WO2014036569A1

WO2014036569A1 - Dynamic sales system and method with automated feedback negotiation

Info

Publication number: WO2014036569A1
Application number: PCT/US2013/057896
Authority: WO
Inventors: Michael Gurin
Original assignee: Michael Gurin
Priority date: 2012-09-03
Filing date: 2013-09-03
Publication date: 2014-03-06

Abstract

A dynamic sales processing system and method for the purchase and delivery of products to optimize the purchasing cost effectiveness, the suppliers capital resource utilization, the convenience and ease of the negotiation and delivery processes for both purchaser and supplier and to further minimize the cost impact through a system and method of dynamic feedback between purchaser and supplier. The dynamic sales process system and method accommodates purchaser and supplier within constraints selected from the group of discrete, non-discrete, linear, non-linear, and combinatorial parameters. Purchase order terms and delivery terms are dynamic and a function of time, which includes delivery location, until successful product fulfillment and delivery are completed.

Description

Dynamic Sales System and Method with Automated Feedback Negotiation

Cross-Reference to Related Applications

This application claims the benefit of provisional patent application US No.

61/528,202 titled "Dynamic Sales System and Method with Automated Feedback

Negotiation" filed on August 27, 2011, and hereby incorporated by reference in its entirety.

This is also a continuation-in-part of U.S. Patent Application Serial No.09/388,394 filed September 1, 1999 and entitled "Direct Sales with Selective Remote Consolidated Distribution" U.S. Patent Application Serial No.09/398,300 filed September 20, 1999.and entitled "Dynamic Purchasing Process with Automated Feedback Negotiation" without priority.

Background of the Invention

The present invention relates to sales transactions of business to business and business to consumer products and methods of use and, in particular to the creation of automated and dynamic feedback purchase orders which present information and execute automated negotiation and delivery terms for optimal purchasing transactions with minimal intervention by a "middleman", and in particular to the role elimination of traditional retail sales entities and their respective distribution channels for the optimal purchase of products by consumers.

As used herein, the term "retail sales" refers to a system in which a desired product is purchased through point of sale processes used to transfer product from the seller to the consumer.

The term "remote sales" refers to a system in which a desired product is purchased through catalog viewing and either phone or mail ordering, Internet viewing and ordering, phone

communications with voice or mail ordering, or print media with voice or mail ordering. This includes any purchase transaction to a specified, non-dynamic delivery address in which a desired product is purchased through point of sale processes used to transfer product from the seller to the consumer.

The term "delivery" refers to the transportation of product, even if simply designated for a category of prospective purchasers. This delivery takes place at a specific deterministic location established at the time of order entry.

Sales transactions and distribution processes have in the past included a wide range of point- of-sale store concepts from large department stores to small niche retail stores. Corporations from Sears to Wal-mart have established primary sales channels through a strong retail presence with complimentary respective catalog sales and Internet sales distribution channels. More recent entities such as Amazon.com, Ebay and Buy.com have established a strong Internet presence with direct sales through their respective warehouse(s) utilizing traditional mail and freight delivery channels such as Federal Express, UPS, USPS, and Airborne Express, etc. The recent explosion of Internet sales poises a challenge to traditional retail and catalog sales distribution channels by increasing the ease and convenience of "shopping" through any computer connected to the Internet. To date, several criteria have been used in the art for the sales of products to businesses or consumers buyers along product lines with variations for application specific uses, though principally characterized as a static transaction.

Various factors influencing the execution of a purchasing decision include product selection and sale site selection, as well as the price/availability of the product. The most common parameters utilized in determining comparative performance of product sales and subsequent delivery are price, availability, convenience, and purchasers satisfaction. The invention thus compares favorably to the current prior art methods that are characterized by the negotiation of solely price based on a relatively static scenario with quantity being the primary factor affecting the negotiated price whether a single buyer or an aggregation of buyers that are represented. The term relatively static in the context of current methods characterizes the purchasing process being void of dynamic feedback between the product supplier or seller and the purchase for optimizing product availability and consideration of time based requirements, except through the use of forecasting methods by the suppliers.

Prior literature is void of the utilization of dynamic purchase orders or multidimensional purchase forms with dynamic methods to generate purchase orders for the direct sale of business and consumer products as verified by keyword text search of "purchase order" & dynamic, and form* & dynamic & transaction & multidimensio*. There are incidences of purchase transactions found through keyword searches containing related words that present purchase selection criteria to the linking of purchase orders to buyers utilized in the purchase of products.

A system to automate the conversion of a purchase electronic form into the purchase order electronic form is present in U.S. Patent No. 5,799,157 as utilized for the purchase of products in connection with an integrated system and method for entry of purchasing transactions. This patent differs from the invention in its lack of dynamic and multidimensional criteria utilized following the creation of the purchase form.

U.S. Patent No. 5,644,727 details a computer system that utilizes purchaser specifications and priorities to suggest an appropriate product to optimally meet the requirements. The aforementioned patent lacks the ability to utilize the buyer specifications to dynamically create and implement the purchase requirements through a dynamic negotiation of a purchase agreement that is mutually acceptable to both parties. U.S. Patent No. 5,611,051 details a point of supply distribution process to dynamically create a replenishment transaction over remote distances through the utilization of computer networks and other computer equipment.

U.S. Patent No. 5,926,820 details a method for performing a range max/min query in a database, in which the data is represented as a multi-dimensional data cube for data analysis purposes.

U.S. Patent Nos. 5,835,764, 5,475,585, 5,943,424, 5,889,863, and 5,850,446 all detail the dynamic processing of multiple individual non-related static transactions.

U.S. Patent Nos. 5,212,791, 5,737,728, and 5,943,652 all detail the dynamic scheduling of resources for optimal resource allocation involved with the manufacture of products.

Prior literature is also void of the utilization of consolidated remote or mobile distribution channels with dynamic methods to generate sales orders for the direct sale of business and consumer products as verified by keyword text search of consolidat* & sale & distribution & retail. There are incidences of sales methods found through keyword searches containing related words that present sales systems for the specific method of sale of products to the physical representations of shopping facilities utilized in the sale of products. A system for the sale of products in U.S. Patent No.

5,431,250 is utilized for the sale and delivery of products in connection with a sample shop, a separate product distribution station, and removal devices. This patent differs from the invention in its lack of dynamic distribution sites, the requirement of specific sample location(s), and the dependence on a collection receipt to receive delivery of ordered products.

U.S. Patent Nos. 5,482,139, 5,113,974, 4,111,282, 4,805,360, and 3,992,824 detail the physical structure of a one-stop, automated sales facility along with their respective system requirements. All of the aforementioned patents lack the ability to obtain a dynamic selection of products, a dynamic response mechanism to meet a purchaser varying time based demands, or means to submit a request for product delivery from a remote site.

U.S. Patent Nos. 5,053,956, 5,848,399, 5,774,87, 5,715,314, 5,884,309, and 4,567,359 detail the methods to conduct a transaction over remote distances through the utilization of computer networks and other computer equipment. U.S. Patent Nos. 5,809,144, 5,171,120, 5,611,051, and 5,396,417 detail methods for distribution and delivery of product goods ranging from digital goods over a network to physical process equipment for inventoried and warehoused products.

All of the aforementioned patents lack the ability to dynamically generate the purchasing terms of a sales transaction except through traditional static purchase order forms based on pre- negotiated terms. All of the aforementioned patents lack accommodation individual of specifications and requirements, lacking the foundation for dynamic product selection, dynamic quantity determination, and dynamic delivery schedule. Thus the invention disclosed herein compares favorably to the traditional auction process for purchasing transactions through third party negotiators that obtain the optimal price for the supplier rather than the purchaser. The present invention also compares favorably to the dynamic buyer aggregation process utilized in buyer-timed cycles that limits the negotiated terms to a predetermined product, quantity, and schedule with only the price remaining to be determined. Buyer-timed cycles limit the optimal pricing range artificially by excluding product alternatives, preventing increased volume benefits from long-term release schedules, and preventing user-friendly purchasing criteria from being used in making the optimal purchase decision. Pre-negotiated purchase orders limit the optimal pricing range artificially due to their inability to dynamically establish equilibrium between supplier and purchaser.

Research literature is void of dynamic purchase order systems for sales transactions. A further search of the latest purchasing technology yields the recent introduction of dynamic buyer aggregation services to pool static purchase orders from consumers to drive down supplier prices. Accompany.com and Mercata.com both utilize timed buying cycles to dynamically determine the price of the transaction. Both of the aforementioned entities fail to utilize any dynamic negotiation of the resulting generated purchase order with the exception of purchase price with a maximum price acceptance as the only purchasing specifications for the predetermined product selection. The result is that any variation of traditional retail or remote sales channels void of dynamic and aggregated purchase orders will experience higher purchasing costs and / or slower response times.

The notion of a dynamic and multidimensional purchasing method to dynamically and automatically negotiate the optimal product purchases subject to detailed specifications and to dynamically fulfill a purchaser's non-discrete purchasing demands is absent from the prior literature. Summary of the Invention

The present invention, also referred to as "DynaPO", is a system and method of utilizing dynamic feedback loops between a buyer or purchaser and a supplier or seller to establish equilibrium conditions of purchase and delivery terms within a computerized commerce system generating purchase order and delivery transactions.

DynaPO is a system and method whereby virtually all product and delivery terms are both negotiated through equilibrium conditions and are a function of time from order entry through successful delivery. The invention separates supplier and buyer inference engines and characterizes each respective inference engine by a series of discrete, non-discrete, linear, non-linear, and combinatorial parameters that in turn are characterized by a series of multidimensional matrixes, algorithms, non-discrete formulas, and discrete formulas. The invention further integrates a system and method of dynamic feedback for the purchase of and delivery of products optional buyer aggregation and supplier aggregation into respective purchasing groups and fulfillment groups. The interconnectivity of one or more purchasing inference engine(s) to one or more supplier inference engine(s) is realized in the disclosed invention.

The invention further establishes equilibrium conditions through dynamic feedback constrained by parameters for each product such as quantity of a respectively selected product that is subjected to and determined as a function of time and dynamic delivery constraints.

Product quantity is dynamically determined by the dynamic feedback loop as a function of quantity demand comprised of constraints. The product quantity constraints are characterized as, though not limited to, function of multiple schedules for product release, actual or forecasted timed delivery requirements, minimum and maximum acceptable quantities, minimum and maximum site stocking quantities, minimum and maximum delivery quantities, minimum and maximum off-site stocking quantities, time value of money per month, cost of storage per month, peak consumption per hour, shift, day, week, month or quarter, average consumption per week, month, quarter, or other discrete time periods, enable schedule delivery aggregation, and delivery terms including delivery locations with corresponding acceptable windows of time.

Product selection is dynamically determined by the dynamic feedback loop as a function of additional constraints including, though not limited to, buyer specifications part preference profile and supplier specifications part preference profile. The part preference profile is comprised of parameters, including but not limited to, multiple schedules for product release, product substitution parameters, quantity variations from scheduled releases, cost and price impact of substitution, order of preference, relative weighting factor, price differential, and cost differential between equivalent or alternative products.

Delivery location is dynamically determined as a function of time by a delivery address algorithm which determines of delivery location by associated delivery time. Delivery location and associated delivery time is characterized by parameters, including but not limited to, product availability, including parameters selected from the group of available quantities, and a table of acceptable product substitutions with measures to establish priorities and preferences; price term acceptability including parameters for product, transportation resource and storage resource costs; and transportation resource ability to meet dynamic delivery address requirements including ability to deliver product at required location and time.

The system and method of determining delivery location is functionally extended to include acceptability of each delivery location receiving a product of product order entry parameters, minimum and maximum delivery quantities, cost of storage as function of time, shipment unit cost as a function of quantity, delivery time, and aggregation into shipment, dynamic schedule mapping an acceptable time frame for manufacturing resources, minimum and maximum deliverable quantities, product manufactured price and cost point as a function of quantity, and ability to consolidate the distribution and delivery of multiple products from multiple suppliers to multiple purchaser at the required delivery locations and times from the source of each product.

Purchaser parameters are provided by the purchaser to the computerized commerce system through the steps of utilizing at least one order entry channel and optionally electing to utilize one or more buyer group registries to receive volume discounts through participation in group purchases. Order entry channels, as practiced in this invention, include, but are not limited to, the Internet, networked computers, email, fax, telex, recurring sales transaction database access or telephone orders.

Supplier parameters are provided by the supplier to the computerized commerce system, through the steps of utilizing at least one order entry channel and optionally electing to utilize one or more supplier group registries, to aggregate volume through group fulfillment participation. Order entry channels, as practiced by this invention, include, but are not limited to, the Internet, networked computers, email, fax, telex, recurring sales transaction database access or telephone orders.

A fundamental feature of the disclosed invention is the ability to determine and accommodate delivery locations dynamically as a function of time. Thus each product within the negotiated transaction is delivered, through a dynamically selected transportation resource, to a specific delivery location that itself is a function of time. Delivery locations include, but are not limited to, a place of entertainment, place of worship, place of service including automobile, medical, and library, places of education including schools and colleges, consolidated places of residence including apartment complexes, neighborhood associations, and place of transportation arrival and departure including airport, train and bus stations, highway exits, places of niche retail sales as a means to expand product distribution including specialty stores such as fresh produce stores, neighborhood manufacturing companies, catalog houses and newly created remote product dispersal centers at new points of convenience including place of work, remote mini-warehouses, and places of socialization.

An advantage of the present invention is to increase the distribution efficiency of any product purchase.

Yet another advantage of the present invention is to increase the cost effectiveness of the distribution process by utilizing consolidation as compared to fragmentation throughout the purchasing and fulfillment process.

Another advantage of the invention is its compatibility with a wide range of business transactions including business-to-business product sales and business-to-consumer product sales. Still further, an advantage of the present invention is its ability to respond to a dynamic delivery schedule.

Another advantage of the invention is the ability to consolidate purchasing release deliveries to decrease delivery costs without sacrificing convenience. This enables the increased acceptance of the sales and purchasing processing system and method without any or with minimal requirements for sales behavior modifications.

Another advantage of the invention is to increase the profit margin for the originating business supplier by eliminating "middleman" organizations and their associative product mark-ups.

The present invention improves upon the prior art by providing increased distribution efficiency and resource utilization efficiency of the business supplier throughout the full range of business to business and business to consumer transactions.

The present invention realizes the benefits associated with process automation, high volume negotiated pricing, and predetermined release schedules without the requirements of advance negotiated purchase contracts with large volume transactions. These characteristics are typically reserved for wholesalers, large corporations, and in general offered in high volume transactions in business to business sales transactions. The principal benefits offered by extensive utilization of Just In Time delivery, volume purchase prices, group purchasing power coupled with advance and coordinated delivery schedules, and Electronic Data Interchange are realized through the present invention for all purchasers effectively. Additional features and advantages of the present invention are described in and will be apparent from the detailed description of the presently preferred embodiments. It should be understood that various changes and modifications to the presently preferred embodiments described herein will be apparent to those skilled in the art. Such changes and modifications can be made without departing from the spirit and scope of the present invention and without diminishing its attendant advantages. It is therefore intended that such changes and modifications be covered by the appended claims.

Brief Description of the Drawings

FIG. 1 is a block diagram schematic detailing the sequential steps of the present invention. FIG. 2 is a diagrammatic illustration detailing the inherent feedback loop of the present invention.

FIG. 3 is a spreadsheet illustration detailing the quantity demand profile in a discrete manner and alternatively a continuous representation of the present invention. FIG. 4 is a spreadsheet illustration detailing a representative sample of part specification parameters of the present invention.

FIG. 5 is a matrix schematic detailing multiple methods for a dynamic and complex delivery location schedule within the context of the present invention.

FIG. 6 is a spreadsheet illustration detailing a method to establish a relative part preference profile of the present invention.

FIG. 7 is a spreadsheet illustration detailing a multiple combinatorial method to establish a relative travel preference profile of the present invention.

FIG. 8 is a spreadsheet illustration detailing a method to establish a price preference profile relative to the number of days from the demand requirements of the present invention. FIG. 9 is a spreadsheet illustration detailing a method to establish a shipment cost profile relative to the number of days from the demand requirements of the present invention.

FIG. 10 is a block diagram schematic for the network, computer and distributed communication systems of the present invention.

FIG. 11 is a diagrammatic illustration detailing the potential product delivery sites of the present invention.

FIG. 12 is a diagrammatic illustration detailing the potential order placement sites of the present invention.

FIG. 13 is a block diagram schematic detailing the flow of product and information of the present invention.

FIG. 14 is a matrix schematic detailing the basic information of the dynamic delivery location schedule within the context of the present invention. FIG. 15 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 16 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention. FIG. 17 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 18 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 19 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 20 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 21 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention. FIG. 22 is a diagrammatic illustration detailing the potential fulfillment and distribution sites of the present invention.

FIG. 23 is a matrix schematic detailing the basic data structure for each POC within the context of the present invention.

FIG. 24 is a schematic detailing the basic data structure for logistic resources within the context of the present invention.

FIG. 25 is a schematic detailing the basic data structure for geo-fences within the context of the present invention.

FIG. 26 is a schematic detailing the basic non-linear function defining a buyers price versus quantity profile within the context of the present invention.

Description of the Preferred Embodiments

The invention is a purchasing system and method with a newly introduced concept of dynamic purchase order generation resulting from the dynamic aggregation and fulfillment of multi-dimensional purchasing specifications of individual product requirements with the nonlinear and dynamic purchase order fulfillment optimization algorithm. The consolidated distribution attribute consolidates the distribution of multiple products from multiple suppliers to multiple purchasers at any and all opportunities beginning from the

manufacturer's production site to the ultimate product delivery site.

The essential advantage of the present invention centers around the benefit to purchasers, that for the first time, the undeniable advantage of dynamic response, automated feedback, & results and service traditionally realized from pre-determined purchase orders are achieved without the relatively high execution costs associated with this level of service. The establishment of "dynamic and multidimensional purchase orders" in the purchasing stages of products for business to business and business to consumer sales transactions enable the present invention to realize the best of breed benefits for purchasing methods

The present invention realizes the benefits associated with process automation, high volume negotiated pricing, and predetermined release schedules without the requirements of advance negotiated purchase contracts typically associated with large volume transactions.

These characteristics are typically reserved for wholesalers, large corporations, and in general offered to high volume transactions in business to business sales transactions. The principal benefits offered by extensive utilization of volume purchase prices, group purchasing power coupled with advanced and coordinated delivery schedules, and Electronic Data Interchange are realized through the present invention for all purchasers effectively.

In accordance with another aspect of the present invention, dynamic group registries are utilized to further optimize the cost effectiveness of the entire purchasing process by minimizing the purchase cost of one or more of the purchased products. The dynamic group registries enable individual purchasers to participate in a virtual group for the purpose of receiving volume discounts through participation in group purchases and their higher negotiation power. The dynamic group registries enable individual suppliers to participate in a virtual group for the purpose of aggregating volume through the participation of group fulfillment and their ability to service demand beyond their internal resources.

In further accordance with the present invention, the supplier utilizes the dynamic purchase order to optimize it's manufacturing resource utilization and profitability by dynamically altering a products price point for under-utilized manufacturing resources to increase product availability and sales. The essential advantage of the present invention is the dynamic optimization of all system parameters in a dynamic purchasing environment.

There thus remains a need in the art for a purchasing method that's suitable for a wide range of business to business and business to consumer sales applications. The present invention optimizes the cost effectiveness of purchasing transactions while achieving an optimal balance of features. These features include: a) being very convenient for the buyer, b )providing significant cost savings through dynamic balance of product demand and supply, c)participating in process automation methods via the present state of computer, network communication and Internet systems, d) being user friendly, being compatible with present business purchasing processes and methods, and f) being cost effective to the purchaser due to all of the aforementioned benefits.

Detailed Description of the Preferred Embodiments

The present invention, also referred to as "DynaPO", is a system and method of utilizing dynamic feedback loop between buyer(s) and supplier(s) to establish equilibrium conditions of purchase order and delivery terms within a computerized commerce system generating purchase order and delivery transactions. The result is the successful completion of negotiation through product delivery to fulfill buyer(s) demand for specific products balanced by the supplier(s) product availability in a cost effective, user-friendly, and optimal manner. The extended functionality of this automated and dynamic feedback process generates optimal "dynamic and multidimensional purchase orders".

DynaPO is a fundamental change in the purchasing process whereby virtually all product and delivery terms are both negotiated through equilibrium conditions and are a function of time from order entry through successful delivery. Achieving a dynamic equilibrium condition that is a function of time is achieved through the actual separation of the supplier's and buyer's inference engines. The respective inference engines are characterized by a series of discrete, non-discrete, linear, non-linear, and combinatorial parameters that in turn are characterized by a series of multidimensional matrixes, algorithms, non-discrete formulas, and discrete formulas. The dynamic feedback loop, buyer(s) and supplier(s) inference engines, and integration as a system and method controlled by a computerized commerce system results in a continuous negotiation process to meet the buyer's demand delivery requirements. DynaPO automates the negotiation and interactions between buyer and supplier to achieve increased cost effectiveness of the purchase process through cost reduction, a reduction in purchasing agent associated time and costs, all without requiring any retail sale or wholesaler intermediaries, for rapid and cost effective distribution response.

In conjunction with the present embodiments, a dynamic feedback loop is one component of a computerized commerce system for which one buyer or an aggregate of buyers may go to configure a purchase order to be fulfilled by one supplier or an aggregate of suppliers according to desired simultaneous constraints placed by the buyer(s), supplier(s), and transportation resource provider(s). The dynamic feedback loop is typically a subset of a larger business-to-business and business-to-consumer transaction system. The computerized commerce system presents the buyer with a wide range of constraints to enable product selection that includes, but is not limited to, product quantity, negotiated price, delivery release terms, and other purchase order constraints.

The computerized commerce system also presents the supplier with a wide range of constraints to enable product fulfillment that include, but are not limited to, product quantity, negotiated price, delivery release terms, and other purchase order constraints.

The computerized commerce system also presents transportation resource providers with a wide range of constraints to enable delivery fulfillment that include, but not limited to delivery location, delivery release terms, and other cost and transportation constraints.

The computerized commerce system, through the use of memory, software algorithms, electronic communication devices, and programming code, incorporates a dynamic feedback loop to reach equilibrium between buyer(s), supplier(s) and transportation resource provider(s).

The computerized commerce system subsequently, through the use of electronic communications notifies the buyer of product delivery terms and location, and time requirements, and the transportation resource provider of shipment delivery terms, delivery and pickup locations with respective time requirements, and shipment transaction terms.

The computerized commerce system through the use of either real-time or batch processed electronic communications presents, from the group of one to all of the buyers, from the group of one to all of the suppliers, and from the transportation resource provider, constraints of discrete, non-discrete, linear, non-linear, and combinatorial parameters. The computerized commerce system determines delivery locations at the associated time from the group comprising a production, warehousing, retail, or specialized drop-off site through the collective equilibrium of buyers, suppliers, and transportation resource provider constraints. As discussed herein, the computerized commerce system of the present disclosure includes a dynamic feedback loop as a means to automatically reach equilibrium between all participating parties in the purchase, fulfillment and delivery to successfully execute the contractual obligations of the resulting purchase order. The simultaneous execution of buyer(s), supplier(s) and transportation resource provider(s) constraints is unique as compared to the sequential execution of prior computerized commerce systems by their progressive determination of one buyer's constraints, followed by the optional aggregation into a loosely defined consortium of buyers constraints, then one supplier's fulfillment constraints (or optionally an aggregation into a loosely defined consortium of suppliers constraints), and then culminating in the selection of one transportation resource provider from the group of predetermined transportation resource provider based on the static constraints.

Programming code for executing the improved computerized commerce system and the added dynamic equilibrium can be included in a separate programming module or software package or can be integral with the computerized commerce system application. The database and the commerce application that drives the database make up the

computerized commerce system. The database can also be included within the commerce application of the computerized commerce system. Programming code and the functions as described herein may be implemented using a variety of programming techniques.

The optimization model of the present invention requires a series of powerful computing device(s). The computing devices with their respective network communication devices are the heart of DynaPO diagrammatically shown as Dynamic Distribution Network & Optimization System 9 which can be centrally located as a server based system with single or multiple parallel processors or ideally be a network of distributed computing devices operating in conjunction with each other. The practice of distributed computing enhances system reliability, scalability, and ease of redundancy in meeting the objectives of optimizing cost effectiveness and buyer satisfaction. A further advantage of these features is the addition of financial principles associated with the time value of money, and storage principles associated with the time value of services and time value of capital resources to more accurately and dynamically reflect the total cost of a purchase decision within the negotiation and equilibrium process. The present invention provides improved capital resource utilization, distribution and transportation efficiencies beneficial to suppliers and improved convenience and cost efficiencies beneficial to buyers in a wide range of sales transaction environments. Pursuant to the present invention, one or more purchase order entry channels may be utilized in conjunction with one or more sales group registries coupled with an accessible recurring transaction database to accommodate the demand side of the purchasing system.

BUYER CONSTRAINTS

Product quantity is dynamically determined by the dynamic feedback loop as a function of quantity demand comprised of constraints. The product quantity constraints are characterized as, though not limited to, a function of multiple schedules for product release, actual or forecasted timed delivery requirements, minimum and maximum acceptable quantities, minimum and maximum site stocking quantities, minimum and maximum delivery quantities, minimum and maximum off-site stocking quantities, time value of money per month, cost of storage per month, peak consumption per hour, shift, day, week, month or quarter, average consumption per week, month, quarter, or other discrete time periods, enable schedule delivery aggregation, and delivery terms including delivery locations within corresponding acceptable window of time.

Product selection is dynamically determined by the dynamic feedback loop as a function of additional constraints including, though not limited to, buyer specifications part preference profile and supplier specifications part preference profile. The part preference profiles serve the role of establishing relative preference of one specific part amongst potentially numerous other alternative parts that serve as acceptable substitution or replacement parts. The part preference profile is comprised of parameters, including but not limited to multiple schedules for product release, product substitution parameters, quantity variations from scheduled releases, cost and price impact of substitution, order of preference, relative weighting factor, price differential, and cost differential between equivalent or alternative products. A further object of the invention is to further differentiate products from each other through direct product comparisons of "equivalent" or "substitute" products. The invention incorporates product preference and cost criteria utilized for product selection relative to each other and to utilize these parameters as further constraints on the purchasing inference engine. The utilization of the aforementioned part preference profile establishes an automated and dynamic process of negotiation between products to more accurately reflect the actual purchasing decision and negotiation process. A further advantage of the part preference profile is to broaden the availability of acceptable results from the purchasing control engine to obtain superior pricing results. Purchase parameters are provided by the purchaser to the computerized commerce system through the steps of utilizing at least one order entry channel and optionally electing to utilize one or more group registries to receive volume discounts through participation in group purchases. Order entry channels, as practiced by this invention include, but are not limited, to the Internet, networked computers, email, fax, telex, recurring sales transaction database access or telephone orders.

The presently preferred embodiments of the invention are further detailed in FIG. 1, in which the designations 1 - 7 provide the process steps in the present invention. In FIG. 1, the designation 1 refers to a computer network access point in the form of a computer terminal within a local area network, wide area network, or distributed network environment for electronic data input into the dynamic purchasing system. An Internet purchase order submittal, voice initiated, or fax initiated purchase order are all appropriate measures to initiate the purchasing process. The data parameters comprising the purchasing

specifications through 1 are created in the form of data as a combination of entry forms utilizing java applet, html or xml documents or a traditional computer graphical user interface is another form of order generation in an electronic manner. Older communication forms of Mail/Fax/Telex and Phone/Voice-mail serve as non-automated methods that are subsequently converted to electronic data through data entry, voice recognition software, or optical character recognition software for inputting purchasing orders. The most recent technical measure for business or personal purchase order generation is achieved through the use of Net Appliances communicating via ISDN, DSL, POTS, Cable Modem, or fiber optic links through an Internet Service Provider.

In FIG. 1, the designations 1 - 5 define means to input purchase orders. In FIG. 1, the designation 1 refers to a computer network access point in the form of a computer terminal within a local area network, wide area network, or distributed network environment for electronic data interchange into the integrated DynaPO system and method of

computerized commerce system. An Internet order submittal 2 created in the form of data entry utilizing java applet, html or xml documents are other forms of order generation in an electronic manner. Older communication methods of E-mail/Fax/Telex 3 and Phone/Voice- mail 4 serve as non-automated methods that are subsequently converted to electronic data through data entry, voice recognition software, or optical character recognition software for inputting purchase orders. The most recent technical measure for business or personal purchase order generation is achieved through the use of Net Appliances 5 communicating via ISDN, DSL, POTS, Cable Modem, or fiber optic links through an Internet Service Provider.

Purchase orders as generated in FIG. 1 designation 1 are also generated automatically through "data" entry from a Recurring Transaction Database. The resulting information creates an individual purchase order 2 in the form of a complex non-linear model of the product requirements with scheduled release(s). The individual scheduled release(s) of the same product are aggregated into either a discrete matrix representation or a non-discrete formula representation 3 for dynamic modeling. The individual dynamic purchase orders 3 are further aggregated into a more complex representation of same product purchases, same supplier source, similar delivery criteria 4 to obtain a complex non-linear model of all product requirements with all associated purchase parameters. The purchasing model of 4 is the foundation of the purchase control engine.

The presently preferred embodiments of the invention are further detailed in the Quantity Demand Profile of FIG. 3. The purchasing parameters utilized in the invention and incorporated into the purchasing control engine as purchasing specifications FIG. 2 51 are defined through many combinatorial matrixes and formulas. An example of one matrix is the Quantity Demand Profile of FIG. 3. The Quantity Demand Profile is utilized to establish a multiple schedule, multiple product release to represent an actual or acceptable forecast of timed delivery of specific products in a minimum acceptable deterministic quantity. The timed delivery within the Quantity Demand Profile includes the ability to implement varied time frames in the matrix to account for peak daily consumption, average weekly, quarterly or monthly consumption in addition to any other time periods defined by the buyer. The alternative time periods can range from hourly, per shift, per day, per week, per month, or per quarter to meet business production cycles, though not limited to the cited examples. Purchase orders are generated as detailed in FIG. 10 designations 1 - 5 in addition to the automated generation of purchase orders through Recurring Transaction Database processing 6 and Dynamic Group Registry System processing 8. The input methods detailed in designations 1 - 5 can also be utilized to update both of the automated generation methods detailed in designations 6 and 8. All inputs become open purchase order transactions for the Purchase Order Processing System 7 that serves to accommodate the buyer demands and material requirements in the present invention. Specimens of products, pictures of products, specifications of respective products, tables and matrixes presenting product categorization and comparisons are presented to the buyer through the same communication methods utilized in 1 - 5 or through older communication methods including sales catalogs, product disclosure mailings, product trade journals, and media advertising (e.g., television, newspaper, magazines, etc.).

The Dynamic Group Registry System of designation 8 is further comprised of a method and system to create virtual groups among outstanding purchase orders. The Dynamic Group Registry System includes specific parameters for each purchase order detailing acceptable delivery time tables, a range of acceptable quantities, and a table of acceptable product substitutions that can optionally further include measures to establish priorities and preferences within the acceptable options. The real-time and instantaneous creation of sales purchasing groups enables purchasers utilizing the present system and method to benefit from volume purchasing transparently and with minimal effort. The

Dynamic Group Registry System optimizes the material demand requirements and converts its inputs into dynamic purchase orders. The "life" of the purchase order is controlled by the Dynamic Distribution Network & Optimization System 9 through a dynamic feedback loop. The feedback loop is influenced and affected by the availability of product, the mutual acceptability of price terms, and the ability of transportation resources to meet the dynamic delivery address requirements.

Recurring Transaction Database of designation 6 is also further comprised of a method and system to create virtual consolidation amongst the outstanding purchase orders and recurring transaction material requirements. The Recurring Transaction Database includes specific parameters for each transaction (or even each line item) detailing acceptable delivery time tables, a range of acceptable quantities, and a table of acceptable product substitutions that can optionally further include measures to establish priorities and preferences within the acceptable options. The real-time and instantaneous creation of purchase order groups enables purchasers utilizing the present invention to benefit from volume purchasing transparently and with minimal effort. The Recurring Transaction Database optimizes the material demand requirements and converts its inputs into dynamic purchase orders. The "life" of the purchase order is controlled by the Dynamic Distribution Network & Optimization System 9 through a dynamic feedback loop. The feedback loop is influenced and affected by the availability of product, the mutual acceptability of price terms, and the ability of transportation resources to meet the dynamic delivery address requirements.

The preferred embodiment of the invention further includes a Part Specifications Profile of FIG. 4. The Part Specifications Profile is utilized to establish a multiple parametric model to represent significant factors affecting purchasing decisions. Each product, product group, buyer, or buyer group is represented in the Part Specifications Profile by a matrix representation or individual record for each "group". Sample parameters of importance in the invention include parameters that enable product substitution, quantity variations from the scheduled releases, and cost impacts of these parameters. The parameter 30: Allow Product Substitution activates the model of this invention to compare purchasing specification criteria to establish a mechanism for cost effectiveness feedback. The parameter 31: Minimum Site Stocking Level establishes the floor of inventory levels for a given product to ensure adequate product availability at any given instant. The parameter 32: Maximum Site Stocking Level establishes the ceiling of inventory levels for a given product to prevent excessive inventory accumulations at any given instant. The parameter 34:

Minimum Delivery Level establishes the smallest quantity to be delivered at any given instant in order to prevent excessive small deliveries. The parameter 35: Maximum Delivery Level establishes the largest quantity to be delivered at any given instant in order to prevent excessive burden on available resources in handling a large shipment or exceeding storage capabilities. The parameter 36: Maximum Off-site Stocking Level establishes a threshold for maximum inventory levels that can be potentially stored at purchaser storage warehouse facilities. The parameter 37: Cost of Money - % per month is utilized to represent the incremental costs associated with the financial costs of making advance purchases prior to the actual product demand. The parameter 38: Cost of Storage - % per month is utilized to represent the incremental costs associated with the financial costs of storing products off-site due to advance purchases made prior to the knowledge of purchasers actual on-site storage capabilities. The combination of parameters 37 and 38 provide the means to represent the more accurate purchasing costs beyond simply the "negotiated purchase price". The parameter 39: Enable Schedule Delivery Aggregation enables the DynaPO method and system to accelerate product delivery quantities in order to optimize cost effectiveness.

In the preferred embodiment of the invention, the Part Preference Profile of Fig. 6 details a cost weighted cost comparison method between equivalent or alternative products within a product selection group. The Part Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation. The cost weighted manner normalizes the "negotiated prices" to account for subjective product preferences. The parameter Sequence is utilized to establish the order of preference between equivalent or alternative products. The parameter Relative Rating % is utilized to establish a relative weighting factor within sequentially listed products. The parameter Price Differential % is utilized to make product selections amongst equivalent products by establishing a minimum price differential factor for the selection of non-preferred, as determined by the sequence, over preferred product.

In the preferred embodiment of the invention, an example of a combinatorial matrix is cited for the airline transportation industry in the Departure, Return, Origination, Destination, and Airline Preference Profiles of FIG. 7 which details a cost weighted cost comparison method between equivalent or alternative products within a product selection group. The Departure Travel Time Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation between calendar days and time of days options for the actual departure time. The Return Travel Time Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation between calendar days and time of day options for the actual return time. The Origination Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation between airport departure location and subsequent return arrival location. The Destination Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation between airport arrival location and subsequent return departure location. The Airline Preference Profile utilizes a product matrix to create an effective manner for relative product differentiation between different airline carriers for further subjective preference differentiation. In the preferred embodiment of the invention, an example of a matrix or price algorithm is presented in the Part Price Matrix of FIG. 8 which details a cost weighted comparison method between delivery time frames from the scheduled release specifications as determined by the purchaser. The Part Price Matrix is a critical component of the invention by instilling within the optimization model a fundamental rationale to accelerate and group schedule releases to take advantage of short-term price deviations. The result is a significant reduction in product purchase costs.

In the preferred embodiment of the invention, an example of a matrix or shipment cost algorithm is presented in the Part Shipment Unit Cost Matrix of FIG. 9 which details a cost weighted impact comparison method between delivery time frames from the scheduled release specifications as determined by the buyer. The Part Shipment Unit Cost Matrix is a critical component of the invention by instilling within the optimization model a fundamental reflection of costs associated with the accelerated and group scheduled advance purchases taken due to incremental shipping differential costs in order to meet the scheduled release timetable.

SUPPLIER CONSTRAINTS

A further object of the invention is to maintain compatibility of the dynamic purchase process with a full complement of discrete, non-discrete, linear, non-linear, and combinatorial methods to accurately reflect the supplier parameters and specifications. An advantage of utilizing a complex though accurate sales fulfillment model is the ability to increase the competitiveness of the supplier in an increasingly competitive sales environment. Yet another advantage of the process invention is the ability to comparatively accelerate product delivery response and to increase the convenience factors to the ultimate consumer.

A like sales fulfillment model is generated through parallel steps as the purchase order model accommodated by the sales control engine. The combination of the purchaser inference engine and supplier inference engine are the foundation of dynamic optimization of FIG. 1: 5 and the aggregated purchase orders of FIG. 1: 4. The optimal negotiated results from the dynamic optimization of FIG. 1: 5 are presented to the aggregation of multiple suppliers through the resulting issuance of aggregated purchase order(s) FIG. 1: 6. The optimal negotiated results from the dynamic optimization FIG. 1: 5 are presented to the buyers through the resulting issuance of purchase order acknowledgement(s) FIG. 1: 7.

Specimens of products, pictures of products, specifications of respective products, tables and matrixes presenting product categorization and comparisons are presented to the buyer through the same measures utilized to enter purchase specifications in FIG. 1: 1 or through older communication methods including sales catalogs, product disclosure mailings, product trade journals, and media advertising (e.g., television, newspaper, magazines, etc.). Further inputs, as provided by the Inventory Coordination System 14, are made available to the Dynamic Distribution Network & Optimization System 9. The Inventory Coordination System is comprised of a method and system to optimize the delivery constraints, product availability constraints, with their respective cost impact to determine the best source with release schedules to meet the outstanding purchase orders as determined by the Purchase Order Processing System 7. The present invention can operate in three different scenarios that include: a) the generation of purchase orders by the Purchase Order Processing System 7 independent of the Inventory Coordination System 14, b) the generation of inventory constraints from the Inventory Coordination System 14 independent of the

Purchase Order Processing System 7, or c) the generation of purchase orders by a

comprehensive and coordinated optimization of purchase order constraints and inventory constraints. The Inventory Coordination System 14 includes specific parameters for each storage resource, transportation resource and product type (or even each product) detailing feasible delivery time tables, a range of feasible product availability quantities, and a table of acceptable product substitutions that can optionally further include measures to establish priorities and preferences within the acceptable options.

One or more sales fulfillment combinatorial methods may be utilized with one or more supplier(s) coupled with capital resources to provide the supply side of the sales system. Such other product demand inputs and other supply outputs may include aggregation methods and optimization models.

Due to the demanding time constrained distribution and delivery requirements, the presence of state-of-art Warehouse Management System 15, Manufacturing System 16 and Shipping & Material Transfer System 17 are essential to the present invention. Still further, the Warehouse Management System 15 is optionally comprised of automated storage and retrieval systems, material requirement systems, and integration to a Manufacturing System 16. The material requirement systems function as an automated internal purchase order generator to meet the present invention's product requirements. The Manufacturing System 16 and Shipping & Material Transfer System 17 serve to produce the required products and coordinate the subassemblies and components required in their designated products. To this end, the present invention establishes the method and its supporting mechanisms to achieve the optimal and dynamic process of buyer product fulfillment and supplier manufacturing and distribution in the most efficient and cost effective manner. Supplier parameters are provided by the supplier to the computerized commerce system, through the steps of utilizing at least one order entry channel and optionally electing to utilize one or more supplier group registries, in order to aggregate volume through group fulfillment participation. Order entry channels, as practiced by this invention, include but are not limited to the Internet, networked computers, email, fax, telex, recurring sales transaction database access or telephone orders.

AGGREGATION OF BUYERS AND SUPPLIERS

The integration of a system and method of dynamic feedback for the purchase and delivery of products with the optional buyer aggregation and supplier aggregation, hereinafter referred to as "aggregated dynamic feedback" further achieves the most effective purchasing and distribution process beginning from the supplier's distribution point to the purchaser's delivery point. The aggregated dynamic feedback system and method enables the

optimization of all purchasing specifications to a group of buyers while meeting the time management and flexibility valued by the individual purchasers. Furthermore, the resulting aggregated dynamic feedback system and method enables the purchasers to minimize the total transaction costs associated with long-term purchasing strategy.

The aggregated dynamic feedback system and method exhibits compatibility in a wide range of sales transactions such as business to business, and business to consumer processes with a virtually limitless compatibility to a wide range of product categories including perishable and non-perishable goods. A surprising feature of the invention disclosed is the implementation of cost effectiveness and rapid response time within both direct supplier to purchaser transactions and indirect supplier to purchaser via distribution channel transactions. The feasibility of the aggregated dynamic feedback system and method is increased through the interconnectivity of one or more purchasing inference engine(s) to one or more supplier inference engine(s).

The resulting critical advantage is the introduction of volume purchasing benefits for all individual purchasing transactions through the dynamic purchasing aggregation process.

A further advantage of invention is the ability to automate the process of shipping large numbers of small orders by the aggregator to provide all required shipping information directly to the supplier through electronic data interchange. A further advantage of the invention is the ability to optionally consolidate the billing responsibility to the purchaser's "agent".

Yet another advantage of the invention is to enable the easy purchasing by a "blind trust" to take advantage of volume purchasing without disclosing the ultimate purchaser's identity through the utilization of "blind tracking" identifiers.

TRANSPORTATION RESOURCE PROVIDER CONSTRAINTS

The present invention provides improved distribution and transportation efficiencies beneficial to suppliers and improved convenience and cost efficiencies beneficial to consumers in a wide range of sales transaction environments.

DynaPO introduces the anticipatory requirement of products purchased to an effectively just in time delivery to a specified, though dynamic, delivery address location. DynaPO can transfer ownership of a product from the manufacturer to the purchaser with direct, or otherwise minimal ownership transitions. DynaPO utilizes consolidated, though remote, warehousing of products by a manufacturer with minimal transportation and handling of product prior to delivery to the ultimate purchaser. DynaPO incorporates a network of computers to enable fast response to product requests with optimal product delivery. The addition of dynamic address delivery location to "points of convenience", as determined by the purchaser and as a function of both date, time, and product category for each buyer within the DynaPO method and system, optimizes the convenience and delivery efficiency to the ultimate consumer. The utilization of selected "points of convenience" consolidates the delivery of products to increase the cost effectiveness for rapid and direct delivery.

Another object of the invention is to maintain compatibility of the DynaPO method and system across a wide range of products and industries. The invention incorporates product specific parameters and combinatorial matrixes to further enhance the effectiveness of the purchasing control engine. The utilization of combinatorial product group matrixes increases the likelihood of obtaining the desired purchase results, increases the range of acceptable results as constrained by the matrix parameters, and decreases the negotiate cost of the product purchase. A further advantage within transportation products is the ability to provide a mechanism to select on a cost weighted basis between alternative departure times. Yet another advantage within transportation products is the ability to provide a mechanism to select on a cost weighted basis between alternative return times. A further advantage within transportation products is the ability to provide a mechanism to select on a cost weighted model between alternative departure locations. Yet another advantage within transportation products is the ability to provide a mechanism to select on a cost weighted basis between alternative arrival locations. Another advantage of the invention is to enable the buyer to further differentiate between various service providers through the use of a cost weighted basis between service providers. Yet another advantage of the invention is to enable the purchaser to differentiate between various qualities of services or timeliness of services again through the use of a cost weighted basis between the different quality and timeliness levels of products. Another advantage of the structure utilized for the transportation product category is its effective compatibility with other product categories with a simple parametric substitution in establishing a combinatorial product selection matrix.

A significant object of the invention is its ability to accelerate product delivery times and consolidate product delivery releases for the purpose of obtaining superior negotiated pricing. The invention utilizes a part price matrix as a function of days to required delivery to establish a cost weighted basis method to constrain the operating envelope of the purchasing control engine. Alternatively the invention can utilize a non-discrete formula to represent the part price matrix. An advantage of the invention is the ability to dynamically increase product quantities ordered to take advantage of short-term price anomalies and volume purchasing. Yet another advantage of the invention is to utilize the part price matrix in the purchasing control engine to eliminate the requirement of direct interaction by an operator to obtain the continuous negotiation and time sensitive results. Another further advantage of the invention is the ability to obtain superior pricing results without

jeopardizing the product delivery time requirements.

Another significant object of the invention is its ability to incorporate a more complete transaction cost incurred during the purchase into the dynamic model utilized in the purchasing control engine. It is an object of the invention to include any significant cost beyond the products purchasing price into the purchasing process. An advantage of the dynamic purchasing engine is the ability to dynamically negotiate a purchasing decision by accounting for secondary, though significant costs such as shipping costs. Yet another advantage of the process invention is to model the secondary costs in a manner that is consistent with the dynamic model utilized to optimize the purchasing process. The utilization of the part shipment unit cost matrix establishes the shipping costs as a function of days to delivery demand fulfillment to account for the different shipping cost structures for standard delivery, two-day delivery, or next day delivery for example. The discrete representation of the shipment unit cost matrix can be further replaced or enhanced by a non- discrete formula representation.

DELIVERY LOCATION SPECIFIC CONSTRAINTS

The cost effectiveness and response time of DynaPO eliminates the purchaser paying a cost premium otherwise necessary to enable purchasing transactions and subsequent delivery with minimal, if any, middleman interaction. DynaPO couples the rapid response and utilization of a distributed network of buyer and supplier computers to achieve a favorable advantage over wholesale distribution, retail sales, and remote sales channels by a significant magnitude.

Delivery location is dynamically determined as a function of time by a delivery address algorithm comprised of delivery location and associated delivery time. Delivery location and associated delivery time is characterized by parameters including but not limited to product availability including parameters selected from the group of available quantities, and a table of acceptable product substitutions with measures to establish priorities and preferences; price term acceptability including parameters for product, transportation resource and storage resource costs; and transportation resource ability to meet dynamic delivery address requirements including ability to deliver product at required location and time.

The system and method of determining delivery location can be functionally extended to include acceptability of each delivery location receiving a product of specified product category, product order entry parameters, minimum and maximum delivery quantities, cost of storage as a function of time, shipment unit cost as a function of quantity, delivery time, and aggregation into shipment, dynamic schedule mapping an acceptable time frame for manufacturing resources, minimum and maximum deliverable quantities, product

manufactured price and cost point as a function of quantity, and ability to consolidate the distribution and delivery of multiple products from multiple suppliers to multiple buyers at the required delivery locations from the source of each product.

A fundamental feature of the disclosed invention is the ability to determine delivery locations dynamically as a function of time. Thus each product within the negotiated transaction is delivered, through a dynamically selected transportation resource, to a specific delivery location that itself is a function of time. Delivery locations are optimized for convenience and flexibility without incurring excessive transportation costs, thus are selected amongst "places of convenience". Such places of convenience include but are not limited to a place of entertainment, place of worship, place of service including automobile, medical, and library, places of education including schools and colleges, consolidated places of residence including apartment complexes, neighborhood associations, and place of transportation arrival and departure including airport, train and bus stations, highway exits, places of niche retail sale as a means to expand the product distribution including specialty stores such as fresh produce stores, neighborhood manufacturing companies, catalog houses and newly created remote product dispersal centers at new points of convenience including place of work, remote mini- warehouses, and places of socialization.

In further accordance with the present invention, a dynamic delivery location matrix is utilized to optimize the convenience to the purchaser without jeopardizing the potential for remote consolidation of products to multiple purchasers to maintain the cost effectiveness advantage of this sales method. The addition of dynamic address delivery locations to the "DynaPO method and system", as determined by the purchaser and as a function of both date and time, and product category within the DynaPO method and system, optimizes the delivery efficiency, cost effectiveness, and shipping efficiency for each supplier to the ultimate consumer. The utilization of selected "aggregation" consolidates the delivery of products to reduce the shipping and distribution costs through the reduction of shipping occurrences. The result is the enabling of remote distribution of purchased products in a cost effective, user- friendly, and optimal manner through the extended functionality of a wide range of "points of convenience". The integration of "points of convenience" throughout the sales transaction process coupled with consolidating delivery locations to different or the same points of convenience introduces to the sales process critical features that are not now realized through current and traditional sales processes of retail and remote sales.

The sales process can also include an optional direct delivery service to the purchaser either utilizing the "points-of-convenience" as the optimal starting point of the direct delivery process or simply bypassing the "points-of-convenience", which will comparatively accelerate product delivery response, to increase the convenience factors to the ultimate consumer. The presently preferred embodiment of the invention, further detailed in FIG. 12, depicts the order placement sites essential to the practice of the invention. Order placement sites are "points of convenience" as set out by the purchasers who determine the order placement site for each purchase order as a function of their "personal/corporate" preferences in accordance to their personal schedules. Essential to meeting the conflicting demands of delivery convenience with minimal system costs is the introduction of consolidation throughout the purchasing process. Establishing order placement equipment at "points of convenience" achieves maximum utilization of sales input processing equipment by a large group of purchasers. Order placement sites are comprised of both traditional sales sites, though serving an expanded and new role, and sites that are traditionally non-sales sites that are inherently convergence points. These sites include: retail stores 30 (typically though not limited to specialty smaller stores such as fruit and vegetable markets, butchers, bakeries, etc.) shipping consolidator(s) 32 (typically though not limited to freight consolidator entities, United Parcel Service, FedEx, United States Postal Service, etc.), large corporations 35 (typically a corporation with 50 or more employees though not limited to this size) and manufacturing companies 31. Catalog houses 34 or other providers of products or services can also serve as additional convergences. Dual purpose order sites 36 are additional order placement sites that include: medical offices, hospitals, places of entertainment, condominiums,

transportation stations (e.g., train, bus, subway, etc.), airports, academic institutions, park districts, religious locations (e.g., synagogues, churches, etc.) in addition to the prior mentioned order placement sites, etc. The fundamental objective of an order placement site is to provide a convergence point that inherently maximizes the utilization of order placement equipment, physical space resources, and communication resources to multiple buyers while maintaining effective convenience to the purchaser. Dual-purpose delivery sites 26 are places where many purchasers naturally converge inherently by the nature of services required in their personal lives. Businesses are inherently dual-purpose convergence points by their inherent grouping of large numbers of purchasers comprised of employees, buyers through direct or remote access, delivery personnel, or additional personnel welcomed into the facility for the specific intent of placing purchase orders with access to the businesses order placement equipment within the corporate facilities. The utilization of dual order placement sites enables purchasers to leverage their waiting time for processes and services being obtained into useful and productive time. The ability to place orders at a remote location that differs from the Product Delivery Sites of Fig. 11 enables transportation time to the designated product delivery "points of convenience" to be utilized for order processing and delivery, thus further leveraging time. A few examples of this practice, though not limited to those cited, include the utilization of: a) a departure airport for order placement and the arrival airport for product delivery, b) a workplace environment for order placement and a niche retail produce store for product delivery near a place of residence, and c) a personal residence for order placement and a movie theatre for product delivery after viewing a film. The cross utilization of order placement sites enable inherent and convenient purchaser convergence to achieve a unique goal of better serving purchasers while reducing the costs associated with the enhanced service.

Furthermore, an advantage of the present invention is to utilize a purchaser's otherwise wasted time more effectively by utilizing "points-of-convenience" for both the submittal of purchase requests and the delivery of the purchased products. This enables the increased utilization of the networked computers, distribution resources, and all capital equipment resources required in the sales system.

Still further, an advantage of the present invention is to cross utilize a retail sales location for one specific niche product for the purpose of expanding product offerings. The corresponding increase in revenue and profit is achieved with minimal effect on the sales process or its equipment requirements by effectively making the retail sales location a delivery "point-of-convenience".

The integration of "points of convenience" and the introduction of remote

warehousing distribution channels fulfills the most effective consolidation of the distribution process throughout the entire direct sales system beginning from the manufacturer's distribution point to the purchaser's delivery point. This compares favorably to the traditional fragmentation of products throughout the retail and remote sales processes through third party business organizations with multiple occurrences of processing and handling of products (with the exception of retail sales warehouses or wholesale organizations that add another internal cost layer). Dynamic address delivery locations and dynamic group formation enables the utilization of "points of convenience" that enhance the service to a group of buyers while meeting the time management and flexibility valued by the individual buyers, now realized through the traditional sales processes at significant cost. Furthermore, the resulting consolidation process of direct sales coupled with "points of convenience" enable the product supplier to eliminate the indirect sale of their products via a "middleman", wholesalers, and distributors, thus maintaining a greater profit margin or the ability to further subsidize the often costly direct product delivery to purchasers.

The consolidated distribution attribute consolidates the distribution of multiple products from multiple suppliers to multiple buyers at any and all opportunities beginning from the manufacturer's production site to the ultimate product delivery site.

The establishment of "points of convenience" in both the order processing and order delivery stages of direct sales of products for business to business and business to consumer sales transactions enable the present invention to realize the best of breed benefits in sales methods. The benefits include the features traditionally achieved by the: a) retail sales method of fast "response times" to meet specific product requests with rapid availability and response, b) catalog or Internet sales method that features quick and rapid accessibility to a wide range of products offered by a wide range of suppliers, and c) personal delivery service method that features the ultimate convenience and reduction of transportation time to and from the traditional order and distribution sites on both an individual and system-wide basis. The presently preferred embodiments of the invention are optionally further detailed in FIG. 5 through the inclusion of a Dynamic Delivery Location Matrix for product delivery sites essential to the practice of the invention. Product delivery sites are points of

convenience as set out by purchasers. The DynaPO method and system can utilize the product delivery site for each purchase transaction as a means to minimize the supplier's fulfillment transportation costs. Product delivery sites are comprised of both traditional sales sites, though serving an expanded and new role, and sites that are traditionally non-sales sites that are inherently consolidation points. The fundamental objective of a product delivery site is to provide a distribution point that inherently consolidates multiple purchase orders while maintaining effective convenience to the purchaser. The cross utilization of delivery sites for transportation consolidation, inherent and convenient purchaser convergence further achieves the goal of better service while reducing the transportation costs associated with the transportation process.

One or more delivery notification methods may be utilized with one or more distributed warehouse(s) coupled with delivery transportation resources to provide the supply side of the sales system.

The Delivery Notification System 10 is comprised of the equipment and associated software required to distribute the resulting delivery notifications. This equipment consists of computers with speech production software, computers with fax capabilities and automated E-mail 12 generation capabilities. Alternatively, the computers can provide human operators with the generated delivery notifications and purchase order acknowledgements for direct human to human communications utilizing any communication device available (e.g., Pager/Cellular Phone 11, wireless telephones, fax machines, Voice-mail 13, etc.).

The presently preferred embodiment of the invention, further detailed in FIG. 11, depicts the product delivery sites essential to the practice of the invention. Product delivery sites are points of convenience as set out by the buyers. The DynaPO method and system determines the product delivery site for each purchase order as a function of

"personal/corporate" preferences with time schedules. Essential to meeting the conflicting demands of purchaser convenience with minimal distribution costs is the introduction of consolidation throughout the product distribution process. Consolidation at the ultimate delivery site, that can include direct and individual delivery, is realized through Shipping Consolidator(s) that utilize Warehouse & Distribution Services and Inventory Management & Shipping Services 23. Product delivery sites are comprised of both traditional sales sites, though serving an expanded and new role, and sites that are traditionally non-sales sites that are inherently consolidation points. These sites include: retail stores 20 (typically though not limited to specialty smaller stores such as fruit and vegetable markets, butchers, bakeries, etc.), shipping consolidator(s) 22 (typically though not limited to freight consolidator entities, United Parcel Service, FedEx, United States Postal Service, etc.), large corporations 25

(typically a corporation with 50 or more employees though not limited to this size) and manufacturing companies 21. Catalog houses 24 or other providers of products or services can also fulfill additional consolidation of buyer orders among various suppliers. Dual purpose delivery sites 26 are additional product delivery sites that include: neighborhood associations, hospitals, places of entertainment, condominiums, exits of main highways or transportation routes, airports, academic institutions, industrial parks, in addition to the prior mentioned product delivery sites, etc. The fundamental objective of a product delivery site is to provide a distribution point that inherently consolidates multiple orders while maintaining effective convenience. Dual-purpose delivery sites 26 are places where many purchasers converge inherently by the nature of services required in their personal lives. Businesses are inherently dual purpose consolidators by their specific and continuous demand for products utilized within their manufactured products, thus enabling the consolidation of product deliveries for their employees while reducing transportation costs and time constraints during and after the hours of their employment. The cross utilization of delivery sites for

transportation consolidation, inherent and convenient purchaser convergence achieves a unique goal of better serving purchasers while reducing the costs associated with the enhanced service. In one embodiment purchasers can utilize upon their arrival to a "point of

convenience" as a traditional retail site in which spontaneous purchasing decisions can compliment their delivery of pre-arranged products from prior purchase orders.

EQUILIBRIUM PROCESS

The establishment of equilibrium conditions by DynaPO includes the determination of purchase order parameters such as, though not limited to, product quantity of a

respectively selected product that is subjected to and determined as a function of time and dynamic delivery constraints.

The Dynamic Optimization of Aggregate Purchasing Orders process of FIG. 1: 5 is further comprised of control algorithms and parametric system of FIG. 2 to create a dynamic feedback mechanism for automated negotiation. DynaPO utilizes numerous parameters, algorithms, and formulas that accommodate purchaser Product Requirements FIG. 2 50. The inputs as represented by the purchaser's Product Requirements FIG. 2 50 are utilized by the feedback loop comprised of purchaser Specifications FIG. 2 51 as the buyer inference engine and Suppliers Specifications FIG. 2 52 as the supplier inference engine. Parallel inputs that represent the Supplier Product Fulfillment Model are integral components of the Suppliers Specifications that utilize numerous parameters, algorithms, and formulas. The dynamic process of the invention through the feedback loop presents its results in the form of Orders FIG. 2 54, Completed Purchase Orders FIG. 2 53, and Acknowledgement of Orders FIG. 2 55 upon reaching model equilibrium.

The optimization model of the present invention requires a series of powerful computing device(s). The computing devices with their respective network communication devices, the heart of the DynaPO method and system, can be centrally located as a server based system with single or multiple parallel processors or ideally be a network of distributed computing devices operating in conjunction with each other. The practice of distributed computing enhances system reliability, scalability, and ease of redundancy in meeting the objectives of optimizing cost effectiveness and buyer satisfaction. The Purchase Notification System is comprised of the equipment and associated software required to distribute the resulting purchase orders and order acknowledgements. This equipment consists of computers with speech production software, computers with fax capabilities and automated E-mail generation capabilities. Alternatively, the computers can provide human operators with the generated delivery notifications and purchase order acknowledgements for direct human to human communications utilizing any communication device available (e.g., Pager/Cellular Phone, wireless telephones, fax machines, Voice-mail, etc.). OTHER INTEGRATED COMPONENTS

DynaPO integrates seamlessly to the dynamic distribution network and optimization system and to the inventory coordination system to optimize the distribution process by maximizing resource utilization and buyer response and maximizing supplier resource utilization. The wide range of input and output parametric methods integrated into a dynamic group registry system, dynamic delivery address location matrixes coupled within a computer optimization feedback system and aggregation points yield the highest level of cost effectiveness and supplier utilization efficiency.

DynaPO thus further comprises the integrated and coordinated processing of the sales system. The integrated system is comprised of individual components that include: a) a recurring transaction database, b) a purchase order processing system, c) a dynamic group registry system, d) an inventory coordination system, and e) all of the resources utilized throughout the warehousing, manufacturing, and delivery system, for the purpose of balancing the cost savings realized by the suppliers with the competing demands of convenience and pricing benefiting the purchaser. The essential advantage of the present invention is the dynamic optimization of all systems' parameters in a dynamic purchasing environment.

The optimal solution that balances the supply and demand of products and utilizes the distribution resources efficiently is provided to the Purchase Order Processing System 7 in the form of a purchase order acknowledgment and to the Inventory Coordination System 14 in the form of material transfer orders. The Dynamic Distribution Network & Optimization System 9 further coordinates the distribution of products to match the purchase orders through the Delivery Notification System 10. In one embodiment, the input process of purchase specifications is compatible with the present state of office automation processes and equipment to ensure that any place of business, residence, place of entertainment with a minimum of one computer or fax machine or any other form of communication can become an order placement site. In one embodiment, the input process of purchase specifications is compatible with the present state of communication equipment to ensure that any place of business, residence, place of entertainment with a minimum of one telephone, cellular/mobile phone or telex can become an order placement site. The purchase requirements entry process is subsequently processed through the standard business transaction models including: automated voice recognition processes, human operator controlled processes, telemarketing procedures, etc.

In one embodiment, the input process of purchase specifications is compatible with the present state of Internet communications and dialog through Html, Xml and Java to ensure that any place of business, residence, place of entertainment with a minimum of Internet access can become an order placement site. The purchase orders are subsequently processed through the standard business transaction models including: electronic data interchange, office automation, etc.

Due to the demanding time constrained distribution and delivery requirements, the presence of state-of-art Warehouse Management System, Manufacturing System and

Shipping & Material Transfer System are further components to the fulfillment process of the resulting purchase transactions in the present invention. Still further, the Warehouse

Management System is optionally comprised of automated storage and retrieval systems, material requirement systems, and integration to a Manufacturing System. The material requirement systems function as an automated internal purchase order generator to meet product requirements. The Manufacturing System and Shipping & Material Transfer System serve to produce the required products and coordinate the subassemblies and components required in their designated products. To this end, the present invention establishes the method and its supporting mechanisms to achieve the optimal and dynamic process of buyer product fulfillment and supplier manufacturing and distribution in the most efficient and cost effective manner. The presently preferred embodiment of the invention, further detailed in FIG. 13, depicts the overall summary of material product and information transfer flow in the practice of the invention. Orders 41 are placed at "points of convenience", further detailed in FIG. 12, that depicts the order placement sites. Products 40 are distributed to consolidation points direct from the manufacture, wherever practical, feasible, and cost effective. Deliveries are made to "points of convenience" at remote/mobile distribution points 43, as further detailed in FIG. 11, that depicts the product delivery sites. Optional direct deliveries 44 are made to a "personal" product delivery site, selected solely by the purchaser. The direct intent of all material product and information transfers is to utilize consolidation points throughout the practice of the invention, wherever practical, as cost effective, and feasible, to optimize the convenience, response time, utilization of resources, and cost of the sales transaction. The integration of each component is executed as detailed in FIG. 10 that sets out the network, computer and distributed communication systems infrastructure to practice the invention.

Turning to FIG. 15, FIG. 15 depicts one configuration of product fulfillment based on at least two locations, and in most instances based on at least three locations. The locations available are based on event schedules as a function of a time domain, which include at least a starting event time and location Event 1 Location A 200 and at least an ending event time and location Event 2 Location B 220. When the invention is implemented such that the transit by a member from Event 1 Location A 200 to Event 2 Location B has already begun, then as anticipated in this Figure 15 a current location is beyond Event 1 Location A 200 but before Point of Convenience "POC" POC 1 Location M 210. One objective of the invention is to minimize route time and/or route distance in order to obtain products being fulfilled from at least one location (and in most instances at least two locations) as depicted from Fulfillment 1 Location C 250, Fulfillment 2 Location D 260, and Fulfillment Location E 270. The invention determines the POC between Event 1 Location A 200 and Event 2 Location B 220 in which all products required to be obtained from the fulfillment locations such as Fulfillment 1 Location C 250, Fulfillment 2 Location D 260, and Fulfillment Location E 270 prior to the member reaching POC 1 Location M 210. Traffic delays by member and/or logistics transportation to POC 1 Location M 210 will lead to rerouting by member and/or logistics transportation to other POCs such as POC 2 Location N 230 or POC 3 Location O 240. Alternatively, the system can cancel or postpone the delivery of any one product from any of the locations such as Fulfillment 1 Location C 250,

Fulfillment 2 Location D 260, and Fulfillment Location E 270. The dynamic purchase order system determines which product and quantity, based on a time domain function that includes at least price that varies in reference to an absolute time (and date) in which the product must be fulfilled. Additionally the product includes logistic transit costs on a time domain function again in reference to an absolute time (and date) in which the product must be fulfilled.

Furthermore, the product selection is a function of both the availability (in real-time or projected based on historic transit times and/or storage demand) of interim storage within a candidate POC between the product delivery time and member pickup time (which itself can be a range of earliest pickup time to latest pickup time) including the appropriate storage conditions (e.g., ambient "A", refrigerated "R", or freezer "F" temperatures). The

availability of storage further includes physical size limitations of at least one from the POC or member transit vehicle storage capacity. One additional parameter for product delivery to a specific POC includes the distance and/or transit time to the final destination such as Event 2 Location B 220 from the POC, particularly when the product is temperature sensitive such as refrigerated or frozen goods.

Turning to Fig. 16, Figure 16 is identical to Figure 15 with the exception that this implementation demonstrates the selection of a POC POC 2 Location N 230 (and not POC 1 Location M 210) further away from the starting location Event 1 Location A 200 in order to provide additional delivery transit time, such that either additional products are aggregated from the multiple fulfillment points Fulfillment 1 Location C 250, Fulfillment 2 Location D 260, or Fulfillment 3 Location E 270 to maximize product delivery to member or minimize numbers of POCs for member to transit to, by selecting a POC that is not the closest to the current location (or planned originating location, such as Event 1 Location A 200) or is not the shortest or quickest total route distance or time respectively.

Turning to Fig. 17, Figure 17 is identical to Figure 15 with the exception that this implementation demonstrates the selection of a POC POC 3 Location O 240 which is closer to the final destination Event 2 Location B 220 so as to minimize the transit time of products received, such as required when product requires specific storage conditions (e.g., ice cream). Turning to Fig. 18, Figure 18 is identical to Figure 17 with the exception that a first

POC POC 2 Location N is utilized to receive and/or store on an interim basis product from at least a first fulfillment location such as Fulfillment 1 Location C 250 and Fulfillment 2 Location D 260, and a second POC POC 3 Location O 240 that is utilized to receiver and/or store product from at least a second fulfillment location such as Fulfillment 3 Location E 270. The dynamic purchase order system schedules an interchange of product between at least one first POC and at least one second POC, which can be based on storage availability, storage conditions, logistic costs, or product pricing. Turning to Fig. 19, Figure 19 is identical to Figure 17 with the exception that a first POC POC 3 Location O 240 is utilized to aggregate product delivery from at least one first fulfillment center such as Fulfillment 1 Location C 250 and Fulfillment 2 Location D 260, and at least one product from at least one second fulfillment center such as Fulfillment 3 Location E 270. One such exemplary is the delivery of a surprise gift when such location for Event 2 Location B 220 is a residential home, a restaurant, etc. Another exemplary is the delivery of product that simply can't be stored in a convenient POC or can't fit within the member's transit vehicle.

Turning to Fig. 20, Figure 20 is identical to Figure 16 with the exception that the member transits to at least two POCs a first POC POC 1 Location M 210, where product is received from at least a first fulfillment center Fulfillment 1 Location C 250, and then subsequently transits to a second POC POC 2 Location N 230, where additional product is received from at least a second fulfillment center such as Fulfillment 2 Location D 260 and/or Fulfillment 3 Location E 270. This is exemplary where the intermediary POC is a place of work, a healthcare facility such as where a doctors appointment takes place, a place of entertainment, lodging or food. Another exemplary is such that the member either knowingly or transparently transports product from one POC to a second POC, particularly when the member is utilizing a shared resource for transit between at least the first POC and the second POC. Turning to Fig. 21, Figure 21 depicts in one exemplary the multiple embodiments enabled by the invention disclosed. A member of the dynamic purchase order system has a starting location Event 1 Location A 200 and an ultimate ending (i.e., destination) location Event 2 Location B 220, and at least two intermediary POCs being utilized for delivery and aggregation of products from at least two fulfillment centers Fulfillment 10 Location G 280 and Fulfillment 11 Location H 290 going to a first POC and Fulfillment 1 Location C 250 (and as depicted also Fulfillment 2 Location D 260 and Fulfillment 3 Location E 270) going to a second POC. In this embodiment, product aggregated at the first POC POC 1 Location M 210 is transported to the second POC POC 2 Location N 230 in order to minimize the route time and/or distance for the member to transit between the starting location Event 1 Location A 200 and ending destination Event 2 Location B 220 while obtaining a wide range of product from a wide range of fulfillment centers. Additional product is transported directly from a at least a third fulfillment center Fulfillment 3 Location E 270 to the ending destination Event 2 Location B 220. Turning to Fig. 22, Figure 22 is an embodiment such that the starting location Event 1 Location A 200 is also a POC POC 1 Location A 205 having storage capability, such that product is received from at least one fulfillment center such as Fulfillment 10 Location G 280 and/or Fulfillment 11 Location H 290, and the ending location / destination (which can also be a temporary staging location, such as restaurant, hotel, work place) Event 2 Location B 220 also being a POC POC 2 Location B 225. In this embodiment, the member can provide transit services (again knowingly or transparently) between the two POCs respectively POC 1 Location A 205 and POC 2 Location B 225. Another embodiment is the member arrives at first location Event 1 Location A 200 also being a POC POC 1 Location A 205, such that any product whether purchased at this location or obtained any time prior to arrival at this location (including product owned on a continuous basis e.g., baby car seat, stroller, workout bag, CD music collection, backpack, etc.) is stored in the POC on an interim basis. The member then travels to an ending destination (or at least a second intermediary destination) also being a POC (though this can also be a standard location, not requiring a POC if in fact an ending destination) such that upon departure from starting location Event 1 Location A 200 the product stored in the POC POC 1 Location A 205 is retrieved and placed in the members transit vehicle for transport to the ending location POC 2 Location B 225 which is co-located at the location of Event 2 Location B 220. This is particularly important when the member utilizes a shared vehicle to transit between the two locations. It is further anticipated that a shared vehicle transits between at least one intermediary location being a point of convenience, such that the POC has temporary storage capabilities in which product that otherwise would be stored within a vehicle (i.e., trunk / boot) is now not required, thus the vehicle can be utilized by other members or guests thus minimizing vehicle parking time (i.e., downtime). Turning to Fig. 23, Figure 23 depicts a data structure for each POC that includes records for each storage location within the POC containing reservations for the respective storage location. Each storage location is categorized by type of storage conditions (e.g., temperature such as ambient "A", refrigerated "R" or freezer "F", or air conditioned "AC"), size of the storage location (e.g., height, width, depth) and weight restrictions, and storage rate fee structure. Each reservation record will further contain start time, end time, and preferably anticipated start time and anticipated duration. Another data structure is for each logistics resource. Each logistics resource (i.e., truck, van, bus, car) has a record for each storage location within the logistics resource. Each storage location is categorized by type of storage conditions (e.g., temperature such as ambient "A", refrigerated "R" or freezer "F", or air conditioned "AC"), size of the storage location (e.g., height, width, depth) and weight restrictions, and logistics rate fee structure. Each logistics reservation record will further contain start time, end time, earliest available time, must reach destination time (i.e., never later than) and preferably anticipated start time and anticipated duration. Yet another data structure exists for each member (i.e., user). Each member record has at least one POC location designated for every type of storage (i.e., A, R, F, AC). It is preferred that the at least one POC location is alternatively represented by a geofence (i.e., defined as a multidimensional area providing a range of geographies for within a POC can be located within). Further, it is particularly preferred such that a geofence is defined for at least one of the restrictions of size and/or weight, time and/or date. It is specifically preferred that a preferred POC is selected for every geofence, particularly for every event within the members calendar or event queue. Each POC 300 has multiple parameters including

Location Address and Name ID with at least one child record for each Storage Bin 320 having multiple parameters including Type, Size (length x width x height), Name ID, and Χ,Υ,Ζ Coordinates (such that these coordinates enable automated storage and retrieval systems to function as known in the art). Each Storage Bin 320 can have a Default Rate 340 for calculating storage fees in which the rate is a function of at least one parameter selected from Time, Size, and/or Type that can further be optionally set for at least one range of time characterized by Start Time through End Time. Each Storage Bin 320 has a child record for each Reservation 350 comprised of at least one parameter including Type (Guaranteed use, or Hold until confirmed) with a reservation Start Time and End Time (it is anticipated that the parameters can further include anticipated earliest start times, etc.). Each Reservation 350 can have a Storage Rate 360, which would override the Default Rate 340, for calculating storage fees in which the rate is a function of at least one parameter selected from Time, Size, and/or Type that can further be optionally set for at least one range of time characterized by Start Time through End Time. Reservations 350 are made anticipating the storage of products, which as mentioned earlier in the invention can include purchased products through the Dynamic Purchase Order or alternatively product that is simply being transported with interim storage in a POC. In most preferred instances, Product 370 is a child record of the Reservation 350 such that Product 370 is characterized by at least two parameters including In Transit (In storage bin, being removed From storage bin, or traveling To storage bin) status in addition to Type of storage conditions required. Turning to Fig. 24, Figure 24 is identical to Figure 23 with the exception that the data structure is virtually repeated for Logistics Resource 380, such that in fact operationally the Logistics Resource 380 (e.g., truck, van, car, rail, etc.) is optionally outfitted with individual storage bins having equivalent functionality as storage bins within POCs. Turning to Fig. 25, Figure 25 is the data structure for GeoFences 410 that become geographic location restrictions based around POC 300, Scheduled Event 390 having at least two parameters including event Location Address, Start Time, and End Time. A GeoFence 410 can be used to restrict geographic regions for a given Que View Member 310, or to restrict geographic regions for a given Que View Member 310 preferred POC 300 (exemplary of restricting area in which product if fulfilled from i.e., preferred fulfillment centers such as favorite produce stores, etc.) Another embodiment is for a GeoFence 410 to limit specific functionality around a specific Scheduled Event 390 with one example being the geographic restriction in which transit to or from the Scheduled Event 390 must include a specific GeoFence 410 or alternatively must exclude a specific GeoFence 410. Thus it is understood that this invention is comprised of at least one Shape 400 defined by an Area and Center

Coordinates for the Area, plus a Type parameter indicating whether the Shape is an Inclusive or Exclusive geographical region. Another embodiment of the GeoFence 410 is to define an acceptable region in which product can be picked up, particularly if refrigeration is required so as to reduce the time period in which product is non-refrigerated during transit. Turning to Fig. 26, Figure 26 depicts a series of non-linear function defining a buyers price versus quantity profile, which also includes an aggregated profile for a series of members. It is particularly desirable such that the buyer profile is a function of the time domain, such that buyer price profile varies as a function of both time and quantity domains concurrently. Another non-linear function defines a sellers price versus quantity profile. It is particularly desirable such that the seller profile is a function of the time domain, such that seller price profile varies as a function of both time and quantity domains concurrently. The overlapping buyer profile and seller profile triggers an equilibrium area in which a transaction (i.e., a dynamic purchase order) is generated such that the equilibrium determines the quantity of product sold from seller to buyer and the price at which the transaction takes place. The preferred embodiment is such that the dynamic purchase order has price and quantity both as a non-linear function in the time domain. The dynamic purchase order system then subsequently generates a disaggregated purchase order to each member in which product quantity was allocated, thus providing allocated product (quantity dynamically determined by ability to meet all buyer requirements including delivery time frame, delivery POC availability, price as a function of time in relationship to required date/time for product delivery, delivery POC storage capabilities, etc. as anticipated as conditions mentioned in the aforementioned portions of the invention. The dynamic purchase order system then processes additional product requirements for each member having an allocated purchase order, such that each member has maximized the receipt of product (within the member limitations such as storage temperature, size, weight, type of products to be received at the designated POC, etc.) at the designated POC so as to minimize the number of POCs required to transit in order to fulfill the members outstanding product requests though at optimal pricing. The particularly preferred embodiment is such that the dynamic purchase order system issues requests for quotation "RFQ", such that the RFQ is preferably define also by a non-linear function on a time domain in addition to having absolute delivery time constraints in which such delivery/fulfillment can achieve. The Buyer Product Requirements 420 (50 in Figure II) is comprised of at least two of the parameters including Price which is a function of Quantity optionally further limited within a Start Time through End Time, a Must Deliver Time, and a generalized Minimize Objective such as to minimize dynamic purchase order total Cost, limit the number of POC visits required to fulfill the range of products desired, minimize Storage Time in which products fulfilled reside in a POC storage bin, or to minimize Time to Must Need from fulfillment to utilization (exemplary such that product is freshest prior to consumption i.e., fruit product for a birthday party). Each Buyer Product Requirements 420 has at least one child record for Product 370 to provide a time domain quantity requirement defined by a Minimum Quantity as a function of time, Maximum Quantity also as a function of time, plus additional optional parameters including storage Type requirements, and whether or not to utilize POC for Enable Interim Storage (exemplary of purchase decisions to buy larger quantities to obtain discount such that even interim storage fees do not negate the cumulative quantity discount). The buyer profile further includes POCs 300 in which are preferred or within a set of acceptable POCs. Seller Product Delivery 430 is a mirror of the Buyer Product Requirements 420 with the exception that the Minimize Objective is replaced with a Maximize Objective with options including maximize Product Margin, maximize Quantity (i.e., keep manufacturing equipment fully loaded, or to minimize equipment downtime), or total dynamic Purchase Order Profit.

The invention has been described with reference to the preferred embodiment.

Obviously, modifications and alterations will occur to others upon reading and understanding the preceding detailed description. It is intended that the invention be construed as including all such modifications and alterations insofar as they come within the scope of the appended claims or are the equivalents thereof.

Claims

A computerized method for the purchase of and delivery of products to a buyer comprising the steps of:

- the buyer determining product selection, product quantity, negotiated price, delivery release terms, and purchase order(s) constraints represented from the group of discrete, non-discrete, linear, non-linear, and combinatorial parameters to accurately reflect the buyer specifications via an electronic communication system and stored within a memory of the computer system;

- the supplier determining product fulfillment, product quantity, negotiated price, delivery release terms, and purchase order(s) constraints represented from the group of discrete, non-discrete, linear, non-linear, and combinatorial parameters to accurately reflect the supplier specifications via an electronic communication system and stored within a memory of the computer system;

- the computer determining product selection, product quantity, negotiated price, delivery release terms, and purchase order(s) by establishing equilibrium between buyer(s) and supplier(s) through use of a dynamic feedback loop stored within a memory of the computer system as an internal algorithm, and electronically communicating with one or more transportation resources available to arrange for delivery of product to the selected delivery location at the associated time from the group comprising a production, warehouse, retail, or wholesale site;

and the computer further utilizing at least one electronic delivery notification method to notify the buyer of product delivery at the selected product delivery location and associated time.

The method of claim 1 wherein the combinatorial parameters are constraints selected from the group of multidimensional matrixes, algorithms, non-discrete formulas, and discrete formulas.

The method of claim 1 wherein the product quantity is determined by the dynamic feedback loop as a function of quantity demand comprised of constraints selected from the group of:

- multiple schedules for product release;

actual or forecasted timed delivery requirements;

minimum and maximum acceptable quantities; minimum and maximum site stocking quantities;

minimum and maximum delivery quantities;

minimum and maximum off-site stocking quantities;

time value of money per month;

cost of storage per month;

- peak consumption per hour, shift, day, week, month or quarter;

average consumption per week, month, quarter, or other discrete time periods; enable schedule delivery aggregation;

and delivery terms including delivery locations with corresponding acceptable window of time.

4. The method of claim 1 wherein the product selection is determined by the dynamic feedback loop as a function of additional constraints comprised of buyer

specifications part preference profile and supplier specifications part preference profile selected from the group of:

- multiple schedules for product release;

- product substitution parameters;

quantity variations from scheduled releases;

cost and price impact of substitution;

and order of preference, relative weighting factor, price differential, and cost differential between equivalent or alternative products.

5. The method of claim 2 wherein a delivery address algorithm for determining delivery location and associated delivery time, is run by the computer and determines:

product availability including parameters selected from the group of available quantities, and a table of acceptable product substitutions with measures to establish priorities and preferences;

price term acceptability including parameters for product, transportation resource and storage resource costs;

and transportation resource ability to meet dynamic delivery address requirements including ability to deliver product category at required location and time.

6. The method of claim 5 wherein the products desired and delivery parameters are determined by the buyer through the steps of: utilizing at least one order entry channel selected from the group comprising the Internet, networked computers, email, fax, telex, recurring purchasing transaction database or telephone orders;

and utilizing one or more buyer group registries to receive volume discounts through participation in group purchases.

7. The method of claim 5 wherein the products provided and delivery parameters are determined by the supplier through the steps of:

utilizing at least one order entry channel selected from the group comprising the Internet, networked computers, email, fax, telex, recurring fulfillment transaction database or telephone orders;

and utilizing one or more supplier group registries to aggregate volume through participation in group fulfillment.

8. The method of claim 1 wherein the dynamic feedback loop and dynamic delivery address algorithm determine delivery location as a function of time, acceptability of each delivery location receiving a product of specified product category, product order entry parameters, minimum and maximum delivery quantities, cost of storage as function of time, shipment unit cost as a function of quantity, delivery time, and aggregation into shipment, dynamic schedule mapping an acceptable time frame for manufacturing resources, minimum and maximum deliverable quantities, product manufactured price and cost point as a function of quantity, and ability to consolidate the distribution and delivery of multiple products from multiple suppliers to multiple buyers at the required delivery locations from the source of each product.

9. The method of claim 1 wherein the delivery locations comprise places of convenience selected from the group of a place of entertainment, place of worship, place of service including automobile, medical, and library, places of education including schools and colleges, consolidated places of residence including apartment complexes, neighborhood associations, and place of transportation arrival and departure including airport, train and bus stations, highway exits, places of niche retail sale as a means to expand the product distribution including specialty stores such as fresh produce stores, neighborhood manufacturing companies, catalog houses and newly created remote product dispersal centers at new points of convenience including place of work, remote mini-warehouses, and places of socialization.

10. A system for processing of purchases and delivery of products to a buyer comprising: - means for buyer to determine product selection, product quantity, negotiated price, delivery release terms, and purchase order(s) through constraints represented from the group of discrete, non-discrete, linear, non-linear, and combinatorial parameters that accurately reflect the buyer specifications via an electronic communication system and stored within a memory of the computer system;

- means for supplier to determine product fulfillment, product quantity,

negotiated price, delivery release terms, and purchase order(s) through constraints represented from the group of discrete, non-discrete, linear, non- linear, and combinatorial parameters to accurately reflect the supplier specifications via an electronic communication system and stored within a memory of the computer system;

- means for computer to determine product selection, product quantity,

negotiated price, delivery release terms, and purchase order(s) through dynamic feedback loop stored within a memory of the computer system as an internal algorithm, and electronically communicating with one or more transportation resources available to establish equilibrium between buyer(s) and supplier(s), and to arrange for delivery of product to the selected delivery location at the associated time from the group comprising a production, warehouse, retail, or wholesale site;

and the means for computer to utilize at least one electronic delivery notification method to notify the buyer of product delivery at the selected delivery location at the associated time.

11. The system of claim 10 wherein the combinatorial parameters are constraints selected from the group of multidimensional matrixes, algorithms, non-discrete formulas, and discrete formulas.

12. The system of claim 10 wherein the product quantity is a dynamic feedback loop function comprised of constraints selected from the group of:

- multiple schedules for product release;

- actual or forecasted timed delivery requirements;

minimum and maximum acceptable quantities;

minimum and maximum site stocking quantities;

minimum and maximum delivery quantities;

minimum and maximum off-site stocking quantities; time value of money per month;

cost of storage per month;

- peak consumption per hour, shift, day, week, month or quarter;

average consumption per week, month, quarter, or other discrete time periods; - enable schedule delivery aggregation;

13. The system of claim 10 wherein the product selection is a dynamic feedback loop function comprised of buyer specifications part preference profile and supplier specifications part preference profile selected from the group of:

- multiple schedules for product release;

- product substitution parameters;

quantity variations from scheduled releases;

cost and price impact of substitution;

- and order of preference, relative weighting factor, price differential, and cost differential between equivalent or alternative products.

14. The system of claim 11 wherein the delivery location and associated delivery time is a dynamic feedback loop function comprised of:

product availability parameters selected from the group of available quantities, and a table of acceptable product substitutions with measures to establish priorities and preferences;

price term acceptability parameters for product, transportation resource and storage resource costs;

and transportation resource parameters to meet dynamic delivery address requirements including ability to deliver product category at required location and time.

15. The system of claim 14 wherein the products desired and delivery parameters are a function of a dynamic feedback loop function comprised of:

means for buyer to utilize at least one order entry channel selected from the group comprising the Internet, networked computers, email, fax, telex, recurring sales transaction database or telephone orders;

and means for buyer to utilize one or more sales group registries to receive volume discounts through participation in group purchases.

16. The system of claim 14 wherein the products desired and delivery parameters are a function of a dynamic feedback loop function comprised of:

means for supplier to utilize at least one order entry channel selected from the group comprising the Internet, networked computers, email, fax, telex, recurring fulfillment transaction database or telephone orders;

and means for supplier to utilize one or more supplier group registries to aggregate volume through participation in group fulfillment.

17. The system of claim 10 wherein a dynamic delivery address algorithm that includes delivery location as a function of time, acceptability of each delivery location receiving a product of specified product category is a dynamic feedback loop function comprised of: product order entry parameters, minimum and maximum delivery quantities, cost of storage as function of time, shipment unit cost as a function of quantity, delivery time, and aggregation into shipment, dynamic schedule mapping an acceptable time frame for manufacturing resources, minimum and maximum deliverable quantities, product manufactured price and cost point as a function of quantity, and ability to consolidate the distribution and delivery of multiple products from multiple suppliers to multiple buyers at the required delivery locations from the source of each product.

18. The system of claim 10 wherein the delivery locations comprise places of

convenience selected from the group of a place of entertainment, place of worship, place of service including automobile, medical, and library, places of education including schools and colleges, consolidated places of residence including apartment complexes, neighborhood associations, and place of transportation arrival and departure including airport, train and bus stations, highway exits, places of niche retail sale as a means to expand the product distribution including specialty stores such as fresh produce stores, neighborhood manufacturing companies, catalog houses and newly created remote product dispersal centers at new points of convenience including place of work, remote mini-warehouses, and places of socialization.