System and Method for Optimizing the Loading of Shipping Containers

• US 20090048987A1
• Filed: 08/11/2008
• Published: 02/19/2009
• Est. Priority Date: 08/13/2007
• Status: Abandoned Application

• Current Assignee: EAST Manufacturing Corporation
• Original Assignee: EAST Manufacturing Corporation
• Inventors: Ellyson, Scott, Sweeney, Jeff, Ganim, Jason, Hendrickson, Lorrie
• Application Number:
  US12/189,409
• Publication Number:
  US 20090048987A1
• Time in Patent Office: Days
• US Class Current: 705/400
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions

Abstract

A system and method for optimizing the loading of a shipping container, optimizing freight costs, communicating ordering and shipping constraints to a customer, and continuously updating shipping costs while an order is being built by a customer.

Claims

1. A method for building a container order for a shipping container, where in response to the selection of a ship-to location, of a shipping container, and of a quantity of an item by a customer, the method comprises:

a. identifying a constraint for at least one of the ship-to location and of the item, and communicating the constraint to the customer;

b. calculating the capacity utilization for the shipping container for the quantity of the selected item; and

c. calculating and displaying a cost of the item selected for shipping in the shipping container.

2. The method of claim 1, wherein calculating and displaying the cost of the item selected for shipping in the container includes:

a. calculating and displaying an item landed cost per item while the order is being built; and

b. calculating and displaying a net landed cost per container order while the order is being built.

3. The method of claim 1, wherein the method further comprises creating a purchase order incorporating the selected ship-to location, the selected shipping container, the selected quantity of the item, the cost of the item.

4. The method of claim 1, wherein the constraint for the ship-to location includes identifying existing incomplete container orders for the same ship-to location and offering the customer the option of joining at least one of the existing incomplete container orders.

5. The method of claim 1, wherein the constraint for the ship-to location includes identifying the container order as available for sharing.

6. The method of claim 1, wherein the constraint for the item includes identifying that the selected quantity of the item is less than a minimum order requirement for the item and forcing the quantity for the container order to the minimum order requirement for the item.

7. The method of claim 1, wherein calculating the space utilization includes calculating and displaying an amount of occupied space in the container and an amount of remaining, unfilled space in the container.

8. The method of claim 2, wherein calculating the item landed cost per item includes summing item cost and freight cost.

9. The method of claim 8, wherein calculating item landed cost per item further includes summing item markup cost and duty.

10. The method of claim 9, wherein calculating item landed cost per item further includes determining whether a consolidation fee is applicable to the container order, and if so, calculating the consolidation fee, determining whether a pallet fee is applicable to the container order, and if so, calculating the pallet fee, and determining whether a cross docking fee is applicable to the container order, and if so, calculating the cross docking fee and summing a consolidation fee, the pallet fee, and the cross docking fee.

11. The method of claim 8, wherein the item cost is calculated by applying a predetermined variable cost formula to the base item cost of the item.

12. The method of claim 8, wherein the freight cost is calculated by determining whether the quantity of items constitutes less than a container load and applying freight rates based on a container with less than a container load.

13. The method of claim 8, wherein the freight cost is calculated by determining whether the quantity of items constitutes a full container load and applying freight rates based on a container with a full container load.

14. The method of claim 9, wherein the markup cost is calculated based on data from a markup table.

15. The method of claim 9, wherein the duty is calculated as a percentage of the item cost.

16. The method of claim 10, wherein the consolidation fee is calculated based on data from a consolidation fee table.

17. The method of claim 10, wherein the pallet fee is calculated based on data from a pallet fee table.

18. The method of claim 10, wherein the cross docking fee is calculated based on data from a cross docking fee table and allocating the cross docking fee to each item based on the item'"'"'s contribution to weight or volume of a partial cross docking shipment.

19. The method of claim 2, wherein calculating the net landed cost per container order includes multiplying in the quantity of items by the item landed cost per item.