Resolving demand and supply imbalances

• US 8,275,677 B2
• Filed: 08/20/2009
• Issued: 09/25/2012
• Est. Priority Date: 09/11/2003
• Status: Expired due to Fees

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Armstrong, Edward W., Eck, Brian T., Henderson, Mark A., Peters, Daniel J., Porter, Howard K., Scheib, Linda L., Szymanowicz, Elizabeth C.
• Primary Examiner(s): Zare, Scott
• Assistant Examiner(s): Crawley, Talia
• Application Number:
  US12/544,337
• Publication Number:
  US 20090313090A1
• Time in Patent Office: 1,132 Days
• Field of Search: 705/19, 705/28, 705/31
• US Class Current: 705/29
• CPC Class Codes: G06F 40/174 Form filling; Merging
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials

Abstract

A storage medium for resolving demand and supply imbalances is provided. The storage medium includes machine-readable computer program code and instructions for causing a computer to implement a method. The method includes identifying an excess component inventory liability or constraint in supply capability for an end product by matching current buying patterns for the end product against inventory liability and supply capability based on a previous demand forecast. Where excess component inventory liability exists, the method includes: refocusing the excess component inventory liability by determining alternative end products that use components identified in the excess component inventory liability; and executing sales activities for enticing sales of the alternative end products. Where constrained supply capability exists, the method includes determining alternative end products that are functionally equivalent to those in the constrained supply capability, and executing sales activities for enticing sales of functionally equivalent alternative end products.

Claims

1. A storage medium comprising machine-readable computer program code for resolving demand and supply imbalances, the storage medium including instructions embodied thereon, which when executed by a computer cause the computer to implement a method, the method comprising:

identifying at least one of excess component inventory liability and constraint in supply capability for an end product by matching current buying patterns for the end product against inventory liability and supply capability based on a previous demand forecast;

reducing supply liability for the at least one of excess component inventory liability and the constraint in supply capability for an end product using a time-phased approach that begins at 100 percent liability assessment and includes a series of mitigation activities performed over time until the supply liability reaches a specified percentage level, the time-phased approach including a procurement and development assessment sub-process, a liability council assessment sub-process, a sales activities sub-process, and a liability write off sub-process, the time-phased approach implementing;

where the excess component inventory liability exists;

refocusing the excess component inventory liability by determining alternative end products that use components identified in the excess component inventory liability; and

executing sales activities operable for enticing sales of the alternative end products; and

where the constrained supply capability exists;

determining alternative end products that are functionally equivalent to those identified in the constrained supply capability; and

executing sales activities operable for enticing sales of functionally equivalent alternative end products;

wherein the sales activities result in one of;

reducing the excess component inventory liability and avoiding the constraint in supply capability.

2. The storage medium of claim 1, wherein the identifying the at least one of the excess component inventory liability and the constraint in supply capability includes:

exploding a bill of materials for a product structure based upon a sales forecast, demand data, and supplier commitment data;

imploding results of the exploding into end products and an available to promise statement;

translating the results into lead times for delivery; and

identifying remaining results not included in the available to promise statement as one of the excess component inventory liability and the constraint in supply capability for an end product.

3. The storage medium of claim 1, wherein the refocusing the excess component inventory liability by determining alternative end products that use components identified in the excess component inventory liability includes performing a supply liability reduction process comprising:

a procurement and development assessment sub-process including mitigation activities, the procurement and development assessment sub-process mitigation activities representing a greatest magnitude of liability;

wherein the procurement and development sub-process mitigation activities are performed first in time before other sub-processes.

4. The storage medium of claim 3, wherein the performing a supply liability reduction process further includes:

performing a liability council assessment sub-process including mitigation activities, the liability council assessment sub-process mitigation activities representing a magnitude of liability less than that of the procurement and development assessment sub-process;

wherein the liability council assessment sub-process mitigation activities are performed second in time after the procurement and development assessment sub-process.

5. The storage medium of claim 3, wherein the performing a supply liability reduction process further includes:

performing a sales activities sub-process including mitigation activities, the sales activities sub-process mitigation activities representing a magnitude of liability less than that of the liability council assessment sub-process;

wherein the sales activities sub-process mitigation activities are performed third in time after the liability council assessment sub-process.

6. The storage medium of claim 3, wherein the performing a supply liability reduction process further includes:

performing a liability write off sub-process including mitigation activities, the liability write off sub-process mitigation activities representing a magnitude of liability less than that of the sales activities;

wherein the liability write off sub-process mitigation activities are performed fourth in time after the sales activities sub-process.

7. The storage medium of claim 3, wherein the procurement and development assessment sub-process mitigation activities comprise at least one of:

rebalancing demand and supply by shifting one of demand and supply from one geography to another;

selling components back to vendors;

using excess components as field parts in support of a warranty program;

qualifying excess components in new products; and

adjusting the sales forecast to account for one of the excess and constrained components.

8. The storage medium of claim 4, wherein the liability council assessment mitigation activities comprise at least one of:

updating the sales forecast to account for one of the excess and constrained components;

conducting squared sets analysis;

brokering components and products that are no longer saleable;

creating saleable bundles with other current offerings;

developing option packages;

determining alternative routes to market; and

making liability write-off determinations.

9. The storage medium of claim 5, wherein the sales activities sub-process mitigation activities sub-process comprise at least one of:

developing a promotion for long-term over supply through advertisements and communications media;

offering a solution via alternate routes to market;

authorizing pricing actions comprising at least one of;

price decreases;

discount incentives; and

pricing delegations;

establishing incentives for buying and selling;

reassessing commission structures for an offering; and

updating telesales team scripts for inbound and outbound telephone calls.

10. The storage medium of claim 6, wherein the liability write off mitigation activities comprise at least one of:

negotiating with a vendor; and

scrapping components associated with the liability.

11. The storage medium of claim 3, wherein the sales activities include:

cross-sell;

up-sell;

alternative-sell; and

down-sell.