RESOLVING DEMAND AND SUPPLY IMBALANCES

• US 20090313090A1
• Filed: 08/20/2009
• Published: 12/17/2009
• Est. Priority Date: 09/11/2003
• Status: Active Grant

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Henderson, Mark A., Armstrong, Edward W., Porter, Howard K., Eck, Brian T., Peters, Daniel J., Scheib, Linda L., Szymanowicz, Elizabeth C.
• Granted Patent: US 8,275,677 B2
• Time in Patent Office: Days
• US Class Current: 705/10
• CPC Class Codes: G06F 40/174 Form filling; Merging
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials

Abstract

A storage medium for resolving demand and supply imbalances is provided. The storage medium includes machine-readable computer program code and instructions for causing a computer to implement a method. The method includes identifying an excess component inventory liability or constraint in supply capability for an end product by matching current buying patterns for the end product against inventory liability and supply capability based on a previous demand forecast. Where excess component inventory liability exists, the method includes: refocusing the excess component inventory liability by determining alternative end products that use components identified in the excess component inventory liability; and executing sales activities for enticing sales of the alternative end products. Where constrained supply capability exists, the method includes determining alternative end products that are functionally equivalent to those in the constrained supply capability, and executing sales activities for enticing sales of functionally equivalent alternative end products.

Claims

1. A storage medium comprising machine-readable computer program code for resolving demand and supply imbalances, the storage medium including instructions for causing a computer to implement a method, comprising:

identifying at least one excess component inventory liability or at least one constraint in supply capability for an end product by matching current buying patterns for said end product against inventory liability and supply capability based on a previous demand forecast;

where excess component inventory liability exists;

refocusing said at least one excess component inventory liability by determining alternative end products that use components identified in said at least one excess component inventory liability; and

executing sales activities operable for enticing sales of said alternative end products; and

where constrained supply capability exists;

determining alternative end products that are functionally equivalent to those identified in said at least one constrained supply capability; and

executing sales activities operable for enticing sales of functionally equivalent alternative end products;

wherein said sales activities result in reducing said at least one excess component inventory liability or avoiding said at least one constraint in supply capability.

2. The storage medium of claim 1, wherein said identifying at least one excess component inventory liability or at least one constraint in supply capability includes:

exploding a bill of materials for a product structure based upon a sales forecast, demand data, and supplier commitment data;

imploding results of said exploding into end products and an available to promise statement;

translating said results into lead times for delivery; and

identifying remaining results not included in said available to promise statement as excess component inventory liability or constraint in supply capability for an end product.

3. The storage medium of claim 1, wherein said refocusing said at least one excess component inventory liability by determining alternative end products that use components identified in said at least one excess component inventory liability includes performing a supply liability reduction process comprising:

a procurement and development assessment sub-process including mitigation activities, said procurement and development assessment sub-process mitigation activities representing a greatest magnitude of liability;

wherein said procurement and development sub-process mitigation activities are performed first in time before other sub-processes.

4. The storage medium of claim 3, wherein said performing a supply liability reduction process further includes:

a liability council assessment sub-process including mitigation activities, said liability council assessment sub-process mitigation activities representing a magnitude of liability less than that of said procurement and development assessment sub-process;

wherein said liability council assessment sub-process mitigation activities are performed second in time after said procurement and development assessment sub-process.

5. The storage medium of claim 3, wherein said performing a supply liability reduction process further includes:

a sales activities sub-process including mitigation activities, said sales activities sub-process mitigation activities representing a magnitude of liability less than that of said liability council assessment sub-process;

wherein said sales activities sub-process mitigation activities are performed third in time after said liability council assessment sub-process.

6. The storage medium of claim 3, wherein said performing a supply liability reduction process further includes:

a liability write off sub-process including mitigation activities, said liability write off sub-process mitigation activities representing a magnitude of liability less than that of said sales activities;

wherein said liability write off sub-process mitigation activities are performed fourth in time after said sales activities sub-process.

7. The storage medium of claim 3, wherein said procurement and development assessment sub-process mitigation activities comprise at least one of:

rebalancing demand and supply by shifting demand or supply from one geography to another;

selling components back to vendors;

negotiating with vendors to eliminate or reduce liability based upon mutually agreed to incentives that provide incremental value to both parties;

using excess components as field parts in support of a warranty program or servicing requirements;

qualifying excess components in new products; and

adjusting said sales forecast to account for excess or constrained components.

8. The storage medium of claim 4, wherein said liability council assessment mitigation activities comprise at least one of:

updating said sales forecast to account for excess or constrained components;

conducting squared sets analysis;

brokering components or products that are no longer saleable;

creating saleable bundles with other current offerings;

developing option packages;

determining alternative routes to market; and

making liability write-off determinations.

9. The storage medium of claim 5, wherein said sales activities sub-process mitigation activities sub-process comprise at least one of:

developing a promotion for long-term over supply through advertisements and communications media;

offering a solution via alternate routes to market;

authorizing pricing actions comprising at least one of;

price decreases;

discount incentives; and

pricing delegations;

establishing incentives for buying or selling;

reassessing commission structures for an offering; and

updating telesales team scripts for inbound and outbound telephone calls.

10. The storage medium of claim 6, wherein said liability write off mitigation activities comprise at least one of:

negotiating with a vendor; and

scrapping components associated with said liability.

11. The storage medium of claim 3, wherein said sales activities include:

cross-sell;

up-sell;

alternative-sell; and

down-sell.