WO2003079135A1

WO2003079135A1 - System for supporting business and method for purchasing and merchandising items by using the system

Info

Publication number: WO2003079135A1
Application number: PCT/KR2003/000502
Authority: WO
Inventors: Seo-Dong Choe
Original assignee: Seo-Dong Choe
Priority date: 2002-03-18
Filing date: 2003-03-14
Publication date: 2003-09-25
Also published as: KR20030075371A; AU2003215931A1

Abstract

A system for supporting business and a method of purchasing and selling items by using the system are provided. The system includes a member information server, which stores information on purchasers and sellers that are registered as members; a purchaser’s financial performance grading server, which grades purchaser’s financial performance based on an auditing report on the purchaser and purchaser’s credit grade given by an authorized organization; a seller’s financial performance grading server, which grades seller’s financial performance based on an auditing report on the seller and seller’s credit grade given by the authorized organization; a seller’s delivery performance grading server, which grades seller’s delivery performance based on production conditions; a seller’s keeping-due-date performance grading server, which grades seller’s keeping-due-date performance based on actual results of seller’s keeping a due date during a predetermined period of time; and a seller’s keeping-quality performance grading server, which grades seller’s keeping-quality performance based on actual results of maintaining quality of goods during a predetermined period of time.

Description

SYSTEM FOR SUPPORTING BUSINESS AND METHOD FOR PURCHASING AND MERCHANDISING ITEMS BY USING THE SYSTEM

Technical Field The present invention relates to a system for supporting business and a method of purchasing and selling items by using the system, and more particularly, to a system for supporting business and a method of purchasing and selling items by using the system, through which companies wishing to purchase items (hereinafter, referred to as purchasers) and companies to sell items (hereinafter, referred to as sellers) through business-to-business (B2B) electronic commerce are registered as members, and contract information is received from and provided to the members, so that a guarantee of confidence is provided for efficient creation of contacts.

Background Art

Internet business can be divided into direct sales and intermediary transactions. Direct sales is similar to off-line business. An example of direct sales is where a seller constructs and manages a sales web site, for example, an Internet sale web site such as Sony or Amazon.com. Intermediary transaction is divided into a sale support type, a purchase support type, and a sale-purchase support type. A shopping mall site is a representative sale support type. An on-line auction intermediating between business and business is a purchase support type. A business site providing a network community and most auction businesses are a sale-purchase support types.

B2B business models are divided into an aggregator, an auction, an exchange, a trade hub, and a search market according to the B2B transaction method. Most B2B business models supervise bidding or allow bidding to be performed in their sites and report the results of the bidding to a seller or purchaser. Accordingly, most purchasers manage B2B business models separately from their unique systems since it is difficult to connect a B2B business model to a purchaser's unique system. When connecting a B2B business model to a purchaser's unique system, the purchaser's computer system requires significant modification, incurring much expense and labor. For these reasons, B2B business models and purchasers' computer systems cannot be connected to each other.

In conventional on-line business models, although strict examination is performed for member registration, examination is performed only during registration and status changing over time is not properly reflected. Accordingly, when a purchaser and a seller initially commence transactions, information regarding confidence in the other party is deficient, and the conventional on-line business models are weak in reality. In other words, since transactions are made based on the reliability of a site rather than confidence between a purchaser and a seller, the transactions are passively performed.

In business sites that market a single item, for example, a metal site, a plastic net, or a paper exchange, network communities are formed to create a vertical exchange. For example, an e-Chemical auctions off chemicals as the main item type. However, enterprises (referring to the most actual demanders in B2B) usually purchase various types of items in addition to chemicals, and thus need to search and visit relevant sites one by one. A contract performance bond or warranty bond is provided by insurance companies or banks, but it is only an ex post facto guarantee and has a restrictive compensation range.

In most B2B transactions, since delivery of goods is made after ordering and manufacturing, the contract term is long; the amount of goods is large; and the market price, the time requirement for delivery, or the quality of goods is not consistent. In such B2B transactions, when the contract is canceled it is not easy for a seller to sell the goods to other purchasers, or when the delivery of goods is delayed, it is not easy for a purchaser to purchase the goods from other sellers within the original time requirement, unlike in the business to customer (B2C) model. Accordingly, when a problem occurs in execution of a contract, a seller suffers financial difficulty until the problem is solved, and a purchaser's production is hit hard by the delay of warehousing the contracted goods. Therefore, before making a contract, it is very important to correctly judge whether the other party will properly execute the contract. For this reason, purchasers prefer sustaining transactions with companies that they have already had business relations with rather than running the risk of finding a new company. This results in exclusive site management, and this exclusivity damages the advantages of Internet B2B transactions.

In an off-line environment, many purchasers have striven to find new sellers. They have researched on the actual conditions of the new sellers, for example, by receiving reports on delivery of goods or visiting sellers. However, with the development of Internet business, in which purchasers can contact many new sellers, it seems impossible to research many sellers using conventional methods. Accordingly, a system is desired, which allows a purchaser to utilize sellers that have been researched by other purchasers and have demonstrated performance through real transactions, and provides a purchaser means to share standardized information on sellers that the purchaser researches or makes transactions with to the other purchasers.

Due to the extension of Internet business, causing a change in the purchasing environment increased opportunity to contact companies all over the world, and the extension of a partner's transactions with other purchasers, it is difficult for a purchaser to stick to the conventional transaction method in which the purchaser makes transacts with only several sellers. Accordingly, purchasers need a system for dealing with the situation even if sellers are frequently changed.

As described above, as purchasers and sellers must support a lot of customers, confirmation of a partner's capability to execute a contract is needed. Even in the case of a partner that a purchaser or seller has had relations with for a long time, the partner's situation frequently changes over time due to financial problems or pressure of orders. Thus a partner with no prior problems may have current problems such as delay in the delivery of goods and degradation of quality. Accordingly, it is necessary to analyze a partner's capability to execute a contract before making the contract even if a seller or purchaser has had previous relations with the partner.

Disclosure of the Invention

The present invention provides a system for supporting business that enables favorable transactions between purchasers and sellers by dynamically and accurately providing information to the purchasers and the sellers in business-to-business (B2B) transactions. This information pertains to the credibility of new partners or changes in the management or systems of old partners.

The present invention also provides a method of purchasing items using the above system, so that a purchaser can purchase an item at a low price. The present invention also provides a method of selling items using the above system, so that a seller can reduce business expenses and expand the business market.

According to an aspect of the present invention, there is provided a system for supporting business between a purchaser and a seller. The system includes a member information server, which stores information on purchasers and sellers that are registered as members; a purchaser's financial performance grading server, which grades purchaser's financial performance based on an auditing report on the purchaser and purchaser's credit grade given by an authorized organization; a seller's financial performance grading server, which grades seller's financial performance based on an auditing report on the seller and seller's credit grade given by the authorized organization; a seller's delivery performance grading server, which grades seller's delivery performance based on production conditions; a seller's keeping-due-date performance grading server, which grades seller's keeping-due-date performance based on actual results of seller's keeping a due date during a predetermined period of time; and a seller's keeping-quality performance grading server, which grades seller's keeping-quality performance based on actual results of maintaining quality of goods during a predetermined period of time.

According to another aspect of the present invention, there is provided a method of purchasing items using a business support system, which has a plurality of purchasers and a plurality of sellers as members, and determines and stores purchasers' financial performance grades, sellers' financial performance grades, sellers' delivery performance grades, sellers' keeping-due-date performance grades, and sellers' keeping-quality performance grades. The method includes a step in which a purchaser accesses the business support system; a step in which the business support system determines whether the purchaser is a member; a step in which if it is determined that the purchaser is a member, the purchaser registers and posts a purchase item in the business support system, and the business support system displays the purchaser's financial performance grade; a step in which the purchaser receives written estimates submitted by a plurality of sellers, which bid on the purchase item; a step in which the purchaser checks financial performance grades, delivery performance grades, keeping-due-date performance grades, and keeping-quality performance grades of the sellers that have submitted the written estimates in the business support system; a step in which the purchaser selects an appropriate seller from the sellers that have submitted the written estimates; a step in which the purchaser makes a contract with the selected seller; a step in which the purchaser receives the purchase item delivered by the seller; and a step in which the purchaser examines the delivered purchase item and pays money for the purchase item. According to still another aspect of the present invention, there is provided a method of selling items using a business support system, which has a plurality of purchasers and a plurality of sellers as members, and determines and stores purchasers' financial performance grades, sellers' financial performance grades, sellers' delivery performance grades, sellers' keeping-due-date performance grades, and sellers' keeping-quality performance grades. The method includes a step in which a seller accesses the business support system; a step in which the business support system determines whether the seller is a member; a step in which if it is determined that the seller is a member, the seller searches the business support system for purchasers wishing to purchase a particular item; a step in which the seller checks its grades and searched purchasers' financial performance grades in the business support system; a step in which the seller selects a purchaser from the purchasers whose financial performance grades have been checked, and bids on the particular item through the business support system; a step in which the seller makes a contract with the purchaser; a step in which the seller delivers the particular item to the purchaser; and a step in which the seller receives money for the delivered particular item from the purchaser. According to the present invention, a purchaser can purchase an item at low price and a seller can reduce business expenses.

Brief Description of the Drawings

A brief description of the drawings is provided to clarify the drawings that are referred to in the detailed description of the invention.

FIG. 1 is a block diagram of a system for supporting business according to the present invention, the system connected to a plurality of seller servers and a plurality of purchaser servers.

FIG. 2 shows an example of the item code structure used for posting a purchase item and searching for a sales item.

FIG. 3 is a flowchart of a method of purchasing items according to the present invention.

FIG. 4 is a flowchart of a method of selling items according to the present invention.

Best mode for carrying out the Invention

Hereinafter, preferred embodiments of the present invention will be described in detail with reference to the attached drawings. In the drawings, the same reference numerals denote the same member. FIG. 1 shows a system for supporting a business, according to an embodiment of the present invention. The business support system 101 , according to the embodiment of the present invention, includes a member information server 1 1 1 , a purchaser's financial performance grading server 121 , a seller's financial performance grading server 131 , a seller's delivery performance grading server 141 , a seller's keeping-due-date performance grading server 151 , a seller's keeping-quality performance grading server 161 , and a business results information server 171. The business support system 101 is connected through a network (NT) to a plurality of seller servers S1 through Sn and a plurality of purchaser servers P1 through Pn. Sellers access the business support system 101 through the seller servers S1 through Sn, respectively, and purchasers access the business support system 101 through the purchaser servers P1 through Pn, respectively. The business support system 101 supports business, i.e., purchase and sale, between the sellers and the purchasers.

The member information server 111 stores information on purchasers and sellers that are registered members. In order to qualify as members of the business support system 101 , purchasers and sellers must agree on a fundamental contract with an operator of the business support system 101. The contract concerns the range of information exchanged and represents obligation. The member information server 111 receives and stores general information from a purchaser member. The general information includes fundamental information necessary for purchase and sale, such as a business registration number, a company address, a telephone number, company history, an organization structure, annual sales, details of production facilities, and a product catalog. The purchaser member information is open to all members interested in purchasing and selling. In order to qualify as a member, a seller needs to submit general information, a report on settlement of accounts, just as required from purchaser members, electronic data including an item of merchandise, and the actual results of supplying the item to other companies, so that the submitted data can be compared with the data received from purchasers. The seller also needs to submit a monthly productivity report and a production plan report, in order to monitor any delay in delivery due to overload.

The purchaser's financial performance grading server 121 grades a purchaser's financial performance based on an auditing report and the purchaser's credit grade given by an authorized organization.

A purchaser provides the data needed for grading payment capability, for example, a report on settlement of accounts during the last three years (including a balance sheet, an income statement, and a cash flow chart) and a report on settlement of accounts for the term until the last quarter, so that the business support system 101 can grade the purchaser on payment capability based on the provided data. The purchaser needs to submit the data periodically, i.e., quarterly or monthly. When the report on settlement of accounts is not evident, the business support system 101 is provided with auxiliary account-related documents from a purchaser or issues an accountant to audit accounts of the purchaser. A purchaser's financial performance grade appears with a purchase item of the purchaser and is used by a seller when determining whether to make a transaction with the purchaser.

A seller's financial performance is fundamentally graded based on account data authorized by a certified public accountant. When necessary, according to an agreement with members, the business support system 101 audits accounts of the seller or is provided with additional auxiliary data in order to grade the seller's financial performance. Standards of the business support system 101 for grading financial performance are different from those used by financial institutions to grade corporate bonds and those used to evaluate listed companies in a securities market. Since the business support system 101 provides to members only information on financial performance during the term of contract and project data for long-term transactions, the business support system 101 uses simpler standards than those used for analysis of listed companies or evaluating bonds, when grading financial performance.

After checking over the reports of account settlement, if it is determined that no problem exists in financial performance in view of short, medium, and long term concerns, the financial performance is graded "A". In other words, when ordinary profit is in black, or when a difference between ordinary profit and operating profit is less than a depreciation value and an extraordinary loss is not large, even if the ordinary profit is not in black, a fixed charge is less than 100%, and a current ratio is greater than 100%, the financial performance is graded "A". When the determination is made that it is inappropriate to maintain a long-term partnership with a seller or purchaser, that is, when financial performance seems reliable in view of medium-term concerns but unpredictable in view of long-term concerns, the financial performance is graded "B". When a large amount of extraordinary loss has occurred, or when a ratio of ordinary profit decreases, regarding financial performances graded "B", the business support system 101 that monitors business results revises the grade. Accordingly, financial performance graded "B" is not problematic.

Financial performance is graded "C" when slight financial difficulty is predicted in view of medium-term concerns, considering that the difficulty is easily overcome through leveraged lease or increase of capital because the capital structure is solid, that is, when the current ratio is rather low but the fixed charge is high. Other grades are determined in a similar manner. It is difficult to completely explain the details of grading financial performance in such a large number of cases. Since the financial performance of a company can be graded differently depending on the sale or capital of the company, it is graded by a specialist such as a professional accountant. The concepts of "short term", "medium term", and "long term" vary with the category of a purchaser's business or a seller's product. When selling or purchasing commercial papers or corporate bonds, financial institutions usually refer to credit grades that are based on a certified public accountant's auditing report concerning settlement of accounts and given by an officially authorized firm, such as Korea Investors Service, Inc. Accordingly, the business support system 101 may utilize the credit grades given by the officially authorized firm in evaluating a seller's or a purchaser's financial performance. It is apparent that the credit grades given by the officially authorized firm are not absolute criteria, but a method using the credit grades may be adapted depending on a category of business or product. Since the term of commercial paper is typically two to three months, the assumption is made that the item used as an example below needs three months for production and delivery.

A method of grading a purchaser's financial performance according to an embodiment of the present invention is summarized in Table 1.

Table 1

The credit grade of commercial paper and the credit grade of corporate bonds are the criteria of official evaluation. When the two types of credit grades are not the same, the credit grade of commercial paper has priority. For example, when the credit grade of commercial paper is A3 and the credit grade of corporate bonds is A, the purchaser's financial performance is graded "C".

The seller's financial performance grading server 131 grades a seller's financial performance based on an auditing report of the seller and the seller's credit grade given by an authorized organization. A method of grading a seller's financial performance, according to an embodiment of the present invention, is similar to a method of grading a purchaser's financial performance and is summarized in Table 2.

Table 2

The seller's delivery performance grading server 141 grades a seller's delivery performance based on the seller's manufacturing equipment, external management and production management systems, design performance, utilization of technological materials, development, application performance, manpower development and utilization performance, quality control system, management staffs' enthusiasm and abilities, and possibility of growth. The delivery performance is an important fact second to the financial performance. When the delivery performance is graded, documents regarding usual matters are submitted by a seller, and examined and evaluated through actual inspection and based on the credibility of the documents and the rational systemization of functions. Sellers that are equipped with excellent systems and organization are determined as superior to sellers that are not. In other words, excluding human ability, a seller's delivery performance is graded based on factors such as production facilities, a quality control structure, reliability of a resource provider, technical level, and results. The results of managing the factors are used to grade keeping-due-date performance and keeping-quality performance, which will be described later. In addition, the business support system 101 is designed to update a seller's current status of general factors such as the particulars of the seller, plant and equipment, and organization. Since the updated seller's current status has been concluded through an actual inspection, truthfulness is guaranteed.

It is difficult for a person in charge to fully read disclosed content regarding a new seller or be fully aware of the seller just by making one or two transactions with that seller. In addition, the performance of the same seller may be evaluated differently depending on an evaluator's specialty or personal ability. In the business support system 101 , experts give simple grades to companies' performance in various aspects based on known standards so that an approximate standardized evaluation can be performed. Even if a company has satisfactory financial performance, sufficient equipment or manpower, and reliable resource providers, it cannot be stated that the company has excellent keeping-due-date performance or keeping-quality performance. Accordingly, the keeping-due-date performance and the keeping-quality performance are mainly based on actual results and separately graded from the delivery performance. The delivery performance is graded by simply evaluating the objective factors. The standards used to grade the delivery performance vary with the category of a purchaser's business or a seller's item. For example, the case where an item is a bearing will be explained. For a usual manufacturing company, i.e., a purchaser, bearings are materials for maintenance, and thus any seller on the scale of an agency is good enough to be a business partner of the purchaser. However, if a purchaser is a car manufacturing company, a seller needs to be on the scale of a bearing manufacturing company in order to satisfy the conditions of an excellent business partner. In other words, an excellent seller for the car manufacturing company is required to have manufacturing equipment, sufficient technicians, and a raw materials provider. Accordingly, when posting a purchase item, a purchaser is required to notify whether only a manufacturing company, only an agency, or both manufacturing company and agency are qualified to bid, based on the importance of the item or the annual purchase amount. A seller is also required to state status as an agency or a manufacturing company when registering a sales item.

Grading delivery performance is evaluating a seller's manpower, equipment, and systems. Separate from the actual results of keeping a due date or the quality of goods, the objective performance of a seller is evaluated and compared with those of other sellers. In other words, latent faculties of different sellers are compared with one another because even if a keeping-due-date performance grade or keeping-quality performance grade is lowered due to a seller's temporary mistakes, a seller that can improve its mistakes needs to be distinguished from a seller that cannot. Relative comparison of delivery performance between sellers helps purchasers determine purchase policies such as a long-term contract, development of new products, and plant and equipment investment. Generally, purchasers use their own standards when evaluating companies with which they are to make transactions for the first time. Grading delivery performance is performed in a similar manner to the general purchasers' evaluation, in which only factors with minimal change are evaluated. Additionally, in the present invention, factors that frequently change are separately evaluated in terms of keeping-due-date performance and keeping-quality performance. In this scenarios, various details are added and recent data is reflected, so that the value of data provided to purchasers wishing to purchase an item from a particular seller is increased. Purchasers do not usually evaluate the keeping-due-date performance, but the business support system 101 secures sufficient data and fairness so that it additionally evaluates the keeping-due-date performance and the keeping-quality performance.

Table 3 shows factors examined to evaluate delivery performance.

Table 3

In Table 3, an appropriate dividend is allocated to each section of factors according to the importance of the factors in the section. The sum of scores actually given to each factor is referred to for evaluating the delivery performance. If a difference, between a score given to a certain section and an average, exceeds a reasonable error, the score is increased or decreased.

Table 4 shows examples of delivery performance grades.

Table 4

Table 5 shows an example of a seller's delivery performance evaluation report.

Table 5

According to Tables 4 and 5, since the score of the seller is 83, it is expected that the seller's delivery performance is graded "D". However, an error in section 2 is more than 20% less than the average, and thus grade "E" is determined. When a seller is a retail or wholesale company, not a manufacturing company, the section related to manufacturing is excluded.

When registering by items, a seller is requested to reveal that it is a manufacturing company or a non-manufacturing company. When posting a purchase item, a purchaser is also requested to notify whether only manufacturing companies, only retail or wholesale companies, i.e., non-manufacturing companies, or both manufacturing and non-manufacturing companies are allowed to bid. Accordingly, such information is available when an inquiry is made regarding a particular company in the business support system 101.

Usually, the seller evaluation formats used by different purchasers are different from one another. However, when purchasers' evaluation method and standards are different, even if they fall under the same category of business, and when a purchaser uses the same evaluation formation for different types of items, it is apparent that there are problems. In the business support system 101 of the present invention, the same evaluation format is used for the same type of item that falls under the same category of business, so that standardization by experts is possible. In addition, the business support system 101 is advantageous in that, even if items are the same, sellers are distinguished from one another depending on the category of a purchaser's business.

The seller's keeping-due-date performance grading server 151 grades a seller's keeping-due-date performance based on the actual results of the seller's ability to keep a due date during a predetermined period of time.

Generally, it is difficult to objectively grade the keeping-due-date performance, unlike financial performance or delivery performance. However, it is apparent that there is distinction in the keeping-due-date performance between sellers. In addition, the keeping-due-date performance is a factor that needs to be checked before a purchaser decides upon a transaction with a particular seller.

Generally, a purchaser evaluates a seller's keeping-due-date performance based on actual results of recent business with the seller. The business support system 101 of the present invention increases the accuracy of evaluation by additionally examining the actual results of business between the seller and other purchasers. In evaluating keeping-due-date performance, the business support system 101 fundamentally analyzes responsibility for delivery delay, evaluates a seller's keeping-due-date performance based on the result of the analysis and the actual results of recent business, and provides the result of the evaluation. However, in the initial operating state of the business support system 101 , there is no accumulated data, and thus a seller's business results with other purchasers are optimally utilized in the present invention. The evaluation description of a seller's keeping-due-date performance includes a case where business result data is provided from a purchaser, a case where business result data is not provided from a purchaser, a case where an item is regularly purchased, and a case where an item is irregularly purchased. If a new seller registers in the business support system 101 , no data on the seller may have been provided from member purchasers. In this situation, certification for delivery results to the seller's major clients is received from the seller, and then an actual inspection is executed. But it is difficult to accurately grade the seller's keeping-due-date performance. Accordingly, for the purchaser's reference, such a situation is reported when displaying the seller's keeping-due-date performance grade. In other words, it is noted that the seller's keeping-due-date performance grade is given through an actual inspection, and not by the business support system 101 , so that a purchaser may carefully judge the seller. Here, the business support system 101 also carefully and conservatively determines the seller's keeping-due-date performance grade. This precision is repeated as data on the seller is provided from new members or when the seller transacts business in the business support system 101 . When data on a seller's business results exists among data received from the members, cases involving delayed delivery are sorted out, and the delivery delay is analyzed by issuing an inquiry to the relevant purchaser, in order to evaluate the seller's keeping-due-date performance. Since the relevant purchaser is a member, it is expected that the purchaser will be cooperative. In addition, obligation to cooperate in such a situation is included in the contract made when purchasers register to become members with¹ the business support system.

The above described cases correspond to irregular transactions. In the case of a regular transaction, for example, when car parts are delivered, an order is given at one time, but complete delivery is performed through the course of several trips. Accordingly, the reliability of data provided by purchasers decreases. In other words, a certain date is entered as a contracted due date of delivery, but actual delivery progresses according to a separate production plan. Accordingly, a purchaser's operating schedule and the data provided from the purchaser's production department are examined through actual inspection.

A seller's keeping-due-date performance is evaluated based on the seller's results of keeping the due date during a predetermined period of recent time. The assumption is made that the predetermined period of recent time appropriate for an item, requiring a manufacturing time of three months, is one year. Usually, persons in charge in purchasing companies think that reasons for delivery delay represent different degrees of importance, and thus evaluation should vary with this importance. Since keeping-due-date performance grades are usually utilized by the persons in charge in purchasing companies, this opinion is considered in the present invention. In addition, in order to prevent only a purchaser's opinion from being reflected, the business support system 101 participates in due date management so that fair evaluation can be accomplished.

Table 6 shows delivery delay grades.

Table 6

Grade Description

When delay impedes a purchaser's production plan. When a seller

First grade unreasonably rejects or delay the delivery of goods on the pretext of

Table 7 shows an example in which keeping-due-date performance is graded.

Table 7

The seller's keeping-quality performance grading server 161 grades a seller's keeping-quality performance based on the actual results of maintaining the quality of goods during a predetermined period of time.

For grading keeping-quality performance, more reliable data can be secured. Like grading keeping-due-date performance, problems decrease as a seller's actual results are accumulated after registration. When data is provided from purchasers, each purchaser's quality inspection report is examined. In other words, whether a seller's goods have been rejected or specially employed is observed, and keeping-quality performance is evaluated depending on the importance of the fault.

When there is no data provided from purchasers, evaluating keeping-quality performance relies on a seller's quality control structure or system, a seller's quality inspection report, certification authorized by an official organization, and the content of claims and the quality inspection report of a seller's business partner. Since a purchaser's quality inspection report is usually not connected to its resources system, it is very important to create a system registration contract which obligates the purchaser members to connect their quality inspection reports to the business support system 101 and manage the purchaser members in this respect.

As described above, keeping-quality performance is evaluated based on a seller's actual results during a predetermined period of recent time and according to the importance of the poor quality content. Table 8 shows quality inferiority grades.

Table 8

Table 9 shows an example in which keeping-quality performance is graded. Table 9

The business results information server 171 stores sellers' and purchasers' actual business results. The business support system 101 stores data by business partners, items, purchasers, and sellers so that purchasers and sellers, i.e., members, can separately search data by business partners, items, purchasers, and sellers. The members provide data on business that has occurred, such as the address, business registration number, and nation of a business partner, an item, the specifications of an item, a contract unit price of an item, the volume of item, the due date of delivery, a warehousing date, a quality inspection report, terms of payment, and a delivery destination. After registration, the members are required to periodically provide such data to the business support system 101 to complement the business support system 101. The data is precisely analyzed for grading a registered seller's contract execution performance and the results are stored in the business results information server 171.

The members' grades continuously change, and the members can check their grades in the business support system 101 at any time.

FIG. 3 is a flowchart of a method of purchasing items according to the present invention. The purchasing method will be described with reference to FIG. 3 and FIG. 1 , which shows the business support system 101 for supporting business.

A purchaser accesses the business support system 101 in step 31 1.

The business support system 101 determines whether the purchaser is a member in step 321. If it is determined that the purchaser is a member, the purchaser registers and posts a purchase item in the business support system 101 , and the business support system 101 displays the purchaser's performance grade, in step 331 . If it is determined that the purchaser is not a member, the purchaser is required to complete the member registration procedure in the business support system 101 in step 325.

The purchaser receives written estimates from a plurality of sellers that bid on the item registered by the purchaser in step 341 . The purchaser can receive the written estimates via the business support system 101 or directly from the sellers on-line or off-line. The purchasers checks the performance grades, including a financial performance grade, a delivery performance grade, a keeping-due-date performance grade, and a keeping-quality performance grade. The grades reflect each of the sellers that have submitted the written estimates in the business support system 101 in step 351 .

The purchaser selects an appropriate seller in step 361.

The purchaser makes a contract with the selected seller in step 371.

The purchaser receives the item delivered by the selected seller in step 381 . The purchaser checks the delivered item and pays for the item in step 391.

FIG. 4 is a flowchart of a method of selling items according to the present invention. The method shown in FIG. 4 will be described with reference to FIG. 1.

A seller accesses the business support system 101 for supporting business in step 41 1.

The business support system 101 determines whether the seller is a member in step 421 . If it is determined that the seller is a member, the seller searches the business support system 101 for purchasers wishing to purchase the seller's item in step 431 . If it is determined that the seller is not a member, the seller is required to complete the member registration procedure in the business support system 101 in step 425. The seller checks the purchaser's financial performance grades and its own performance grades in the business support system 101 in step 441. The performance grades of the seller and the purchasers continuously change, and can be checked in the business support system 101 at any time. If the seller wants to carry out business with a certain purchaser after confirming the purchaser's financial performance grade, the seller bids on an item desired by the purchaser through the business support system 101 in step 451 .

The seller makes a contract with the purchaser in step 461 . The seller delivers the item to the purchaser in step 471.

The seller receives the money for the delivered item from the purchaser in step 481.

The method of purchasing items shown in FIG. 3 and the method of selling items shown in FIG. 4 will be generally described with reference to FIGS. 1 and 2. The business support system 101 for supporting business is configured in the order of a category of business and an item.

Purchasers are registered by categories of business, which are defined by the business support system 101. Generally, construction companies do engineering business, building business, and plant business together. Since purchase items and their quality levels are different depending on a category of business, each of the construction companies is separately registered by categories of business. In addition, if a company constructs a ship and additionally does business in the field of plant construction or power machinery construction, the company is separately registered under different categories of business. FIG. 2 shows an example of the item code structure used for posting a purchase item and searching for a sales item.

As shown in FIG. 2, when a construction company falling under three categories of business registers as a purchaser, it is separately registered under the three categories, i.e., building, engineering, and plant, and its financial performance grade is commonly applied to the three categories of business.

A purchaser is allocated a unique business code, and a person in charge is allocated an ID, so that the person in charge can access the business support system 101 and view data. The person in charge can post purchase items with respect to only the three categories. In an area such as the construction business which is subdivided, items are divided in a material code system that is usually used by purchasers. Purchaser material codes are usually divided by large classification, medium classification, and small classification. For example, the building business is divided into equipment materials, building materials, and piping materials according to the large classification. The equipment materials are divided into a pump, a fan, and a boiler according to the medium classification. The pump is divided into a centrifugal, a sewage pump, and a water pump according to the small classification.

Usually, a purchaser allocates a unique material code to each item after the small classification. However, in this business support system 101 of the present invention, a group code is allocated to a group of different materials, taking into account the sellers' production items.

Since sellers do not usually manufacture all types of pumps, pumps are grouped according to a material, a diameter, and a pressure.

An example of the pump groups include a group having SUS material and discharge DIA 200 or less, a group having SUS material and discharge DIA 250 or more, and a group having FC25 material and discharge DIA 200 or less.

Purchasers and sellers perform posting and searching based on the above-described classification when purchasing and selling pumps. When a purchaser publicly posts an item in the business support system

101 , it registers a group code, which is allocated to the item by the business support system 101 , in a purchase material code file. Then, items posted by different purchasers are displayed on one page, like items sold by sellers are displayed on one page. A seller registers items to sell according to a group code scheme defined by the business support system 101. For example, even if a seller sells the same type of pump, the pump is distinguished by registering according to whether it targets purchasers doing building business or plant business. This is because the quality level, price, and delivery procedure of an item vary with the target use of the item and a seller's business policy.

Keeping-due-date performance or keeping-quality performance is evaluated at the level of small classification, for example, the level of a pump group code. The sellers ability to search materials by categories of business and items allow them to effectively do business. The searched materials can be memorized, along with a purchaser's company code and a purchaser material code, so that they can be fetched at any time.

If a purchaser reports a purchase item, specifications, a biding period, a delivery due date, and so on, the purchaser's financial performance is displayed so that sellers are able to view it. Here, the purchaser can indicate the seller's contract execution performance grade required for bidding. The purchaser can decide on the required contract execution performance grade, referring to contract execution performance grades of sellers that are registered by items and material group codes, and taking into account an appropriate number of sellers.

In a contract execution performance grade, performance grades are displayed in the order in which they have been described above. For example, when a financial performance grade is B, a delivery performance grade is C, a keeping-due-date performance grade is C, and a keeping-quality performance grade is B, the contract execution performance grade is BCCB.

When a purchaser desires sellers with BCCB or a higher contract execution performance grade, if there are too many sellers matching that criteria, the purchaser can further increase the indicated contract execution performance grade. If there are few sellers with BCCB or a higher contract execution performance grade, the purchaser can decrease the notified contract execution performance grade by one or more steps. When adjusting the notified contract execution performance grade, the purchaser may refer to the contract execution performance grade of an existing business partner registered in the business support system 101.

A seller views the notified contract execution performance grade of a purchaser under the desired category of business and, if the seller satisfies the purchaser's requirement, it can bid by submitting a written estimate. Then, the purchaser confirms the seller's contract execution performance grade disclosed in the written estimate through a purchase support company and then receives the seller's written estimate.

It is apparent that instead of calling for bids, a purchaser can manage its own system through a desired manner such as a reverse auction, and if necessary, the purchaser can call for bids in the business support system 101.

If a contract is made between a purchaser and a seller after the bidding process, related data is sent to the business support system 101 , and the business support system 101 performs delivery management.

According to delivery management, when the purchaser wants to make an approval on the sample or drawing of an item in advance, this fact is declared, and communication among a purchaser, a seller, and the business support system 101 is performed through a communication system thereamong. After the approval, delivery is readjusted under the agreement between the three parties, if necessary.

Until the delivery, the business support system 101 identifies the seller's production schedule and periodically notifies the purchaser of an estimated delivery date. Immediately before warehousing of goods, the seller notifies the purchaser of the anticipated date of warehousing through the business support system 101. Immediately after the warehousing, the purchaser notifies the business support system 101 of the actual date of warehousing.

Then, the purchaser notifies the seller of the results from a quality examination of the goods through the business support system 101.

The business support system 101 determines whether the seller delayed delivery and whether the seller maintained the quality of goods after consultation with the purchaser. The business support system 101 accumulates the data and stores the data in a database so that the data can be used in evaluating the seller. The business support system 101 , according to the present invention, has the following advantages.

A purchaser is able to use reliable data regarding sellers' delivery performance, warranties, and after-sales service (A/S), provided by other purchasers in the same category of business.

Conventionally, it is difficult for a purchaser to verify whether data received from a new seller is true, and a seller needs to separately register different purchasers in order to carry out business with the different purchasers. However, according to the present invention, after the sellers and purchasers register in the business support system 101 , the business support system 101 compares data received from these companies, i.e., the registered sellers and purchasers, verifies the data, and allows the members to share the verified data. In addition, a purchaser can reduce the purchase price through seller competition, and a seller can easily expand its market and reduce business expenses.

In order to prevent a decrease in the value of data over time, the business support system 101 participates in a contract procedure and updates the related data.

The business support system 101 legally provides data as long as business secrets are not revealed, so that persons in charge of the purchasers and sellers can easily understand and practically use the data.

The business support system 101 is flexibly configured such that a purchaser can carry out business with a limited number of companies for some items, according to the conventional method, if necessary, but can also perform open purchase for other items by connecting with the business support system 101. A purchaser reports a bidding qualification grade with respect to a desired item through open purchase.

A seller is evaluated on contract execution performance of items and submits a written estimate based on the contract execution performance, which is determined by the business support system 101.

In the drawings and specification, preferred embodiments of the invention have been described using specific terms but it is to be understood that such terms have been used only in a descriptive sense and such descriptive terms should not be construed as placing any limitation on the scope of the invention. Accordingly, it will be apparent to those of ordinary skill in the art that various changes can be made to the embodiments without departing from the scope and spirit of the invention. Therefore, the scope of the invention is defined by the appended claims.

Industrial Applicability

According to the present invention, information on the credibility of a new business partner or information regarding change in an existing business partner's management or system is accurately and dynamically provided so that transactions are efficiently executed between many purchasers and sellers. Here, purchasers can purchase goods at low prices, and sellers can reduce business expenses and expand their market. In addition, sellers can examine its competitiveness, and management staff can quickly identify company problems. Since the present invention can be used without significant revision of a purchaser's existing system, expenses can be reduced and a person in charge can easily use the system. Purchasers can select open purchase or limited purchase according to circumstances and thus can flexibly manage purchase policy. When the system of the present invention is applied to nations throughout the world, a worldwide market can be constructed. When the system of the present invention is applied to business-to-business (B2B) electronic commerce all over the world, the effect will be doubled. Urgent problems that occurring during a contract procedure, for example, a partner's bankruptcy or unexpected contract trouble are immediately reported to members so that prompt action can be taken before a further problem such as delivery delay occurs. Purchasers and sellers, i.e., members, can use the present invention with their existing web sites and systems, only making changes for connecting with the system of the present invention. In addition, a purchaser and a seller are connected through a system of a B2B exchange type, and the contract procedure is performed in the purchaser's or seller's own systems. Accordingly, purchasers can freely carry out business, with their unique purchase policies maintained so that connection is possible at less expense and labor than in a conventional B2B exchange. Since a grade is given to each purchaser, according to payment performance, and to each seller according to contract execution performance, a seller can select an excellent purchaser, and a purchaser can provide a bidding qualification grade for an item and carry out business with a seller suitable to its requirements.

As described above, according to the present invention, bidding or auction is not performed in a business support system. The business support system does not act as an agent of purchase. However, based on a market similar to a B2B exchange system, the present invention allows purchasers and sellers, i.e., members, to be connected n-to-n and freely carry out business, even if they have not previously carried out business with each other, and allows the members to change their business partners without bearing risk. The present invention is a new concept business method, which practically supports business.

Claims

What is claimed is:

1. A system for supporting business between a purchaser and a seller, the system comprising: a member information server, which stores information on purchasers and sellers that are registered as members; a purchaser's financial performance grading server, which grades purchaser's financial performance based on an auditing report on the purchaser and purchaser's credit grade given by an authorized organization; a seller's financial performance grading server, which grades seller's financial performance based on an auditing report on the seller and seller's credit grade given by the authorized organization; a seller's delivery performance grading server, which grades seller's delivery performance based on production conditions; a seller's keeping-due-date performance grading server, which grades seller's keeping-due-date performance based on actual results of seller's keeping a due date during a predetermined period of time; and a seller's keeping-quality performance grading server, which grades seller's keeping-quality performance based on actual results of maintaining quality of goods during a predetermined period of time.

2. The system of claim 1 , wherein the seller's production conditions comprise the seller's manufacturing equipment, external management and production management systems, designing performance, utilization of technological materials, development, application performance, manpower development and utilization performance, quality control system, management staffs' enthusiasm and abilities, and possibility of growth.

3. The system of claim 1 , further comprising a business results information server, which stores the seller's actual results of business and the purchaser's actual results of business.

4. A method of purchasing items using a business support system, which has a plurality of purchasers and a plurality of sellers as members, and determines and stores purchasers' financial performance grades, sellers' financial performance grades, sellers' delivery performance grades, sellers' keeping-due-date performance grades, and sellers' keeping-quality performance grades, the method comprising: a step in which a purchaser accesses the business support system; a step in which the business support system determines whether the purchaser is a member; a step in which if it is determined that the purchaser is a member, the purchaser registers and posts a purchase item in the business support system, and the business support system displays the purchaser's financial performance grade; a step in which the purchaser receives written estimates submitted by a plurality of sellers, which bid on the purchase item; a step in which the purchaser checks financial performance grades, delivery performance grades, keeping-due-date performance grades, and keeping-quality performance grades of the sellers that have submitted the written estimates in the business support system; a step in which the purchaser selects an appropriate seller from the sellers that have submitted the written estimates; a step in which the purchaser makes a contract with the selected seller; a step in which the purchaser receives the purchase item delivered by the seller; and a step in which the purchaser examines the delivered purchase item and pays money for the purchase item.

5. The method of claim 4, wherein the purchaser receives the written estimates via the business support system or directly from the sellers on-line or off-line.

6. A method of selling items using a business support system, which has a plurality of purchasers and a plurality of sellers as members, and determines and stores purchasers' financial performance grades, sellers' financial performance grades, sellers' delivery performance grades, sellers' keeping-due-date performance grades, and sellers' keeping-quality performance grades, the method comprising: a step in which a seller accesses the business support system; a step in which the business support system determines whether the seller is a member; a step in which if it is determined that the seller is a member, the seller searches the business support system for purchasers wishing to purchase a particular item; a step in which the seller checks its grades and searched purchasers' financial performance grades in the business support system; a step in which the seller selects a purchaser from the purchasers whose financial performance grades have been checked, and bids on the particular item through the business support system; a step in which the seller makes a contract with the purchaser; a step in which the seller delivers the particular item to the purchaser; and a step in which the seller receives money for the delivered particular item from the purchaser.