Transport vehicle capacity maximization logistics system and method of same

• US 20050197876A1
• Filed: 04/18/2005
• Published: 09/08/2005
• Est. Priority Date: 12/29/2000
• Status: Active Grant

• Current Assignee: ArrowStream, Inc. (Buyers Edge Platform Opco LLC)
• Original Assignee: ArrowStream, Inc. (Buyers Edge Platform Opco LLC)
• Inventors: Osborn, William, Davison, Gary C., Benda, Peter, LaVoie, Steven, Rocha, Peter D.
• Granted Patent: US 7,840,429 B2
• Time in Patent Office: Days
• US Class Current: 705/333
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/06316 Sequencing of tasks or work
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/083 Shipping
• CPC Class Codes: G06Q 10/0833 Tracking
• CPC Class Codes: G06Q 10/0835 Relationships between shipper or supplier and carriers
• CPC Class Codes: G06Q 10/08355 Routing methods
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities

Abstract

Disclosed is a system for substantially optimizing logistics for loading vehicles and transporting goods and a method of accomplishing the same.

Claims

1. A method of shipping product, the method comprising the steps of:

determining at least one product required to be maintained in inventory by at least two receivers in response to data received from the receivers by at least one shipper; and

substantially optimizing the shipment of the product by determining one or more substantially maximum loads of one or more transport vehicles at least in part by calculating an amount of the product for shipment from the at least one shipper by one or more transport vehicles from the shipper to the receivers that reduces logistics costs and maintains the inventory within the amount of product required to be maintained according to an algorithm employing one or more metrics and the data.

2. The method of claim 1, wherein the one or more metrics comprise the level of the inventory.

3. The method of claim 1, wherein the one or more metrics comprise the time of shipment of the product.

4. The method of claim 1, wherein the one or more metrics comprise at least one of the following:

a capacity utilization per vehicle mile, total transportation cost metric;

transportation cost as percentage of product value shipped metric;

shipping revenue metric;

total logistics cost metric; and

shipping revenue less freight cost metric.

5. The method of claim 1, wherein the one or more transport vehicles have one or more capacities and wherein the one or more metrics comprise bin-packing characteristics of the one or more vehicles, including one or more of the amount of pallet layers, pallets, pallet foot prints and cases of products within the one or more capacities of the one or more vehicles.

6. The method of claim 1, wherein the product comprises a first product and a second product and wherein the calculating comprises the step of prioritizing the first product relative to the second product to be shipped.

7. The method of claim 1, wherein the calculating comprises the step of temporally optimizing the product shipment from the at least one shipper having at least one shipping location.

8. The method of claim 1, wherein the calculating further comprises the step of providing a trade allowance to the at least first receiver.

9. The method of claim 8, wherein the trade allowance is a rebate.

10. The method of claim 1, wherein the calculating further comprises the step of providing a profit share to the at least two receivers and the at least one shipper.

11. The method of claim 1, further comprising the step of:

shipping the product from the at least one shipper to the two receivers through a distribution point located at a distribution location remote from a first receiving location and one or more second receiving locations of the at least two receivers.

12. The method of claim 1, wherein the distribution point comprises a cross-dock.

13. The method of claim 1, further comprising the step of labeling the product with destination indicia.

14. The method of claim 13, wherein the labeling comprises the step of applying a SKU code, a pallet tag, or a UPC code.

15. The method of claim 12, wherein the method further comprises the step of ensuring that product entering the cross-dock has a predefined destination beyond the cross-dock.

16. The method of claim 1, wherein the method further comprises utilizing a vehicle tracking system.

17. The method of claim 1, wherein the calculating further comprises the step of substantially optimizing the one or more metrics.

18. The method of claim 1, wherein the one or more transport vehicles have one or more capacities and wherein the one or more metrics comprise the amount of the one or more capacities filled with the product.

19. The method of claim 1, wherein one or more of the two receivers are distributors of the product.

20. The method of claim 1, wherein one or more of the steps are carried out by a third party that is not the at least one shipper and the at least two receivers.

21. The method of claim 1, wherein the one or more metrics comprise a substantially maximum feasible order size and wherein the calculating further comprises calculating the feasible order size that maintains the inventory within the amount of product required to be maintained.

22. The method of claim 1, wherein the steps are implemented by computer hardware, computer software or a combination of computer hardware and computer software.

23. A system to substantially optimize an optimization metric of products transported from a plurality of shippers to at least one receiver, comprising:

(a) a central facility adapted to receive and process information

(b) an inventory indicator adapted to transmit inventory information from the plurality of receivers to the central facility;

(c) a cross-dock station adapted to process shipments from the plurality of shippers and adapted to transport shipments of products to the plurality of receivers;

(d) a means for substantially optimizing the optimization metric by correlating the inventory information of the shipments at the central facility to the plurality of receivers.

24. A computer program embodied on a tangible medium to substantially optimize shipment of product on a vehicle by substantially loading the vehicle, comprising:

(a) a first set of instructions to determine a vehicle load capacity;

(b) a second set of instructions to determine a shipment requirement

(c) a third set of instructions to generate a comparison by comparing the vehicle load capacity with the shipment requirement;

(d) a fourth set of instructions to substantially optimize an optimization metric to load more merchandise on the vehicle if the comparison indicates that the vehicle is not yet full or substantially loaded.

25. A signal-bearing medium having encoded machine-readable instructions, comprising:

a first set of machine-readable instructions for calculating a transport vehicle substantially maximum load capacity of a first transport vehicle;

a second set of machine-readable instructions for calculating a first order load;

a third set of machine-readable instructions for comparing the first order load with the transport vehicle maximum load capacity;

a fourth set of machine-readable instructions for determining a destination for the first transport vehicle;

a fifth set of machine-readable instructions for correlating the destination of a cross-dock load; and

a sixth set of machine-readable instructions for correlating the destination of the cross-dock load.

26. A signal-bearing medium having encoded machine-readable instructions, comprising:

a first set of machine-readable instructions for calculating an optimization metric of a first vehicle that is destined to at least one receiver;

a second set of machine readable instructions for calculating a product requirement of the at least one receiver; and

a third set of machine readable instructions for generating a shipment list of the products requirement that is to be shipped to the at least one receiver.

27. A server apparatus comprising:

a communication port that receives a periodic inventory message from an entity;

a memory having a database with at least one inventory table and an optimization metric table;

a controller operably connected to the communication port and the memory by an electrical signal path, the controller processes the periodic inventory message and identifies an Subset of inventory from the at least one inventory table that results in a substantially optimal shipment order relative to the optimization metric from the optimization metric table.

28. The server apparatus of claim 27, further comprising:

a printer port operably coupled to the controller that transmits the optimal shipment order to a output device.

29. The server apparatus of claim 27, wherein the communication port transmits the optimal shipment order for receipt by a shipper.

30. The server apparatus of claim 29, further comprising an acknowledgement from the shipper being processed by the controller enabled by receipt of the acknowledgement at the communication port.

31. The server apparatus of claim 29, further comprising another acknowledgement being sent to the entity in response to the receipt of the acknowledgement being processed by the controller.

32. The server apparatus of claim 27, further comprising a RF communication port that receives GPS data from a vehicle.

33. A method of optimizing a truck load capacity of products transported from at least one shipper to at least two destination receivers, comprising the steps of:

(a) ordering a first shipper product from the at least one shipper;

(b) determining a first destination receiver for the first shipper product;

(c) ordering a second shipper product from another of the at least one shipper;

(d) determining a second destination receiver for the second shipper product;

(e) comparing the first destination receiver to the second destination receiver;

(f) organizing the first shipper product and the second shipper product in the same truck if the first destination receiver is the same as the second destination receiver; and

(g) repeating the above steps until the truck is substantially loaded to capacity.

34. A method of replenishing products of at least one distributor by shipments from at least one manufacturer, comprising the steps of:

(a) calculating a transport vehicle maximum load of a first vehicle destined to the least one distributor;

(b) calculating a product requirement of the at least one distributor

(c) adding products, at a cross-dock, to the shipment until the maximum load capacity is substantially achieved; and

(d) transporting the shipment from the at least one manufacturer to the at least one distributor.

35. The method of claim 34, wherein an optimization algorithm substantially optimizes the products at a cross-dock.

36. The method of claim 34, wherein an optimization algorithm substantially optimizes the flow of product over a period of time to substantially maximize the transport vehicle maximum load.

37. A method of shipping product, the method comprising the steps of:

determining at least one product required to be maintained in inventory by at least two receivers in response to data received from the receivers by at least two shippers; and

substantially optimizing the shipment of the product by determining one or more substantially maximum loads of one or more transport vehicles at least in part by calculating an amount of the product for shipment from the shippers by one or more transport vehicles from the shippers to the receivers that reduces logistics costs and maintains the inventory within the amount of product required to be maintained according to an algorithm employing one or more metrics and the data.

38. The method of claim 37, wherein the shippers are at least a first shipper having a first shipping location and a second shipper having a second shipping location.

39. The method of claim 37, wherein the calculating further comprises the step of calculating a mix of additional product to be shipped from the second shipping location when the substantially maximum load is not exceeded-by the product calculated to be-shipped from the first shipping location.

40. The method of claim 37, further comprising the step of:

shipping the product from the shippers to the receivers through a distribution point located at a distribution location remote from a first receiving location and a second receiving location of the receivers.

41. The method of claim 40, wherein the distribution point comprises a cross-dock.

42. The method of claim 41, further comprising the step of scheduling the shipment of the product from the first and second shipping locations to arrive at the cross-dock before the product is shipped.