Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Inventory management
Reexamination Certificate
1998-09-15
2001-11-27
Trammell, James P. (Department: 2161)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Inventory management
C705S022000, C705S026640, C705S029000
Reexamination Certificate
active
06324522
ABSTRACT:
BACKGROUND OF THE INVENTION
This invention relates in general to distribution networks for distributing parts from a manufacturer, through vendors, to end-users. More particularly, the invention relates to integrating a maintenance supply network with an information network for selectively distributing information about inventory levels and pricing among vendors, manufacturers, and end users, and efficiently transferring inventory between parties according to prearranged terms.
Maintenance Repair and Operating (MRO) supplies are traditionally transferred from a manufacturer to end users (customers needing MRO supplies for maintaining equipment, rather than for resale) through a network of vendors. These vendors (distributors) are typically not mere order takers, but are expected to have some expertise in the product lines carried to enable the vendor to perform such tasks as recommending parts for various customer applications, assisting in the design of these applications, and assisting in the maintenance of these resultant installations. Vendors typically are franchised to supply MRO supplies for a specific manufacturer within a defined geographic area. End users within that geographic area desiring to purchase MRO supplies from that manufacturer are directed to the vendor for the area. Therefore, the vendor is expected to maintain an inventory on hand of the various MRO supplies of the manufacturer to meet the ordinary needs of the end users within the geographic area. Thus, a vendor may have to carry in inventory a larger quantity of infrequently used parts, which is expensive. Furthermore, if an end user desires a part that the vendor does not have on hand in inventory, the vendor will need to find a source for the needed part. The vendor may contact the manufacturer to see if the manufacturer has the part on hand. Frequently, however, the vendor may find that another vendor will have the part in inventory, and be able to sell the part to the vendor for resale to the end user on an expedited basis. The vendor may spend a long time telephoning a number of fellow vendors looking for another vendor who has the part in stock. If the vendor locates another vendor with the part in stock, an ad-hoc negotiation for purchasing and shipping the part must be conducted.
The manufacturer will normally have information about how many of the needed part were sent to various vendors, but typically will not be able to tell with precision the current number of parts held by individual vendors in the distribution network, or the total number of parts in the distribution network. Allocation of manufacturing resources to produce the part is normally based on extrapolation of historical activity, and not an actual determination of a current number of the parts held in the distribution network.
SUMMARY OF THE INVENTION
This invention relates to a process for integrating a maintenance supply network with an information network for selectively distributing information about inventory levels and pricing among vendors, and efficiently transferring inventory between parties according to prearranged terms. A plurality of vendors (distributors) of an item is provided with an information network for communicating among the vendors information about the quantity of the item each vendor has in inventory. Preferably, the price of the item as determined by each vendor for sale to other authorized distributors is also shared. More preferably, binding agreements are established between various ones of the vendors that regulate the terms of future sales of the item between the parties to the agreements.
Various objects and advantages of this invention will become apparent to those skilled in the art from the following detailed description of the preferred embodiment, when read in light of the accompanying drawings.
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Kwiatkowski Steven E.
Peterson Larry C.
Foley Hoag & Eliot LLP
Gish Jason C.
Hayes John W.
MRO Software, Inc.
Trammell James P.
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