Computer-implemented method and system for allocating customer demand to suppliers

• US 7,831,463 B2
• Filed: 09/07/2004
• Issued: 11/09/2010
• Est. Priority Date: 09/07/2004
• Status: Active Grant

• Current Assignee: SAP SE
• Original Assignee: SAP AG (SAP SE)
• Inventors: Nagar, Amit
• Primary Examiner(s): Jarrett; Scott L
• Assistant Examiner(s): WALKER III, GEORGE H
• Application Number:
  US10/934,468
• Publication Number:
  US 20060053063A1
• Time in Patent Office: 2,254 Days
• Field of Search: 705/11
• US Class Current: 705/7.38
• CPC Class Codes: G06Q 10/04 Forecasting or optimisation specially adapted for administrative or management purposes, e.g. linear programming or "cutting stock problem" market predictions or forecasting for commercial activities G06Q30/0202
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/0639 Performance analysis of employees; Performance analysis of enterprise or organisation operations
• CPC Class Codes: G06Q 30/0282 Rating or review of business operators or products
• CPC Class Codes: G06Q 30/0623 Item investigation

Abstract

Systems and methods consistent with the present invention provide a supplier performance measurement that uses historical data combined from disparate data sources to evaluate suppliers and rank the suppliers according to key performance indicators or attributes. The supplier rankings are used in a qualitative model to allocate customer demand to the suppliers based upon the supplier rankings and other factors.

Claims

1. A computer-implemented method for allocating customer demand to suppliers in a procurement process, the method comprising:

identifying at least two supplier performance attributes;

associating a weight with each pair of supplier performance attributes;

determining an overall importance value for each of the at least two supplier performance attributes based on the weights for each pair of supplier performance attributes;

determining, using a computer, a supplier ranking value for each supplier based on overall importance values of the at least two supplier performance attributes and supplier performance information for each supplier, the supplier performance information comprising data describing the supplier'"'"'s performance in each of the at least two supplier performance attributes; and

allocating, using the computer, customer demand to the suppliers by utilizing a quantitative model based upon the supplier ranking values and their performance data,

wherein the quantitative model is determined by the function

2. The method of claim 1, wherein the supplier performance information is based upon historical data.

3. The method of claim 1, wherein the at least two supplier performance attributes comprise two or more of procurement cost, quality, lead time, and past performance.

4. The method of claim 1, wherein determining an overall importance value includes normalizing the overall importance value.

5. The method of claim 4, wherein determining a supplier ranking includes normalizing the supplier ranking value.

6. The method of claim 5, wherein the supplier ranking is determined by the function:

R_supplier=(A₁*B₁+A₂*B₂+ . . . +A_i*B_i);

wherein R_supplier is the supplier rank, A_i is an i_th normalized attribute ranking value for each attribute associated with each supplier, and B_i is an i_th overall importance value.

7. A computer-implemented system for allocating customer demand to suppliers in a procurement process, the system comprising:

a supplier database having data associated with each supplier; and

a computer having an analysis tool identifying at least two supplier performance attributes, associating a weight with each pair of supplier performance attributes, determining an overall importance value for each of the at least two supplier performance attributes based on the weights for each pair of supplier performance attributes, and a supplier ranking for each supplier based upon overall importance values of the at least two supplier performance attributes and supplier performance information for each supplier, the supplier performance information comprising data describing the supplier'"'"'s performance in each of the at least two supplier performance attributes; and

wherein the analysis tool uses a quantitative model to allocate customer demand to the suppliers based upon the supplier ranking values and their performance data,

wherein the quantitative model is determined by the function

8. The system of claim 7, wherein the supplier database contains historical data of the suppliers.

9. The system of claim 7, wherein the attributes include procurement cost, quality, lead time, and past performance.

10. The system of claim 7, wherein the importance values include numbers between 0-9.

11. The system of claim 10, wherein the importance values for each attribute are normalized.

12. The system of claim 11, wherein the attribute ranking values are normalized.

13. The system of claim 12, wherein the supplier ranking is determined by the function:

;

R_supplier=(A₁*B₁+A₂*B₂+ . . . *B_i);

wherein R_supplier is the supplier rank, A_i is an i_th normalized attribute ranking value for each attribute associated with each supplier, and B_i is an i_th overall importance value.

14. A computer-implemented system for allocating customer demand to suppliers in a procurement process, the system comprising:

means for having data associated with each supplier; and

means for identifying at least two supplier performance attributes, associating a weight with each pair of supplier performance attributes, determining an overall importance value for each of the at least two supplier performance attributes based on the weights for each pair of supplier performance attributes, and a supplier ranking for each supplier based upon overall importance values of the at least two supplier performance attributes and supplier performance information for each supplier, the supplier performance information comprising data describing the supplier'"'"'s performance in each of the at least two supplier performance attributes; and

;

wherein the means for determining uses a quantitative model for allocating customer demand to the suppliers based upon the supplier ranking values and their performance data,

wherein the quantitative model is determined by the function

15. A non-transitory computer readable medium containing instructions for controlling a computer system to perform a method for allocating customer demand to suppliers in a procurement process, the computer system having a processor for executing the instructions, the method comprising:

identifying at least two supplier performance attributes;

associating a weight with each pair of supplier performance attributes;

determining an overall importance value for each of the at least two supplier performance attributes based on the weights for each pair of supplier performance attributes;

determining a supplier ranking value for each supplier based on the overall importance values and supplier performance information for each supplier, the supplier performance information comprising data describing the supplier'"'"'s performance in each of the at least two supplier performance attributes; and

allocating customer demand to the suppliers based upon the supplier ranking values and their performance data,

wherein the quantitative model is determined by the function