Index for assessing discount potential
First Claim
1. A computerized method comprising:
- receiving, by a computer, information related to a plurality of discount leverage factors of the supplier, wherein the plurality of discount leverage factors are representative of a negotiating position of the supplier relative to the customer, and wherein the discount leverage factors comprise one or more of;
a supplier financial risk, a spend leverage, a cost of capital differential between supplier and buyer, a supplier Days Payable Outstanding (DPO), supplier size, or supplier industry;
calculating, by the computer, a discount index value of the supplier based on the information related to the discount leverage factors, wherein the discount index value represents a score on a discount index scale comprising the plurality of discount leverage regions;
identifying, by the computer, a discount program representing the discount potential of the supplier based on the proximity of the discount index value to one of the plurality of discount leverage regions;
receiving, by the computer, information related to an actual discount event of the supplier;
recalculating, by the computer, the discount index value of the supplier based on the discount leverage factors and the information related to the actual discount event; and
displaying, by the computer, the recalculated discount index value of the supplier.
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Abstract
A computerized system and method of calculating a discount index value for a supplier can include receiving information related to a plurality of discount leverage factors for the supplier, calculating a discount index value for the supplier based on the information related to the discount leverage factors, receiving information related to an actual discount event for the supplier, recalculating the discount index value for the supplier based on the discount leverage factors and the information related to actual discount events, and displaying the discount index value for the supplier. The system and method can also include placing the discount index value on a discount index scale, defining a plurality of discount leverage regions on the discount index scale, and attributing a leverage value to the supplier based on the proximity of the discount index value to one of the discount leverage regions.
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Citations
4 Claims
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1. A computerized method comprising:
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receiving, by a computer, information related to a plurality of discount leverage factors of the supplier, wherein the plurality of discount leverage factors are representative of a negotiating position of the supplier relative to the customer, and wherein the discount leverage factors comprise one or more of;
a supplier financial risk, a spend leverage, a cost of capital differential between supplier and buyer, a supplier Days Payable Outstanding (DPO), supplier size, or supplier industry;calculating, by the computer, a discount index value of the supplier based on the information related to the discount leverage factors, wherein the discount index value represents a score on a discount index scale comprising the plurality of discount leverage regions; identifying, by the computer, a discount program representing the discount potential of the supplier based on the proximity of the discount index value to one of the plurality of discount leverage regions; receiving, by the computer, information related to an actual discount event of the supplier; recalculating, by the computer, the discount index value of the supplier based on the discount leverage factors and the information related to the actual discount event; and displaying, by the computer, the recalculated discount index value of the supplier. - View Dependent Claims (2, 3)
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4. A computerized method comprising:
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receiving, by the computer, information related to a plurality of discount leverage factors of the suppliers, wherein the plurality of discount leverage factors are representative of a negotiating position of each of the plurality of suppliers relative to a customer, and wherein the discount leverage factors comprise one or more of;
a supplier financial risk, a spend leverage, a cost of capital differential between supplier and buyer, a supplier Days Payable Outstanding (DPO), supplier size, or supplier industry;calculating, by the computer, a discount index value of each of the plurality of suppliers based on the information related to the discount leverage factors, wherein the discount index value represents a score on a discount index scale comprising the plurality of discount leverage regions; identifying, by the computer, a discount program representing the discount potential of each of the plurality of suppliers based on the proximity of the discount index value to one of the plurality of discount leverage regions; receiving, by the computer, information related to an actual discount event of each of the plurality of suppliers; recalculating, by the computer, the discount index value of each of the plurality of suppliers based on the discount leverage factors and the information related to the actual discount event; and displaying, by the computer, the recalculated discount index value of each of the plurality of suppliers.
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Specification