Abstract:
The invention relates to both a method and a computer system that are designed to provide a bid positioning system using a computerized bid proxy. The bid proxy takes instructions from the bidder and then bids based upon these instructions. Using a bid positioning system allows this bidder to place its bids in relation to a lead bid placed by another bidder in an auction based upon either a nominal or percentage distance from the lead bid. In a preferred embodiment, this computerized bid proxy is used in a shipment management system. This system allows a shipper to present at least one shipping requirement for a particular shipment to a centralized server. These shipping requirements could include the origin and destination of a shipment, the time or delivery date of a shipment, the number of articles being shipped, and the weight or volume of the shipment. The server next sends the at least one shipping requirement to a plurality of carriers some of whom are chosen by the shipper and some of whom are chosen by the system. These carriers next bid based upon the at least one shipping requirement. This system and method also allows these carriers to re-quote their bids based upon the bids presented by the other carriers. Once all of the bid deadline has been reached, the shipper picks the quote that best suits the shipper.

Description:
The present invention is a continuation of, claims priority from, and incorporates by reference the entirety of U.S. patent application(s): application Ser. No. 09/536,118, which was filed Mar. 27, 2000, now abandoned, and which claims priority from and incorporates by reference the entirety of U.S. Provisional patent application No. 60/172,084, which was filed on Dec. 23, 1999. 
    
    
     BACKGROUND OF THE INVENTION 
     The invention relates to a method and a system for providing a bid proxy that places bids for a bidder in an auction based upon bid parameters such as an initial bid, a bid ceiling, a bid floor and a bid position. While the bid ceiling and the bid floor establish the range of bids, the bid position sets how close each bidder wants to remain to a leading bid. 
     SUMMARY OF THE INVENTION 
     The invention relates to a method and a system for providing a bid proxy for a bidder in an online auction. The bid proxy sets each bid based upon bid instructions or parameters sent from each bidder. These bid instructions include an initial bid, a bid ceiling in a traditional auction, a bid floor in a reverse auction, and a bid position. Once an initial bid is set by the bidder, the bid ceiling sets how high the bid proxy could bid, the bid floor sets how low the bid proxy could bid, while the bid position sets how close the bid proxy bids in relation to a leading bid. In a traditional auction, the leading bid is the highest bid cast by the other bidders while in a reverse auction, the leading bid is the lowest bid cast by other bidders. These bidders would set their bid position as the distance from this leading bid based upon a percentage of the leading bid, or as a nominal dollar or other currency distance from the leading bid. In addition, these bidders would set the distance and position from the leading bid based upon their own perception of qualitative characteristics or on their pricing or marketing strategy. In most cases, these qualitative characteristics are the reputation for the quality and the reliability of the bidder&#39;s services or goods. 
     For example, a bidder with high perceived quality characteristics or high perceived reliability might set its bid position as either ten percent or ten dollars lower than the leading bid in a traditional auction, or in the alternative, ten percent or ten dollars higher than the leading bid in a reverse auction. Conversely, a bidder with an aggressive pricing strategy or a set of low perceived quality characteristics would set its bid as either ten percent or ten dollars higher than the leading bid in a traditional auction and ten percent or ten dollars lower in a reverse auction. Therefore, in this case, a bidder with the lowest perceived quality characteristics in a group of competing bidders in a single auction would want to instruct the bid proxy to repeatedly reset its bid so that they are the leading bidders. 
     The invention therefore creates an automated method for imitating the way pricing is often determined in traditional, non-automated environments. Buyers often seek preferred vendors with pricing that is near the leading market level, but not necessarily at the leading level. 
     In a preferred embodiment, this bid proxy system could be used in conjunction with a computer network for providing a computerized shipment management system. This system allows a shipper to present one or more shipping requirements for a particular shipment to be auctioned off through a centralized server. These shipping requirements include the origin and destination of a shipment, the time or delivery date of a shipment, the number of articles being shipped, or the weight or volume of the shipment. The server next sends these shipping requirements to a plurality of carriers. Once the appropriate carriers determine whether to bid in a reverse auction on this shipment, each carrier would select an initial bid, a bid floor, and a bid position. Thus, for example, one particular bidding carrier might select an initial bid of $400 for a particular shipment with a bid floor of $300 and a bid position as 10% higher than the lead bid. Through a preliminary round of bidding, another bidder may set the leading bid to be $350. Therefore, the bid proxy would reset the bid for the initial bidder to be $385, or 10% higher than $350. If the bidding continued to drop as other bids are entered so that the lead bid drops to $320, then the bid proxy would reset the particular bidding carrier to have a bid of $352, or 10% higher than the current lead bid. If the billing continues to fall further so that the lead bid fell to $200, the bid proxy would hold the final bid for that particular bidder to $300, or its bid floor. 
     Each bidding carrier can make a judgment as to how a customer or shipper might perceive its reputation for quality in terms of delivery performance record, billing accuracy, shipment tracking capabilities, and other factors. Because the customer will probably take into account their own perception of quality, the carrier can use bid positioning to insure that its final bid reflects this perception. In addition, the carrier can use bid positioning to reflect an aggressive or conservative pricing strategy for its product in the market. 
     In a single step, the carrier can enter its initial bid, its bid floor, and its bid position. Thus, the carrier does not have to continuously participate in the auction to determine whether its offer is still competitive because the automated proxy is constantly adjusting the bid to the exact desired position in relation to the lowest bid offered. 
     The auction system may be embedded in a shipment management system that brings other benefits to the shipper. Once the shipper selects a carrier, the system creates a booking or reservation between the shipper and that carrier. The shipment management system tracks the shipment for the shipper by accessing automated database and creating a table to allow the shipper to check the delivery status of each of his shipments. The shipment management system also compares the actual performance from the tracking system against the promised performance by the carrier, and creates for the shipper various reports and tables comparing the performance of one carrier to another. The shipment management system also displays the carrier performance data to the shipper when the shipper is evaluating bids from various carriers during an auction. 
    
    
     
       BRIEF DESCRIPTION OF THE DRAWINGS 
       Other objects and features of the present invention will become apparent from the following detailed description considered in connection with the accompanying drawings, which disclose several embodiments of the present invention. It should be understood, however, that the drawings are designed for the purpose of illustration only and not as a definition of the limits of the invention. 
       In the drawings, wherein similar reference characters denote similar elements throughout the several views: 
         FIG. 1  is a flow diagram illustrating the process for the bid positioning system according to the invention; 
         FIG. 2  is a schematic diagram of the computer network for the bid positioning system; 
         FIG. 3A  is a schematic diagram of a bid proxy prompt screen for a reverse auction; 
         FIG. 3B  is a schematic diagram of a bid proxy prompt screen for a traditional auction; 
         FIG. 4A  is a flow diagram of the software of the preferred embodiment; 
         FIG. 4B  is a continuation of the flow diagram of the software of the preferred embodiment; 
         FIG. 4C  is a continuation of the flow diagram of the software of the preferred embodiment; 
         FIG. 5  is a schematic diagram of a shipping information screen; 
         FIG. 6  is a schematic diagram of a carrier bidding input screen; 
         FIG. 7  is a schematic diagram of a screen presented to the shipper containing bid results; 
         FIG. 8  is a schematic diagram of a booking screen; 
         FIG. 9  is a schematic diagram of a shipment tracking system screen; 
         FIG. 10  is a schematic diagram of a performance report screen; and 
         FIG. 11  is a schematic diagram of a costs savings screen. 
     
    
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT 
     Referring to the drawings,  FIG. 1  shows a flow chart of the bid proxy system for a computerized auction. In step A, the system that is housed on server  100  as shown in  FIG. 2  receives an initial bid from an individual bidder. Next in step B, the system receives a bid limit such as a bid ceiling or a bid floor from the bidder. These bidders are logged on to at least one of the remote bidding computers  112 . The computer system for this process is shown in  FIG. 2  showing a central server  100  that is in communication with at least one remote input device such as a biddee computer  110  or a bidder computer  112  through the Internet  101 . Biddee computer  110  is used by persons who are interested in receiving quotes or bids, while bidder computer  112  is used by persons making quotes or bids to the people requesting these quotes or bids. Connecting these two computers is server  100  that has a processor  102  and storage means  104 . Storage means  104  could be any form of hard drive or removable data storage device for storing data so that it houses a database  106  that has a series of tables  108 . Tables  108  also relate to a series of web pages  109  having prompts and entry fields shown in  FIGS. 3A and 3B  and in  FIGS. 5-11 . 
     In this case, as shown in the process of  FIG. 1 , and in the screen embodiment  50   a  and  50   b  of  FIGS. 3A and 3B , each one of the bidders can insert an initial bid  52 . In step B, the system could also receive a bid floor  54   a  and a bid ceiling  54   b . Next, in step C, a bid position  56  is received from the bidder to establish a position for that bidder relative to the lead bid. Next, the bidder assigns the system to be his bid proxy, to adjust the bidder&#39;s bid based upon the bid position and the lead bid. In step D, the auction is opened to all bidders simultaneously so that all of the bidders can bid on a particular product or service offered by the biddee. Next, in step E, the bid proxy continuously adjusts bids for each bidder based upon the bid positioning system during the bidding period. 
     In the preferred embodiment, as shown in  FIGS. 4A ,  4 B, and  4 C, this bid proxy having a positioning system is used in a computerized auction for a shipment management system. In this case, the method for the shipment management system is performed over a computer network such as the Internet. In addition, a server  100  is used to host a computerized system that controls the method. The server may run a Unix operating system, Microsoft NT operating system or any other input system known in the art. 
     A user, such as a carrier, or a shipper, can interact with the server using a remote computer. A shipper is any person or entity looking to ship products using the shipment management system according to the invention. A carrier is any person or entity in the business of transporting goods and who uses the system to exchange information with the shipper. The shipper logs onto biddee computer  110  to request quotes from a plurality of carriers, and the carrier uses bidder computer  112  to make quotes. 
     Thus, in the preferred embodiment (as shown in  FIG. 4   a ) in step  1 , server  100  ( FIG. 2 ) presents a web page (not shown) over a computer network on biddee computer  110 , so that the shipper completes the registration data. Next, in step  2 , the shipper selects the mode of transportation for the shipment such as air, sea, or land. In step  3 , the shipper enters basic shipment data into web page  150  as shown in  FIG. 5  and selects three carriers from a list of carriers stored on a table on database  106 . In the alternative, the shipper could select an original carrier not listed in the table on database  106 . Here, the system contacts that individual solicited carrier to sign that carrier up to the system. 
     Essentially, these carriers are split into one of two groups, solicited carriers, and unsolicited carriers. Solicited carriers are those carriers that are selected directly by each shipper. Additionally, unsolicited carriers, are carriers that are selected by the system after the solicited carriers have been selected. Next, in step  4 , and in step  5 , the shipper confirms whether the data entered is complete and if the data is incomplete, the shipper enters additional shipment data. 
     After this information is confirmed, in step  6 , the system selects and notifies three additional unsolicited carriers from a table in database  106 . This selection can be random, the result of another auction or based upon certain the shipping data entered by the shipper. This data includes the date that the shipper needs the bids  152 , the deadline for the bidding to end  153 , the date the shipment will be ready  154 , the delivery deadline  155 , the destination city  156 , the destination country  157 , the weight of the shipment in pounds or kilos  158 , the dimensions of the shipment  159 , the number of pieces  160 , the list of the top three preferred carriers  161 ,  162 ,  163 , a field that lists who pays for the charges  164 , and a field for any other information  165 . In this step, each one of the selected carriers receives a message inviting them to join in the bidding process. 
     In step  7 , the system creates six separate private bid screens each, as shown in the screen in  FIG. 6 . The top portion of these screens contains similar information taken from the entry screens that were shown in  FIG. 5 , with the responses entered by the shipper. 
     Next, in step  8 , the system determines whether the carrier is registered. If the carrier is not registered, then system creates an email, fax, phone, or any other type message to a system manager to personally contact the carrier to register that carrier. Next, in step  9 , a person associated with the system contacts the carrier and helps that carrier to fill out the bidding screen in step  10  to register for the system. 
     In the bottom portion of  FIG. 6 , each carrier enters its response to the shipper. This screen allows each one of the carriers to instruct a bid proxy on how to bid during the bidding process. In this case, screen  167 , as shown in  FIG. 6 , shows the individual bid response table which lists the individual carrier in field  240 , the additional information prompt in field  242 , while the additional information answer is disposed in field  244 . In addition, the shipping charges for both the opening bid  246  and the lowest bid  248  are broken down into the following categories: charges at origin  250 ; transportation costs  252 ; charges at destination  254 ; and the total charges  256 . 
     Screen  167  also references the bid positioning prompts  258  for each carrier. In this case, there is a prompt to match the lowest bid  270 , a prompt to go below the lowest bid by a particular percentage  262 , and to go above the lowest bid by a particular percentage  264 . The carrier can also enter information about setting a bid ceiling or a bid floor to keep the bid proxy from moving beyond a range preferred by the carrier. Thus, using this system, each carrier can instruct a bid proxy exactly how to bid for it based upon the instructions entered into this screen. 
     Next, in step  11 , the system checks to see whether all of the carriers have filled out their screens. If not, a message is sent to any carrier not responding up to a set period of time such as one hour. A copy of this message is sent to an operations department associated with the system. 
     In step  12 , the system starts the automated bid proxy-bid positioning system for a reverse auction on the shipping system. In this case, as any carrier&#39;s private bid is entered, it may cause an adjustment to, or recalculation of, any or all of the other entered bids so that the bids change. Thus, if a particular carrier selects its bid position to be a percentage difference from the lead bid, the process starts by having a first carrier opening bid entered into the system and comparing it to the lowest entered bids from all other carriers. Next, the system performs a calculation comparing the first carrier&#39;s chosen bid position against the lowest bid from the other carriers. If the resulting figure from this calculation is greater than the first carrier&#39;s opening bid, the system keeps the first carrier&#39;s opening bid to leave the bid price the same. However, if the resulting figure is less than the first carrier&#39;s lowest bid, then the resulting figure is entered to drive the bid price down. This process is then repeated until the bid deadline is reached, and then the bidding is closed. 
     Next, in step  13 , the system assembles the results of the bidding into screen  168  in  FIG. 7 . Screen  168  contains all of the information entered into screen  150  in  FIG. 5 , plus additional information. This additional information includes a listing of the selected carriers  170 , the total cost for shipping the shipment  171 , the carrier&#39;s comments  172 , the carrier&#39;s percentage of on-time deliveries or their percentage for on-time bookings for transit, a quantitative percentage for quality performance  174 , and a question regarding whether the shipper wants to book this quote  175 . This information is filled into blank tables  166  to render a data output. In addition, the shipper is presented with an additional listing of unsolicited carriers  177  wherein this listing shows at least one additional carrier. 
     Next, in step  14 , the system sends a message such as an email or fax to the shipper notifying the shipper that the auction is complete and providing the shipper with a means to connect to its own private bid screen. If a reasonable period of time has passed, and the shipper has not responded, in step  15 , an additional message is sent to an operations staff that operates the system. Then, in step  16  the operations staff acts upon the shipper&#39;s failure to respond by either sending an additional email or making a phone call to see if the shipper wants to accept a bid. 
     In step  17 , the shipper views screen  168  and selects a carrier. Next, in step  18 , the system creates an additional screen  178  shown in  FIG. 8  which confirms that the shipper selected the carrier and creates fields for consignee information such as the consignee company name  180 , the consignee contact name  181 , the consignee&#39;s email or fax  182 , the location of the pick up  183 , and whether to call to schedule a pick up  184 , and the payment terms. In this case, a consignee is any party to whom the shipper instructs the carrier to deliver the goods. 
     In step  19 , the shipper completes screen  178 . In step  20 , the system next creates and sends a message such as an email, voice, fax, or any other type of message to the selected carrier informing them that their bid has been accepted, and directing them to a bid acceptance screen. 
     Next, in step  21 , the system creates a bid acceptance screen that contains the shipment details, the agreed price, and the system&#39;s fee for matching the shipper to the carrier. In step  22 , the carrier completes the bid acceptance screen. To accept shipment, the carrier must confirm this information, and may provide a means for tracking the shipment, such as a number. Larger carriers will have a tracking system that will be used to track the shipment. In step  23 , if after a brief period of time such as 60 minutes, the carrier does not accept the shipper&#39;s acceptance, the system then creates an email to the operations department associated with the system. Next, in step  24 , the operations department takes appropriate action such as calling the carrier to ensure that there is a response. 
     In step  25 , when the carrier&#39;s acceptance is received, the system creates a screen for the carrier giving all customer or shipper details such as name, location, phone number, pickup instructions, consignee name, and contact details. 
     Next, in step  26 , the system creates and sends an email to the shipper confirming that the carrier booking has been completed and advises the shipper of the carrier&#39;s reference number. 
     In step  27 , the system sends a message to the consignee advising the consignee about the shipment details including the booking and delivery deadline details. The consignee is offered tracking information through the system&#39;s online tracking system. 
     In step  28  the system checks to see if this is the first shipment to the consignee. If it is, the system creates an email to the marketing department for follow-up. Next in step  29 , the system updates the billing information for the appropriate booking fee to the selected carrier. Finally, in step  30 , the system creates invoices to carriers for use of the system based on a set schedule, such as twice monthly. 
     The system can also provide additional services for the shipper. In step  31  the system creates a series of screens for tracking cargo decisions. For example,  FIG. 9  shows a screen  190  that presents information that tracks the shipments for each individual shipper. This screen lists the date of each shipment  191 , the reference number  192 , the name of the consignee  193 , the name of the carrier  194 , the booking reference  195 , the actual result  196  as to whether the carrier made its booking or whether the shipped product was delivered. In addition, this screen could also list the status of the delivery  197  such as whether it is en-route or delayed. 
     In addition, in  FIG. 10 , there is shown a screen  200  that lists the name of the carrier  201 , the number of shipments in the last 90 days  202 , the number that each carrier has with tracking data  203 , the percentage of shipments without tracking data  204 , the number of booked flights missed or delivery  205 , the percentage of booked flights missed for each shipment  206 , and the percentage of booked flights missed for all of the system&#39;s customers  207 . This screen is useful because it allows a shipper to see a carrier&#39;s history and the quality of their service before using them to ship an item. 
     As shown in  FIG. 11 , there is a means for tracking a cargo shipping decision-making process. This feature may be used to quantify the kind of decision the shipper has made relative to price and quality. In order to achieve this goal, this system could include summary report screen  210  that shows the cost breakdown for a shipper. This screen includes a recent history of shipments that includes references to a reference number  211 , the destination of the shipment  212 , the type of carrier selected  213 , the price paid vs. the percentage of bookings missed  214 , the low offer concerning price and quality  215 , and the high offer concerning price and quality  216 . 
     Next, there is a summary breakdown of the average cost paid  217 , the average cost offered  218 , the average of the lowest offers  219 , and the average of the highest offers  220 . This breakdown could be based upon the type of shipping process such as land, sea or air shipments. Therefore, this screen allows each shipper to evaluate the decision process by maintaining and compiling the records of the bids and bidders. Finally, in step  32 , this process for a shipment management system would end. 
     Ultimately, this bid positioning system could be used in other types of online auctions. For example, professionals such as doctors, lawyers, accountants, and architects could offer services through an online auction. In this way, they would set the pay scale for their services to be commensurate with the perceived value of their work. 
     Accordingly, while a few embodiments of the present invention have been shown and described, it is to be understood that many changes and modifications may be made thereunto without departing from the spirit and scope of the invention as defined in the appended claims.