Global procurement bypass shutdown process and method

• US 7,617,153 B1
• Filed: 12/19/2002
• Issued: 11/10/2009
• Est. Priority Date: 08/02/2002
• Status: Expired due to Fees

• Current Assignee: Liberty Peak Ventures, LLC (Dominion Harbor Enterprises, LLC)
• Original Assignee: American Express Travel Related Services Company, Inc. (American Express Company)
• Inventors: Rusch, Mark Allen, Poolamanna, Vinod V., Paula, Aparecida de Araujo, Narasimhan, Sreepriya Chitra, Meyers, Janice A., Lipinski, Matthew Edmund, Helms, Susan Lynn, Vitale, Salvatore, Feiner, Susan L., Streit, Michael R., Faulkner, Derek B., Schnieders, Manfred, Kenny, Maureen Cecelia
• Primary Examiner(s): Poinvil, Frantzy
• Assistant Examiner(s): GRAHAM, CLEMENT B
• Application Number:
  US10/325,404
• Time in Patent Office: 2,518 Days
• Field of Search: 705 35- 44, 705/22, 705/28
• US Class Current: 705/40
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

The present invention provides a bypass shutdown process and method to implement change across an organization to help ensure that the procurement of goods and services is done through specifically approved suppliers, and according to appropriate procurement procedures. In a preferred embodiment, the bypass shutdown process and method comprises the steps of determining whether an invoice is from an approved supplier; determining whether the invoice relates to a targeted commodity; determining whether the related purchase was transacted prior to commodity roll-out; determining whether the transaction is exempt from penalty assessment; determining whether the purchaser previously submitted a bypass invoice; recording said invoice in a selected database; determining whether the purchaser has exceeded a penalty threshold level of non-compliance; generating a warning communication regarding an organization bypass process initiative and sending the warning communication to the purchaser; and assessing a penalty to the purchaser, or purchaser'"'"'s business unit, cost center, department, division, or any other sub-unit of an organization, upon exceeding the penalty threshold.

Claims

1. A computer-readable medium having stored thereon sequences of instructions, the sequences of instructions including instructions which when executed by a computer system causes the computer system to perform:

recording, in the memory, data representing an approved supplier list, an approved commodity list, a time of a roll-out of a targeted commodity, a total number of non-compliant transactions approved by an approver, and a predetermined penalty threshold based on a number of non-compliant purchase transactions approved by the approver;

receiving an invoice for payment of a purchase transaction including a supplier identifier, a commodity identifier, and a time of the purchase transaction, the purchase transaction being approved by the approver;

comparing the supplier identifier with the approved supplier list;

comparing the commodity identifier with the approved commodity list;

comparing the time of transaction with the time of the roll-out of the targeted commodity;

comparing the total number of non-compliant transactions approved by the approver to the predetermined penalty threshold;

determining, based on the comparing of the supplier identifier, whether the invoice is from an approved supplier listed on the approved supplier list;

determining, based on the comparing of the commodity identifier, whether the invoice relates to the targeted commodity listed on the approved commodity list;

determining, based on the comparing of the time of the purchase transaction, whether the purchase transaction was conducted prior to the roll-out of the targeted commodity;

determining, based on the comparing of the total number of non-compliant transactions, whether the predetermined penalty threshold has been exceeded; and

if;

(1) the invoice is not from an approved supplier listed on the approved supplier list,

(2) the invoice relates to the targeted commodity listed on the approved commodity list,

(3) the purchase transaction was conducted subsequent to the roll-out of the targeted commodity, and

(4) the penalty threshold has been exceeded;

generating a penalty notification; and

transmitting the penalty notification to at least one of the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit via a communication network.

2. The computer-readable medium of claim 1, wherein the method further comprises routing the received invoice for payment processing.

3. The computer-readable medium of claim 1, wherein the received invoice relates to the purchase of indirect goods.

4. The computer-readable medium of claim 1, wherein the penalty notification is associated with a financial penalty assessment.

5. The computer-readable medium of claim 1, wherein the penalty notification is neither generated nor transmitted if at least one of a supplier associated with the supplier identifier, the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit are on an exemption list.

6. The computer-readable medium of claim 1, wherein the received invoice is in electronic form or paper form.

7. An apparatus comprising a processor and a memory storing a program executable by the processor, wherein the program includes computer code for implementing a method for assessing a penalty in a procurement system, the method comprising:

recording, in the memory, data representing an approved supplier list, an approved commodity list, a time of a roll-out of a targeted commodity, a total number of non-compliant transactions approved by an approver, and a predetermined penalty threshold based on a number of non-compliant purchase transactions approved by the approver;

receiving an invoice for payment of a purchase transaction including a supplier identifier, a commodity identifier, and a time of the purchase transaction, the purchase transaction being approved by the approver;

comparing the supplier identifier with the approved supplier list;

comparing the commodity identifier with the approved commodity list;

comparing the time of transaction with the time of the roll-out of the targeted commodity;

comparing the total number of non-compliant transactions approved by the approver to the predetermined penalty threshold;

determining, based on the comparing of the supplier identifier, whether the invoice is from an approved supplier listed on the approved supplier list;

determining, based on the comparing of the commodity identifier, whether the invoice relates to the targeted commodity listed on the approved commodity list;

determining, based on the comparing of the time of the purchase transaction, whether the purchase transaction was conducted prior to the roll-out of the targeted commodity;

determining, based on the comparing of the total number of non-compliant transactions, whether the predetermined penalty threshold has been exceeded; and

if;

(1) the invoice is not from an approved supplier listed on the approved supplier list,

(2) the invoice relates to the targeted commodity listed on the approved commodity list,

(3) the purchase transaction was conducted subsequent to the roll-out of the targeted commodity, and

(4) the penalty threshold has been exceeded;

generating a penalty notification; and

transmitting the penalty notification to at least one of the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit via a communication network.

8. The apparatus of claim 7, wherein the method further comprises routing the received invoice for payment processing.

9. The apparatus of claim 7, wherein the received invoice relates to the purchase of indirect goods.

10. The apparatus of claim 7, wherein the penalty notification is associated with a financial penalty assessment.

11. The apparatus of claim 7, wherein the penalty notification is neither generated nor transmitted if at least one of a supplier associated with the supplier identifier, the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit are on an exemption list.

12. The apparatus of claim 7, wherein the received invoice is in electronic form or paper form.

13. The apparatus of claim 7, wherein the targeted commodity is at least one of a commercial print, technologies hardware, temporary agencies, information technology consulting, information technology contractors, software products, office supplies, out-sourced services, database management, and telecommunication services and infrastructure.

14. An apparatus comprising a processor and a memory storing a program executable by the processor, wherein the program includes computer code for implementing a method for eliminating bypass spending in an organization, the method comprising:

recording, in the memory, data representing an approved supplier list, an approved commodity list, a time of a roll-out of a targeted commodity, a total number of non-compliant transactions approved by an approver, and a predetermined penalty threshold based on a number of non-compliant purchase transactions approved by the approver;

receiving an invoice for payment of a purchase transaction including a supplier identifier, a commodity identifier, and a time of the purchase transaction, the purchase transaction being approved by the approver;

comparing the supplier identifier with the approved supplier list;

comparing the commodity identifier with the approved commodity list;

comparing the time of transaction with the time of the roll-out of the targeted commodity;

comparing the total number of non-compliant transactions approved by the approver to the predetermined penalty threshold;

determining, based on the comparing of the supplier identifier, whether the invoice is from an approved supplier listed on the approved supplier list;

recording the invoice in a database;

determining, based on the comparing of the commodity identifier, whether the invoice involves the targeted commodity listed on the approved commodity list;

determining, based on the comparing of the time of the purchase transaction, whether the purchase transaction was conducted prior to the roll-out of the targeted commodity;

determining, based on the comparing of the total number of non-compliant transactions, whether the approver has previously approved a non-compliant transaction and whether the predetermined penalty threshold has been exceeded;

if the approver has not previously approved a non-compliant transaction or the penalty threshold has not been exceeded;

generating a warning communication regarding a bypass process initiative and sending the warning communication to the approver via a communication network; and

if (1) the invoice is not from an approved supplier listed on the approved supplier list,

(2) the invoice relates to the targeted commodity listed on the approved commodity list,

(3) the purchase transaction was conducted subsequent to the roll-out of the targeted commodity,

(4) the approver has previously approved a non-compliant transaction, and

(5) the penalty threshold has been exceeded;

generating a penalty notification, and

transmitting the penalty notification to the approver via the communication network.

15. The apparatus of claim 14, wherein the method further comprises routing the received invoice for payment processing.

16. The apparatus of claim 14, wherein the received invoice relates to a purchase of indirect goods.

17. The apparatus of claim 14, wherein at least one of the warning communication and the penalty notification is further transmitted to at least one of a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit via the communication network.

18. The apparatus of claim 14, wherein the penalty notification is associated with a financial penalty assessment.

19. The apparatus of claim 14, wherein the penalty notification is neither generated nor transmitted if at least one of a supplier associated with the supplier identifier, the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit are on an exemption list.

20. The apparatus of claim 14, wherein the received invoice is in at least one of electronic form and a paper form.

21. An apparatus comprising a processor and a memory storing a program executable by the processor, wherein the program includes computer code for implementing a method for eliminating bypass spending in an organization, the method comprising:

recording, in the memory, data representing an approved supplier list, an approved commodity list, a time of a roll-out of a targeted commodity, a total number of non-compliant transactions approved by an approver, and a predetermined penalty threshold based on a number of non-compliant purchase transactions approved by the approver;

receiving an invoice for payment of a purchase transaction including a supplier identifier, a commodity identifier, and a time of the purchase transaction, the purchase transaction being approved by the approver;

comparing the supplier identifier with the approved supplier list;

comparing the commodity identifier with the approved commodity list;

comparing the time of transaction with the time of the roll-out of the targeted commodity;

comparing the total number of non-compliant transactions approved by the approver to the predetermined penalty threshold;

determining, based on the comparing of the supplier identifier, whether the invoice is from an approved supplier listed on the approved supplier list;

determining, based on the comparing of the commodity identifier, whether the invoice relates to the a targeted commodity listed on the approved commodity list;

determining, based on the comparing of the time of the purchase transaction, whether the purchase transaction was conducted prior to the roll-out of the targeted commodity;

recording the invoice in a selected database;

determining, based on the comparing of the total number of non-compliant transactions, whether the approver has previously approved a non-compliant transaction and whether the predetermined penalty threshold has been exceeded; and

if (1) the invoice is not from an approved supplier listed on the approved supplier list,

(2) the invoice relates to the targeted commodity listed on the approved commodity list,

(3) the purchase transaction was conducted subsequent to the roll-out of the targeted commodity, and

(4) the penalty threshold has been exceeded;

generating a penalty notification, and

transmitting the penalty notification to the approver via a communication network.

22. The apparatus of claim 21, wherein the method further comprises routing the received invoice for payment processing.

23. The apparatus of claim 21, wherein the received invoice relates to a purchase of indirect goods.

24. The apparatus of claim 21, wherein the penalty notification is further transmitted to at least one of a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit.

25. The apparatus of claim 21, wherein the penalty notification is associated with a financial penalty assessment.

26. The apparatus of claim 21, wherein the penalty notification is neither generated nor transmitted if at least one of a supplier associated with the supplier identifier, the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit are on an exemption list.

27. The apparatus of claim 21, wherein the received invoice is in at least one of an electronic form and a paper form.

28. The apparatus of claim 21, wherein the targeted commodity is at least one of a commercial print, technologies hardware, temporary agencies, information technology consulting, information technology contractors, software products, office supplies, out-sourced services, database management, and telecommunication services and infrastructure.

29. An apparatus comprising a processor and a memory storing a program executable by the processor, wherein the program includes computer code for implementing a method for assessing a penalty in a procurement system, the method comprising:

recording, in the memory, data representing an approved supplier list, an approved commodity list, a time of a roll-out of a targeted commodity, a total number of non-compliant transactions approved by an approver, and a predetermined penalty threshold based on a number of non-compliant purchase transactions approved by the approver;

receiving an invoice for payment of a purchase transaction including a supplier identifier, a commodity identifier, and a time of the purchase transaction, the purchase transaction being approved by the approver;

comparing the supplier identifier with the approved supplier list;

comparing the commodity identifier with the approved commodity list;

comparing the time of transaction with the time of the roll-out of the targeted commodity;

comparing the total number of non-compliant transactions approved by the approver to the predetermined penalty threshold;

determining, based on the comparing of the supplier identifier, whether the invoice is from an approved supplier listed on the approved supplier list;

determining, based on the comparing of the commodity identifier, whether the invoice relates to the targeted commodity listed on the approved commodity list;

determining, based on the comparing of the time of the purchase transaction, whether the purchase transaction was conducted prior to the roll-out of the targeted commodity;

determining whether the purchase transaction is exempt from penalty assessment;

determining, based on the comparing of the total number of non-compliant transactions, whether the approver has previously approved a non-compliant transaction and whether the predetermined penalty threshold has been exceeded;

if the approver has not previously approved a non-compliant transaction or the penalty threshold has not been exceeded;

generating a warning communication regarding a bypass process initiative and sending the warning communication to the approver via a communication network; and

if (1) the invoice is not from an approved supplier,

(2) the invoice relates to the targeted commodity listed on the approved commodity list,

(3) the purchase transaction was conducted subsequent to the roll-out of the targeted commodity,

(4) the approver has previously approved a non-compliant transaction,

(5) the purchase transaction is not exempt from penalty assessment, and

(6) the penalty threshold has been exceeded;

generating a penalty notification, and

transmitting the penalty notification to the approver via the communication network.

30. The apparatus of claim 29, wherein the method further comprises:

recording the invoice in a selected database if the supplier is not an approved supplier listed on the approved supplier list; and

routing the invoice for payment processing.

31. The apparatus of claim 29, wherein the received invoice relates to a purchase of indirect goods.

32. The apparatus of claim 29, wherein the approver is at least one of an individual, an employee, an approver'"'"'s business unit, a cost center, a department, a division, and an approving organization sub-unit.

33. The apparatus of claim 29, wherein the penalty notification is associated with a financial penalty assessment.

34. The apparatus of claim 29, wherein the penalty notification is neither generated nor transmitted if at least one of a supplier associated with the supplier identifier, the approver, a business unit of the approver, a cost center, a department, a division, and an approving organization sub-unit are on an exemption list.

35. The apparatus of claim 29, wherein the targeted commodity is at least one of commercial print, technologies hardware, temporary agencies, information technology consulting, information technology contractors, software products, office supplies, out-sourced services, database management, and telecommunication services and infrastructure.