WO2001065428A2

WO2001065428A2 - Interactive parts ordering management method and system

Info

Publication number: WO2001065428A2
Application number: PCT/CA2001/000253
Authority: WO
Inventors: Jon William Hansen
Original assignee: Parts Logistics Management Corp.
Priority date: 2000-03-02
Filing date: 2001-03-02
Publication date: 2001-09-07
Also published as: AU2001240389A1; WO2001065428A8

Abstract

The invention provides a computerized, centralized method and system for managing and fulfilling orders for goods, viz. computer and electronic parts, which are submitted electronically by a remote user which may include means providing real-time interactive communications assistance between a central service representative and the user and provides means for automatically determining, from identified inventory locations having the goods in stock, a target inventory location from which the goods are deliverable to the destination address within a pre-determined time delivery requirement including means for intelligent time zone polling of the identified inventory locations. Means are also provided for directing the order to the target inventory location to initiate shipment of the goods in accordance with the order to satisfy the time delivery requirement.

Description

TITLE OF THE INVENTION

INTERACTIVE PARTS ORDERING MANAGEMENT METHOD AND SYSTEM

FIELD OF THE INVENTION

This invention relates generally to the field of electronic commerce ("e-commerce") software applications and, more particularly, to a computerized method and system for managing and fulfilling orders for goods, viz. computer and electronic parts, on a centralized basis.

BACKGROUND OF THE INVENTION

The satisfactory operation of many organizations and businesses is dependent on the use of technical equipment having associated therewith an expected "down time" caused by the failure of parts and components. Many such organizations and businesses have employees and/or contractors whose job it is to continually monitor their needs for new parts and initiate orders to third parties forthe delivery of the same. In some cases the third parties to whom such orders are given are intermediary businesses ("parts brokers") who serve both the ordering party (the buyer) by knowing where to find the needed part and the manufacturer/source of the part (the vendor) by ordering parts in bulk and reducing the number of vendor transactions. In doing so such intermediary businesses have heretofore applied manual systems, using pager and fax communications and order-by-order calculations/decisions, for checking warehouse inventory, selecting a warehouse having the goods in stock and initiating the shipping process. However, such manual systems are personnel dependent for action, add human action/reaction time to the overall process and are prone to error. Static management/accounting software referred to herein as an ERP ("enterprise resource planning") system (an example of which is the Platinum™ product of Epicor Software Corporation of Irving, California) is typically used by parts brokers, the purpose of these systems being to maintain and update inventory databases with respect to submitted orders and to handle the various accounting requirements resulting from product ordering such as accounts receivable, accounts payable and general ledger entries. The existing parts ordering methods as aforesaid are disadvantageous in that they are labor intensive and personnel dependent, are unable to reliably achieve one-day delivery time commitments and provide minimal feedback and assistance to the buyer. Therefore, there is a need by parts brokers and their clients for the applicant's improved method and system for locating, shipping and delivering parts, claimed herein, which overcomes the foregoing disadvantages of the known methods and systems.

SUMMARY OF THE INVENTION

In accordance with the invention there is provided an ordering management system and method for centrally controlling the receipt and fulfillment of an electronic order for goods which is transmitted by a user from a remote location through a communications network. Order information is received from the user which identifies the goods and the destination address for delivery of the goods. A time delivery requirement applicable to the order is determined. Inventory location(s) having the goods in stock are identified. A target inventory location from which the goods are deliverable to the destination address within the time delivery requirement is determined from the identified inventory location(s). The target inventory location is notified of the order to initiate shipment of the goods in accordance with the order to satisfy the time delivery requirement.

Preferably communications means are provided for permitting realtime interactive communications between a service representative and the user and for permitting the service representative to input information to the electronic order during the course of the interactive communications. Preferably the target location is determined using intelligent time zone polling of the identified inventory locations. Preferably shipment information is received from the target inventory location and the system monitors whether such information has been received and takes action with respect to the order if such information is not received within a predetermined time period. Preferably, an alternate delivery time requirement for delivery of the goods is also determined if the target inventory location cannot be determined and an alternate target inventory location from which the goods are deliverable to the destination address within the alternate time delivery requirement is determined using intelligent time zone polling of the identified inventory locations.

DESCRIPTION OF THE DRAWINGS

The present invention is described in detail below with reference to the following drawings in which like reference numerals refer throughout to like elements.

Figure 1 is a block diagram of the components of a parts ordering/management system which includes the e-commerce "front end" interactive system of the present invention; and,

Figure 2 is a flow chart diagram of the processes performed by the interactive system of the present invention.

Figure 3 is a flow chart diagram of the basic process carried out by the system of Figure 2.

Figure 4 is a flow chart diagram of the basic process plus the interactive feature of the system of Figure 2. Figure 5 is a flow chart of the basic process but where the timing requirement of the Service Level Agreement (SLA) cannot be met and an alternate is offered.

Figure 6 is a flow chart of the basic process but where the timing requirement of the Service Level Agreement (SLA) cannot be met and the order is transferred to sourcing.

Figure 7 is a flow chart of the warehouser action features of the process of the system of Figure 2. Figure 8 is a flow chart of a sourcing feature of the process of the system of Figure 2.

DETAILED DESCRIPTION OF A PREFERRED EMBODIMENT

Figure 1 shows the components of a parts ordering/management system 5 comprising the applicant's "front end" interactive system 10 and a "back end" ERP system 20 interfaced thereto, each of said systems being embodied in software. An internal network 15 links the interactive system 10, through a firewall 20 and the Internet global communications network 25, to individual users (buyers) 30 who are authorized representatives (e.g. employees) of clients of the system operator (referred to herein as "system clients"). The internal network 15 also links the interactive system 10 to an ERP system 20 and to administrator(s) 35, sourcers (40) and customer service representatives "CSR's"(45) of the interactive system 10. Output devices 50 such as printers are also provided in the internal network 15.

The ERP system 20 includes an inventory database of core parts 22 from which the system 10, through network 15, is able to identify on a real-time basis whether a specified part exists in inventory at a specified inventory location (e.g. a warehouse). The inventory locations (warehouses) are strategically located for a given system client, taking into account the core parts needs and facilities of the individual customers of the system client, so that the system client is able to meet the delivery time requirements to which it has committed with its customers. These delivery time requirements, which are used by the system 10, are stipulated by the system client and are governed by the content of the Service Level

Agreement (SLA) between the system client and the particular customer of the system client. For the preferred embodiment the delivery time requirements are 1 hour, 4 hours or next day delivery, 24 hours per day, 7 days per week. For example, the system client may be responsible for supplying parts to company A and the SLA between the client and that customer may be 1 hour delivery to specified delivery addresses located nationwide. In that case the delivery time requirement for all parts ordered under the SLA by that system client for that specific customer (i.e. company A) is 1 hour.

A "core part" , more generally referred to herein as an "inventory goods", is defined to be either a high turnover part or a critical part, these being categories of parts which must be kept in inventory in order to satisfactorily service a system client. Parts which are not core parts are not maintained in inventory and, instead, are sourced-out by the interactive system 10 (i.e. ordered from a source outside of the system 5).

The preferred system 10, as illustrated in Figure 1 , includes a database server 4 and a database 8 comprising the particulars of all of the core parts (i.e. part and warehouse identifiers) allocated to each system client so that the ERP system database 22 of the actual core parts existing in the warehouses does not have to be accessed unless and until a specific part is identified, confirmed for purchase by the user and the delivery destination has been selected by the user. The system database 8 also stores historical order/delivery information for each system client, including the total order-to-delivery time for each special (i.e. out-sourced) order previously fulfilled by the system for a given part.

The databases 8 and 22 are used by the system 10 to process logistics for determining, automatically, for a part ordered by a client the specific inventory (warehouse) location which will satisfy the specific SLA delivery time requirements for that system client and the particular destination delivery address for the part. These logistics which are preformed automatically by the system 10 include the application of a set of rules (tests), as set out in Table 1 below, to each order whereby a given part is located and selected on the basis of, inter alia, intelligent time zone polling with respect to the inventory locations having the part in stock and the time requirements of the available shipping (i.e. courier) options for delivery of the part to the particular delivery address therefor. For example, if a client requires 1 hour delivery to a Calgary address (this SLA has already been programmed into the system 10), the systems' logistics will go to the warehouse(s) that can meet the delivery requirement for Calgary. If the first warehouse does not have the part, the system 10 will automatically calculates the capability of the next nearest warehouse taking into consideration both time zone and , mileage from the warehouse city to the delivery city. This automatic consideration of the time zone for successive warehouses under consideration is referred to herein as "intelligent time zone polling". Referring to the foregoing Calgary example, if the local Calgary warehouse does not have the part in stock, the system 10 will go to the Edmonton warehouse based on the fact that it is closest in terms of distance and is in the same time zone. The system 10 will then recalculate the delivery capability and either confirm that the SLA delivery time requirement (i.e. 1 hour) can be met or, an alternative of 4 hours can be achieved. The system 10 thereby enables the user to execute orders quickly and reliably achieving a superior level of delivery.

The system 10 of the preferred embodiment is Internet accessed and, therefore, includes a Web (network) server and e-commerce engine 12 for interfacing the system 10 with the remote users (buyers) 30 (i.e. through the user's electronic I/O device which, typically, is the user's PC) and warehouse representatives 38 (i.e. through the representative's electronic I/O device which, typically, is the representative's PC). Of course, the references herein to communications between the system and the user or the warehouse (inventory location) representative mean that those communications are directed to their electronic I/O devices with which the system can electronically communicate. An interactive service agent 14 is provided in the system 10 to permit and control real-time communications between the user 30 and a customer service representative (CSR) 45, the agent being a segment of computer software which can be autonomous and/or mobile and may be implemented as a component or object. (Agents are able to interact with their environment and to act both pro- actively and reactively). A user directory component 4 is also provided in the system 10 to maintain, verify and identify all registered (authorized) users of the system and to track and compile each interactive ("on-line") session between the user 30 and the CSR 45. The term "component" herein refers to a set of computer-readable instructions or commands and is not limited to any specific architecture or location. The system components may be provided through a single CPU or, as shown in Figure 1 , through separate CPU's (A, B and C) to achieve better scalability, performance and reliability. TABLE 1

Figure 2 shows, by means of a flow chart, the various primary and optional processes carried out by the components of the interactive system of the invention. Figures 3 to 9 show, in flow chart form, several distinct processes which may be carried out by the system.

As shown by the process flow chart of Figure 2 the system 10 receives a user login request and verifies the user's input identification information (1 ). If the user is an authorized user (2) the system 10 presents a parts request form page to the user (3) and asks the user to enter either the manufacturer's number or the manufacturer's name and the product number. The system 10 accepts the information input by the user and searches its database 8 to identify whether the information matches a core part therein (4). If the system matches the requested part to a core part in inventory the system confirms the selection with the user (10). If the system does not match the requested part to a core part in inventory the system again presents a parts request form page to the user(5) and indicates to the user that a match was not made so that the user may re-enter correct information if known. At the same time, the user is linked (6) to a customer service representative (CSR) (via a "chat" hot link implemented by agent 14) and real-time communications between the CSR and the user, and collaborative browsing between them, is enabled. The term "collaborative browsing" herein is defined as a facility whereby both the CSR and the user are able to enter information into the request forms presented to the user for submitting an order. The collaborative browsing facility of the system 10 assists the user and saves time and data processing because it reduces the amount of data entry keying to be required for any given order in which the interactive facility is used. Unless the user enters part identification information which is verified as being a core part held in inventory, the CSR communicates through the networks 15,25 with the user to the extent necessary to identify the part which the user desires and the system then identifies whether or not it is a core part (7). If the part is a core part in inventory the CSR provides the part identification particulars to the user (9) by entering the information into the part request form through the collaborative browsing facility of the system 10. If the part is not a core part in inventory the CSR creates a normal (i.e. routine, time-independent) or special order (7a) and collects all the necessary information concerning the part and destination address from the user and submits this into the database 8. For normal orders a regular process is followed and for special orders the CSR sends the information to a sourcer (40) who then interacts with the user to source the part and place an out-sourced order if directed to do so by the user. Based on the part identification the system 10 provides to the sourcer (40) statistical (e.g. averaged) delivery time information for the part which the sourcer provides to the user. The system determines the statistical delivery time information on the basis of the historical sourced-out order information which has accumulated in database 8 from previous out-sourced orders. For example, the data may comprise delivery times for the fulfillment of five out-sourced orders handled previously by the system for the specific part required by the user from which the system 10 can average those stored delivery times and provide this information to the sourcer for the user. With this information the user is then better able to make a decision of whether or not to proceed with the proposed sourced- out order. Also, the user is thereby able to immediately inform the customer of the likely timing and this information may be critical to the customer's operations.

Following from step (4) where an inventory part request has been entered by the user (or by the CSR on behalf of the user) the system then confirms the selected part with the user (10) and confirms with the user that a purchase of the part is being requested (11 ). The user then selects the destination city of the delivery address from a pull-down menu of the available destination cities for which the SLA delivery time service is available for the ordered part (and a data entry block for manual entry of the name of an unlisted city is also provided for entry of a city for which the SLA delivery service does not apply). The system 10 then accesses its database 8 and the real-time inventory database 22 provide through the ERP system 20 and determines the warehouses which have in stock the identified part (13). If the part is not in stock in any warehouse the system presents to the user a page identifying that the part is not available for delivery within the SLA delivery time and prompts the user to select a CSR chat hot link button or call a 1 -800 number for further assistance (17). The CSR will then create a manual or special order (7a) if requested to do so by the user.

If the part is in stock in one or more warehouses the system 10 applies to the order a set of rules (processing tests), as set out in Table 1 , based on the user/CSR-input order information, the warehouse information, the SLA delivery time requirements for that particular customer and the shipping options (the latter two categories of information having been stored in the system 10. The system identifies whether or not the rules are passed (15): they are passed if the required delivery time can be met and they are not passed if the required delivery time cannot be met. If the rules are passed the most appropriate warehouse which can 5 meet the delivery time requirement has been identified and the system 10 prompts the user to enter the delivery address, a call number and purchase order number. A unique confirmation is then assigned by the system to the order (18). The system 10 then displays all order information to the user and asks the user to submit or cancel the order (19) and the user then either submits the order or o cancels the order (20). If the user does not submit the order the system displays forthe user a page listing various reasons for canceling the order and the user is prompted to check one item of the listing (21 ). The user page is also provided with a 1-800 number which the user may call for assistance.

If the user submits the order the system commits the order to the databases 5 8 and 22 (23) and, through networks 15,25, the system notifies the warehouse representative (i.e. the representative of the inventory location which has been identified by the system from applying the rules) of the new order (24). The warehouse representative arranges the shipping of the part and prints a packing slip and shipping waybill for the order and enters the packing slip and waybill o numbers into the order information of the system 10. A system administrator 35 monitors the progress of all submitted orders (26) to ensure that a warehouse representative has entered into the system packing slip and waybill numbers for an order within a predetermined amount of time (e.g. 30 minutes) from the submission of that order. If this has not been done the administration takes appropriate action to ensure that the designated warehouse acts.

Preferably, the system 10, warehouse representative 38 and user are interfaced to a Web tracking application 50 to enable each to track the progress of the shipment of the part from the warehouse to the delivery address. A particularly suitable software tracking application has been developed by and is available from the applicant under the trademark Web Tracker™. The applicant's Web Tracker™ application is able to operate in conjunction with the system 10 to submit total order-to-deliver times for out-sourced product and the user is able to obtain from it real-time information concerning the status of delivery for any submitted order.

Figure 3 illustrates the basic process of the invention by which the buyer (user) logs into the system and selects and finds a core part and then selects a customer and standard shipping address. The system determines from the ERP that the part is in inventory and from applying the rules, using the pre-programmed delivery time requirement of the SLA for that customer, determines that the SLA requirements can be met. The user then completes and submits the order and the system enters the order into the ERP. The warehouser and the user are notified by email of the order particulars to give notification of this to the warehouser (via a sound alarm email) and to confirm the order for the user.

Figure 4 shows the basic process and utilization of the interactive feature of the system to complete a "chat" between the user and a customer service representative (CSR). After the user logs into the system and determines that the part is not found a collaborative browsing chat session is selected and the CSR is able to find and add the desired part to the order (the CSR utilizes the collaborative functionality of the interactive service agent 14 to enter this information into the user's order).

Figure 5 illustrates the situation where the time requirement of the SLA cannot be met and, instead, an alternate delivery time requirement is offered to the user. In this situation, unlike that of Figure 3, when the system applies the rules to determine whether the SLA can be met it is unable to identify a target inventory location for delivery within the SLA requirement and it is determined, therefore, that the SLA requirements cannot be met. The system then presents alternate delivery options (which could be provided for in the SLA as alternates) and, if one of these is acceptable to the user, the user then completes the order as usual (i.e. see Figure 3).

Figure 6 illustrates the situation where the time requirement of the SLA cannot be met and, instead, the order is transferred to sourcing. In this situation the user elects to source the order rather than choose an alternate SLA and the sourcer is notified that action is required.

Figure 7 illustrates the action taken by the warehouser (i.e. the inventory location representative). The warehouser receives from the system automatic notification of the order to be shipped. This notification is done by the system by means of an email forwarded to the warehouser and the sound alarm email feature may be used so that if the warehouser is within hearing distance of the email- receiving I/O device an immediate notification is achieved. The warehouser then logs into the system by following a link in the email to an Internet login site which takes the warehouser to the screen of the user's order so that the warehouser may view the details of the order. The warehouser then completes the order information with the waybill information for the shipment of the ordered part and the order is linked to a delivery tracking system (i.e. the above-mentioned Web Tracker system). The user is provided with the completed order/delivery information (which included the waybill information) by email and can track the delivery process using the tracking system.

Figure 8 illustrates a sourcing action feature of the system which may provided to handle the situation where the user specifies a delivery address which is not a SLA address. The "other address" and customer are selected by the user and the system forwards the order to a sourcer.

While the invention has been described herein with reference to the ordering of parts it is not the intention of the applicant to limit the invention thereto. Rather, it will be apparent to the reader that the invention may be applied to the ordering of any goods without departing from the scope of the invention. Similarly, while it is preferable to interface the system 10 to the user through the Internet global communication network, to take advantage of the broad availability and accessability of this network to users, the invention is not limited thereto and an intranet could instead be used. Further, is to be understood that the specific system components and agent described herein are not intended to limit the invention which, from the teachings provided herein, could be implemented and embodied in a number of alternative computer program embodiments by persons skilled in the art. Rather the invention is defined by the appended claims.

Claims

WHAT IS CLAIMED IS:

1. An ordering management system for centrally controlling the receipt and fulfillment of an electronic order for goods which is transmitted by a user from a remote location to said system through a communications network, said system comprising:

(a) means for receiving order information from the user said information identifying said goods and the destination address for delivery of said goods;

(b) means for determining a time delivery requirement applicable to said order;

(c) means for identifying inventory location(s) having said goods in stock;

(d) means for determining from said identified inventory locations a target inventory location from which said goods are deliverable to said destination address within said time delivery requirement; and,

(e) means for notifying said target inventory location of said order to initiate shipment of said goods in accordance with said order to satisfy said time delivery requirement.

2. The system of claim 1 and further comprising communications means for permitting real-time interactive communications between a service representative and said user and for permitting said service representative to input information to said electronic order during the course of said interactive communications.

3. The system of claim 1 wherein said means for determining said target location comprises means for intelligent time zone polling of said identified inventory locations.

4. The system of claim 2 wherein said means for determining said target location comprises means for intelligent time zone polling of said identified inventory locations.

5. The system of claim 3 and further comprising means for receiving shipment information from said target inventory location, means for monitoring whether shipment information for said order has been received and means for taking progressive action with respect to said order if such shipment information is not received within a predetermined time period.

6. The system of claim 4 and further comprising means for receiving shipment information from said target inventory location, means for monitoring whether shipment information for said order has been received and means for taking progressive action with respect to said order if such shipment information is not received within a predetermined time period.

7. The system of claim 4 wherein said means for determining said target location comprises means for determining an alternate delivery time requirement for delivery of said goods if said target inventory location cannot be determined and means for determining from said identified inventory locations an alternate target inventory location from which said goods are deliverable to said destination address within said alternate time delivery requirement.

8. A computerized ordering management method for centrally controlling the receipt and fulfillment of an electronic order for goods which is transmitted by a user from a remote location to a central location through a communications network, said method comprising the steps:

(a) receiving order information from said user said information identifying said goods and the destination address for delivery of said goods;

(b) determining a time delivery requirement applicable to said order;

(c) identifying inventory location(s) having said goods in stock;

(d) determining from said identified inventory locations a target inventory location from which said goods are deliverable to said destination address within said time delivery requirement; and,

(e) notifying said target inventory location of said order to initiate shipment of said goods in accordance with said order to satisfy said time delivery requirement.

9. The method of claim 8 and further comprising the step of providing communications means for permitting real-time interactive communications between a service representative and said user and for permitting said service representative to input information to said electronic orderduring the course of said interactive communications.

10. The method of claim 8 whereby said step of determining said target location comprises the step of intelligent time zone polling of said identified inventory locations.

11. The method of claim 9 whereby said step of determining said target location comprises the step of intelligent time zone polling of said identified inventory locations.

12. The method of claim 10 and further comprising the steps of receiving shipment information from said target inventory location, monitoring whether shipment information for said order has been received and taking action with respect to said order if such shipment information is not received within a predetermined time period.

13. The method of claim 11 and further comprising the steps of receiving shipment information from said target inventory location, monitoring whether shipment information for said order has been received and taking action with respect to said order if such shipment information is not received within a predetermined time period.

14. The method of claim 11 and further including the steps of determining an alternate delivery time requirement for delivery of said goods if said target inventory location cannot be determined and determining from said identified inventory locations an alternate target inventory location from which said goods are deliverable to said destination address within said alternate time delivery requirement.

15. The method of claim 14 whereby said step of determining said alternate target location comprises the step of intelligent time zone polling of said identified inventory locations.

16. A computer-readable storage medium encoded with processing instructions for implementing a method for centrally controlling the receipt and fulfillment of an electronic order for goods which is transmitted by a user from a remote location to a central location through a communications network, said processing instructions for directing a computer to perform the steps of:

(b) determining a time delivery requirement applicable to said order;

(c) identifying inventory location(s) having said goods in stock;

17. The computer-readable storage medium of claim 16 further comprising processing instructions for directing a computer to perform the step of intelligent time zone polling of said identified inventory locations.

18. The computer-readable storage medium of claim 17 further comprising processing instructions for directing a computer to perform the steps of receiving shipment information from said target inventory location, monitoring whether shipment information for said order has been received and taking action with respect to said order if such shipment information is not received within a predetermined time period.

19. The computer-readable storage medium of claim 17 further comprising processing instructions for directing a computerto perform the steps of determining an alternate delivery time requirement for delivery of said goods if said target inventory location cannot be determined and determining from said identified inventory locations an alternate target inventory location from which said goods are deliverable to said destination address within said alternate time delivery requirement.