Providing cargo insurance in a full service trade system

• US 20020107785A1
• Filed: 10/16/2001
• Published: 08/08/2002
• Est. Priority Date: 10/16/2000
• Status: Active Grant

• Current Assignee: Infor Incorporated
• Original Assignee: Tradecard Incorporated (Infor Incorporated)
• Inventors: Melchior, Peter, Meltzer, Lenore
• Granted Patent: US 7,587,353 B2
• Time in Patent Office: Days
• US Class Current: 705/37
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 20/10 specially adapted for electronic funds transfer [EFT] systems; specially adapted for home banking systems
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 30/06 Buying, selling or leasing transactions
• CPC Class Codes: G06Q 30/0637 Approvals
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 50/188 Electronic negotiation

Abstract

The present invention provides a comprehensive, integrated, computerized system for facilitating transactions in goods or services. The system is capable of facilitating transactions from early or initial stages, such as an electronically proposed purchase order, through to later or final stages, such as payment on an invoice or invoices relating to the transaction. The system is integrated to include the participation of various providers of services ancillary to transactions, such as guarantors, insurers, and shippers.

The system may allow sellers or buyers to electronically propose amendments and counter-amendments to, and to amend, through mutual agreement, a purchase order agreement. Any amendments are accounted for in later stages of the transaction facilitated by the system. The system may monitor, utilizing stored transaction information, present and anticipated future credit exposures of buyers, and utilizes the buyer credit exposure information for purposes including facilitating providing buyer credit assurance to sellers. The system may facilitate sellers obtaining financing or advance payment relating to transactions. The system may provide opportunities for sellers or buyers to obtain cargo insurance on goods or services shipped in accordance with transactions.

Claims

1. A computerized system for facilitating transactions in goods, the system comprising:

means for allowing electronic procurement of a purchase order agreement between a seller and a buyer and relating to a transaction in one or more goods, and for electronically storing the purchase order agreement;

means for receiving and storing electronic evidence that the seller has performed in connection with fulfilling the seller'"'"'s obligations as defined by the purchase order agreement;

means for electronically providing an opportunity for at least one of the seller and the buyer to obtain, through the system, cargo insurance relating to the one or more goods to insure against risk of loss in connection with shipment of the one or more goods in accordance with the transaction; and

means for electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement.

2. A computerized system for facilitating transactions in goods, the system comprising:

means for allowing electronic procurement of a purchase order agreement between a seller and a buyer and relating to a transaction in one or more goods, and for electronically storing the purchase order agreement;

means for receiving and storing electronic evidence that the seller has performed in connection with fulfilling the seller'"'"'s obligations as defined by the purchase order agreement;

means for electronically providing an opportunity for at least one of the seller and the buyer to obtain, through the system, cargo insurance relating to the one or more goods to insure against risk of loss in connection with shipment of the one or more goods in accordance with the transaction;

means for electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement;

means for electronically providing a payment instruction if the seller has been evaluated to have complied with the seller'"'"'s obligations as defined by the purchase order agreement; and

means for receiving and storing electronic evidence that the buyer has made one or more payments in connection with fulfilling buyer'"'"'s obligations as defined by the purchase order agreement.

3. The system of claim 2, wherein the cargo insurance insures against a risk of loss in relation to the one or more goods occurring at any time during shipment of the one or more goods from the seller to the buyer.

4. The system of claim 3, comprising means for determining, based upon information electronically stored by the system, which of the buyer and the seller is to be provided with an option to purchase the cargo insurance.

5. The system of claim 4, comprising means for determining which one party of the seller and the buyer bears a majority of the risk, and wherein the one party is provided with the option of purchasing the cargo insurance.

6. The system of claim 5, wherein the one party is determined based upon one or more shipping terms agreed to by the seller and the buyer and electronically stored by the system.

7. The system of claim 6, wherein the one or more shipping terms comprise one or more Inco terms.

8. The system of claim 6, wherein the one party is determined based upon which of the seller and the buyer is determined to bear the risk for a greater amount of shipping time.

9. The system of claim 6, wherein the one party is determined based upon which of the seller and the buyer is determined to bear the risk for a greater amount of shipping distance.

10. The system of claim 2, wherein an obligation to pay the insurance premium is shared between the seller and the buyer such that each of the seller and the buyer are obligated to pay a specified percentage.

11. The system of claim 2, wherein the cargo insurance, if purchased, must be purchased together by the seller and the buyer, and wherein the seller agrees to pay a first percentage of a premium required to obtain the cargo insurance, and wherein the buyer agrees to pay a second percentage of the premium.

12. The system of claim 11, wherein the first percentage and the second percentage are determined by the system to correspond with a ratio of the seller'"'"'s risk of loss in relation to the one or more goods occurring during shipping and the buyer'"'"'s risk of loss in relation to the one or more goods occurring during shipping.

13. The system of claim 12, wherein the ratio is determined based upon one or more shipping terms agreed to by the seller and the buyer and electronically stored by the system.

14. The system of claim 13, wherein the one or more shipping terms comprise one or more Inco terms.

15. The system of claim 3, comprising means for calculating a cargo insurance premium required to purchase the cargo insurance based upon information electronically stored in the system and relating to at least one of the one or more goods or services and the shipment of the one or more goods or services.

16. The system of claim 15, wherein the cargo insurance premium is determined at least in part based upon at least one of a location to be shipped from, a location to be shipped to, a means of shipment, and a party responsible for purchasing of the one or more goods.

17. The system of claim 2, comprising means for the system evaluating whether a first set of payment guarantee criteria are met, and means for, if the first set of payment guarantee criteria are evaluated to be met, the system providing a payment guarantee to the seller to guarantee payment by the buyer in connection with the purchase order agreement.

18. The system of claim 17, wherein the first set of criteria comprises at least one of a credit exposure of the buyer being evaluated by the system to be within a specified maximum credit exposure, and the seller being evaluated by the system to have complied with the seller'"'"'s obligations as defined by the purchase order agreement.

19. The system of claim 2, wherein the means for electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement comprises means for electronically evaluating whether the seller has complied with at least a portion of the seller'"'"'s obligations as defined by the purchase order agreement, and wherein means for electronically providing a payment instruction if the seller has been evaluated to have complied with the seller'"'"'s obligations as defined by the purchase order agreement comprises means for electronically providing a payment instruction if the seller has been evaluated to have complied with the at least a portion of the seller'"'"'s obligations as defined by the purchase order agreement.

20. The system of claim 2, wherein the cargo insurance insures against risk in connection with at least one of noninsurance of the one or more goods, underinsurance of the one or more goods, and partial insurance of the one or more goods.

21. The system of claim 2, wherein the cargo insurance provides coverage over a specified period of time.

22. The system of claim 2, wherein the cargo insurance insures against risk of loss in connection with damage to the goods.

23. The system of claim 2, wherein the cargo insurance insures against risk of at least one of loss of the goods and loss resulting from damage to the goods, and wherein the cargo insurance covers risk existing during transit of the goods, the transit not necessarily being limited to movement of the goods from a location of the seller to a location of the buyer.

24. The system of claim 2, wherein the cargo insurance is purchased by one of the seller and the buyer, and wherein the cargo insurance is for the benefit of both the seller and the buyer.

25. A computerized system for facilitating transactions in goods or services, the system comprising:

means for allowing electronic procurement of a purchase order agreement between a seller and a buyer and relating to a transaction in one or more goods or services, and for electronically storing the purchase order agreement;

means for receiving and storing electronic evidence that the seller has performed in connection with fulfilling the seller'"'"'s obligations as defined by the purchase order agreement;

means for electronically providing an opportunity for at least one of the seller and the buyer to obtain, through the system, cargo insurance relating to the one or more goods or services to insure against at least one of risk of loss in connection with shipment of at least one of the one or more goods in accordance with the transaction, and risk of loss in connection with nonperformance of at least one of the one or more services;

means for electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement;

means for electronically providing a payment instruction if the seller has been evaluated to have complied with the seller'"'"'s obligations as defined by the purchase order agreement; and

means for receiving and storing electronic evidence that the buyer has made one or more payments in connection with fulfilling buyer'"'"'s obligations as defined by the purchase order agreement.

26. A computerized method for facilitating transactions in goods, the method comprising:

allowing electronic procurement of a purchase order agreement between a seller and a buyer and relating to a transaction in one or more goods, and electronically storing the purchase order agreement;

receiving and storing electronic evidence that the seller has performed in connection with fulfilling the seller'"'"'s obligations as defined by the purchase order agreement;

electronically providing an opportunity for at least one of the seller and the buyer to obtain, through the system, cargo insurance relating to the one or more goods to insure against risk of loss in connection with shipment of the one or more goods in accordance with the transaction; and

electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement.

27. A computerized method for facilitating transactions in goods, the method comprising:

allowing electronic procurement of a purchase order agreement between a seller and a buyer and relating to a transaction in one or more goods, and electronically storing the purchase order agreement;

receiving and storing electronic evidence that the seller has performed in connection with fulfilling the seller'"'"'s obligations as defined by the purchase order agreement;

electronically providing an opportunity for at least one of the seller and the buyer to obtain, through the system, cargo insurance relating to the one or more goods to insure against risk of loss in connection with shipment of the one or more goods in accordance with the transaction;

electronically evaluating whether the seller has complied with the seller'"'"'s obligations as defined by the purchase order agreement;

electronically providing a payment instruction if the seller has been evaluated to have complied with the seller'"'"'s obligations as defined by the purchase order agreement; and

receiving and storing electronic evidence that the buyer has made one or more payments in connection with fulfilling buyer'"'"'s obligations as defined by the purchase order agreement.