Inventory management system for reducing overall warehouse and pipeline inventory

• US 7,016,764 B2
• Filed: 03/11/2003
• Issued: 03/21/2006
• Est. Priority Date: 03/11/2002
• Status: Active Grant

• Current Assignee: United Parcel Service Of America Incorporated (United Parcel Service Incorporated)
• Original Assignee: United Parcel Service Of America Incorporated (United Parcel Service Incorporated)
• Inventors: Johnson, Michael D., Hanlon, Larry A., Castagno, Tony R., Reulbach, Raymond A., Penkar, Rajan C., Jones, Gina L.
• Primary Examiner(s): Crawford, Gene O.
• Application Number:
  US10/387,154
• Publication Number:
  US 20030200006A1
• Time in Patent Office: 1,106 Days
• Field of Search: 700/213, 700/214, 700/216, 700/219, 700/95, 700/99, 235/375, 235/385, 705/28, 705/29
• US Class Current: 700/214
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

A computer system for use in reducing overall pipeline inventory within a distribution network that includes a central warehouse that is: (1) adjacent a transportation hub; and (2) configured to store sufficient component parts to provide a regular stream of parts to each of a plurality of manufacturing facilities. The computer system is preferably configured for coordinating the transportation of a regular stream of parts to each of the manufacturing facilities by transporting component parts from the central warehouse to the manufacturing facilities primarily via an expedited delivery service performed using the transportation hub. The expedited delivery service may include, for example, guaranteed delivery within one or two days. This reduces the overall pipeline and warehouse inventory within the distribution network by reducing the average transit time for each part, and by reducing the amount of safety stock that is needed to support the operations of the manufacturing facilities.

Claims

1. A method of distributing parts, said method comprising the steps of:

providing a central warehouse adjacent a transportation hub;

maintaining sufficient parts within said central warehouse to provide a regular stream of parts to each of a plurality of manufacturing facilities;

providing a regular stream of parts to each of said manufacturing facilities by transporting component parts from said central warehouse to each of said manufacturing facilities primarily via an expedited delivery service performed using said transportation hub, said step of providing said regular stream of parts comprising transporting a particular part from said central warehouse to a particular one of said manufacturing facilities; and

after said particular part has been assembled into a finished product a said particular manufacturing facility, transporting said finished product back to said central warehouse via said transportation hub.

2. The method of claim 1, wherein said expedited delivery service includes guaranteed delivery within two days.

3. The method of claim 1, wherein said expedited delivery service includes guaranteed delivery within one day.

4. The method of claim 1, wherein said expedited delivery service comprises air delivery.

5. The method of claim 1, wherein said regular stream of parts is sufficient to supply at least one of said manufacturing facilities with at least about sixty percent of said manufacturing facility'"'"'s needed supply of a particular kind of component part.

6. The method of claim 1, wherein said regular stream of parts is sufficient to supply at least one of said manufacturing facilities with at least about eighty percent of said manufacturing facility'"'"'s needed supply of a particular kind of component part.

7. The method of claim 1, wherein said transportation hub is an air hub.

8. The method of claim 1, wherein said transportation hub is a ground hub.

9. The method of claim 1, wherein said central warehouse is used to supply a regular stream of parts to each manufacturing facility within a nationwide network of manufacturing facilities.

10. The method of claim 1, further comprising the step of, after transporting said finished product back to said central warehouse via said transportation hub, sending said finished product to a customer via said transportation hub.

11. The method of claim 1, further comprising the step of, after transporting said finished product back to said central warehouse, performing a value added service on said finished product at said central warehouse.

12. The method of claim 11, wherein said value added service is labeling said product.

13. The method of claim 11, wherein said value added service is assembling said finished product into a kit.

14. A method of distributing parts, said method comprising the steps of:

providing a central warehouse adjacent a transportation hub;

maintaining sufficient parts within said central warehouse to provide a regular stream of parts to each of a plurality of manufacturing facilities;

providing a regular stream of parts to each of said manufacturing facilities by transporting component parts from said central warehouse to each of said manufacturing facilities primarily via an expedited delivery service performed using said transportation hub, wherein;

said component parts comprise one or more electronic components; and

said method further comprises the step of loading software onto said one or more electronic components at said central warehouse.

15. The method of claim 14, said one or more electronic components comprise one or more computer chips.

16. The method of claim 14, wherein said expedited delivery service includes guaranteed delivery within two days.

17. The method of claim 14, wherein said expedited delivery service includes guaranteed delivery within one day.

18. The method of claim 14, wherein said expedited delivery service comprises air delivery.

19. The method of claim 14, wherein said regular stream of parts is sufficient to supply at least one of said manufacturing facilities with at least about sixty percent of said manufacturing facility'"'"'s needed supply of a particular kind of component part.

20. The method of claim 14, wherein said regular stream of parts is sufficient to supply at least one of said manufacturing facilities with at least about eighty percent of said manufacturing facility'"'"'s needed supply of a particular kind of component part.

21. The method of claim 14, wherein said transportation hub is an air hub.

22. The method of claim 14, wherein said transportation hub is a ground hub.

23. The method of claim 14, wherein said central warehouse is used to supply a regular stream of parts to each manufacturing facility within a nationwide network of manufacturing facilities.

24. The method of claim 14, wherein said one or more electronic components comprises a plurality of electronic components.

25. The method of claim 14, further including the step of assigning at least a particular one of said electronic components a part number in response to said step of loading software onto said particular one of said electronic components.

26. The method of claim 25, wherein said part number indicates the functionality of said particular one of said electronic components.

27. The method of claim 14, wherein said method further comprises the steps of:

assigning a first part number to a particular one of said one or more electronic components;

updating a database to associate said first part number with said particular electronic component;

receiving an indication that software has been loaded onto said particular electronic component;

in response to receiving said indication, assigning a second part number to said particular electronic component; and

updating a database to associate said second part number with said particular electronic component.

28. The method of claim 27, wherein said method further comprises maintaining a history of one or more part numbers that were formally associated with said particular electronic component.

29. The method of claim 27, wherein said method further comprises maintaining a history of substantially all part number that have been associated with said particular electronic component since said particular electronic component entered said central warehouse.