold. Preferably, the vendor identification database 132 also includes biographical information associated with the vendor, such as the vendor's name, age, address and occupation. As will be explained below, the biographical information can be used by the procurement management system 106 to assess the vendor's ability to predict product demand for products in the vendor's geographic market.
The purchaser identification database 134 includes a plurality of records, each including consumer purchase data, such as credit card information / bank account authorization codes for debiting the purchaser for product purchased; the purchaser's name; the purchaser's shipping address; the products purchased by the purchaser, and the price paid for each product. Preferably, the consumer purchase data stored in the purchaser identification database 134 also includes demographic information associated with the purchaser, identifying factors such as the purchaser's purchasing habits and preferences. As will be explained below, the demographic information can be used by the procurement management system 106 to predict product demand for products in the purchaser's geographic market.
The product information database 136 includes a plurality of records, each providing information about a product proposed to be offered for sale, including a description of the product, a product code, the proposed unit sale price of the product to the purchaser, the proposed commission payable to a vendor for the sale of the product, and a product group ID and a product category ID associated with the product.
The product group ID identifies the class of the particular product (eg.
cosmetics, perfume, jewelry, hardware), and is used by the procurement management system 106 to predict sales of the product in each geographic product market. The product category ID either identifies the product as a seasonal product or as a non-seasonal product. To act as an incentive for a vendor to place advertisements on the vendor's network server 104 for the sale of seasonal product, preferably the commission payable to the vendor _g_ for products identified as being seasonal is greater than the commission payable for products identified as being non-seasonal.
Preferably, the product information database 136 includes market valuation indicators for the product, such as the existence of any anticipated barriers to entry for the product, whether the product will act as a replacement for existing product, whether the product will enjoy a monopoly in the geographic market, whether there any advantages associated with the product which would impact on the product's appeal, and consumer profile data for the product (eg. the predicted age, income level, purchasing habits of a likely purchaser of the product). As will be explained below, the market valuation indicators can be used by the procurement management system 106 to predict product demand for a product.
The product transaction database 13 8 includes a plurality of records, each being uniquely associated with a respective vendor and identifying a product code, the product group ID and the quantity of the associated product requested by the vendor, the quantity of the product allocated to the vendor, and the quantity of the product actually sold by the vendor. As will be explained below, the procurement management system 106 uses the product transaction database records to make purchase decisions based on the predictive product sales capabilities of each vendor in the vendor's geographic product market. Also, since seasonal products typically must be heavily discounted for sale outside the seasonal product's typical sales period, preferably the procurement management system 106 does not credit a vendor for the sale of any seasonal product unless the vendor sells all of the quantity of seasonal product which the vendor was allocated so as to reduce the likelihood of the procurement management system 106 having a surplus of seasonal unsold product outside the seasonal product's typical sales period.
Preferably, the ROM 128 also includes processor instructions for the CPU 126 which establish in the RAM 130 a memory object defining a product request receiver 140 for receiving product requests from the vendor network servers 104 over the communications network 108, a memory object defining a transaction processor in communication with the product request receiver 140, and a memory object defining a sales completion receiver 144 in communication with the transaction processor 142 for updating the transaction history records of the product transaction database 13 8 in accordance with consumer purchase data received over the communications network 108 from network users of the network interface terminals 102. Alternately, the product request receiver 140, the transaction processor 142 and the transaction processor 142 need not be implemented as memory objects, but instead may be implemented in electronic hardware, if desired.
The transaction processor 142 is configured:
(i) to provide the network interface terminals 102 with information concerning the products offered for sale;
(ii) to determine projected sales figures for each of a number of product based on the product requests received from the vendor network servers 104 and the transaction database records associated with each vendor;
(iii) to secure a quantity of product from the product supplier network 110, with the quantity of product ordered being determined in accordance with product requests and the transaction database records;
(iv) to determine an appropriate quantity of the product to allocate to each vendor and to place entries in the product transaction database 138 indicating the quantity of product allocated to each vendor;
(v) to receive purchase data from purchasers using the network interface terminals 102 and to update the transaction database records with the received purchase data;
(vi) to debit the purchasers and to credit the vendors for the product sold;
and (vii) to arrange for delivery of the product to the purchasers.
Preferably, the transaction processor 142 is also configured to determine projected sales figures for each product based on the vendors' respective biographical information, as stored in the vendor identification database 132, and the purchaser demographic data, as stored in the purchaser identification database 134.
Also, preferably the transaction processor 142 is configured to determine the product allocations in accordance with the respective transaction history records.
Further, preferably the transaction processor 142 is configured to establish a secure communications path (such as via SSL 3.0 over the Internet) with each purchasers using the network interface terminals 102 (with the communications path excluding the vendor network servers 104), and to receive the purchasers financial information (eg. credit card information / bank account access codes) over the secure communications path.
The method of operation of the product distribution system 100, including the transaction processor 142, will now be described with reference to the terminal display screens shown in Figs. 4a to 4~ Initially, a network user uses the network interface terminal 102 to access the procurement management system 106 operating in the geographic market in which the network user resides. The procurement management system 106 displays a screen 200 on the data display device 116 of the network interface terminal 102. As shown in Fig. 4a, the display screen 200 displays a vendor registration link 300, a number of product icons 302 representing products which are available for purchase, a clearance centre link 304 which allows the network user to purchase any of the products associated with the product icons 302, and a pull-down list 306 of vendor network servers 104.
If the network user is interested in becoming a vendor, the network user selects the vendor registration link 300 using the data entry device 114, and the transaction processor 142 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen 202 on the data display device 116. As shown in Fig. 4b, the display screen 202 displays a number of data fields 308 which the network user must complete, and a completion button virtual 310. The data fields request information including the network user's sex, occupation, education, preferred language of communication, and credit card / bank account information. Upon completion of all the fields 308, the network user selects the completion virtual button 310 using the data entry device 114, and then transmits the requested information to the procurement management system 106 over the secure communications path. The transaction processor 142 stores the received vendor information in the vendor identification database 132, and then assigns the network user with a vendor ID and password for subsequently accessing the procurement management system 106. As will be discussed below, the network user (vendor) must supply the procurement management system 106 with the vendor ID and password in order to select product for sale over the vendor's network server 104.
Typically, the products associated with the product icons 302 are items which were previously available for sale at vendor network servers 104, but were unsold and are offered for sale at the top-level server at a discount. If instead of becoming a vendor, the network user wishes to purchase one of the displayed clearance products, the network user selects the clearance centre link 304 using the data entry device 114.
The procurement management system 106 then establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, secure from the vendor network servers 104, and then displays a screen (not shown) on the data display device 116 which displays data fields requesting consumer purchase data from the network user necessary for completion of the sale, such as the network user's name, shipping address, and credit card / bank account access codes.
Preferably, the data fields also request demographic information from the network user, such as the network user's sex, occupation and income level. As discussed above, the demographic information is used by the procurement management system 106 to predict product demand for other products. The sales completion receiver 144 receives the demographic data, the product code assigned to the selected product, and the sale price of the selected product, and the transaction processor 142 stores the information in the purchaser identification database 134 as the aforementioned f consumer purchase data. The transaction processor 142 then debits the network user's account for the purchase, and arranges for delivery of the selected product to the specified shipping address.
However, if the network user wishes to view the products which are offered for sale by the purchaser's local vendor, the network user selects one of the vendor network servers 104 from the pull-down list 306 using the data entry device 114. The network interface terminal 102 is then directed to the network address of the selected vendor network server 104. The selected vendor network server 104 displays a screen 204 on the data display device 116. As shown in Fig. 4c, the display screen 204 displays product icons 312 representing products which are available for purchase from the local vendor, information virtual buttons 314 for obtaining information on each product associated with the product icons 312 (including a description and the price of the product) from the product information database 134, a payment/delivery virtual button 316, a vendor account link 318, and a product selection virtual button 320. As discussed above, the products associated with the product icons 312 and the manner in which these products are advertised over the vendor network server 104 are dictated by the vendor associated with the vendor network server 104, with the intention that the product selection and the advertisement are tailored to the interests of potential purchasers in the vendor's geographic market.
If the network user wishes to purchase one of the displayed products associated with the product icons 312, the network user chooses the desired one of the products icons 312, and then selects the paymentldelivery virtual button 316 using the data entry device 114. The vendor network server 104 then redirects the network interface terminal 102 to the network address of the parent procurement management system 106, and transmits to the parent procurement management system 106 the vendor's vendor ID and the product code associated with the selected product. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, secure from the vendor network servers 104, and then displays a screen (not shown) on the data display device 116 which displays data fields requesting information from the network user necessary for completion of the sale, such as the network user's name, shipping address, and credit card / bank account access codes. Preferably, the data fields also request demographic information from the network user, such as the network user's sex, occupation and income level. As discussed above, the demographic information is used by the procurement management system 106 to predict product demand for other products in the purchaser's geographic market. The completion information, the demographic data, the product code assigned to the selected product, and the sale price of the selected product are received by the sales completion receiver 144, and then stored in the purchaser identification database 134 by the transaction processor 142 as the aforementioned consumer purchase data.
The transaction processor 142 then debits the network user's account for the purchase, credits the vendor's account for the sale (based on the commission associated with the product), updates the product transaction database 138 using the product code and the vendor's vendor ID to reflect the sale of the selected product 312 by the vendor, and arranges for delivery of the selected product to the specified shipping address. As discussed above, if the product category ID associated with the selected product identifies the product as a seasonal product, the transaction processor 142 does not credit the vendor's account for the sale of the product until the vendor sells all of the quantity of seasonal product which the vendor requested (as stored in the product transaction database 138). After delivery of the product, preferably the procurement management system 106 contacts the network user by e-mail for comments on the product purchased, and then includes the received information as demographic data in the purchaser identification database 134 and/or as market valuation data in the product information database 136. As will become apparent below, this feedback information can be used by the procurement management system 106 in rendering future purchasing decisions.
If the network user is the vendor associated with the vendor network server 104, and the vendor wishes to view his/her sales record, the vendor selects the vendor account link 318 using the data entry device 114, and the vendor network server 104 redirects the network interface terminal to the network address of the parent procurement management system 106. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen (not shown) on the data display device 116 requesting the vendor enter the assigned vendor ID and password. The vendor ID and password are transmitted to the procurement management system 106 over the secure communications path. The procurement management system 106 then verifies the received vendor ID and password with the records of the vendor identification database 132 and, if the received data is correct, the procurement management system 106 accesses the vendor's account from the product transaction database 138 and displays the account information on the data display device 116.
If the network user is the vendor associated with the vendor network server 104, and the vendor wishes to select product for sale via the vendor's network server 104, the vendor selects the product selection virtual button 320 using the data entry device 114, and the vendor network server 104 redirects the network interface terminal to the network address of the parent procurement management system 106. The procurement management system 106 establishes a secure communications path (such as via SSL 3.0) with the network interface terminal 102, and then displays a screen (not shown) on the data display device 116 requesting the vendor enter the vendor's assigned vendor ID and password. The vendor ID and password are transmitted to the procurement management system 106 over the secure communications path. The procurement management system 106 then verifies the received vendor ID and password with the records of the vendor identification database 132 and, if the received data is correct, the procurement management system 106 displays a screen 206 on the data display device 116. As shown in Fig. 4d, the display screen displays a number of product icons 322 representing products which the procurement management system 106 proposes to make available for sale, and a date field indicating the date by which product selections must be made by vendors.
If the vendor believes that one of the products associated with the product icons 324 would sell in the vendor's geographic product market, the vendor selects the desired one of the product icons 324 using the data entry device 114. The product request receiver 140 receives this initial product selection, and the transaction processor 142 accesses the product information database 136 and displays a display screen 208 on the data display device 116 which, as shown in Fig. 4e, provides a graphic representation 326 of the product together with additional product information on the product (such as the product's manufacturer, other products previously sold by the manufacturer), and a product purchase virtual button 328.
If, after reviewing the product information, the vendor remains interested in marketing the selected product in the vendor's geographic market, the vendor selects the product purchase virtual button 328 using the data entry device 114. The product request receiver 140 receives the product selection, and the transaction processor 142 accesses the product information database 136 and the product transaction database 138, and based on the product group ID, the product category ID and the market valuation indicators for the product, the transaction processor 142 calculates sales projection data for the selected product for the period of time over which the product is proposed to be sold. The transaction processor 142 then displays a screen 210 on the data display device 116 which, as shown in Fig. 4f, displays a sales projection chart 328 using the sales projection data calculated for the product, commission data identifying the commission payable for sales of the product and the date by which the product must be sold, and a product order field 332. As discussed above, seasonal products typically must be heavily discounted for sale outside the seasonal product's typical sales period. Therefore, where the selected product is a seasonal product, the commission data 330 clearly indicates that the vendor will not receive a credit for the sale of any of the selected product unless the vendor sells all of the quantity of seasonal product which the vendor requests.
If, after reviewing the sales projection chart 328 and the commission data 330, the vendor remains interested in marketing the selected product in the vendor's geographic market, the vendor enters in the product order field 332 the number of units of the selected product which the vendor expects to be able to sell.
Based on the number of units requested by each vendor and the transaction history records of each vendor for other product having the same product group ID (as stored in the product transaction database 138), the transaction processor 142 determines the quantity of each product displayed in display screen 206 to secure from the product supplier network 110. Preferably, the transaction processor 142 also accesses the vendor identification database 132, the purchaser identification database 134, and the product identification data, and uses the vendor biographic data, the purchaser demographic data, and the market valuation indicators (in addition to the transaction history records data) to determine the quantity of each product to secure. Further, preferably all the procurement management systems 106 comprising the product distribution system 100 are in communication with one another via the top-level network server (discussed above) so as to allow the purchasing decisions of each procurement management system 106 to be co-ordinated and the product distribution system 100 to avail itself of global economies of scale.
After the transaction processor 142 determines the quantity of each product to secure, the transaction processor 142 allocates to each vendor a portion of the quantity of each product secured in accordance with the transaction history records associated with each vendor. The transaction processor 142 then updates the product transaction database 138 with the respective product allocation amounts for each vendor.
The vendor's account and the product transaction database 138 is then updated in accordance with the number of products actually sold by each vendor, as determined by the received consumer purchase data, as discussed above.
After the vendor manages to sell all the allocated quantity of any of the products selected for sale by the vendor, the vendor is permitted to select additional product.
However, until the due date (as set out in the date field 324) by which product selections must be made by vendors has expired, preferably each vendor is only able to select additional quantities of the products which the vendor previously selected, and may not select product (using the product icons 322) which the vendor did not previously select. This requirement prevents vendors from selecting for sale products which other vendors have successfully marketed, and thereby take advantage of other vendors' marketing efforts, and forces each vendor to focus their marketing energies on the products they selected initially.
As will be appreciated from the foregoing discussion, the product distribution system 100 is able to base procurement decisions on the average sales predictive capabilities and marketing capabilities of each vendor requesting product and thereby reduce the financial impact of a speculative purchase decision. Further, since each vendor caters to prospective purchasers in an assigned local geographic market, the product distribution system 100 is able to make purchasing decisions based on product interest trends in local geographic markets while still availing itself of significant economies of scale.
The present invention is defined by the claims appended hereto, with the foregoing description being illustrative of the preferred embodiment of the present invention.
Those of ordinary skill may envisage certain additions, deletions or modifications to the described embodiment which, although not explicitly described or suggested herein, do no depart from the spirit or scope of the invention, as defined by the appended claims.
Claims (24)
1.A procurement management system comprising:
a product request receiver for receiving over a network respective product requests from each of a plurality of vendors;
a product transaction database including a plurality of transaction history records, each said transaction record being associated with a respective one of the vendors;
a transaction processor in communication with the request receiver and the product transaction database for securing a quantity of product in accordance with the received product requests and the transaction history records, and for assigning each of the vendors a respective allocation of the quantity of ordered product; and a sales completion receiver in communication with the transaction processor to update the transaction history records in accordance with consumer purchase data received from network users over the network.
a product request receiver for receiving over a network respective product requests from each of a plurality of vendors;
a product transaction database including a plurality of transaction history records, each said transaction record being associated with a respective one of the vendors;
a transaction processor in communication with the request receiver and the product transaction database for securing a quantity of product in accordance with the received product requests and the transaction history records, and for assigning each of the vendors a respective allocation of the quantity of ordered product; and a sales completion receiver in communication with the transaction processor to update the transaction history records in accordance with consumer purchase data received from network users over the network.
2. The procurement management system according to claim 1, wherein each said network user is associated with a respective one of the vendors, and the transaction processor is configured to update each said transaction history record in accordance with the received purchase data and the product request received from the associated one vendor.
3. The procurement management system according to claim 1, wherein the purchase data includes an identification of a desired amount of the secured product, and the transaction processor is configured to receive during a purchase instant each said amount indication, and to determine during a securing instant subsequent to the purchase instant the product quantity in accordance with the received amount indications.
4. The procurement management system according to claim 1, wherein the transaction processor is configured to determine the allocations in accordance with the respective transaction history records.
5. The procurement management system according to claim 1, wherein the purchase data includes financial transaction data, and the transaction processor is configured to receive the financial transaction data over a communications channel excluding the vendors.
6. The procurement management system according to claim 1, wherein the transaction processor is configured to transmit to the vendors over the network projected sales data associated with the respective product requests.
7. A method for procuring product for distribution, comprising the steps of:
receiving over a network respective product requests from each of a plurality of vendors;
securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor;
assigning each of the vendors a respective allocation of the quantity of ordered product; and updating the product transaction histories in accordance with consumer purchase data received from network users over the network.
receiving over a network respective product requests from each of a plurality of vendors;
securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor;
assigning each of the vendors a respective allocation of the quantity of ordered product; and updating the product transaction histories in accordance with consumer purchase data received from network users over the network.
8. The method for procuring according to claim 7, wherein each said network user is associated with a respective one of the vendors, and the step of updating the transaction histories comprises updating each said product transaction history in accordance with each said received purchase data and the product request received from the associated one vendor.
9. The method for procuring according to claim 7, wherein the purchase data includes an identification of a desired amount of the secured product, each said amount indication being received during a purchase instant, and the step of securing a quantity of product comprises determining during a securing instant subsequent to the purchase instant the product quantity in accordance with the received amount indications.
10. The method for procuring according to claim 7, wherein the step of assigning respective allocations comprises determining the allocations in accordance with the respective product transaction histories.
11. The method for procuring according to claim 7, wherein the purchase data includes financial transaction data, and the step of receiving purchase data comprises receiving the financial transaction data over a communications channel excluding the vendors.
12. The method for procuring according to claim 7, wherein the step of receiving product requests comprises the steps of receiving product selection indications from the vendors, and transmitting to the vendors over the network projected sales data associated with the respective product selection indications.
13. A product distribution system comprising:
a product request receiver for receiving over a network respective product requests from each of a plurality of vendors;
a product transaction database including a plurality of transaction history records, each said transaction record being associated with a respective one of the vendors; and a transaction processor in communication with the request receiver and the product transaction database for securing a quantity of product in accordance with the received product requests and the transaction history records, for assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective transaction history records, and for providing network users with respective portions of the secured product in accordance with consumer purchase data received over the network from the vendors.
a product request receiver for receiving over a network respective product requests from each of a plurality of vendors;
a product transaction database including a plurality of transaction history records, each said transaction record being associated with a respective one of the vendors; and a transaction processor in communication with the request receiver and the product transaction database for securing a quantity of product in accordance with the received product requests and the transaction history records, for assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective transaction history records, and for providing network users with respective portions of the secured product in accordance with consumer purchase data received over the network from the vendors.
14. The product distribution system according to claim 13, wherein each said network user is associated with a respective one of the vendors, and the transaction processor is configured to update each said transaction history record in accordance with the received purchase data and the product request received from the associated one vendor.
15. The product distribution system according to claim 13, wherein the purchase data includes an identification of a desired amount of the secured product, and the transaction processor is configured to receive during a purchase instant each said amount indication, and to determine during a securing instant subsequent to the purchase instant the product quantity in accordance with the received amount indications.
16. The product distribution system according to claim 13, wherein the transaction processor is configured to determine the allocations in accordance with the respective transaction history records.
17. The product distribution system according to claim 13, wherein the purchase data includes financial transaction data, and the transaction processor is configured to receive the financial transaction data over a communications channel excluding the vendors.
18. The product distribution system according to claim 13, wherein the transaction processor is configured to transmit to the vendors over the network projected sales data associated with the respective product requests.
19. A method for distributing product, comprising the steps of:
receiving over a network respective product requests from each of a plurality of vendors;
securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor;
assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective product transaction histories;
receiving over the network consumer purchase data from the vendors for respective portions of the secured product to be purchased by network users; and providing the network users with the respective product portions.
receiving over a network respective product requests from each of a plurality of vendors;
securing a quantity of product in accordance with the received product requests and a product transaction history associated with each respective vendor;
assigning each of the vendors a respective allocation of the quantity of ordered product in accordance with the respective product transaction histories;
receiving over the network consumer purchase data from the vendors for respective portions of the secured product to be purchased by network users; and providing the network users with the respective product portions.
20. The method for distributing according to claim 19, wherein each said network user is associated with a respective one of the vendors, and the step of receiving purchase data comprises updating each said product transaction history in accordance with each said received purchase data and the product request received from the associated one vendor.
21. The method for distributing according to claim 19, wherein the purchase data includes an identification of a desired amount of the secured product, each said amount indication being received during a purchase instant, and the step of securing a quantity of product comprises determining during a securing instant subsequent to the purchase instant the product quantity in accordance with the received amount indications.
22. The method for distributing according to claim 19, wherein the step of assigning respective allocations comprises determining the allocations in accordance with the respective product transaction histories.
23. The method for distributing according to claim 19, wherein the purchase data includes financial transaction data, and the step of receiving purchase data comprises receiving the financial transaction data over a communications channel excluding the vendors.
24. The method for distributing according to claim 19, wherein the step of receiving product requests comprises the steps of receiving product selection indications from the vendors, and transmitting to the vendors over the network projected sales data associated with the respective product selection indications.
Priority Applications (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2322383 CA2322383A1 (en) | 2000-10-02 | 2000-10-02 | Procurement management system |
Applications Claiming Priority (1)
| Application Number | Priority Date | Filing Date | Title |
|---|---|---|---|
| CA 2322383 CA2322383A1 (en) | 2000-10-02 | 2000-10-02 | Procurement management system |
Publications (1)
| Publication Number | Publication Date |
|---|---|
| CA2322383A1 true CA2322383A1 (en) | 2002-04-02 |
Family
ID=4167325
Family Applications (1)
| Application Number | Title | Priority Date | Filing Date |
|---|---|---|---|
| CA 2322383 Abandoned CA2322383A1 (en) | 2000-10-02 | 2000-10-02 | Procurement management system |
Country Status (1)
| Country | Link |
|---|---|
| CA (1) | CA2322383A1 (en) |
Cited By (1)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20110055073A1 (en) * | 2000-06-23 | 2011-03-03 | Rosko Robert J | System and Method for Implementing a Consolidated Application Process |
-
2000
- 2000-10-02 CA CA 2322383 patent/CA2322383A1/en not_active Abandoned
Cited By (2)
| Publication number | Priority date | Publication date | Assignee | Title |
|---|---|---|---|---|
| US20110055073A1 (en) * | 2000-06-23 | 2011-03-03 | Rosko Robert J | System and Method for Implementing a Consolidated Application Process |
| US8117121B2 (en) * | 2000-06-23 | 2012-02-14 | Jpmorgan Chase Bank, N.A. | System and method for implementing a consolidated application process |
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