System and method for effectuating the creation and management of customer pick-up/backhaul programs between buyers and sellers in a supply community

• US 7,467,091 B2
• Filed: 03/22/2004
• Issued: 12/16/2008
• Est. Priority Date: 03/22/2004
• Status: Expired due to Fees

• Current Assignee: IGIT Enterprises Incorporated
• Original Assignee: IGIT Enterprises Incorporated
• Inventors: Irwin, Charles F.
• Primary Examiner(s): Hayes; John W
• Assistant Examiner(s): Saliard; Shannon S
• Application Number:
  US10/805,512
• Publication Number:
  US 20050209869A1
• Time in Patent Office: 1,730 Days
• Field of Search: 705/1
• US Class Current: 705/330
• 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 10/0835 Relationships between shipper or supplier and carriers
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems

Abstract

A business method and system that effectuates collaboration on Customer Pick-UP (CPU) between one or many buyers (customers) and sellers (suppliers) in a supply community. The method and system have particular utility in markets where the standard terms of sale are Destination Delivered. The method and system enables sellers to create, configure and maintain seller-specific CPU programs having at least one strategy option and at least one CPU allowance unit rate structure option which can be contemporaneously accessed by buyers to identify potential CPU opportunities and then submit a CPU proposal/request, each based on a single CPU strategy option, to one or more sellers, wherein the CPU proposal/request is a collaboration invitation, a supply bid or a request for a lane allowance quotation structured to facilitate structured to facilitate the agreement of a mutually acceptable CPU allowance unit rate consistent with the selected CPU strategy option. The system includes an internet-based program tool within which the seller can specify the rules used to select the most appropriate CPU allowance unit rate structure option for calculating the CPU shipment allowance and the seller can utilize a gainshare module to pay the buyer the agreed CPU allowance for any CPU shipments.

Claims

1. A computer program product comprising a computer readable medium having computer readable program code embodied thereon and configured to control a computer to perform the method of:

a seller creating a customer pick-up program by selecting at least one customer pick-up program strategy option, selecting at least one customer pick-up program allowance unit rate structure option, and selecting decision rules by which a customer pick-up program allowance unit rate structure option is selected to determine a customer pick-up program allowance for a single shipment, wherein the step of seller creating a customer pick-up program comprises entering attribute data including customer pick-up program strategy, policy, procedures, and shipping location profiles

the seller providing information for at least one seller shipping location;

a buyer selecting one of the at least one customer pick-up program strategy options selected by the seller and submitting a customer pick-up program proposal and request to the seller, wherein the customer pick-up program proposal and request is determined based on the selected program strategy option;

the buyer and seller selecting a determined customer pick-up allowance unit rate and at least one customer pick-up program allowance unit rate structure option for each customer pick-up program allowance; and

determining the customer pick-up program allowance for a specific shipment using the selected customer pick-up allowance unit rate structure option,

wherein the customer pick-up (CPU) allowance for the specific shipment is determined by the formulae;

$\mathrm{CPU}<br><br><br><br>\mathrm{Allowance}<br><br><br><br>\mathrm{Unit}<br><br><br><br>\mathrm{Rate}<br><br><br><br>\left(\$/\mathrm{UOM}\right)=\frac{\begin{array}{c}\left(\mathrm{Gainshare}<br><br><br><br>\mathrm{Allocation}<br><br><br><br>\mathrm{Factor}\right)\times <br><br>\{\left(\mathrm{Scaling}<br><br><br><br>\mathrm{Factor}\right)\times <br><br>\\ \left[\left(\mathrm{Line}<br><br><br><br>\mathrm{Haul}<br><br><br><br>\mathrm{Cost}\right)+\left(\mathrm{Fuel}<br><br><br><br>\mathrm{Adjustment}<br><br><br><br>\mathrm{Term}\right)\right]+\mathrm{Accessorials}\}\end{array}}{\left(\mathrm{Standard}<br><br><br><br>\mathrm{No}.<br><br>\mathrm{of}<br><br><br><br>\mathrm{Units}\right)}$ $\mathrm{CPU}<br><br><br><br>\mathrm{Allowance}<br><br><br><br>\left(\$\right)=\left(\mathrm{Performance}<br><br><br><br>\mathrm{Factor}\right)\times <br><br>\hspace{1em}<br><br>\left[\left(\mathrm{CPU}<br><br><br><br>\mathrm{Allowance}<br><br><br><br>\mathrm{Unit}<br><br><br><br>\mathrm{Rate}\right)\times <br><br>\left(\mathrm{No}.<br><br>\mathrm{of}<br><br><br><br>\mathrm{Units}<br><br><br><br>\mathrm{on}<br><br><br><br>\mathrm{Shipment}\right)\right]<br><br>.$

2. The computer program product as claimed in claim 1 wherein the at least one customer pick-up program strategy option selected by the seller is from the group of options including collaborative gainsharing, for-hire transportation provider, and customer pick-up customer options.

3. The computer program product as claimed in claim 2 wherein the collaborative gainsharing customer pick-up program strategy option comprises a gainshare allocation factor by which a net cost savings is allocated between the partners, the net cost savings being within the range of 0% with no allocation to the buyer and 100% with a total allocation to the buyer.

4. The computer program product as claimed in claim 2 wherein payment of the customer pick-up allowance is effected using an option selected from the group of options including an off-invoice line item credit in an amount corresponding to the customer pick-up program allowance, a freight bill in an amount corresponding to the customer pick-up program allowance and use of a gainshare module to credit the buyer and debit the seller in the amount of the customer pick-up allowance.

5. The computer program product as claimed in claim 1 wherein the at least one customer pick-up program allowance unit rate structure option is selected by the seller from a group of options including hundredweight basis ($/cwt), cube basis ($/cubic feet), pallet basis ($/pallet count), flat rate per purchase order basis ($/purchase order), flat rate per shipment basis ($/shipment), and percentage of invoice basis (% of invoice $ value).

6. The computer program product as claimed in claim 1 wherein a single decision rule is used to select the just one customer pick-up program allowance unit rate structure to be applied to a single shipment, the decision rule being selected from the group including a default option specified by seller and buyer, an option that maximizes the customer pick-up program allowance, the an option that minimizes the customer pick-up program allowance, and a flat rate option.

7. The computer program product as claimed in claim 1 wherein the buyer identifies potential customer pick-up program opportunities by using criteria options selected from the group of criteria options including customer pick-up program strategy, policy, procedures, customer pick-up allowance formulae, shipping location and profiles, and shipment volume and volatility.

8. The computer program product as claimed in claim 1 wherein payment of the customer pick-up program allowance from seller to buyer is approved by using an option selected from the group of options including a manual review and approval by the seller of each customer pick-up program allowance and a systematic and automatic approval of each customer pick-up program allowance.

9. The computer program product as claimed in claim 1 wherein the buyer submits a customer pick-up program proposal and request to more than one customer pick-up program sponsor to consolidate more than one order on a single shipment and thereby pick up less then full truckload orders at more than one location.

10. The computer program product as claimed in claim 1 wherein the customer pick-up program allowance unit rate comprises a line haul charge component that is from time to time updated for changes in a fuel adjustment term as specified by the seller.

11. The computer program product as claimed in claim 1 wherein the buyer and seller are within the same corporate entity.

12. The computer program product as claimed in claim 1 wherein the buyer reviews the customer pick-up program and location information to identify sellers and seller shipping locations that may be potential customer pick-up program opportunities.

13. The computer program product as claimed in claim 1 wherein the scaling factor is between 0 and any positive number.

14. The computer program product as claimed in claim 1 wherein the performance factor is between 0 and any positive number.

15. The computer program product as claimed in claim 1 wherein the fuel adjustment term is less than 0, greater than 0, and 0.

16. The computer program product as claimed in claim 1 wherein the accessorials is less than 0, greater than 0, and 0.

17. The computer program product as claimed in claim 1 wherein the buyer submits a customer pick-up program and request to seller.