System for distribution and control of merchandise

• US 6,547,137 B1
• Filed: 11/28/2000
• Issued: 04/15/2003
• Est. Priority Date: 02/29/2000
• Status: Expired due to Fees

• Current Assignee: York Tape & Label Incorporated (Multi-Color Corporation)
• Original Assignee: BJK Holdings, Inc.
• Inventors: Neff, James M., DeHoff, Mark S., Begelfer, Larry J.
• Primary Examiner(s): LE, THIEN MINH
• Application Number:
  US09/723,947
• Time in Patent Office: 868 Days
• Field of Search: 235/381, 235/375, 235/380, 235/382, 235/322.5, 235/462.01, 235/472.01, 235/385, 235/383, 283/86, 283/7
• US Class Current: 235/385
• CPC Class Codes: G06K 17/0029 the arrangement being specially adapted for wireless interrogation of grouped or bundled articles tagged with wireless record carriers
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management

Abstract

An inventory and tracking system based on a labeling system is disclosed. Labels are provided for affixation to the product or product container. Each label includes, in addition to the standard information associated the product, a hologram associated with the product and a machine readable code. The machine readable code on each unit of product includes at least one set of unique machine readable identifiers that uniquely identifies each product unit. In addition, the hologram can include the trademark of the manufacturer or supplier, to permit the consumer to ascertain at a glance that the product originates from a source of known quality. The label on each unit is scanned before shipment and the destination of each unit of product is entered and stored. As the units of product are distributed through the distribution chain, the units are scanned, the destinations are stored and the information on the destination of the individual units of product are provided to the manufacturer, who maintains a master database that cross-references the machine readable identifier with the location of the product unit in the distribution chain. This master database also provides a historical record of the transit of each unit through the distribution chain. With this information in the master database, the manufacturer can determine the point at which the product entered the stream of commerce and whether or not the product entered the stream of commerce through an authorized source of distribution. Also, the manufacturer can quickly determine from the holographic label whether the product is authentic. The presence or absence of the unique machine readable identifier and hologram can confirm the product'"'"'s authenticity or lack thereof.

Claims

1. A system for tracking items of merchandise through a plurality of locations in a stream of commerce comprising

a database, said database storing identification information on each of said items of merchandise and location information on each of said items of merchandise;

a label attached to each of said items of merchandise, said label including a hologram and a machine readable code having said identification information on said item of merchandise from said database;

means for scanning at each location in said stream of commerce said machine readable code on said label attached to said item of merchandise to obtain said identification information on said item of merchandise;

means for transmitting from each location in said stream of commerce to said database said scanned identification information and location information on said location in said stream of commerce;

means for updating said database to include said transmitted location information on said location in said stream of commerce for said scanned identification information; and

means for tracking said item of merchandise having identification information using said transmitted location information in said database.

2. The system for tracking items of merchandise of claim 1 further comprising means for a purchaser of an item of merchandise having a label with identification information and a hologram from a location in said stream of commerce to authenticate said purchased item of merchandise, said purchased item of merchandise being authentic when said identification information on said label of said purchased item of merchandise corresponds to an entry of said stored identification information in said database.

3. The system for tracking items of merchandise of claim 2 wherein said means for a purchaser to authenticate said purchased item of merchandise further comprises means for the purchaser to transmit over the Internet said identification information on said purchased item of merchandise to said database.

4. The system for tracking items of merchandise of claim 1 further comprising means for authenticating an item of merchandise of unknown origin having a label with identification information and a hologram by comparing said identification information on said label of said item of merchandise of unknown origin with said stored identification information in said database, said item of merchandise of unknown origin being determined as authentic when said identification information on said label of said item of merchandise of unknown origin corresponds to an entry of said stored identification information in said database.

5. The system for tracking items of merchandise of claim 1 further comprising:

said stream of commerce having a number of predetermined locations; and

means for determining an exit point from said stream of commerce for an item of merchandise having a label with identification information and a hologram at a location different from said number of predetermined locations in said stream of commerce by retrieving location information from said database corresponding to said identification information on said item of merchandise at said location different from said number of predetermined, said exit point from said stream of commerce being a most recent predetermined location stored as location information in said database for said corresponding identification information of said item of merchandise.

6. The system for tracking items of merchandise of claim 1 further comprising:

said database storing destination information on each of said items of merchandise, said destination information including locations in said stream of commerce that are to receive said item of merchandise; and

means for analyzing said identification information, location information and said destination information in said database to determine when a location in said stream of commerce has a low inventory of items of merchandise.

7. The system for tracking items of merchandise of claim 1 wherein said hologram on said label includes a trademark of a manufacturer of said item of merchandise.

8. A method for tracking items of merchandise through a plurality of locations in a distribution chain, said method comprising the steps of:

attaching, at an initial location in the distribution chain, a label to each item of merchandise, the label including a hologram and a machine readable code having identification information on the item of merchandise;

scanning, at the initial location, the machine readable code having identification information on the label of each item of merchandise;

recording in a database the scanned identification information on each item of merchandise at the initial location in the distribution chain;

recording for each item of merchandise in the database destination information on a location in the distribution chain to receive the item of merchandise;

scanning at a location in the distribution chain the machine readable code having identification information on the label of each item of merchandise received at the location in the distribution chain;

updating the database with the scanned identification information on each item of merchandise received at the location in the distribution chain to indicate that each item of merchandise received at the location in the distribution chain is located at the location in the distribution chain; and

repeating said steps scanning at a location in the distribution chain and updating the database for each location in the distribution chain to receive an item of merchandise.

9. The method for tracking items of merchandise of claim 8 further comprising the steps of:

assembling a plurality of items of merchandise into a container, the container being configured to hold the plurality of items of merchandise;

attaching a label to said container, the container label including a machine readable code having aggregation information to identify each item of merchandise assembled into the container;

scanning the machine readable code on the container label having aggregation information on each item of merchandise assembled into the container;

recording in the database the aggregation information from the container label to identify the items of merchandise assembled into the container;

scanning at a location in the distribution chain the machine readable code having aggregation information on the container label of the container received at the location in the distribution chain;

updating the database with the scanned aggregation information on each item of merchandise in the container received at the location in the distribution chain to indicate that each item of merchandise in the container received at the location in the distribution chain is located at the location in the distribution chain; and

repeating said steps scanning at a location in the distribution chain the machine readable code having aggregation information and updating the database with the scanned aggregation information for each location in the distribution chain to receive the container.

10. The method for tracking items of merchandise of claim 8 further comprising the steps of:

purchasing, by a purchaser, an item of merchandise having a label including identification information from a location in the distribution chain; and

updating the database to indicate purchase of the item of merchandise having the identification information of the purchased item of merchandise.

11. The method for tracking items of merchandise of claim 10 further comprising the step of analyzing the purchase information in the database to determine the locations in the distribution chain having a low inventory of items of merchandise.

12. The method for tracking items of merchandise of claim 10 further comprising the step of authenticating the purchased item of merchandise by the purchaser.

13. The method for tracking items of merchandise of claim 12 wherein said step of authenticating further comprises the steps of:

submitting to the database the identification information for the purchased item of merchandise;

comparing the submitted identification information for the purchased item of merchandise with the recorded identification information in the database; and

notifying the purchaser that the purchased item of merchandise is authentic upon the submitted identification information corresponding to recorded identification information in the database.

14. The method for tracking items of merchandise of claim 8 further comprising the step of determining an exit point from the distribution chain for an item of merchandise having a label including a hologram and identification information at a location outside of the distribution chain.

15. The method for tracking items of merchandise of claim 14 wherein said step of determining an exit point further comprises the steps of:

obtaining the identification information for the item of merchandise at a location outside of the distribution chain; and

retrieving a final location entry in the database for the obtained identification information for the item of merchandise at a location outside the distribution chain.