Abstract:
A vendor-managed inventory system includes a VMI hub system ( 10 ), a buyer system ( 20 ), a plurality of vendor systems ( 30 ) and an external network ( 40 ) which interconnects all these systems. The VMI hub system stores and manages materials for the buyer system and the vendor systems, which can significantly reduce inventory control costs for both systems. The VMI hub system has a hub server ( 100 ) including a buyer requirements information management module ( 1002 ), an inventory information processing module ( 1004 ), an alert signal generating module ( 1006 ), a vendor delivery information management module ( 1008 ), and an inventor information updating module ( 1010 ). A related vendor-managed inventory method is also disclosed in the present invention.

Description:
BACKGROUND OF THE INVENTION  
         [0001]    1. Field of the Invention  
           [0002]    The present invention relates generally to vendor-managed inventory, and especially to a vendor-managed inventory system and method for providing vendor-managed inventory services to a customer over an electronic communications network.  
           [0003]    2. Background of the Invention  
           [0004]    Vendor-managed inventory (VMI) is a business method which relates to vendor and customer interaction in an effort to minimize the customer&#39;s share of distribution costs and to eliminate inventory shortages associated with distributing a vendor&#39;s goods. Vendors that are able to reduce the customer&#39;s costs incurred in the purchase and distribution of the vendors&#39; goods provide an added incentive for the customer to purchase more goods.  
           [0005]    The art of automated vendor-managed inventory has been disclosed in patents such as U.S. Pat. Publication No. 2003023503 entitled Vendor-managed Inventory Method and System and published on Jan. 30, 2003. This patent illustrates a vendor-managed inventory system based on a network environment which comprises a vendor system, a buyer system and an external network connecting the two systems. The buyer system includes a buyer server, multiple workstations and manufacturing devices, a plurality of storage locations, and a sensor device. These entities of the buyer system are connected or linked through an internal network. Each storage location stores a small quantity of production material to be consumed by one of the manufacturing devices. The sensor device monitors quantities of materials at the storage locations via the internal network. When a quantity of any material falls below a specified threshold, the sensor device triggers an alert signal. The alert signal is then transferred to the buyer server, and material requirements information is generated and transmitted to the vendor system. Afterward, the required material is delivered to the buyer&#39;s premises by the vendor.  
           [0006]    Although the system described above can reduce a level of stock for a buyer system, it cannot significantly lower inventory of a corresponding vendor. It is necessary that the vendor monitor a material consumption status of its customer at all times, and to have material stock on hand in order to timely supply the buyer. Therefore, the vendor is burdened with more inventory costs and management duties in controlling inventory of the supply chain. Accordingly, what is needed is an inventory system and method which can reduce inventory control costs for a buyer and its related vendors at the same time.  
         SUMMARY OF THE INVENTION  
         [0007]    A main objective of the present invention is to provide a vendor-managed inventory system and method which can reduce inventory control costs for a buyer and its vendors at the same time.  
           [0008]    Another objective of the present invention is to provide a vendor-managed inventory system and method which can automatically generate an alert signal to notify a corresponding vendor to supply a material when a current stock of the material in the system falls below a predetermined threshold.  
           [0009]    To accomplish the above objectives, a vendor-managed inventory (VMI) system in accordance with a preferred embodiment of the present invention comprises a VMI hub system, a buyer system, a plurality of vendor systems and an external network interconnecting all these systems. The VMI hub system can store and manage materials for the buyer system and the vendor systems. The VMI hub system comprises a hub server including: a buyer requirements information management module provided for receiving material requirements information from the buyer system, and generating a material extraction record when the VMI hub system extract a required material from its warehouses to supply the buyer system according to the material requirements information; an inventory information processing module provided for querying inventory-related records of the material, and determining whether a current stock of the material has fallen below a corresponding predetermined inventory threshold; an alert signal generating module provided for generating a second alert signal when the current stock of the material has fallen below the predetermined inventory threshold; and a vendor delivery information module provided for generating a material replenishment record to be transferred to a corresponding vendor system according to the second alert signal, and generating a delivery record after premises corresponding to the VMI hub system receives the material delivered by the vendor system.  
           [0010]    Further, the present invention provides a preferred vendor-managed inventory method comprising the steps of: (a) receiving material requirements information from a buyer system; (b) supplying the buyer system with the required material, and generating a material extraction record; (c) updating a current stock record of the material stored in a hub database according to the material extraction record; (d) determining whether the current stock of the material has fallen below a predetermined inventory threshold; (e) generating a second alert signal if the current stock of the material has fallen below the predetermined inventory threshold; (f) receiving the second alert signal, and generating a material replenishment record to be transferred to a corresponding vendor system; (g) receiving the material delivered by the vendor system, and generating a delivery record; and (h) updating the current stock record of the material stored in the hub database in accordance with the delivery record.  
           [0011]    Other objects, advantages and novel features of the present invention will be drawn from the following detailed description of the preferred embodiment and preferred method of the present invention with the attached drawings, in which: 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0012]    [0012]FIG. 1 is a schematic diagram of hardware configuration of a vendor-managed inventory system in accordance with the preferred embodiment of the present invention;  
         [0013]    [0013]FIG. 2 is a block diagram showing main function units of a hub server of the vendor-managed inventory system of FIG. 1; and  
         [0014]    [0014]FIG. 3 is a flowchart illustrating a preferred method of implementing the vendor-managed inventory system. 
     
    
     DETAILED DESCRIPTION OF THE INVENTION  
       [0015]    [0015]FIG. 1 is a schematic diagram of hardware configuration of a vendor-managed inventory (VMI) system in accordance with the preferred embodiment of the present invention. The vendor-managed inventory system comprises a VMI hub system  10 , a buyer system  20 , a plurality of vendor systems  30 , and an external network  40  which interconnects all these systems. Only one vendor system  30  is shown in FIG. 1.  
         [0016]    The VMI hub system  10  may be considered as an inventory management center for the vendor-managed inventory system of the present invention, and may partially function as a logistics center. The VMI hub system  10  can store and manage materials delivered by the vendor systems  30 , receive material requirements information from the buyer system  20 , and timely supply the buyer running the buyer system  20  with required materials. When a current stock of a certain material falls below a predetermined inventory threshold, the VMI hub system  10  transmits a material replenishment record to a corresponding vendor system  30  that provides such material, notifying the vendor running that vendor system  30  to supply the needed material. The material replenishment record may comprise information including a name, a quantity, specifications, and a delivery time of the material to be replenished. The predetermined inventory threshold is calculated according to business rules adopted by the VMI hub system  10  which are well known and will be appreciated by those skilled in the art. The VMI hub system  10  is generally located in hub premises that are near the buyer, in order to timely deliver required materials to the buyer.  
         [0017]    The VMI hub system  10  comprises a hub server  100 , a hub database  102 , a plurality of hub workstations  104  (only one shown), a plurality of hub warehouses  106  (only one shown), and a network  10  interconnecting all the above entities. The hub server  100  may execute various software applications to enable entities of the VMI hub system  10  to communicate with each other as well as perform various enterprise level tasks. Such tasks may include receiving material requirements information from the buyer system  20 , and transmitting material replenishment records to the vendor systems  30 . The software applications that can be executed by the hub server  100  include enterprise resource planning software, email software, database management software, and other tools commonly used in a business environment. The hub database  102  stores records used or generated by the VMI hub system  10 , especially inventory-related records. The inventory-related records may include current stock records of various materials, material requirements information from the buyer system  20 , material extraction records, and material replenishment records transferred to the vendor systems  30 . A material extraction record is generated when the VMI hub system  10  extracts a material from one of the hub warehouses  106  to supply the buyer system  20 . The material extraction record comprises a name, specifications, an extraction quantity, and a time of the extraction.  
         [0018]    The hub workstations  104  may be general-purpose computer devices such as personal computers, laptops, portable handheld devices (e.g., personal digital assistants—PDAs), or other suitable devices known in the art. Each hub workstation  104  provides an interactive user interface for users of the VMI hub system  10  to carry out inventory management operations. The hub warehouses  106  store materials delivered by the vendor systems  30 , in order to timely supply the buyer system  20  with required materials. The network  110  may be any suitable communications architecture required by the VMI hub system  10 , such as a local area network, wide area network, etc.  
         [0019]    The buyer system  20  is typically a manufacturing plant or facility which consumes production materials stored in the VMI hub system  10 , and comprises a buyer server  200 , a buyer database  202 , multiple buyer workstations  204  (only one shown), multiple buyer production devices  206 , multiple supply containers  208 , an alert device  212  and a network  210  interconnecting all the above entities. The buyer server  200  may execute one or more computer programs to enable the entities of the buyer system  20  to communicate with each other, as well as perform various enterprise level tasks such as transferring material requirements information to the VMI hub system  10 . Typical computer programs that may be executed by the buyer server  200  include those for Materials Requirements Planning (MRP), Enterprise Resource Planning (ERP), billing, finance, and security.  
         [0020]    The buyer database  202  stores records used or generated by the buyer system  20 , especially material requirements information. The buyer workstations  204  may be general-purpose computer devices such as personal computers, laptops, portable handheld devices, or other suitable computer processing devices. Each buyer workstation  204  provides an interactive user interface for users of the buyer system  20  to carry out inventory management operations. The buyer production devices  206  represent manufacturing or production machinery for producing products needed by customers. The supply containers  208  are located near the buyer production devices  206 . Each supply container  208  stores a certain quantity of material to be consumed or expended by a corresponding buyer production device  206 . The alert device  212  is connected to the supply containers  208  for monitoring and measuring the contents of production materials therein. When a quantity of a material stored in any of the supply containers  208  falls below a predetermined inventory threshold, the alert device  212  generates a first alert signal. The first alert signal is transferred to the buyer server  200 , and indicates that the material is running out and needs to be restocked. The predetermined inventory threshold is customarily determined by the buyer system  20  according to its own production planning, and the supply capacity and speed of the VMI hub system  10 . Although only one alert device  212  is shown, the buyer system  20  may alternatively be configured to include a plurality of alert devices  212  as required. The network  210  may be any suitable communications network needed by the buyer system  20 , such as a local area network, wide area network, etc.  
         [0021]    Each vendor system  30  comprises a vendor server  300 , a vendor database  302 , a plurality of vendor workstations  304  (only one shown), a plurality of vendor production devices  306 , a plurality of storage locations  308  (only one shown), and a network  310  interconnecting all the above entities. The vendor server  300  may execute one or more computer programs to enable the entities of the vendor system  30  to communicate with each other, as well as perform various enterprise level tasks such as receiving material replenishment records from the VMI hub system  10 . The vendor database  302  stores records used or generated by the vendor system  30 , especially material replenishment records received from the VMI hub system  10 , data on materials shipped to the hub premises, and current stocks of materials in the storage locations  308 . The vendor workstations  304  may be general-purpose computer devices such as personal computers, laptops, portable handheld devices, or other suitable computer processing devices. Each vendor workstation  304  provides an interactive user interface for users of the vendor system  30  to carry out inventory management operations. The vendor production devices  306  represent manufacturing or production machinery for producing materials needed by the buyer system  20 . The storage locations  308  store materials manufactured by the vendor production devices  306 . The network  310  may be any suitable communications network needed for the vendor system  30 , such as a local area network, wide area network, etc.  
         [0022]    The VMI hub system  10 , the buyer system  20  and the vendor systems  30  communicate with each other via the external network  40 . The external network  40  may be any appropriate high-speed communications network known in the art, such as a private network or the Internet, and may include wireless technology and devices.  
         [0023]    [0023]FIG. 2 is a block diagram showing main function units of the hub server  100 . The hub server  100  comprises a buyer requirements information management module  1002 , an inventory information processing module  1004 , an alert signal generating module  1006 , a vendor delivery information management module  1008 , and an inventory information updating module  1010 .  
         [0024]    The buyer requirements information management module  1002  is provided for receiving material requirements information from the buyer server  200 , and generating a material extraction record when the VMI hub system  10  extracts a required material from one of the hub warehouses  106  according to the material requirements information. The inventory information processing module  1004  is provided for searching inventory-related records of the material in the hub database  102 , and determining whether a current stock of the material has fallen below a corresponding predetermined inventory threshold. The alert signal generating module  1006  is provided for generating a second alert signal when the current stock of the material is below the predetermined inventory threshold. The vendor delivery information module  1008  is provided for generating a material replenishment record to be transferred to a corresponding vendor system  30  according to the second alert signal, and generating a delivery record after the hub premises receives the material delivered by the vendor. The delivery record may include a name, specifications, a quantity of the material, and a time when the material is delivered. The inventory information updating module  1010  is provided for updating the current stock record of the material stored in the hub database  102  according to the material extraction record and the delivery record.  
         [0025]    [0025]FIG. 3 is a flowchart illustrating a preferred method of implementing the vendor-managed inventory system. In the buyer system  20 , the buyer production devices  206  continuously consume production materials in the supply containers  208 . In step S 300 , once a current stock of a material in any of the supply containers  208  falls below its predetermined inventory threshold, the alert device  212  monitoring the contents of the supply containers  208  generates a first alert signal that is transmitted to the buyer server  200 . The buyer server  200  then sends material requirements information to the hub server  100  through the external network  40 , requiring the VMI hub system  10  to supply the material. The material requirements information is received by the buyer requirements information management module  1002 , and stored in the hub database  102 .  
         [0026]    Then, in step S 302 , the buyer requirements information management module  1002  notifies operators located at the hub workstations  204  through the network  110  to extract the material from one or more of the hub warehouses  106  according to the material requirements information, and generates a material extraction record to be stored in the hub database  102 . In step S 304 , the inventory information updating module  1010  updates the current stock record of the material stored in the hub database  102  according to the material extraction record. Afterward, in step S 306 , the inventory information processing module  1004  searches in the hub database  102  for the updated current stock record of the material. In step S 308 , the inventory information processing module  1004  compares the updated current stock record and a corresponding predetermined inventory threshold, and determines whether the current stock of the material has fallen below the predetermined inventory threshold.  
         [0027]    If the current stock is above or equal to the predetermined inventory threshold, the procedure returns to step S 300 , with the hub server  100  waiting to receive a next transmission of material requirements information. If the current stock is below the predetermined inventory threshold, in step S 310 , the alert signal generating module  1006  automatically creates a second alert signal indicating that the material needs to be replenished, and transmits the second alert signal to the vendor delivery information management module  1008 . In step S 312 , the vendor delivery information management module  1008  receives the second alert signal, and generates a material replenishment record that is transmitted to the vendor server  300 . The vendor server  300  notifies operators located at the vendor workstations  304  to deliver the material according to the material replenishment record. In step S 314 , the vendor delivery information management module  1008  generates a delivery record after the hub premises receives and accepts the delivered material. In step S 316 , the inventory information updating module  1010  updates the current stock record of the material stored in the hub database  102  according to the delivery record, whereupon the procedure returns to step S 300 .  
         [0028]    Although the present invention has been specifically described on the basis of a preferred embodiment and preferred method, the invention is not to be construed as being limited thereto. Various changes or modifications may be made to said embodiment and method without departing from the scope and spirit of the invention.