Method for integrated supply chain and financial management

• US 6,671,673 B1
• Filed: 03/24/2000
• Issued: 12/30/2003
• Est. Priority Date: 03/24/2000
• Status: Expired due to Term

• Current Assignee: International Business Machines Corporation
• Original Assignee: International Business Machines Corporation
• Inventors: Baseman, Robert, Grey, William
• Primary Examiner(s): Hafiz, Tariq R.
• Assistant Examiner(s): MEINECKE DIAZ, SUSANNA M
• Application Number:
  US09/534,715
• Time in Patent Office: 1,376 Days
• Field of Search: 705/1, 705/7, 705/10, 705/35, 705/36
• US Class Current: 705/7.26
• CPC Class Codes: G06Q 10/06 Resources, workflows, human or project management; Enterprise or organisation planning; Enterprise or organisation modelling
• CPC Class Codes: G06Q 10/06314 Calendaring for a resource
• CPC Class Codes: G06Q 10/06315 Needs-based resource requirements planning or analysis
• CPC Class Codes: G06Q 10/06316 Sequencing of tasks or work
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 10/0637 Strategic management or analysis, e.g. setting a goal or target of an organisation; Planning actions based on goals; Analysis or evaluation of effectiveness of goals
• CPC Class Codes: G06Q 10/06375 Prediction of business process outcome or impact based on a proposed change
• CPC Class Codes: G06Q 10/0639 Performance analysis of employees; Performance analysis of enterprise or organisation operations
• CPC Class Codes: G06Q 10/06395 Quality analysis or management
• CPC Class Codes: G06Q 30/0202 Market predictions or forecasting for commercial activities
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof

Abstract

A method to generate a strategic business plan to improve operations, and to closely monitor various performance measures of an enterprise. This is accomplished employing a more comprehensive approach to maximizing profitability, increasing revenue, and explicitly considering risk. In particular, the method extends supply chain management using financial management considerations, extends financial management using supply chain management considerations, employs supply chain management techniques to improve financial management, and employs financial management techniques to improve supply chain management. The method uses information and models derived from at least one of the following business processes: accounting; cash management; funds management, financing, profitability analysis, risk management, loan management, treasury management, investments management, business development, order management, demand planning and forecasting, procurement, production planning, inventory management, transportation and distribution, and supply chain design.

Claims

1. A method to assist decision-making, and to closely monitor various performance measures of an enterprise by extending supply chain management using financial management considerations, said method being performed on a computer and comprising the steps of:

selecting at least one activity or solution related to supply chain management for consideration using a computer resource;

determining whether the selected at least one activity or solution is affected by financial management information, and if so, then integrating the affecting financial information with information related to the selected at least one activity or solution using a computer resource;

developing a process to generate a strategic or operational business plan that provides a solution for the selected at least one activity or solution related to supply chain management using a computer resource;

determining whether the process is affected by financial management objectives, and if so, then integrating the affecting financial management objectives with objectives related to the process using a computer resource;

determining whether the process will benefit from utilizing financial management techniques, and if so, then employing financial management techniques benefitting the process using a computer resource;

selecting the financial management techniques from the group of value at risk techniques, option valuation analytics, and portfolio management techniques using computer resources; and

performing the process using information, objectives, risk management objectives, and techniques associated with the at least one selected activity or solution including information, objectives, risk management objectives integrated in the determining steps, and using financial management techniques identified as beneficial to the process using a computer resource.

2. A method as recited in claim 1, wherein the at least one selected activity or solution is selected from the group of

demand planning comprising: forecasting and targeted marketing;

production planning comprising;

category management, materials planning, procurement and capacity planning;

transportation planning comprising;

carrier management, load planning, and import/export regulations compliance;

inventory management,

transportation scheduling comprising;

route planning, vehicle scheduling, and in-transit goods management;

distribution, finished goods inventory planning,

distributed resources planning, and

deployment planning.

3. A method as recited in claim 1, wherein financial management objectives are selected from the group of reducing risk, reducing funding costs, maximizing the value of the firm, increasing liquidity, reducing foreign exchange risk, or reducing cost of capital and improving financial assets utilization.

4. A method recited in claim 1, wherein risk management objectives are related to risks that affect the enterprise including insurable risks, market risks, business risks, interest rates risks, uninsurable catastrophe risks, weather risks, political risks, liquidity risks, credit risks and counterparty risks.