Demand and order-based process flow for vendor managed inventory

• US 20050114235A1
• Filed: 11/25/2003
• Published: 05/26/2005
• Est. Priority Date: 11/25/2003
• Status: Abandoned Application

• Current Assignee: ABB Research Ltd. (ABB Ltd.)
• Original Assignee: ABB Research Ltd. (ABB Ltd.)
• Inventors: Donnelly, Michael J., Lee, Gerald Thomas, Snyder, Aaron Francis, Yigit, Ahmet
• Application Number:
  US10/721,314
• Publication Number:
  US 20050114235A1
• Time in Patent Office: Days
• US Class Current: 705/28
• CPC Class Codes: G06Q 10/087 Inventory or stock management, e.g. order filling, procurement or balancing against orders

Abstract

Methods of demand and order-based inventory management of a customer facility in a vender managed inventory environment. The methods include receiving and entering a customer purchase order for a product. The order is scheduled and materials are requesting to complete the order. Next, the product is manufactured and shipped to the customer facility. Customer inventory levels are monitored by a vendor to determine if the customer inventory is below a threshold value. If the customer inventory is below the threshold value, a request is sent by the vendor to the customer facility for the issuance of a customer purchase order for additional units of the product to maintain the customer inventory above the threshold level.

Claims

1. A method of demand and order-based inventory management of a customer facility in a vender managed inventory environment, comprising

receiving and entering a customer purchase order for a product;

scheduling said order and requesting materials to complete said order;

manufacturing and shipping said product to said customer facility;

monitoring customer inventory by a vendor of said product to determine if said customer inventory is below a threshold value; and

if said customer inventory is below said threshold value, sending a request to said customer facility for the issuance of a customer purchase order for additional units of said product to maintain said customer inventory above said threshold level.

2. The method of claim 1, said scheduling said order and requesting materials to complete said order further comprising forecasting future needs on a per customer, per product basis.

3. The method of claim 2, wherein said forecasting is performed using one of a time series analysis with moving averages, regression analysis, and lifecycle models.

4. The method of claim 2, further comprising overriding said forecasting in accordance with known events.

5. The method of claim 2, wherein said forecasting is performed as collaborative forecasting, wherein collaborative forecasting comprises collecting and reconciling information from multiple sources inside and outside said vendor to derive a single unified statement of demand.

6. The method of claim 1, further comprising forecasting customer needs in accordance with historical data to determine a forecast and replenishing customer inventory using said forecast.

7. The method of claim 6, further comprising sending a request for said customer purchase order for additional units of said product in accordance with said forecast.

8. The method of claim 1, wherein said monitoring customer inventory is performed in accordance with customer testing, deployment and installation of units of said product after shipping said product to said customer facility.

9. The method of claim 1, further comprising monitoring customer inventory via a WAN connection.

10. A method of usage-based and order-based inventory management of a customer facility, comprising

receiving customer activity data related to usage of a product by the customer;

forecasting future requirements for said product;

scheduling an order for said product and requesting materials in accordance with forecasted requirements; and

manufacturing and shipping said product to said customer facility in accordance with said forecasted requirements for said product.

11. The method of claim 10, wherein said receiving customer activity data comprises receiving SKU information from the customer.

12. The method of claim 10, said forecasting future requirements being performed on a per customer, per product basis.

13. The method of claim 12, wherein said forecasting is performed using one of a time series analysis with moving averages, regression analysis, and lifecycle models.

14. The method of claim 10, wherein said forecasting is performed as collaborative forecasting, wherein collaborative forecasting comprises collecting and reconciling information from multiple sources inside and outside a vendor company to derive a single unified statement of demand.

15. The method of claim 10, further comprising independently receiving a customer order from the customer and entering said order at a production planning facility for fulfillment.

16. The method of claim 15, wherein said forecasting is performed in accordance with said customer order.

17. A method of vendor managed inventory management, comprising:

receiving usage data from a customer related to a product;

forecasting future product needs in accordance with said usage data;

creating a replenishment plan in accordance with forecasted product needs;

determining, by a vendor of said product, customer on-hand inventory based on said product usage data; and

determining, by said vendor of said product, new orders based on said replenishment plan and said on-hand inventory.

18. The method of claim 17, further comprising forwarding said replenishment plan from said vendor to said customer for approval.

19. The method of claim 17, further comprising performing a “

what if analysis”

by altering forecasting parameters to change a forecasting method, time frame or external events.

20. The method of claim 17, further comprising making customer information available to said customer and said vendor for viewing of inventory and orders in differing formats in accordance with a user selection and class of user.