A METHOD AND SYSTEM FOR MANAGING INVENTORY. THE METHOD AND SYSTEM UTILIZES AN INVENTORY TRACKING DEVICE (12) AT A FIRST SITE (10) TO OBTAIN INVENTORY-TRACKING DATA WHICH IS AUTOMATICALLY TRANSMITTED OVER A COMMUNICATIONS NETWORK (16) TO AN ELECTRONIC PROCESSING SYSTEM (22) AT A SECOND SITE (18) FOR ANALYSIS.

Abstract: A method and system for remotely managing inventory. The method and system utilizes an inventory tracking device (12) at a first site (10) to obtain supply data which is automatically transmitted over a communications network (16) to an electronic processor (22) at a second site (11) for analysis.

Description: METHOD AND SYSTEM FOR MANAGING THE SUPPLY OF A TRANSACTIONAL SUBJECT This invention relates to a method and system for managing the supply of a transactional subject. BACKGROUND OF THE INVENTION A first business entity and a second business entity may enter into one or more commercial transactions concerning a transactional subject. A transactional subject may represent a material, a good, a product, or a commodity. The relationship between a first business entity and a second business entity may be characterized as a vendor-managed inventory arrangement where the first business entity represents the customer and where the second business entity represents the supplier. Further, in a vendor-managed inventory relationship, the supplier and customer agree that the supplier has the responsibility to maintain a defined inventory level of the transactional subject. To provide the defined level of inventory, the supplier monitors the customer's inventory level of the transactional subject. In addition, the supplier may submit orders, fill orders, manage shipments and manage billing associated with the transactional subject. The supplier incurs additional expenses for fulfilling a vendor-managed inventory arrangement because of the aforementioned responsibilities. In practice, the supplier may carry out the vendor-managed inventory arrangement by manually acquiring inventory data, manually placing orders and manually creating invoices. Moreover, the decision of how best to maintain the defined inventory level may be left to the discretion and business judgment of a worker affiliated with the supplier. The supplier procures the transactional subject and allocates one or more additional shipments of the transactional subject on behalf of the customer to meet the requirements of the vendor-managed inventory arrangement. The supplier may be hindered from accurately determining the customer's true requirements because the supplier may only have access to outdated consumption data or inventory data. The supplier's information may be outdated because of delays resulting from the manual entry and gathering of inventory data from the customer. For example, the supplier's employee may gather the inventory data for the supplier by telephoning the customer. In response to the supplier's telephonic inquiry, the customer may manually inspect a supply of the transactional subject by visually inspecting a warehouse and verifying inventory data. Alternately, the worker may access a computer system with relevant inventory data. The accuracy of the inventory data may depend upon the customer's consumption rate and the responsiveness of the worker at the customer premises. Further, the accuracy and freshness of the inventory data depends upon the diligence of the supplier's employee. The proper management of the inventory is further complicated where the customer may consume the transactional subject matter in an irregular or unpredictable manner. For instance, where the customer is a manufacturing corporation the customer may be exposed to fluctuating or mercurial market forces that detract from the ability of the customer and the supplier to properly maintain a desired level of supply of the transactional subject. The first business entity and the second business entity may enter into a consignment management arrangement where the first business entity represents a customer and where the second business entity represents the supplier of the consigned subject matter. In a consignment relationship, the supplier typically maintains ownership of the transactional subject until a patron of the customer purchases the transactional subject matter and accepts delivery of the transactional subject matter from the customer. Accordingly, as in the vendor-managed inventory arrangement the supplier may assume a responsibility to maintain a consistent or adequate supply of the consigned subject for the customer. Under one prior art technique, the supplier may obtain consumption data from the customer in accordance with a manual procedure, such as telephonic interviews of employees or affiliates of the customer. The supplier may track the allocation of a consigned transactional subject to the customer's premises by manually creating consignment issue orders. The consumption level may be verified by tracking the sales or disposition of the delivered consignment issues. For example, the supplier may rely upon an account representative or sales person to periodically visit the customer's premises (e.g., a retail outlet) to verify levels of deliveries of a transactional subject and to verify the consumption level of the transactional subject. Thus, a need exists to automate the management of a supply of transactional subject in a manner that promotes the transfer of accurate and current information between the customer and supplier. Further, the need exists to eliminate or reduce management errors in the context of managing the supply of a transactional subject in a vendor-managed inventory arrangement, a consignment management arrangement, or both. SUMMARY OF THE INVENTION In accordance with the invention, a method and system for managing the supply of a transactional subject matter facilitates a reduction or elimination of human intervention in one or more transactions to reduce clerical errors and delay associated with manual data entry, data retrieval, and manual data gathering procedures. An inventory-tracking device obtains inventory-tracking data on a stored supply of a transactional subject matter at a first business entity. The obtained inventory tracking data is automatically transmitted from the first business entity to a second business entity over a communications network. The transmitted inventory-tracking data is received at an electronic processor for evaluating the inventory-tracking data. The electronic processor is associated with the second business entity. The electronic processor provides an output for maintaining a desired level of the storage supply based on the evaluation of the inventory-tracking data. BRIEF DESCRIPTION OF THE DRAWINGS FIG. 1 is a block diagram of a system for managing the supply of a transactional subject matter in accordance with the invention. FIG. 2 is a block diagram that includes the data flow associated with an electronic processing system of FIG. 1 in accordance with the invention. FIG. 3 is a flowchart of a method for managing the supply of a transactional subject matter in accordance with the invention. FIG. 4 is a block diagram of a system for managing a supply of a transactional subject matter in the context of a vendor-managed inventory arrangement in accordance with the invention. FIG. 5 shows one embodiment of a system for managing a supply of a transactional subject matter in the context of an automated consignment arrangement in accordance with the invention. FIG. 6 shows another embodiment of a system for managing a supply of a transactional subject matter in the context of an automated consignment arrangement in accordance with the invention. DETAILED DESCRIPTION OF THE INVENTION In accordance with the invention, FIG. 1 shows a block diagram of a system 11 for managing a supply of a transactional subject. The transactional subject refers to a product, good, material or commodity that is a subject of a transaction between a first business entity and a second business entity. The first business entity and second business entity may be referred to as trading partners with respect to a transaction. In one embodiment, the first business entity represents a customer, whereas the second business entity represents a supplier. The system 11 for managing the supply of the transactional subject includes an inventory-tracking device 12 for monitoring an inventory level of a supply of the transactional subject. The supply 24 may be located at a first site 10 affiliated with the first business entity. The inventory-tracking device 12 communicates from the first site 10 to an electronic processing system 22 located at a second site 18. The second site 18 is affiliated with the second business entity. The inventory-tracking device 12 communicates to the electronic processing system 22 via a first communications interface 14 at the first site 10, a communications network 16, and a second communications interface 20 at the second site 18. The first communications interface 14 provides a communications interface between the inventory-tracking device 12 and the communications network 16. The communications network 16 may comprise the Internet, a public switched telephone network (PSTN), a data packet network, an intranet or any other suitable private or public communications network. The second communications interface 20 provides a communications interface between the communications network 16 and the electronic processing system 22. At a minimum, the first commumcations interface 14 and the second communications interface 20 support unidirectional transmissions from the first business entity to the second business entity via the communications network 16. In a preferred embodiment the first communications interface 14 and the second communications interface 20 support bi-directional (e.g., full duplex) communications between the first business entity and the second business entity such that acknowledgements and error checking mechanisms may be used to improve communications reliability. In practice, the first communications interface 14 and the second communications interface 20 may represent modems or other terminal devices. Where the first communications interface 14 and the second communications interface 20 represent modems, the communications network 16 may include a public switched telephone network. Further, an Internet service provider may provide access to the internet via the public switched telephone network where a modem is compatible with the public switched telephone network. The electronic processing system 22 may represent an Enterprise Resource Planning (ERP) system for managing at least one business or operational function, of the second business entity. An enterprise resource planning system may be used to integrate the manufacturing, purchasing, and accounting functions of the second business entity, for example. As shown in FIG. 2, an electronic processing system 22 includes an evaluator 36 in communication with an order generator 40. In turn, the order generator 40 communicates with a shipment manager 42. The shipment manager 42 is arranged to communicate with a billing center 44. In practice, the evaluator 36, the order generator 40, the shipment manager 42, and the billing center 44 may represent software modules or instructions that interact with each other as shown by the arrows. The arrows represent an illustrative data flow path among various components of the electronic processing system 22 in accordance with one embodiment of the invention. The trapezoids of FIG. 2 indicate various data inputs to the electronic processing system 22 and outputs from the electronic processing system 22. The evaluator 36 accepts the input of one or more of the following data types: inventory data 28, production data 30, and open order data 32. The electronic processing system 22, including the evaluator 36, provides one or more of the following data types as output: new order data 34, and invoice data 46. The evaluator 36 outputs demand data 38 to the order generator 40. The inventory data 28 may be provided to the evaluator 36 by the inventory-tracking device 12 and transmitted over the communications network 16 to the electronic data processing system 22 consistent with FIG. 1. The inventory data 28 may include consumption data or historical inventory data to provide a historical indication of past consumption of the customer. The evaluator is adapted to predict the customer's future consumption of the transactional subject based on the historical indication of past consumption. Production data 30 may represent the ability or capacity of the second business entity (e.g., supplier) to produce a specified quantity of the transactional subject within a scheduled time with reference to a production calendar. The availability of labor, raw materials, and manufacturing equipment represent illustrative factors that may influence the value of the production data 30. The production calendar accounts for manufacturing production holidays or days that required materials are not received to accurately predict the consumption of the supply of the transactional subject. The production data 30 may be provided by an ERP system at the second business entity (e.g., the supplier). In an alternate embodiment, the customer is a manufacturer and provides production data 30 via the communications network 16. For example, the customer may supply production data 30 to the electronic processing system 22 where the transactional subject is raw material for the customer, an intermediate product for the customer, or a subassembly of a finished product produced by the customer. Order data includes one or more of the following items: open order data 32, demand data 38, and forecast data 26. An open order for a transactional subject refers to a request that is known to the supplier and requested by or on behalf of the customer. Demand data 38 refers to actual, verifiable, or hard demand requirements of the customer that are used to generate such open order data 32. Forecast data 26 is soft or somewhat variable information that predicts future open order data 32 or requirements of the transactional subject by the customer. A forecasted order, which is expressed as forecast data 26, may or may not ever materialize. The forecast data 26 or the demand data 38 may include an item identifier for the transactional subject, an item description, a quantity, a delivery date or any . combination of the foregoing items. In accordance with FIG. 2, the evaluator 36 outputs demand data 38 and forecast data 26 as output based on the input of one or more of the following: inventory data 28, consumption data, production data 30, and open order data 32. Consumption data may be derived from inventory data 28 or consumption data may refer to a subset of inventory data 28. The forecast data 26 represents a tentative demand or prediction of future orders for the transactional subject, whereas the demand data 38 represents a hard estimate or actual estimate of current orders, future orders, or both for the transactional subject. Order data refers to open order data 32, new order data 34, or both. The open order data 32 means existing or past demand fro the transactional subject. The open order data 32 is based on the feedback of forecast data 26, demand data 38, or both that represent previous output of the electronic processing system 22 from previous inputs of one or more of the following: previous inventory data 28, previous production data 30, and previous order data. Tn FIG. 2, the feedback is shown as the dashed arrows that extend from the demand data 38 and the forecast data 26 to the open order data 32. The new order data 34 refers to demand for the transactional subject, where that demand is estimated based on an evaluation of inventory data 28, consumption data, and production data 30 along with an offset for the open order data 32. The offset means that the new order data 34 may be reduced from an initial value to a revised value based on the subtraction of the open order data 32 from the initial value of the new order data 34. The accuracy of new order data 34 is enhanced by considering open order data 32 that reflects the current and historical demand-supply relationship between the first business entity and the second business entity. Further, duplication of orders is avoided by considering the open order data 32 prior to generating duplicative new order data 34. The order generator 40 generates new order data 34, such as a purchase order, a purchase order acceptance, a sales order, a factory order, or any combination of the foregoing orders associated with corresponding demand data 38. The order generator 40 may merely format the demand data 38 into a desired format for new order data 34. The desired format for new order data 34 is in a suitable electronic format for a transmission of the new order data 34 to the customer from the electronic processing system 22 via the communications network 16. For example, a purchase order confirmation (as the new order data 34) may be expressed as a hypertext mark-up language (HTML) document or as an extensible mark-up language (XML) document. Alternatively, the order generator 40 may cooperate with an order processing system that generates paper or hard-copy purchase order confirmations, sales orders, or factory orders. In an alternate embodiment, the order generator 40 may be programmed to generate an order based on forecast data 26 as well as hard demand data 38 to meet the business objectives of the first business entity, the second business entity, or both. The purchase order is an order on behalf of the customer that indicates the customer is entitled to receive a certain quantity of a defined transactional subject, pursuant to an agreement between the customer and the supplier. The supplier has a purchase order confirmation, a sales order, or a factory order that corresponds to the purchase order, once the electronic processing system 22 has validated the terms and conditions of the purchase order. The purchase order confirmation, the sales order, or factory order may represent an internal order for the supplier to supply a transactional subject referenced in a corresponding purchase order of the customer. The order generator 40 may generate a purchase order confirmation, a factory order, or sales order once the credit financing or credit approval of the customer has been successfully completed for the transaction of a transactional subject matter. As shown in FIG. 1, the inventory tracking system 11 may include an optional user interface 23 (e.g., graphical user interface) coupled to the electronic processing system 22. The user interface 23 allows the customer, the supplier, or both to view the forecast data 26, the demand data 38, purchase orders, factor orders, or other relevant materials management or planning information, to determine whether a scheduled transaction based on the demand data 38 and forecast data 26 should be executed or modified. The user interface 23 at the customer or the supplier may be used to override or change a factory order, a purchase order, or a sales order. Thus, the supplier can maintain oversight of the automated processes in the context of a supply relationship to maintain integrity of the automated processes. The order generator 40 communicates with the shipment manager 42 after the generation of a purchase order confirmation, a sales order, or a factory order. The shipment manager 42 reviews the new order data 34 (e.g., the purchase order confirmation, the sales order, or the factory order data 32). The shipment manager 42 automatically makes shipping arrangements. The shipment manager 42 may be configured to seek a least-cost shipment method, the quickest shipment method, or a preferred shipment method to meet the shipping preferences of the first and second business entities. The shipment manager 42 provides delivery and shipment information to the billing center 44 of the electronic processing system 22. Accordingly, the delivery and shipment information may trigger the billing center 44 to generate invoice data for transmission from the second business entity to the first business entity over the communications network. The billing center 44 preferably provides invoice data 46 as an electronic transmission to the first business entity in response to the input of shipment information from the shipment manager 42 and order information from the order generator 40. The system 11 facilitates the automation of materials management, planning, scheduling, and billing to reduce errors and delays associated with manual human involvement. At the same time, the system 11 supports an optional user interface 23 to facilitate over-sight, insure the integrity of transactions, and preserve the fundamental soundness of automated transactions in an electronic communications environment. FIG. 3 shows a method for managing a supply of a transactional subject in accordance with the invention. FIG. 3 starts in step S26. In step S26, an inventory-tracking device 12 obtains inventory-tracking data on a stored supply 24 of a transactional subject affiliated with a first business entity (e.g., customer). The stored supply 24 of the transactional subject may be controlled by a second business entity (e.g., supplier) pursuant to an automated vendor- managed inventory agreement. Similarly, the stored supply of the transactional subject may be owned or controlled by the second business entity pursuant to a consignment agreement. The inventory-tracking device 12 may read the inventory level of the supply 24 at the first site 10 once a day after the end of a business day and prior to the beginning of a next successive day, for example. In one embodiment, the inventory-tracking device 12 follows a cumulative data transmission procedure in which inventory levels are recorded and accumulated during a historical time period. For example, a historical sample of measured inventory level of the transactional subject may be gathered on a daily basis to determine usage or consumption over a historical time period exceeding a one-day period. The historical time period may have a duration that exceeds one week (e.g. one month). The actual historical period may depend on the business objectives of the customer and the nature of the transactional subject. After step S26 in step S28, a first communications interface 14 at the first site 10 transmits the obtained inventory-tracking data from the first business entity to a second business entity over a communications network 16. In accordance with one embodiment, the inventory-tracking device 12 may transmit the read inventory on a daily basis or at some other regular interval. In accordance with another embodiment, the inventory-tracking device 12 may transmit the inventory tracking data, which covers a historical time period, in a batch. The measurement process of step S26 and transmission process of step S28 from the inventory-tracking device 12 are conducted to avoid a delay or inaccuracy of the received inventory tracking data. In step S28, the transmission of inventory-tracking data, between the first business entity and the second business entity, preferably has a maximum acceptable duration from the time of measurement, such that the accuracy of the actual measured inventory level at the customer site is maintained. Thus, the temporal currency of the consumption data through timely measuring and transmitting of the inventory-tracking data in step S26 and step S28 contributes to an attendant improvement in maintaining the desired level of the storage supply of the transactional subject to avoid shortages or excesses of the supply 24. The communications network 16 may represent a private communications network, such as an Intranet, or a public communications network, such as the Internet. In the context of the Internet, the communications may be transmitted in a secure manner that uses encryption, password protection, or both. For example, the communications may use a Secure Socket Layer (SSL) protocol for communications over the communications network 16 between the first business entity (at the first site 10) and the second business entity (at the second site 18). In step S30 at the second site 18, the transmitted inventory-tracking data is received at a second communications interface 20. The second communications interface 20 communicates with an electronic data processing system 22 for evaluating the inventory-tracking data. The second communications interface 20 and electronic data processing system 22 is associated with the second business entity. In step S30, the electronic processing system 22 receives the inventory- tracking data (e.g., inventory data 28, production data 30, or both) from an inventory-tracking device 12 or another source at the customer site via a communications network 16. In step S31, the evaluator 36 of the electronic data processing system 22 evaluates or reads the inventory-tracking data to determine an actual level of the stored supply 24 of the transactional subject. The inventory-tracking data is manipulated to yield the actual level of the stored supply, which may require reference to one or more transmissions of inventory-tracking data. In one embodiment, the evaluator 22 may determine a difference between the actual level of the stored supply 24 and a desired level for the stored supply 24 to provide demand data and forecast data with respect to the transactional subject. In another embodiment, the evaluator 22 may determine a difference between an actual consumption rate of the stored supply 24 and a desired consumption rate for the stored supply to provide demand data and forecast data with respect to the transactional subject. In step S32, the electronic processing system 22 takes appropriate action to maintain a desired level of the stored supply of the transactional subject matter at the first business entity based on the evaluation of the actual level of inventory determined in step S31. Step S32 may include 22 may include one or more of the following procedures as the appropriate action: (1) the electronic processing system 22 determines the parameters of a new order; (2) the electronic processing system 22 executes or prepares for the execution of a new order; (3) the electronic processing system 22 plans for a future new order. In the context of determining the parameters of a new order in step S32, the evaluator 36 considers inventory data 28 of the transactional subject for the customer, production data 30 on the transactional subject for the supplier, and open order data 32 on the transactional subject. The inventory data 28 may include historical inventory data 28, for an interval, that amounts to consumption data. Although the open order data 32 may include forecast data 26 and demand data 38 as components of the open order data 32, the open order data 32 at least includes demand data 38. Advantageously, the electronic processing system 22 may trigger automatic generation of new orders for the transactional subject or return authorization for the transactional subject to meet the desired level of supply with minimal human intervention. In step S32, the evaluator 36 may facilitate the automated creation of a new order to maintain a desired minimal level of inventory or a desired range of inventory based on an average historical consumption rate or usage rate of the transactional subject matter. A new order may include a purchase order, a factory order or a sales order. The automatic creation of the new order facilitates time savings in materials management context and logistical simplification of the materials management process. In the context of executing or preparing for the execution of a new order, step S32 may follow one of at least five alternative techniques. Under a first technique, the electronic processing system 22 alerts an ERP system at a site of the second business entity of the desired level and the actual level of the stored inventory. Under a second technique, the electronic processing system 22 alerts an ERP system of a difference between a desired level and the actual level of the current stored supply. Under a third technique, the electronic processing system 22 alerts an ERP system at a site of the second business entity of the desired consumption rate and the actual consumption rate of the stored inventory. Under a fourth technique, the electronic processing system 22 alerts an ERP system of a difference between a desired consumption rate and the actual consumption rate of the current stored supply. Under a fifth technique, the electronic processing system 22 generates electronic commands or alerts for users of the electronic processing system 22, or an ERP system in communication therewith, to adjust the actual inventory level to meet the desired inventory level. In the context of planning a future new order, the evaluator 36 at the second site 18 receives at least one year of forecast data 26 from the first site 10. Demand data 38 and forecast data 26 may be related such that an earlier forecast data may be changed into a subsequent demand data with or without modification based upon the input of inventory-tracking data or consumption data from the customer. In accordance with another embodiment, the evaluator 36 determines at least one year of forecast data 26, derived from inventory data 28 received from the first site 10. The forecast data 26 may be converted to demand data 38 to meet business objectives of the customer and the supplier. In one configuration, demand data 38 ay be used to generate purchase orders, purchase order confirmations, sales orders, and factory orders for a thirty day period following the present day, while forecast data is used from the thirty-first day to the end of the year. The supplier can use the forecast data to plan for future requirements of the customer. In one embodiment, step S32 include adjustment of the inventory level of a supply of the transactional subject. The adjustment of the inventory level may include increasing production of the transactional subject by the supplier, decreasing production of the transactional subject by the supplier, or adjusting a supplier's purchasing of the transactional subject that is resold to the customer. The maintenance of the desired inventory level requires compliance with the timeliness and currency constraints throughout the entire method shown in FIG. 3. The maintaining of the desired inventory level may be accomplished with reference to a vendor-managed inventory contract or a consignment management agreement established between the first business entity (e.g., customer) and the second business entity (e.g., supplier). In accordance with an alternate embodiment of the invention, a sales representative or another agent of the supplier may validate a new order (e.g., the sales order) to approve the new order determined based upon the demand data 38, the forecast data 26, or other relevant information. FIG. 4 illustrates a system for managing the supply of the transactional subject in the context of a vendor-managed inventory arrangement in accordance with the invention. In one embodiment, the inventory-tracking device 12 may represent a reader or an optical system for measuring the physical presence or dimensions of a group of the transactional subjects in a bin. In another embodiment, the inventory- tracking device 12 may present an automated bar code scanning system where inventory is tracked via a bar code scanner. For example, a transactional subject may be scanned upon receipt at the business entity and upon shipment from the business entity. In yet another embodiment, the inventory-tracking device 12 may represent a system that uses radio frequency (RF) tags on products. The tags contain transceivers that may be polled by a central communications transceiver to determine the levels of inventory of a supply of the transactional subject. The inventory-tracking device 12 is adapted to provide inventory-tracking data to the first communication interface for communication to a second communications interface 20 over the communications network 16. The inventory tracking-data may be communicated on a real-time basis or on a batch basis from the first business entity to the second business entity. The real-time transmission technique is preferred to increase the timeliness and accuracy of the inventory- tracking data. The second communications interface 20 receives the inventory tracking data from the first communications interface 14 via the communications network 16. The second communications interface 20 communicates to an electronic processing system 22. The electronic processing system 22 supports vendor- managed inventory in accordance with a vendor managed inventory process shown in reference block 200 through reference block 210 of FIG. 4. The vendor-managed inventory process starts in reference block 200. In reference block 200, the electronic processing system 22 parses and validates inventory-tracking data received from the second communications interface 20. The inventory-tracking data is parsed and validated such that the inventory- tracking data may be provided as input to one or more business systems responsible for placing new orders (e.g., as new order data 34) and processing billing. Each business system may represent software modules of an ERP system associated with, or resident in, the electronic processing system 22. In reference block 202, data on a customer's production calendar is accessed or retrieved prior to or simultaneous with executing reference block 206. The customer's production calendar is considered where the customer is a manufacturer and where the transactional subject is used in the manufacturing process. The production calendar describes the availability of labor, raw materials, and other requirements for manufacturing. In an alternate embodiment, the supplier's production calendar is used to facilitate placement of required orders in the process of FIG. 4. The production calendar from the customer, the supplier, or both is provided on a regular or periodic basis. Production calendars may take into account production holidays, days on which deliveries are received other scheduling characteristics that make it possible to accurately predict the consumption or appropriate target level of inventory to comply with the desired level of inventory. In reference block 204, the electronic processing system 22 or at least one business system determines open orders. The electronic processing system 22 stores open orders in a database. The electronic processing system 22 accesses the database and retrieves the open orders with the same transactional subject identifier as the parsed and validated inventory data. Open orders may include purchase order confirmations, factory orders, or sales orders that are planned to be met by the supplier, but which are not yet filled by the supplier. In addition, open orders may include any orders that have been filled, but have not been received at the customer site depending upon the shipment terms agreed upon between the first business entity (e.g., customer) and the second business entity (e.g., supplier). In reference block 206, the electronic processing system 22 preferably considers the data on the customer's production calendar (i.e., production data 30) from reference block 202 and the open orders (i.e., open order data 32) determined in reference block 204 to determine required new orders (i.e., new order data 34). The electronic processing system 22 determines required, new orders that are required for placement to maintain a desired level of inventory at the customer site based on the customer's production calendar and the open orders. The determination of required new orders may be offset by open orders. That is, open orders are subtracted from potential new orders for the same transactional subject to determine the new orders. The new required orders of reference block 206 may be based upon forecast data 26, demand data 38, or both. In reference block 208 after executing reference block 206, the electronic processing system 22 may place the required new orders by communicating new order data 34 for a new order (e.g., ordering information for a purchase order, a factory order, or a sales order) to an order placement system. The order placement system may be supported by an enterprise resource planning system resident in the electronic processing system 22, or otherwise. In one example of executing reference block 208, the required new order data 34 may evolve from a purchase order which represents a demand that is actual or estimated for the transactional subject matter to maintain a desired level of inventory of the transactional subject. That is, the purchase order may mature into new order data 34 (e.g., a purchase order confirmation, a factory order, or a sales order) if the electronic processing system 22 is able to verify or authenticate credit worthiness, a payment status, or payment history of the customer with respect to the supplier. After the required orders are placed, and following shipment of the required orders, in reference block 210, the electronic processing system 22 may launch appropriate billing and invoicing processes for inventory that has been delivered to the customer, consumed by the customer, or otherwise disposed of through the customer. The billing process may be tailored to comply with a vendor-managed inventory arrangement. Vendor-managed inventory arrangements may be configured as a bill-on-receipt sales arrangement in which the vendor maintains a certain quantity of the transactional subject matter for the customer (e.g., at the customer's site) to compensate for consumption by the customer or the customer's sales. FIG. 5 is similar to the configuration of FIG. 4 except FIG. 5 illustrates an automated consignment arrangement between the customer and supplier, as opposed to a vendor-managed inventory arrangement as shown in FIG. 4. Like reference numerals in FIG. 4 and FIG. 5 indicate like elements. The electronic processing system 122 of FIG. 5 may be programmed differently from the electronic processing system 22 of FIG. 4 to accomplish the automated consignment functionality as illustrated by reference blocks 212 through 220. The second site 118 is affiliated with the second business entity and includes the second communications interface 20 coupled to the electronic processing system 122. The process of automated consignment is illustrated by blocks 212 through 220 of FIG. 5. Starting in reference block 212, inventory-tracking data is organized into or provided from the inventory-reading device 12 in the form of customer consumption data. The consumption data may be expressed as (1) actual inventory levels of a supply of the transactional subject measured at different times, (2) a change in the actual inventory level during an interval, or (3) a rate (i.e., quantity per unit time) of increase or decrease in the actual inventory level of supply. The consumption data may include historical consumption data or an average of historical consumption data over a specified time period to provide a basis for maintaining a desired inventory level of the transactional subject. In one example, the electronic processing system 122 may translate the supplied inventory-tracking data into consumption data, if the inventory-tracking device 12 does not provide a consumption data form of inventory-tracking data. The electronic processing system 122 translates the inventory tracking data into consumption data by using one or more of the following items: past inventory or supply data, historic inventory or supply data, a delivery history associated with delivery of the transactional subject from the supplier to the customer, or a delivery history associated with an analogous transactional arrangement. The resultant customer consumption data may be provided as an input to the business systems of the electronic processing system 122 that are responsible for placing orders and processing the billing of the orders. Each business system may represent a software module resident in the electronic processing system 122. In reference block 214, the electronic processing system 122 may create a consignment issue if the actual level of inventory at the first site 10 (e.g., customer site) is below a desired level of inventory of the consigned transactional subject. On the other hand, the electronic processing system 122 may create a consignment issue return (e.g., return authorization) if the actual inventory level at the first site 10 exceeds a desired inventory level. The decision to create a consignment issue depends upon the consumption data, the actual inventory level of the supply, and the desired inventory level of the supply. After reference block 214 in reference block 216, the electronic processing system 122 creates a delivery of the transactional subject representative of the consignment issue or the consignment issue return. The inventory-tracking device 12 may be used to monitor the change in the inventory or supply from the delivery of the transactional subject in reference block 216. Accordingly, the inventory- tracking device 12 may send an acknowledgement to the electronic processing system 122 upon or after receipt of additional quantities of the transactional subject pursuant to the delivery. In reference block 218, the electronic processing system 122 posts goods that are both delivered to the customer in reference block 216 and disposed of by the customer. Although the transactional subject is delivered from the supplier to the customer, in a consignment arrangement goods are not posted against the created consignment issue until a customer disposes of, sells, or transfers the transactional subject to another party. The acknowledgement of block 214 may serve as an indication of delivery, whereas a record of sales receipt data or inventory level decreases may indicate disposition of the transactional subject. Following the delivery and the posting of the issued consignment, in reference block 220 the electronic processing system 122 launches an appropriate billing and invoicing process for inventory of the transactional subject that has been disposed of, consumed, transferred, or sold by the customer. For example, the electronic processing system 122 may form and transmit an electronic invoice over the communications network 16 to the customer for processing by the customer's account payable system (not shown). FIG. 6 is similar to FIG. 5, except FIG. 6 has an electronic processing system 112 at the first site 110 (e.g., customer site), such as an ERP system that provides inventory-tracking data on the transactional subject. The electronic processing system 112 of the customer may include an accounts payable system for paying electronic invoice issues by the supplier. Like elements and steps in FIG. 5 and FIG. 6 are indicated by like reference numerals. In FIG. 6, the inventory-tracking data may be provided in the form of consumption data. Consumption data may represent inventory data 28 that is measured over a time period so that the historical inventory-tracking data may be used to derive a pattern of consumption of the transactional subject for the customer. Like elements in FIG. 5 and FIG. 6 are indicated by like reference numerals. The foregoing system and method is well-suited for managing a supply of a transactional subject, such as a good, a product, a raw material for manufacturing a product, or a commodity to maintain a consistent supply of the transactional subject at a site affiliated with a customer. The management of a desired inventory level may be established in accordance with a contractual agreement between the first business entity and the second business entity to meet a desired target level of supply. Once the customer and the supplier agree on a desired inventory level or a method for objectively determining such an inventory level, the system and method of the present invention are readily applicable to maintaining the desired level of the inventory or supply. The flexibility of the method of managing the supply of a transactional subject matter lends itself not only to managing a desired level of inventory in an automated consignment arrangement, but also in a vendor- managed inventory arrangement or virtually any trading relationship between the first business entity and the second business entity. The management of the supply of the transactional subject is carried out in an automated fashion with minimal human intervention from at least the time when inventory-tracking data is made available by the inventory-tracking device 12 to the time when additional supply of the transactional subject matter is ordered from the supplier to the customer to maintain the level of the desired inventory. Moreover, the automation may minimize human intervention during shipment and following the shipment of the transactional subject from the supplier site to the customer site, such that billing generation as well as order placement may be automated. The evaluation of the consumption data, demand data 38, and forecast data 26, or any combination of the foregoing items is automated such that the determination of one or more orders to maintain a desired inventory level may be accomplished according to pre-established and consistent criteria. Deviations caused by the business judgment of different decision makers is avoided. The evaluation of consumption data, forecast data 26, and demand data 38 or any combination of the foregoing items facilitates the generation of purchase orders or factory orders that are predominately based on uniform adherence to an objective inventory management scheme for managing inventory level, as opposed to the subjective evaluation of a human worker. However, a user may achieve substantial compliance with the objective inventory plan by tweaking the operation of the evaluator 36, including any model of demand data 38 and forecast data 26 estimation, based on a historical compliance record with the objective inventory plan. The system and method of the present invention eliminates or reduces the involvement of clerical or administrative workers that might otherwise make clerical entries or participate in delayed communication between the customer and the supplier to determine the appropriate quantities of the transactional subject to meet the desired inventory level. Further the system and method of the invention eliminates the participation of clerical workers in the billing process to maintain the accuracy and responsiveness of billing systems that might otherwise result from clerical misqueues or delays. Delays in processes herein described are reduced by eliminating human factors such as requirements for sick time, vacation time, communication via fax or telephone. Communications may be carried out over a virtual private network, the Internet or any other suitable communications network in accordance with this invention in an efficient manner without regard to the human availability of workers at the customer or supplier. Clerical errors in the entry of purchase orders, factory orders and shipping documents may include errors in the entry date, the quantity, the ordered item or otherwise just from merely making a mistake during typing of the entry to a keyboard. Further, the speed of the purchase order entry and the shipping documentation may be degraded from the worker manually typing in information into a keyboard. Thus, the present method and system facilitates automating forecast data 26 and automating purchase order generation to maintain a desired level of inventory in a customer supplier relationship. The present invention may be implemented in conjunction with an automated reading of inventory data 28 of a level of inventory of the actual supply level to further automate the method and system of the invention. For example, an optical reader may detect whether packages storing the transactional subject matter in a bin exceed a certain height to determine whether additional shipments of the transactional subject matter to the customer are necessary. The foregoing description of the method and system described several illustrative examples of the invention. Modifications, alternative arrangements, and variations of these illustrative examples are possible and may fall within the scope of the invention. Accordingly, the following claims should be accorded the reasonably broadest interpretation, which is consistent with the specification disclosed herein and not unduly limited by aspects of the preferred embodiments disclosed herein.

Claims: The following is claimed: 1. A method for managing a level of a supply of a transactional subject, the method comprising the steps of: obtaining inventory-tracking data of a first entity with respect to the transactional subject; transmitting the obtained inventory-tracking data from a first business entity to a second business entity over a communications network; evaluating the transmitted inventory-tracking data by an electronic processing system for evaluating the inventory-tracking data, the electronic processing system associated with the second business entity; and maintaining a desired level of the stored supply based on the evaluating of the inventory-tracking data. 2. The method according to claim 1 wherein the obtaining step comprises obtaining consumption data of the supply as the inventory-tracking data. 3. The method according to claim 1 wherein the obtaining step updates the inventory-tracking data on a daily basis after an end of a business day and prior to a beginning of a next successive business day. 4. The method according to claim 1 wherein the transmitting step transmits the inventory-tracking data on a daily basis after an end of a business day and prior to a beginning of a next successive business day. 5. The method according to claim 1 further comprising the step of displaying the inventory-tracking data for a user affiliated with one of the first business entity and the second business entity. 6. The method according to claim 1 further comprising the step of evaluating the inventory-tracking data to provide demand data and forecast data with respect to the transactional subject. 7. The method according to claim 1 wherein the first business entity represents a customer of the transactional subject and wherein the second business entity represents a supplier of the transactional subject. 8. The method according to claim 1 wherein the maintaining step includes adhering to a vendor-managed inventory contract established between the first business entity and the second business entity. 9. The method according to claim 1 wherein the maintaining step includes adhering to a consignment-management agreement established between the first business entity and the second business entity. 10. The method according to claim 1 wherein the maintaining step includes determining the desired level based on an average historical level of the stored supply. 11. The method according to claim 1 wherein the obtaining step comprises obtaining at least one of inventory data and consumption data for the transactional subject. 12. The method according to claim 1 wherein the evaluating step comprises the constituent steps of: reading the inventory-tracking data; determining any open order for the transactional subject based on common transactional subject identifiers within both the inventory-tracking data and a database of open orders; and determining at least one required new order based on any determined open order and a customer production calendar. 13. The method according to claim 12 further comprising the steps of: placing the at least one required new order; and generating an invoice for the placed new order for transmission over the communications network. 14. The method according to claim 1 further comprising the steps of: receiving customer consumption data as the inventory-tracking data; and creating a consignment issue based on the evaluating of the customer consumption data. 15. The method according to claim 14 further comprising the steps of: delivering the consignment issue to a site affiliated with the first business entity; posting a quantity of the transactional subject against the consignment issue if the first business entity disposes of the quantity of the transactional subject; and generating an invoice for the quantity of the posted transactional subject. 16. A system for managing the provision of a transactional subject, the system comprising: an inventory-tracking device for obtaining inventory-tracking data on a stored supply of the transactional subject associated with a first business entity; a communications network; a first communications interface for transmitting the obtained inventory-tracking data from the first business entity to a second business entity over the communications network; a second communications interface in communication with the communications network and associated with the second business entity; and an electronic processing system coupled to the second communications interface, the electronic processing system maintaining a desired level of the stored supply of the transactional subject based on the evaluating of the inventory-tracking data. 17. The system according to claim 16 further comprising a user interface coupled to the electronic processing system, the user interface displaying the inventory-indicating data for a user affiliated with one of the first business entity and the second business entity. 18. The system according to claim 16 wherein the electronic processing system includes an evaluator outputting forecast data and demand data in response to an input of inventory-tracking data, production data, and open order data. 19. The system according to claim 18 wherein the electronic processing system includes an order generator in communication with the evaluator, the order generator generating new order data based on the input of the demand data and the open order data from the evaluator. 20. The system according to claim 16 wherein the electronic processing system includes a shipment manager in communication with a billing center, the shipment manager tracking shipment of the transactional subject and triggering the billing center to generate invoice data for transmission from the second business entity to the first business entity over the communications network.

Inventors: COMO GARY, FRANKE PAUL, GRIMM DOUG, HAMMANN SHIRA C, HUFFMAN ARNOLD, KOSTAKIS STAMATIOS, KRAHN RICHARD R, SMIACH BARRY, SU ERIC C, SWEENEY MICHAEL S, COMO, GARY, FRANKE, PAUL, GRIMM, DOUG, HAMMANN, SHIRA, C., HUFFMAN, ARNOLD, KOSTAKIS, STAMATIOS, KRAHN, RICHARD, R., SMIACH, BARRY, SU, ERIC, C., SWEENEY, MICHAEL, S.
Applicants: ACCENTURE LLP
Application year: 2000
Main classification: G06F17
IPC codes: G06Q10