4PL system and method

• US 8,408,459 B1
• Filed: 01/13/2006
• Issued: 04/02/2013
• Est. Priority Date: 01/14/2005
• Status: Active Grant

• Current Assignee: Brightpoint Incorporated (HNA Technology Co. Ltd.)
• Original Assignee: Brightpoint Incorporated (HNA Technology Co. Ltd.)
• Inventors: Cox, Ruth Elizabeth Nuckols, Rodriguez, Rebecca Anne Broussard, Miller, Steven W., Alonzo, Bobbie Ann
• Primary Examiner(s): Le, Thien M
• Assistant Examiner(s): JOHNSON, SONJI N
• Application Number:
  US11/306,889
• Time in Patent Office: 2,636 Days
• Field of Search: 235/385, 705/25, 707/200
• US Class Current: 235/385
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/20 Administration of product repair or maintenance

Abstract

System and method for returns management using a fourth-party logistics integrator 201. The system comprises a set of methods for optimizing a reverse logistics system using a fourth-party logistics integrator 201 to manage the entire returns supply chain for various organizations, e.g. 211, 221, and 231. By operating a fourth-party logistics integrator 201 to manage multiple third-party logistics providers, a significant cost savings and efficiency can be created by tracking repair costs individually for serialized products.

Claims

1. A reverse logistics management system for automating different business rules and controls used by processors and agents of a logistics integrator for a plurality of customers and makes and models, for automating inbound and outbound tracking at the order, order line, and serialized unit level, and for providing results, cost and component visibility and service level and performance metrics through reports and client interfaces, comprising:

a return order and repair order status tracking module for processing and tracking a returned product wherein the processing includes inspecting the returned product according to an applicable set of inspection criteria selected from a database of inspection criteria sets to service a plurality of customers and product types with a plurality of processing rules, wherein the return order and repair order status tracking module is configured to automatically determine disposition of the returned product based on inspecting the returned product and based on if the returned product (i) is under warranty, (ii) includes insurance, and (iii) is beyond economic repair;

a repair order module in communication with the return order and repair order status tracking module for facilitating repair and maintaining a repair status database by order, order line and unit;

a distribution and financial module in communication with the return order and repair order status tracking module and the repair order module for processing accounting entries for a plurality of customers according to a plurality of corresponding business rules; and

a data repository and reporting module in communication with one or more of the return order and repair order status tracking module, the repair order module, and the distribution and financial module, operated by the logistics integrator to extract, consolidate and report transaction metrics and event data internally and externally to support process management, claims verification and billing, wherein the logistics integrator comprises a fourth-party logistics enterprise configured to integrate and process information from a plurality of third-party logistics providers.

2. The system of claim 1 comprising inspection criteria from an item master database entry overriding the inspection criteria from the database of inspection criteria.

3. The system of claim 1 wherein the return order and repair order status tracking module further includes maintaining a status database by order, order line and unit.

4. The system of claim 1 wherein the return order and repair status tracking module further includes debit/credit rules for automatically applying appropriate debits or credits to return orders in the distribution and financial module.

5. The system of claim 1 wherein the distribution and financial module further includes transaction processing for sales orders and invoices and for managing inventory data for a plurality of customers and reverse logistics processes.

6. The system of claim 1, wherein the return order and repair order status tracking module further comprises sub-modules for sales order inquiry, return for credit, return for exchange, undeliverable/refused, return not shipped from customer, return disposition, inventory receipt, return authorization order inquiry, electronic serial number inquiry, item inquiry, return authorization hold for credit validation, return to sender, repair order status tracking, and combinations thereof.

7. The system of claim 1, wherein the repair order module further comprises submodules for repair orders, capture of key repair information required by customers, repair order status and disposition data, and combinations thereof.

8. The system of claim 1, wherein the distribution and financial module further comprises sub-modules for sales order processing, inventory management, procurement, customer history, financial accounting, customer credit, price adjustment, and combinations thereof.

9. The system of claim 1, wherein the distribution and financial module communicates to the return order and repair order status tracking module information selected from the group consisting of created and updated item information, created and updated shipping information, sales order information, created and updated customer information, and combinations thereof.

10. The system of claim 1, wherein the return order and repair order status tracking module is in communication with the repair order module to create repair orders and update status and disposition data of returns.

11. The system of claim 1, wherein the repair order module is in communication with the distribution and financial module to create sales orders and line items.

12. The system of claim 1 wherein the logistics integrator coordinates the system based on a product serial number, a return authorization number, or a combination thereof.

13. The system of claim 1, wherein the system comprises a participant model comprising a hub and a plurality of enterprises.

14. The system of claim 13, wherein the enterprises comprise sub-groups selected from buyer, seller, carrier, and combinations thereof.

15. The system of claim 1, wherein the return order and repair order status tracking module arranges to return the returned product to a vendor if the returned product includes a third party warranty.

16. The system of claim 1, wherein the return order and repair order status tracking module arranges to repair the returned product in an in-house repair facility or at a third-party logistics outside repair partner if the returned product is deemed to be repairable and the returned product is covered by insurance.

17. The system of claim 1, wherein the return order and repair order status tracking module arranges for one of cannibalizing, environmental disposal, and selling of the returned product if the returned product is deemed as being beyond economic repair.

18. A method of reverse logistics management for automating different business rules and controls used by processors and agents of a logistics integrator for a plurality of customers and makes and models, for automating inbound and outbound tracking at the order, order line, and serialized unit level, and for providing results, cost and component visibility and service level and performance metrics through reports and client interfaces, comprising:

operating a logistics integrator to maintain data of a reverse logistics management system, wherein the logistics integrator is a fourth-party logistics enterprise configured to integrate and process information from a plurality of third-party logistics providers;

creating automated business rules for determining disposition of a repaired product and generating repaired device instructions to service a plurality of customers and product types using a plurality of said automated business rules, wherein the disposition of the returned product is automatically determined based on inspecting the returned product and based on if the returned product (i) is under warranty, (ii) includes insurance, and (iii) is beyond economic repair;

creating a return order in the returns management system based on a product serial number;

providing instructions to the returning party in accordance with the return order;

publishing return order data and repaired product instructions from the returns management system to a third-party logistics provider'"'"'s database;

publishing sales order and item master data to a sales order database and a return and repair order status database;

receiving the returned product;

validating that the return contents match the return order data;

inspecting the returned product according to an applicable set of inspection criteria selected from a plurality of inspection criteria sets, wherein the plurality of inspection criteria sets are provided from the return and repair order status database, a third party, a database of inspection criteria, item master, or a combination thereof; and

receiving status updates from the third-party logistics provider'"'"'s database.

19. The method of claim 18, further comprising tracking the return orders.

20. The method of claim 19, wherein the repair order tracking comprises:

inspecting the return according to an applicable set of inspection criteria selected from a database of inspection criteria sets to service a plurality of customers and product types with a plurality of processing rules;

creating the repair order in the repair order module;

publishing the repair order to the repair order module;

entering actions performed on the return;

updating status or disposition of the repair order;

publishing the updated status or disposition of the repair order;

shipping the repair; and

closing the repair order.

21. The method of claim 20, wherein the repair order status or disposition updating is automatically performed by the repair order module.

22. The method of claim 20, wherein the repair order status or disposition updating is performed manually.

23. The method of claim 20, wherein the inspection rules are provided from the return order and repair order status module, a third-party, the repair order module, a database of inspection criteria, item master or a combination thereof.

24. The method of claim 18, wherein the inspection comprises receiving the return and comparing the contents of the return received with applicable descriptions according to inspection rules maintained in the system by the logistics integrator to classify the returned product based on its enterprise and make/model.

25. The method of claim 18 wherein the fourth-party logistics enterprise receives the returned product directly from the returning party and forwards the returned product to one of the plurality of third-party logistics providers'"'"' repair facilities.

26. The method of claim 18, wherein the returns management system comprises:

a return order and repair order status module for processing and tracking the return orders;

a repair order module in communication with the return order and repair order status module for facilitating the repair and gathering and storing repair data;

a distribution and financial module in communication with the return order and repair order status module and the repair order module for facilitating the sales order and inventory data; and

a data repository and reporting module in communication with one or more of the other modules in the returns management system operated by the logistics integrator to extract, consolidate and report transaction metrics and event data internally and externally to support process management, claims verification and billing, wherein the logistics integrator coordinates the returns management system.

27. The method of claim 26, wherein the return processing comprises:

selecting one of the return orders to process;

presenting applicable descriptions and inspection rules matching an enterprise, make and model of the return;

entering applicable data regarding the return into the system;

sending information regarding action to take regarding the return;

taking action regarding the return according to the information sent;

creating a repair order for the return;

decrementing inventory utilizing the return order and repair order status module;

processing debit/credit information via the return order and repair status tracking module and the debit/credit rules contained therein;

transferring calculated debit/credit information from the return order and repair status tracking module to the distribution and financial module; and

updating the inventory database via the distribution and financial module.

28. The method of claim 27, wherein the applicable data entered comprise quantity received, reason, disposition, prior repairs, or a combination thereof.

29. The method of claim 27, wherein the information sent regarding action to take comprises an alert to create a sales order for shipping and handling charges, serial number and return information to the distribution and financial module;

an alert to create a debit memo in the distribution and financial module for restocking fee;

an alert to perform price adjustment in the distribution and financial module;

an alert to create a sales order in the sales order module for exchanging the return;

or a combination thereof.

30. The method of claim 27, further comprising updating the electronic serial number via the distribution and financial module after the inventory is updated.

31. The method of claim 18 wherein the returning party sends the returned product directly to one of the plurality of third-party logistics providers.

32. The method of claim 31 wherein the contents validation and inspection is performed by a third-party logistics supplier or vendor.

33. The method of claim 32 wherein the third-party logistics provider returns the repaired product to the returning party.

34. The method of claim 32 wherein the third-party logistics provider returns the repaired product to the fourth-party logistics enterprise'"'"'s inventory.

35. The method of claim 18, wherein the return order creation comprises:

receiving a request for a return;

searching for an associated sales order;

retrieving data from any associated sales order;

creating a return order for the requested return from a predefined template;

presenting any applicable descriptions and inspection rules from the returns management system that match the particular returned device based on make, model, or client;

entering any specific return data; and

saving the return order.

36. The method of claim 35, wherein the request is received from a source by email, telephone, fax, electronic submission, personal presentation, receiving a return, mail, or a combination thereof.

37. The method of claim 35, wherein associated sales orders are searched by electronic serial number, mobile identification number, sales order number, billable stamp, order, order line, unit or a combination thereof.

38. The system of claim 18, wherein the disposition of the returned product includes arranging for return of the returned product to a vendor if the returned product includes a third party warranty.

39. The system of claim 18, wherein the disposition of the returned product includes arranging for repair of the returned product in an in-house repair facility or at a third-party logistics outside repair partner if the returned product is deemed to be repairable and the returned product is covered by insurance.

40. The system of claim 18, wherein the disposition of the returned product includes arranging for one of cannibalizing, environmental disposal, and selling of the returned product if the returned product is deemed as being beyond economic repair.