Data processing: financial – business practice – management – or co – Automated electrical financial or business practice or... – Electronic shopping
Reexamination Certificate
2000-04-21
2004-06-22
Chilcot, Richard (Department: 3627)
Data processing: financial, business practice, management, or co
Automated electrical financial or business practice or...
Electronic shopping
C705S028000
Reexamination Certificate
active
06754637
ABSTRACT:
COPYRIGHT NOTICE
A portion of the disclosure of this patent document contains material which is subject to copyright protection. The copyright owner has no objection to the facsimile reproduction by any one of the patent document or the patent disclosure as it appears in the Patent and Trademark Office patent file or records, but otherwise reserves all copyright rights whatsoever.
BACKGROUND OF THE INVENTION
1. Field of the Invention
The invention disclosed broadly relates to the field of product reclamation, and more particularly relates to the field of disposition of products and goods using networks.
2. Description of the Related Art
The distribution chain of products from a manufacturer to the seller or store typically includes several intermediate entities.
FIG. 1
is a block diagram
100
of a simple product distribution chain. A product produced at a manufacturer
108
is sent to a wholesaler
106
in large quantities for further distribution. The wholesaler
106
in turn redistributes products to chain distribution center
104
. The chain distribution center
104
is a regional warehouse to divide the goods received from the wholesaler
106
into smaller lots as required by the store
102
. This distribution chain can be greatly expanded by including multiple wholesalers as shown wholesaler
1
→n
112
along with multiple chain distribution centers
1
→n
114
along with multiple stores
1
→n
116
.
Brand quality is important to manufacturers of products. Products that are damaged, outdated, expired, recalled, discontinued or unsaleable for any other reason is a concern for manufacturers. Unsaleable products can expose manufacturers to legal liability and may damage the manufacturer's reputation and goodwill. To increase the manufacturer's goodwill and to decrease any legal exposures, manufacturers must handle unsaleable products. Manufacturer control the return processing to ensure the complete removal of the product from the distribution channel and managed the reclamation flow.
If the store
102
has an unsaleable product that needs to be disposed, the store typically ships the product back to a reclamation center
110
. Any credits for the returned products are sent back to the store
102
from the reclamation center
110
.
Manufacturers often run return centers that must inventory returned and unsaleable products, match the unsaleable products for any claims data for payments. The process of tracking each product returned is tedious and prone to errors. The seller not only has to “sweep” their shelves and inventory occasionally for products to return but arrange for shipping and financial tracking as well. The number of products of inventory handled can be large from hundreds to thousands of products. Products returned must be tracked not only by product name, but other information must also be supplied, such as the model number if any and serial number and tag number distinguished. Because all the products in inventory are not from one manufacturer, the problem of tracking and handling returns from multiple manufacturers becomes even more complicated. Not only does each product have different return policies, but each manufacturer may have different return policies for the same product. The processing returns for multiple manufacturers each with distinct return policies and perhaps distinct reporting formats makes the process of tracking products even more tedious and prone to errors.
To help with the return processing, several companies have begun offering services to aggregate all of the returns processing for the Chain distribution center
104
and stores
102
. One such return aggregator is USF Processors of Dallas Tex., or Universal Solution International Inc, of Winston Salem, N.C., or Pharmaceutical Processing Headquarters of Conyers Ga.
USF offers a service of receiving the returned products from the stores
102
, identifying which store returned what product to the manufacturers
108
(where appropriate) for receipt of return payment, if any. The return payment is sent to the corresponding store
102
. The return processing aggregation is sometimes thought of as a “reverse checkout process” because like the store “check out,” products shipped to the aggregators are scanned” into the system at the reclamation center
110
. But unlike the “check out” process the products are not in inventory for sale but in inventory for return and disposal. The aggregators typically take a percentage of the money paid by the manufacturers as a fee for processing the products for the stores.
These reclamation centers
110
and aggregator although useful, are not without their shortcomings. One shortcoming with the current aggregator system, is that the store must be associated with a large network of stores such as a chain to take advantage of services such as return processing aggregators. The attendant paper work for return processing is onerous. In addition, the return and disposal of many products are regulated under state and federal agencies such as the FDA (Food and Drug Administration), EPA (Environmental Protection Agency) and the PDMA (Pharmaceutical Drug Market Act). The rules that sellers
102
and reclamation centers
110
must abide by are complex. Rules are even more complex with highly regulated products such as drugs, pharmaceuticals, hazardous waste, biological products and environmentally hazardous products such as nuclear products. Accordingly, a need exists for a method and apparatus to permit stores of any size, even the small “Mom and Pop” stores, to efficiently return products for processing while complying with the numerous government regulations.
Another shortcoming with the use of return processing centers
110
or aggregators is that many stores that sell pharmacies are not EPA regulated. Accordingly the disposal of stores trying to dispose of or return products regulated by the EPA must use reclamation centers
110
or aggregators that are EPA compliant.
Another shortcoming with the use of return processing centers
110
or aggregators is that the processing of payments can take a long time. The return processing aggregators must receive the product, notify the manufacturer
108
or wholesaler
106
, invoice the manufacturer or wholesaler for payment and finally receive payment from the manufacturer and pay the store. This payment process many times takes three to six months to complete. The delay in processing credit and payments can be substantial and for large stores the accounts receivable for a return processing inventory can run into the millions of dollars. In addition, several state governments, such as Pennsylvania, require stores to pay taxes on inventory, even though the inventory may be unsaleable and slated to be returned. It is not until the return credit is issued that the tax liability of unsaleable inventory is eliminated. Accordingly, a need exists for a method and apparatus to expedite the processing of payments to sellers for products disposed.
Still, another shortcoming with the use of return processing centers
110
or aggregators is the inability to efficiently handle “short-dated” inventory. Short-dated inventory is inventory that has not expired yet, but will expire within a few weeks or months. Short-dated inventory can be a large problem in such diverse industries such as pharmaceuticals and food. Although in many instances manufacturers or wholesalers will not accept short-dated inventory until the inventory expires, there is an after market for short-dated products. Moreover, many times, stores
102
and manufacturers
108
want to donate short-dated products for tax credits. Accordingly, a need exists for a method and system to handle the processing of short-dated products for resale and donation.
SUMMARY OF THE INVENTION
Briefly in accordance with the invention, a method in a client-server environment having a plurality of client systems coupled to a server over a network, the method on the return processing server for managing the return processing of one or more manufacturers. The met
Chilcot Richard
Fleit Kain Gibbons Gutman Bongini & Bianco P.L.
Gibbons Jon A.
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