System and method for creating a spot market

• US 8,380,608 B2
• Filed: 02/15/2001
• Issued: 02/19/2013
• Est. Priority Date: 02/15/2001
• Status: Active Grant

• Current Assignee: Ariba Incorporated (SAP SE)
• Original Assignee: Ariba Incorporated (SAP SE)
• Inventors: Stevens, Robert G.
• Primary Examiner(s): TINKLER, MURIEL S
• Application Number:
  US09/783,746
• Publication Number:
  US 20020111894A1
• Time in Patent Office: 4,387 Days
• Field of Search: 705/26, 705/36, 705/37
• US Class Current: 705/37
• CPC Class Codes: G06Q 30/08 Auctions
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

A system and method for soliciting and receiving bids for goods or services necessary to satisfy a spot need of a buyer. The system receives a request to procure goods or services that are required to satisfy the spot need of the buyer. The request includes information identifying the type of goods or services being procured by the buyer. Next, the system automatically selects a plurality of suppliers to invite to the on-line auction by querying a supplier database with information from the request. The supplier database includes records identifying suppliers capable of supplying a plurality of different goods and services to a spot marketplace. For each supplier represented in the supplier database, a record is stored in the supplier database, which includes information representing the capabilities of the supplier to deliver at least one good or service. The system automatically invites the suppliers selected from the supplier database to offer bids by sending an electronic communication to each of the selected suppliers. Each of the suppliers is electronically coupled on-line to the spot marketplace. Finally, a winner bidder is selected to satisfy the spot need of the buyer.

Claims

1. A method, comprising:

receiving a request to procure goods or services that are required to satisfy a spot need of a buyer, wherein at least one aspect of the spot need of the buyer is a requirement that the requested goods or services be available for immediate delivery, wherein the request includes information identifying a type of good or service being procured by the buyer, and wherein the request includes geographic information;

querying, using a processor, a database of information representing the capabilities of suppliers to deliver goods and services to geographic areas and automatically selecting as potential bidders for an auction those suppliers whose capabilities satisfy at least a portion of the request;

electronically notifying each of the potential bidders of an opportunity to submit a bid to satisfy all or part of the buyer'"'"'s purchase request;

conducting the auction that includes electronically accepting bids from those potential bidders that each provide one or more bids before a bidding deadline expires and not accepting the bids after the bidding deadline expires; and

automatically selecting one or more winning bidders in accordance with the received bids.

2. The method of claim 1, wherein automatically selecting, electronically notifying, electronically accepting and selecting a winning bidder are completed within the same business day of receipt of the request.

3. The method of claim 1, wherein automatically selecting, electronically notifying, electronically accepting and selecting one or more winning bidders are completed within 24 hours of receipt of the request.

4. The method of claim 1, wherein automatically selecting, electronically notifying, electronically accepting and selecting one or more winning bidders are completed within a predefined amount of hours of receipt of the request.

5. The method of claim 1, wherein the electronically notifying further comprises posting a message on an electronic message board.

6. The method of claim 1, wherein the electronically notifying further comprises sending an electronic mail message to each of the selected bidders.

7. The method of claim 1, wherein one or more steps in the method are performed by the buyer.

8. The method of claim 1, further comprising posting information about the request on a web page in a spot marketplace.

9. The method of claim 1, further comprising including a bidding time period and the bidding deadline in an electronic communication.

10. The method of claim 1, wherein the electronically notifying further comprises instructing the selected bidders to post bids before the bidding deadline.

11. The method of claim 1, wherein the electronically notifying further comprises instructing the selected bidders to post sealed bids before the bidding deadline.

12. The method of claim 1, wherein the electronically notifying comprises instructing the selected bidders to post partially open bids before the bidding deadline, wherein after a first bid each supplier may revise subsequent bids until the bidding deadline passes.

13. The method of claim 1, wherein the selecting further comprises notifying all bidders who posted bids about their status.

14. The method of claim 1, wherein selecting one or more winning bidders further comprises notifying the one or more winning bidders of an award by electronic communications.

15. A system, comprising:

a supplier database comprising information representing the capabilities of potential suppliers to deliver goods and services to geographic areas; and

a computer in communication with the supplier database and configured to;

receive a request to procure goods or services that are required to satisfy a spot need of a buyer, wherein at least one aspect of the spot need of the buyer is a requirement that the requested goods or services be available for immediate delivery, wherein the request includes information identifying a type of goods or services being procured by the buyer, and wherein the request includes geographic information;

query the database and automatically select as potential bidders for an auction the suppliers whose capabilities satisfy at least a portion of the request;

electronically notify each of the potential bidders of an opportunity to submit a bid to satisfy all or part of the buyer'"'"'s purchase request;

conduct the auction, wherein conducting the auction includes electronically accepting bids from those potential bidders that each provide one or more bids before a bidding deadline expires and not accepting the bids after the bidding deadline expires; and

automatically select one or more winning bidders in accordance with the received bids.

16. The system of claim 15, wherein each of the bidders is electronically coupled to a spot marketplace.

17. A non-transitory computer readable medium comprising instructions which, when executed, cause a computer to:

receive a request to procure goods or services that are required to satisfy a spot need of a buyer, wherein at least one aspect of the spot need of the buyer is a requirement that the requested goods or services be available for immediate delivery, wherein the request includes information identifying a type of good or service being procured by the buyer, and wherein the request includes geographic information;

query a database of information representing the capabilities of suppliers to deliver goods and services to geographic areas and automatically select as potential bidders for an auction those suppliers whose capabilities satisfy at least a portion of the request;

electronically notify each of the potential bidders of an opportunity to submit a bid to satisfy all or part of the buyer'"'"'s purchase request;

conduct the auction that includes electronically accepting bids from those potential bidders that each provide one or more bids before a bidding deadline expires and not accepting the bids after the bidding deadline expires; and

automatically select one or more winning bidders in accordance with the received bids.