Abstract:
A Business Method by which otherwise independent nodes of a distribution system can interact via an internet website or other means to equalize inventory to their mutual benefit and profit, with the Business Method Practitioner operating the mechanism and retaining a percentage of each transaction as a fee for the service provided. In the retail world for which the Business Method is primarily intended, this has the collateral benefits of reducing the percentage of overstock goods sold at a discount and understock goods purchased at a premium, raising the overall profitability of the industry served, protecting branding, and improving performance of individual nodes of the market and of the overall market.

Description:
RELATED APPLICATION  
       [0001]     This application is a continuation of International Application No. PCT PCT/US06/03166, filed Jan. 27, 2006, which claims priority to U.S. Provisional Application No. 60/648,906, filed Feb. 1, 2005, both of which are incorporated herein by reference in their entirety. 
     
    
     FIELD OF THE INVENTION  
       [0002]     The present invention relates generally to the field of product inventory control, where imperfect stocking or manufacturing decisions can result in accumulations of excess inventory at some points and deficiencies of inventory at other points. The present invention provides systems and methods by which users can cost-effectively and profitably equalize inventory, facilitating the movement of items from geographic markets and participating nodes in which they are slow-moving to geographic markets and participating nodes in which they are faster moving.  
       BACKGROUND OF THE INVENTION  
       [0003]     There exists a spectrum of methodologies by which inventory is managed by retailers with multiple outlets, distributors, wholesalers, and manufacturers with multiple distribution points, all intended to improve profitability of the overall system optimizing the relationship between the cost of maintaining inventory and the revenue generated by that inventory. The systems and methods of the prior art attempt to manage inventory by forecasting and optimizing movement of inventory from manufacturer to consumer. These inventions are directed towards such things as systems and methods for managing the rate of use of inventory by a supplier and calculating therefrom the proper time for ordering more inventory. Also, systems and methods for managing variable priced inventory, e.g., travel services, using a multi-layered SKU system. And, systems and methods for moving inventory from storage to the sales floor before the storage cost per item causes the retailer&#39;s profit to significantly diminish. U.S. Pat. No. 6,643,626, issued to Perri de Resende and titled Sales Point Business Method and Apparatus, generally describes remotely monitoring a display case having merchandise. The described purpose for remotely monitoring the display case is to assure that authorized users are accessing the merchandise, to monitor transactions involving the merchandise, and/or to provide security against theft, fire and other hazards. This invention allows for the remote monitoring of merchandise to detect the depletion of the merchandise, whether by desired or undesired means. The invention does not provide a means for managing the merchandise inventory amounts.  
         [0004]     U.S. Pat. No. 6,405,177, issued to DiMattina and titled System for Securing Commercial Transactions Conducted On-Line, generally describes a system and method allowing on-line retailers to offer guaranteed financial services in addition to their goods. The financial services are such things as secure credit card transactions, price guarantees, guaranteed delivery and return policies and implied warrantee guarantees. The system for accomplishing this method comprises a purchaser-retailer transaction means, a single action (“one click”) component and a means for sending the financial services certificate to the purchaser. While this patent is related to selling a retailer&#39;s inventory, it in no way is capable of managing inventory.  
         [0005]     United States Patent Application No. 2005/0075945, by Matsumoto et al and titled Inventory Management and Ordering System, and Ordering Management System Using the Previous System, describes a system for managing a businesses inventory. The system monitors the quantity of an item inventory and the rate of use is determined so that future order dates can be predicted. Orders are placed based on the forecast, thereby keeping an adequate supply of an item. While this invention recognizes the need for inventory management, it focuses only on timely ordering of supplies to maintain an item on hand. The dynamics of inventory management being much more complex than striking a balance between use of goods and ordering of goods, this invention is limited to only a small sub-set of inventory management.  
         [0006]     United States Patent Application No. 2003/0036981, by Vaughn et al. and titled System and Method for Managing Inventory, describes a method and system wherein a retailer provides available inventory to a server and a potential consumer can shop the inventory from the server. The invention is that the inventory, which is related to travel, is defined in the travel server by SKU group, record and unit. These different levels of SKU are necessary with travel-based inventory, which is unique inventory. For example, the price of a single travel-based good can vary based on how far in advance the good is purchased. This invention provides a means for accounting for such variance in goods price. The retailer provides information for the SKU levels on available inventory, and the potential consumer searches for specific products based on a query that is addressed and processed at the SKU levels. The server matches the two. This invention manages inventory by providing a specific means to shop for travel based goods.  
         [0007]     United States Patent Application No. 2005/0033666, by Kurashige and titled Inventory Management Method and Program Product, generally describes a management server having an inventory database, a purchase database and a sales database. The server is designed to track certain inventory indicators and uses these indicators to move goods from inventory to sales. By tracking these indicators, inventory that is kept in storage can be moved to sales before the cost of the storage factored into each good diminishes the profits. It is desirable to keep products flowing from storage to the sales floor and in turn out the door. But this patent does not address the problem of inventory that does not sell or inadequate inventory to meet demand.  
         [0008]     United States Patent Application No. 2005/0004831, by Najmi et aL and titled System Providing for Inventory Optimization in Association with a Centrally Managed Master Repository for Core Reference Data Associated with an Enterprise, describes a system and method for developing an inventory plan for a supply chain. The supply chain is defined as the chain of participants beginning with suppliers including the manufacturers and vendors and ending with the consumer. The inventory plan is an optimized plan that assures that the members of the supply chain are able to predict proper inventory amounts based on a variety of defined metrics. If metrics reach a critical/problematic point, the plan is adjusted to account therefore. New metrics can be added. This invention recognizes and addresses the problems with overstock and understock in a supply chain and attempts to develop a dynamic inventory plan that will prevent the occurrence of these problems. However, given the unpredictable nature of the consumer, this invention cannot address inventory problems that arise from an unexpected change in consumer demand.  
         [0009]     Inventory excess: At any level (manufacturer, distributor, wholesaler, or retailer), inventory excess is expensive, and there have evolved many business methods for dealing with the problem. The most visible and obvious is to discount the price from the planned one, motivating buyers in the chain to move the merchandise. This has the effect of reducing margins and therefore profits, but is a better business method solution than doing nothing, which results in languishing and obsolescing inventory.  
         [0010]     Another method for dealing with the problem is to package such obsolescing product, discount it, and ship it to off-price distributors and retailers, which has the same net effect of reducing margins and profits. Both of these steps have another effect that is highly negative and not as visible; branded merchandise appears for sale at a discount, which owners of such brands work hard to prevent. Many brands are protected aggressively. There are often agreements between the distribution system and the manufacturer or importer intended to prevent such discounted sales, or transfers to distribution that is not pre-authorized by the manufacturer or importer.  
         [0011]     In such cases, branded merchandise manufacturers often establish a buy-back program to help prevent discounting, by authorized outlets, and to help prevent their merchandise from reaching discount outlets. Such returns come at a high price, however.  
         [0012]     First, they result in a credit against future orders, which does not help a cash-needy situation.  
         [0013]     Second, they are credited at a high discount compared to the original shipping invoice (15% or more). Third, retaining the right to sell a particular brand often requires maintenance of a certain volume of sales, and returns negatively impact that volume and can jeopardize retention of that sales right.  
         [0014]     Another business method that has emerged to deal with the problem is clandestine shipment by an authorized dealer in branded merchandise to an unauthorized dealer. This is usually a violation of the contract between the authorized dealer and the distributor or manufacturer, and sometimes occurs via nighttime transfers to trucks in alleys, but has the effect of converting excess inventory into ready cash. The risk is to the “franchise” held by the authorized dealer, but in the absence of trackable serial numbers that risk is small, and the result is a loss of brand protection.  
         [0015]     Excess inventory is expensive, and its value decreases steadily. That decrease is often more rapid than the rate of sale of the stock, and waning sales often will not even replace the cost of money spent to buy the inventory in the first place. Tax authorities recognize the situation and permit deductions for obsolescing inventory, acknowledging that costly aspect of doing business in a supply-demand system where prediction is imperfect. A cost-effective business method that satisfies the problem would increase profit for every link in the system.  
         [0016]     For all these reasons and more, all components of the system including manufacturers, wholesalers/distributors, and retailers seek ways and means to relieve the excess inventory problem.  
         [0017]     Inventory deficiencies: The obvious solution to a deficiency in inventory is to place an order for more. At the retail level, and sometimes at the wholesale/distribution level, that obvious solution is impractical. When the original imperfection in judgment resulted in one or two items selling out earlier than expected, or the unplanned success of a particular style or color of an item, it may not be cost-effective to place a re-order if there are often minimum order quantities, or penalties when orders are below some threshold. Some items, in fact, may be orderable only in arrays that consist (as an example) of one gross of each color. When an item sells out in the two colors of a local university, for example, it may not be cost effective to order twelve gross, ten gross of which will languish along with the original shipment.  
         [0018]     In many such cases, the deficiency remains unsatisfied because there is no method by which the order can be filled cost-effectively.  
         [0019]     Further, re-order items may not be available at the factory or distributor level because they are back-ordered, closed out, or discontinued, resulting in lower profitability for the retailer whose inventory is comprised of partial size runs or limited color options, etc., making the product difficult to sell.  
         [0020]     When all components of a distribution network are members of the same system, and all are interconnected by inventory management software, communications, and logistics mechanisms (shipping), software can be devised to (1) recognize inequities, (2) react to trigger points, (3) make recommendations to management, (4) monitor the logistical implementation of solutions, and (5) create data structures that suggest improvements to ordering protocols that lessen the likelihood of repetitive problems. This is a method by which organized distribution systems can be optimized to reduce obsolescence, minimize investment in inventory, improve overall profitability, protect branding, and maintain brand franchises.  
         [0021]     At the other extreme, a retailer with a franchise to sell protected branded merchandise will load excess merchandise onto a truck at night and ship it to another outlet, unauthorized by the brand manager, and despite any obligation to not do such.  
         [0022]     Between these two points exist many different potential solutions, of which none works well enough to satisfy the preponderance of the problems in the real world marketplace.  
         [0023]     Problems with existing inventory management systems.  
         [0024]     One problem with many existing inventory management systems is that they report to management when a given monitored item reaches a re-order level at a given location or storage point, but do not compare levels of different locations or storage points and report comparative levels.  
         [0025]     Another problem with existing inventory management systems that monitor inventory levels at multiple sites is that they are not constructed to consider the value of the equalization of inventory between nodes (locations, or storage points, or distribution points).  
         [0026]     Another problem is that many such systems do not provide a mechanism to recognize the cost of an overstock at one point, with aging and obsolescing inventory, with a simultaneous understock at a second point, with loss of sales due to non-availability.  
         [0027]     Another problem is that many such systems that do provide a mechanism that recognizes the importance of differential inventory levels, due to geographic preferences or errors made in placing orders, usually stop re-orders of obsolescing inventory and increase orders of understocked inventory, thus correcting the imbalance over time but in the least profitable manner.  
         [0028]     Another fundamental problem with all such existing inventory management systems is that they apply exclusively to members of an integrated organization and not to transients or otherwise unaffiliated business units, and therefore the beneficiaries of such systems are only those who are part of that organization. For example, such a system that addresses the national distribution of product X might have the potential to do so for the organization that “owns and operates” the system, but not for the sole-site business that might benefit from its use, even if that sole-site&#39;s participation might assist the organization that operates the system by reducing its logistics costs.  
         [0029]     While many of the prior art inventory management and equalization solutions may be suitable to one degree or another for the particular limited requirements they address, they are not optimum or generalized solutions for broad and diverse multi-node retail, wholesale, and distributor markets, do not meet the needs of transients passing through the system to satisfy inventory imbalance requirements, and are not sufficiently flexible to be adaptable to the needs of many potential users.  
       BRIEF SUMMARY OF THE INVENTION  
       [0030]     In view of the foregoing disadvantages inherent in the prior art, the present invention diverges therefrom to provide systems and methods that satisfy the needs of multiple geographic nodes at the retail, wholesale, distribution, and even manufacturing levels, thereby improving cost-effectiveness and therefore the profitability of the business segments that adopt it.  
         [0031]     The main objective of the present invention is to provide a cost-effective brokering mechanism by which multiple nodes, geographically diverse and each managing its own inventory can efficiently interchange items that have accumulated at one point and become deficient at another.  
         [0032]     Another objective is to provide a channel of efficient communication by which at least two geographically diverse nodes of a distribution system, each managing its own inventory and with one suffering an understock of a given item while the other has an overstock condition of the same item, can negotiate the transfer of merchandise in one direction and funds or credits in the other.  
         [0033]     Another objective is to provide a brokerage or equity/credit management system by which participating nodes can make deposits by shipping items to other participants, and from which they can make withdrawals by ordering items from other participants, with the system holding the credits in the interim.  
         [0034]     Another objective is to provide an accounting system that collects, correlates, checks, and reports on all activities, facilitating record-keeping by participants.  
         [0035]     Another objective is to provide filtering to ensure that branded items, the distribution of which is controlled by the manufacturer or distributor, are not passed from an authorized node to a non-authorized node of the system.  
         [0036]     Another objective is to provide an internet website on which nodes, typically retail or wholesale businesses, can log in and define their needs, whether to divest or acquire uniquely identified merchandise, thus seeking counterparts with the complementary needs with whom transactions can be negotiated.  
         [0037]     Another objective is to provide non-website means by which internet communication (e.g., email or ftp) can be used to list surpluses and requirements which will then be manipulated and managed by manual means within the staff of the practitioner of the Business Method, thus stimulating transactions.  
         [0038]     Another objective is to provide non-internet means by which communication (e.g., fax, telephone, postal service, or direct personal contact) can be used to list surpluses and requirements which will then be manipulated and managed by manual means within the staff of the practitioner of the Business Method, thus stimulating transactions.  
         [0039]     Another objective is to provide control mechanisms within the system to ensure that brokerage services, banking, payments, credits, brand protection, representations, warrantees are as described by participants, by various means including a peer-rating system plus an oversight review and point-awarding system.  
         [0040]     Another objective is to provide a mechanism and system by which participating nodes can relieve inventory overstock issues without the penalty of paying overstock charges to distributors or manufacturers.  
         [0041]     Another objective is to provide an overall Business Method for the equalization of inventory that generates support and endorsement by business entities seeking to protect brand integrity, by reducing the likelihood of clandestine shipment of branded merchandise to off-price outlets, discounting, and other ex-franchise activities.  
         [0042]     Another objective is to provide a mechanism and system to accumulate detailed product data, plus node, date, volume, and all other useful data, making such information available to all tiers of the system and to distributors, manufacturers, etc. Since such information is of commercial value it is expected to evolve into a revenue source for the implementer of the system.  
         [0043]     Another objective is to provide a mechanism and system that can be readily applied to other problems of supply and demand, such as in manufacturing where one manufacturer has an abundance of a little-used raw material and another has a deficiency thereof and both benefit from equalization of their inventory via a cost-effective means for achieving a transaction.  
         [0044]     It is the intention of the inventor that these objects apply equally to all business methods involving an inventory equalization system applicable to any defined product category, characterized by (1) remote access by any business entity with an inventory surplus, (2) remote entry of excess inventory and its characteristics, (3) remote access by any business entity with an inventory deficiency, (4) automated or manual matching of surplus to deficiency and of one party to the other, (5) a transaction resulting in equalization of the inventories of the participating parties, and (6) fees paid to the practitioner of the Business Method facilitating the process.  
         [0045]     The present invention is most efficient using internet communication (website or email), but the Business Method can be executed by other means, including direct telephone, fax, or even postal communication resulting in information manipulation by manual (i.e. 5″×7: cards) or computer means. The aspect of the invention that is most critical in defining its unique attributes, and that best differentiates it from other operating methods for managing inventory differentials, is the result enjoyed by the business entities that use it.  
         [0046]     Other objects and advantages of the present invention will become obvious to the reader and it is intended that these objects and advantages be within the scope of the present invention.  
         [0047]     To the accomplishment of the above and related objects, this invention may be embodied in the forms illustrated in the accompanying specification and drawings. However, the specification and drawings are illustrative of selected preferred embodiments, and the invention is not to be limited thereby. There are many possible configurations and derivatives lying within the intended scope of the invention.  
       BRIEF DESCRIPTION OF THE FIGURES  
       [0048]      FIGS. 1-7  depict preferred embodiments of the current invention showing the flow of information through the present invention, as it might be deployed in support of a random assembly of nodes (herein, retail establishments).  
         [0049]     Various other objects, features and attendant advantages of the present invention will become evident to one of ordinary skill in the art given this disclosure. However, these obvious alternatives and derivatives are well within the spirit of the current invention.  
         [0050]      FIG. 1  depicts some number (four in the example) of otherwise unaffiliated, unconnected retail stores, each subscribed to the operation of the current invention. Each retail store is referred to herein as a “Node.” In this FIGURE, the nodes are each numbered uniquely  12 ,  14 ,  16  and  18 , and are collectively referred to as  101 . Each node has three overstock items and three understock items, identified by a Stock Keeping Unit (SKU) number of eight digits (in the example shown). All nodes are communicating their status, including both over (available) and under (sought) items to the invention inventory management system via the internet or other communication means. Therefore, the inventory management system has access to all reported over- and under-stocked items of participating nodes and each item is uniquely identified by SKU.  
         [0051]      FIG. 2  reflects a computational process within the exchange processing means in the invention, during which all communicated mis-stock information is compared. Complementary matches identified; a “complementary match” being an event in which one node has an under condition and another node an over condition of the same SKU, and the understocked participant having authorization to sell the brand represented by the SKU.  
         [0052]      FIG. 3  shows a match report being made to each node of a possible transaction. At this point, the participants are preferably unknown to each other and might be geographically very distant.  
         [0053]      FIG. 4  shows payment (by any of many means) by the understocked node to the exchange processing means, which notifies the overstocked node to prepare to ship.  
         [0054]      FIG. 5  illustrates disclosure to both participating nodes of the other&#39;s identity, address, etc.  
         [0055]      FIG. 6  illustrates shipment of merchandise to understocked node, and transfer of flnds/credit to formerly overstocked node via the inventory management system of the current invention.  
         [0056]      FIG. 7  illustrates the basic embodiment of the current invention inventory management system 
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0057]     As used herein, the term “mis-stocked” is applied to overstocked inventory and understocked inventory. Also, variations of the word may be used, e.g., “mis-stock” and “mis-stocking”.  
         [0058]     As used herein, the term “node” refers to a manufacturer, retailer, distributor, wholesaler or other business entity dealing with inventory and desiring to manage inventory using the current invention. The term “at least two nodes” refers to these same entities when using the invention system wherein there must be at least one overstocked entity and at least one understocked entity.  
         [0059]     Turning to the FIGURES, one embodiment of the current invention system and method is described. In the preferred embodiment, the inventory management system (IMS)  100  comprises at least two nodes  101 , a communication means  106 , and a exchange processing means (EPM)  108 .  FIG. 7 . The nodes (e.g.,  12 ,  14 ,  16  and  18  of  FIG. 1  or e.g.,  102  and  104  of  FIG. 7 ) comprising the at least two nodes  101  of the invention are preferably retailers engaged in buy/sell of related products. For example, and as used herein, the retailers are shoe retailers. In addition to the retailer not being limited to the shoe business, the invention is also useful management of inventory for the suppliers, manufacturers, distributors and other parties who are involved the supply chain of businesses involved in ultimately getting product to the consumer or an end user.  
         [0060]      FIG. 7  communication means  106  comprises a means for transferring inventory information between nodes,  102  and  104 , of the at least two nodes  101  and the EPM  108 . In the preferred embodiment, the communication means  106  comprises both data input means  110  and data receipt means  112 . Furthermore, the communication means  106  can be any of a variety of means, including, but not limited to, computer based communication, telephone based communication, and paper based communication. Still further, communication means  106  can be a computer and monitor linked to the internet. Those of ordinary skill in the art will readily employ these and other communication means with the current invention.  
         [0061]     The data input means  110  and the data receipt means  112  will function in a way that suits the communication means  106  employed. For example, if the communication means  106  is a computer, then the data input means  110  is any means of data input that is compatible with a computer, for example, is a keyboard. Similarly, the data receipt means  112  is any means of data input that is compatible with a computer, for example a monitor or a printer.  
         [0062]     It is notable that the IMS  100  can be configured to allow each node comprising the at least two nodes  101  of the system to have its own communication means  106 . For example, node  104  can have a computer as the communication means  106 , while node  102  can have a phone as the communication means  106 . In this example, the data that is input via a computer from node  104  can be received via the telephone by node  102 . This is a digital to analog (voice) conversion. Other data conversions include, but are not limited to, computer to paper printer one direction, optical character recognition the other direction), and voice to computer (voice recognition software one direction, and voice over/voice readback software the other direction). Conversion of data from one to another communication means  106  is readily accomplished by those of ordinary skill in the art.  
         [0063]     Data input to the inventory management system  100  should describe the inventory. This is inventory data and it typically describes a node&#39;s inventory and whether that inventory is overstocked or understocked. In its most basic form, the input data can be a description of the inventory drafted similar to an advertisement or a technical specification sheet. A query using terms within the description will produce the description. This means of data input and data retrieval is similar to the technology employed by search engines for finding web pages. Also similar to web pages, this means is inefficient in that a variety of tangentially related inventory descriptions having the query words will be produced and the user will have to manually review these documents for relevance. Similarly, by not using the proper search terms, inventory descriptions can be missed.  
         [0064]     In the preferred embodiment, data input to and retrieved from the IMS  100  is described using industry wide acceptable descriptors, and more preferably, this is a stock keeping units (SKU) although any unique identifier could be employed. The SKU standardizes the description of inventory so that the users quickly and efficiently query inventory in the system. SKUs are often times a series of numbers.  
         [0065]     The EPM  108  of the IMS  100  is preferably in silico, and is most preferably a computer database. EPM  108  preferably comprises an inventory data storage function, an inventory data comparison function and a comparison communication function for receiving and comparing inventory data. EPM  108  further may comprise a complementary match ranking function for communicating the most relevant complementary match to one node of the at least two nodes. This is useful when there is more than one match of complementary inventory. EPM  108  further may comprise a transaction management function for orchestrating payment and inventory shipping by and between nodes determined to have complementary matching inventory. In this embodiment, EPM  108  holds in memory all of the inventory descriptions. The EPM  108  also receives queries for inventory and then searches the inventory descriptions in memory, comparing the inventory query with the inventory database. Inventory and query matches are called complementary matches and are presented to the nodes  101  so that an inventory transaction can proceed.  
         [0066]     In an alternative embodiment, the EPM  108  also guides the transaction following a query match with listed inventory. For example, node  102  inputs to EPM  108  via input means  110  a SKU representing inventory that node  102  has as overstock. Node  104  inputs to EPM  108  via input means  110  a query for inventory using a SKU for inventory that is understocked. EPM  108  receives the query and matches the query with the overstock stored in the database. EPM  108  then communicates the overstock inventory available to node  104  via the data receipt means  106 . Node  104  can either accept or reject the presented overstock. Should node  104  accept the presented overstock, the acceptance can be communicated to node  102  in a variety of ways. For example, the overstock inventory that is communicated from the EPM  108  to node  104  via data receipt means  112  may have the contact information for node  102 . This being the case, node  104  will contact node  102  and request the overstock inventory.  
         [0067]     Preferably, however, the EPM  108  will perform the transaction. In this instance, node  104  communicates to EPM  108  that an overstock inventory is accepted. EPM  108 , in turn, communicates this acceptance to node  102 .  
         [0068]     Others aspects of the transaction, such as payment to node  102  by node  104  for the overstock inventory, shipment notice, and receipt of goods notice, for example, can all be handled by EPM  108 .  
         [0069]     An additional feature of the described inventory transaction that can be handled by communication means  108  is managing authorized users. As discussed above, many manufacturers, particularly high quality brand name manufacturers, prefer that their merchandise is not sold by certain types of retailers. Typically, such retailers are discount retailers. To prevent such trafficking in goods using the current invention IMS  100 , EPM  108  can require that the nodes  101  present authorization before a query into a certain inventory will produce any results. So, in this situation, node  102 , having an overstock of an inventory will input the SKU to IMS  100  using communication means  106 . Node  104 , having an understock of an inventory will query IMS  100  using communication means  106 . The inventory in this example is high end inventory and the manufacturer only wants exclusive retailers to sell this inventory. Before the overstock inventory is communicated to node  104 , node  104  must qualify as an authorized retailer of this inventory. Identification numbers and passwords are one means for determining authorization, but this is just one example and others are readily apparent to those of ordinary skill in the art.  
         [0070]     The invention is further described by these following examples. In the examples, the node is a retailer, though it could be any entity that deals with inventory, from the manufacturer to the distributor. Also, for simplicity, the invention is described using a computer as the communication means and the comparison means is likewise in silico. Variations to these examples are well within the skills of those ordinarily skilled in the art. These variations are well within the spirit of this current invention.  
         [0071]     In  FIG. 1 , there is shown a series of four nodes,  12 ,  14 ,  16  and  18  comprising at least two nodes  101 , and an exchange processing means  108 . The nodes  101  are in contact with the EPM  108  via communication means  106 , which comprises data input means  110  and data retrieval means  112 .  
         [0072]     In this example, IMS  100  is an internet web site for a particular product line or product category. There are many possible product lines and categories to which the invention properly applies, and each has its own characteristics and jargon that distinguish it from others. To facilitate understanding only, but not to exclude other applications, the invention will be discussed as it applies to the retail shoe business. Thus, the nodes  101  are retailers in the shoe industry.  
         [0073]     It is also preferred in this example that all inventories managed by the IMS  100  are uniquely identified as to model number, style number, inventory number, color, manufacturer number, etc. using a SKU. As discussed above, the SKU allows the nodes  101  to readily conduct transactions in accordance with industry-wide unified market jargon, descriptive terms, and specific product identifiers.  
         [0074]     Also in this example, the invention will be discussed as it applies to individual retail shoe stores or to small groups of retail shoe stores, but not to national chains or retail shoe stores or to national chains of general-merchandise stores that operate integrated shoe departments. The exclusion of those categories from this explanation does not mean the invention is not applicable to their operation. Rather, it is applicable, but explanation is simplified by limiting it to the least complex model and then expanding.  
         [0075]     This example comprises a national array of independent, individually-owned retail shoe stores, each selling a mixture of brand-protected and other merchandise.  
         [0076]     The example uses the website option, but that does not exclude the potential of using other communication and information management mechanisms.  
       EXAMPLE  
       [0077]     At least two nodes  101  comprises, in this example, four nodes,  12 ,  14 ,  16  and  18 . Each of the at least two nodes  101  have overstock and understock. Each of the nodes  101  communicates their overstock and understock to the IMS  100  using a communication means  106 , typically a computer connected to the internet and addressed to the IMS  100  website. In this example, IMS  100  is an internet based system, so the communication means  106  is a computer and monitor. Each node  101  identifies its overstock to the EPM  108  via the computer/monitor communication means  106 .  
         [0078]     Node  12  has a surplus of 24 pair of shoes identified as SKU #23456789 (distribution of which is protected/defended by the manufacturer), which retail at $100 and wholesale at $40. Node  16  has a corresponding deficiency, but neither knows of the other and they are at least 1000 miles apart. Both are aware of the IMS  100  online.  
         [0079]     Node  12  enters the IMS  100  website, registers, and goes through a semi-automated qualification process (or was prequalified by previous activity). This optional step is referred to as the authentication process and is useful for managing the nodes when the inventory is designated as that which can only be sold by approved retailers. For example, high quality brand named merchandise is frequently prohibited from being sold in bargain/discount retail establishments. Because it is desirous to prevent the shipment of overstocked inventory of this type to an unauthorized retailer, the current invention is optionally equipped with a function for maintaining transactions only between authorized nodes. Node  12  communicates the overstock and understock of shoes to EPM  108  using the computer and monitor communication means connect to the internet. In this example the overstock and understock are described using a simple SKU number. These SKU numbers are attached to a specification of the shoes, and so, the shoes are presented to the IMS  100  in detail. Node  12  is shown in  FIG. 1  listing overstock SKU nos.: 12345678, 23456789, and 34567890, and listing understock SKU nos.: 45678901, 56789012, and 67890123. In addition to the inventory descriptor (SKU), Node  12  enters the over/under quantity for each inventory item listed.  
         [0080]     Node  16  also enters the IMS  100  website, qualifies (or was prequalified by previous activity), and lists various overstock and understock SKUs and over/under quantity. In  FIG. 1 , node  16  is shown listing overstock SKU numbers 99887766, 88776655, and 77665544 and understock SKU numbers 66554433, 23456789, and 44332211. Further, nodes  14  and  18  are shown listing overstock and understock inventory by SKU number. The software behind the IMS  100  website, which comprises EPM  108  compares the entered SKU data and finds the tentative match between node  12 &#39;s overstock SKU number 23456789 and node  16 &#39;s understock SKU number 23456789. See  FIG. 2 . Nodes  12  and  16  are notified of the possible match via communication means  106 .  
         [0081]     In  FIG. 2 , the SKU information communicated to EPM  108  is stored in a database and the SKU numbers and any other provided information is compared. In the embodiment wherein a SKU is not used, or where the SKU is limited in the data associated therewith, thus being supplemented, information provided can include, but is not limited to, sizes, colors, quantity over/under, and digital images, or any other relevant detail as determined by the retailer and the inventory product all collectively adding up to a unique identifier for a given product.  
         [0082]      FIG. 2  shows that EPM  108  compares all SKU entered and connects complementary overstock SKUs with understock SKUs. This step is labeled comparison step  200 . In the current example, node  12  has an overstock of SKU 23456789 and node  14  has a complementary understock of SKU 23456789. This example shows a simple complementary match; however, given the volume of inventory that will be provided by numerous nodes using the invention system, complementary matching can be more extensive and difficult.  
         [0083]     For example, supposing that a first node has an overstock of 100 units of inventory and both a second node and a third node have an understock of this same inventory; second node being understocked by 50 units and third node being understocked by 150 units. All three nodes are using the current invention system. It is more efficient for the first node to send the 100 units of overstock inventory to a single location, thereby reducing costs of shipping and preparing for shipping and etc. So, in this scenario, the invention system takes into account that the better complimentary match is the first node with the third node, than the first node with the second node, remainder to the third node. This and other such efficiencies comprise part of the EPM  108  in an alternative embodiment.  
         [0084]     Comparison step  200  generated complementary matches  202 , and from there presents match report  204 , which is the complementary match that will be communicate back to the nodes  101 .  FIG. 3  illustrates match report  204  being generated from complementary match  202  and being communicated via communication means  106  to node  12  and node  16 .  
         [0085]     In  FIG. 3 , the complementary match  202  generates match report  204 . Match report  204  can be selected from the group of complementary matches  202  based on one or more of a variety of factors, including, first to match, best fit, date since SKU upload and others. Those ordinarily skilled in the art will employ these factors for generating match reports  204  that best suit any particular set of nodes, inventory and desired goals using this current invention. Use of these various factors is well within the spirit of the current invention. Match report  204  is communicated to node  12  and node  16  using communication means  106 , which in this embodiment is a computer and monitor. Communication can also occur in a variety of ways, for example, node  16  having the understock can be notified first, and if node  16  decides to accept the overstock inventory of node  12 , then node  16  can communicate acceptance to the IMS  100  system. The communicated acceptance is in turn communicated to node  12 . Should node  16  decide to reject the overstock inventory of node  12 , then node  12  is not notified of the solicitation, and IMS  100  will communicate a match report  204  to the next best fitting node as held in complimentary match  202 . Node  16  can accept or reject the inventory presented in match report  204 , thus completing the inventory management using the IMS  100 .  
         [0086]      FIG. 4  illustrates an alternative embodiment wherein the IMS  100  also facilitates payment for and shipment of the inventory between two nodes. Again, node  12  has an overstock and node  16  has an understock, and node  16  has accepted the overstock inventory from node  12 . In this alternative embodiment, node  16  can accept the node  12  overstock by submitting payment  300 . Payment submission  300  is preferably by credit card, but can be any payment method, including, but not limited to wire transfer, check, credit card, charge against PayPal or similar, charge against BMP account, etc. The payment submission  300  is transmitted to the EPM  108  of IMS  100  using communication means  106 , which is preferably a computer and monitor with access to the internet. EPM  108  then communicates payment notification  302  to node  12 , thereby instructing node  12  to ship the inventory. As shown in  FIG. 5 , identities of nodes  12  and  16  are revealed to each other during the payment/shipment process.  
         [0087]     In an alternative embodiment of the payment transaction the IMS  100  does not facilitate the entire payment from node  16  to node  12  for the inventory exchange, but rather only directly accepts a commission payment. Payment for the inventory, in this case, is made directly from node  16  to node  12 . The only role of the IMS  100  for the inventory payment transaction is to provide payment information between the nodes, but not actually receive the payment itself. This arrangement removes the IMS  100  from the payment transaction. IMS  100 , therefore, is only directly receiving the commission payment and is only liable for credit card fees on that commission payment, rather than the credit card fees on the commission payment and inventory purchase price.  
         [0088]     It is preferred, but not necessary, that the identities of the nodes  101  using IMS  100  are kept private by IMS  101  until after the transaction is secured. Privacy achieves a lot of objectives, including preventing nodes from using the system to scan for inventory and then arranging transactions directly. Such direct transactions results in loss of profit for the manager of the IMS  100  system. This is because the manager of the IMS  100  system will likely receive a payment for administering the transaction. So, in this case, the identities of nodes  101  are kept private so that the IMS  100  manager can realize a business objective. Still, this is only a preferred embodiment, and embodiments where the nodes&#39; identities are public is also possible. In this type of a situation, for example, the nodes  101  may pay a membership fee to browse, and list inventory on IMS  100 . Further still, this public identity situation may apply when the manager of the IMS  100  is part of a single business entity managing inventory within satellite business units, which comprise the nodes  101 . Varieties of other possibilities exist and are obvious to the ordinary practitioner in the art.  
         [0089]     In a preferred embodiment of the current invention,  FIG. 6 , there is also provided the additional feature wherein IMS  100  holds the payment received from node  16  for the overstock inventory of node  12  until node  16  reports via communication means  106  that the overstock merchandise has been received. In this embodiment, IMS  100  has notified node  12  that node  16  is interested in the overstock for SKU 23456789. IMS  100  also notifies node  12  that node  16  has submitted payment for the overstock inventory by communicating to node  12  a payment notice  400 . In a preferred embodiment, IMS  100  has also assured that the payment from node  16  clears (e.g., sufficient funds). Node  12  will then ship the overstock inventory  402  to node  16  using common shipping means. Once the overstock inventory is received by node  16 , then node  16  will submit a shipment received report  404  to IMS  100 , which in turn releases the funds to node  12 . At node  12 &#39;s option, the payment can be received by check or can remain with IMS  100  as a credit towards future purchases of overstock inventory from another node  101 .  
         [0090]     In a particularly preferred embodiment once a match is made by EPM  108  of IMS  100  and communicated to, and accepted by two nodes, e.g., node  12  and node  16 , the nodes are put in direct contact through to complete the transaction through IMS  100 . In one particularly preferred embodiment, the two nodes are put in email communication facilitated by IMS  100  and EPM  108  to complete the transaction. In an alternative particularly preferred embodiment, the two nodes are placed into a temporary private webpage by IMS  100  wherein the parties to the two nodes, e.g., node  12  and node  16  can complete their negotiations and finalize the transaction. In either instance, it is preferred that the identities of nodes  12  and  16  are withheld until payment is made. For example, once the buyer and seller node have agreed upon the price and shipment terms for the mis-stocked inventory, the seller node pays a commission to the manager of the IMS  100 , typically through the use of a credit card or other payment means. Upon receipt of the payment, the IMS  100  releases the identifies of each node, so that the transaction can be finally completed and the inventory shipped to the buyer node.  
         [0091]     Alternatively, in this embodiment wherein IMS  100  acts to hold payment to assure that each node is meeting its end of the transaction, IMS  100  may charge an additional fee to one or both of the nodes  12  and  16  to cover any credit card fee for the cost of the inventory. However, this alternative embodiment is optional.  
         [0092]     At the end of the transaction, node  12  has fewer SKU 23456789 shoes which were not selling in node  12 &#39;s specific demographic market and has cash available with which to order merchandise with a higher likelihood of selling. Node  16  has more of that product which does sell in node  16 &#39;s market. Preferably, the IMS  100  manager has earned a fee for facilitating the transfer  
         [0093]     Those ordinarily skilled in the art will immediately recognize the versatility of the current invention and will apply the invention inventory management system to a variety of different inventory items. The inventory items may vary from the shoes of the current example without departing form this disclosed invention. Similarly, the methods for practicing this invention and the means for accomplishing these method steps are versatile. Steps may present in different order, or may be omitted. Additional steps may be added to the method steps presented. These variations are well within the spirit of the current invention.