Abstract:
A business-to-business cost-effective part supply e-commerce solution for maximizing the efficiency of online commerce. A web-centric system and methods having a logistics and fulfillment model to offer users direct and collaborative purchasing having reduced processing costs. Parts and accessories are delivered to dealerships, garages, collision repair facilities and transportation fleets within hours or on an as-needed basis. Information is provided to dramatically reduce the time needed to make decisions and quickly adapt to market trends. Parts availability is instantly known and delivery time is made based upon the desires of the purchaser.

Description:
[0001]    This application is related to and claims the benefit of provisional application No. 60/168,130 filed Nov. 30, 1999, the teachings of which are hereby incorporated herein in their entirety. 
     
    
     
       BACKGROUND OF THE INVENTION  
         [0002]    1. Field of the Invention  
           [0003]    The present invention relates generally to the field of e-commerce and more particularly to the use of online commerce to optimize supply chain efficiency for delivering parts or the like to any location within hours.  
           [0004]    2. Background of the Invention  
           [0005]    Minute by minute everything in the physical world is wearing out. Day by day the cost of replacing these items is increasing. As a result billions of people around the world are making the decision to repair rather than replace. Some objects, such as computers, refrigerators, dishwashers and lawnmowers contain hundreds of parts; others like the automobiles contain thousands. The failure of a single component can render an object inoperative. The rebuilding process for these essential items hinges on the availability of and access to replacement parts.  
           [0006]    What is needed is a fast efficient means for replacing defective parts so that items are returned to operation as quickly as possible. Heretofore inefficiencies within the parts distribution industry dictated an exceedingly time consuming parts search and retrieval process in spite of the fact that there are numerous suppliers and distributors spanning the country. In the automotive world the result is that vehicles often sit inoperable for days or even weeks awaiting necessary parts. This is unacceptable for today&#39;s consumer who lacks virtually any viable alternative for navigating the country&#39;s automobile dependent communities.  
         SUMMARY OF THE INVENTION  
         [0007]    The present invention offers an innovative business model and cost effective cutting edge e-commerce solutions to maximize the efficiencies of online commerce. The system and methods employ standardized means of communication for OEM part lines in a single marketplace, the use of applications service provider software for real time automated transaction, order placement, tracking, and inventory control in conjunction with an aggregation of information and content to improve the supply chain of parts.  
           [0008]    To purchase auto parts, businesses log onto the innovative website and locate the desired part using an extensive catalog and/or parts illustrations. A simple click of a button adds the parts to a virtual shopping cart. Buyers may add and subtract parts from the shopping cart as they browse just as in a physical store. To execute an order, the buyer clicks on the “buy” button which then prompts them to supply shipping and delivery information through a secure socket layer e-mail or they may supply this by telephone. This information is stored on a secure server and need not be provided again by repeat buyers. The inventor automatically sends buyers an e-mail to confirm orders within minutes after the order is placed and then advises buyers when orders are shipped. Orders are accepted, validated, organized and placed by suppliers, wholesale distributors and parts dealers.  
           [0009]    The most critical element in the business to business parts industry is the availability and time of delivery. A unique method utilizes an infrastructure of franchise dealers that stock and deliver parts. The most efficient location of the part within the nearest proximity to the order&#39;s place of origin is used to automate the ordering and fulfilling process. 
       
    
    
     BRIEF DESCRIPTION OF THE DRAWINGS  
       [0010]    [0010]FIG. 1 illustrates a screen print taken from the business to business web portal of the present invention;  
         [0011]    [0011]FIG. 2 illustrates in schematic form the supplier network of the present invention;  
         [0012]    [0012]FIG. 3 illustrates the supply chain relationships of the present invention;  
         [0013]    [0013]FIG. 4 illustrates the relationship of the present invention to the original equipment manufacturers;  
         [0014]    [0014]FIG. 5 illustrates the business to business relationships that could be conducted with the present invention;  
         [0015]    [0015]FIG. 6 is an illustration in block diagram form of the supply chain model employed in the present invention;  
         [0016]    [0016]FIG. 7 is a detailed illustration of the original equipment manufacturing order process according to the present invention;  
         [0017]    [0017]FIG. 8 is a model in block diagram form of the aftermarket ordering process of the present invention; and  
         [0018]    [0018]FIG. 9 illustrates the supplier processing transactions of the present invention. 
     
    
     DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS  
       [0019]    The present invention offers an innovative business model and cost effective cutting edge e-commerce solution to maximize efficiencies of online commerce. Manufacturers who have been slow to embrace e-commerce are now flocking to join the internet boom. The e-commerce revolution is affecting virtually every market but will have a particularly large impact on the automotive industry because of its large presence in the economy. The present invention is an adaptable e-commerce solution that fits the needs of any company and offers unique advantages of multi-platform technology with total logistics of the parts supply chain.  
         [0020]    The auto parts market is very large, comprising a large dollar value and many buyers and suppliers. The present chain includes wholesale distributors, jobbers and retailers in addition to the manufacturers. The supply chain often involves original equipment manufacturers (OEM), dealerships and installers of auto parts as well.  
         [0021]    The present system and methods enable local and nationally recognized dealers, wholesalers, distributors and manufacturers to retain private label sites through an internet based application solution provider web portal. The present concept is shown by way of example as parts for automobiles can also include parts for a myriad of industries including aerospace, computers and peripherals, consumer electronics, light goods/appliances, household fixtures, garden/housewares, sporting goods, aviation, medical equipment, office equipment and manufacturing equipment.  
         [0022]    Warehouse distributors, jobbers and retail stores must make significant investments in inventory, real estate and personnel for each location thus limiting the amount of inventory that can be economically stored in any location. Additionally warehouse distributors carry typically carry over 100 thousand unique part numbers and have inventories valued in the millions. The average dealership stocks less than 12,000 unique parts but has a parts inventory valued in the hundreds of thousand and allocates less than one percent (1%) of its inventory for discontinued parts. Therefore, consumer selection is limited due to the lack of physical inventory space and limited parts locating capabilities.  
         [0023]    Additionally, auto dealers and other retailers cannot easily obtain necessary point of sale demographic and behavioral data on buyers. This inefficient flow of information limits the ability to act on real time information and limits the effectiveness of direct marketing campaigns and personalized services. Trends regarding the needed parts will not be recognized.  
         [0024]    The present invention restructures the supply chain in which suppliers typically sell auto parts to manufacturers who in turn sell directly to their franchisees, retailers or a network of distributors.  
         [0025]    There are multiple market segments in the automobile part industries, each providing a variety of opportunities for the use of online commerce. The two general areas are referred to as the OEM market and the replacement or aftermarket sales.  
         [0026]    As shown in FIG. 1 the present invention is a business to business marketplace which provides a web-based fully integrated auto supply chain, web processing in real time transactions, order placements, tracking, inventory control and the aggregation of information content for improved market penetration. To purchase auto parts the businesses log onto the internet website portal  100  and locate their desired part using extensive catalog and/or parts illustrations. Then they may simply click a button to add the part to the virtual shopping cart. Buyers may add/subtract parts with the shopping cart as they browse just as in a physical store. To execute orders buyers click on the “buy” button which then prompts them to supply shipping and credit card information through secured socket layers or via telephone. This information is stored and may not be provided again by repeat buyers. Most of the parts are available for immediate shipment but others are available for shipping within 48-72 hours. Out of print parts are generally available within  4 - 6  weeks although not all auto print parts may be available. Buyers may select a variety of delivery options including immediate or night and other shipping options including international. Notice of the order is sent via e-mail to the buyer.  
         [0027]    The most critical elements in the business to business parts industry are the availability of parts and time to delivery. Traditional auto parts distributions systems are plagued by the lack of one centralized parts location and use multiple proprietary inventory systems which can not interface to each other. An exorbitant amount of time and money is wasted in the effort to locate necessary parts, transport the parts from distant locations, manually process orders and transfer funds either by telephone or facsimile. By using the present invention, automobile dealerships, service centers and garages can save money by eliminating wholesale distributors, jobbers and retailers. Additionally a tremendous of time is saved by instantly locating the availability of parts.  
         [0028]    Shown in FIG. 2 is the OEM supplier network level  200 . The invention comprises an OEM side  202  and aftermarket side  204 . Manufacturers  206  and suppliers  208  interface with each other as well as with the web portal  100 . Additionally, original equipment distribution may be made as in block  210  and the original equipment aftermarket brands can be sold block  212 . Other OEM marketplaces  214  and insurance companies  216  can interface to the website  202 . Also interfacing with the OEM website  202  are dealers  218 , collision repair shops  220  and customer  222 . The customer may be a major automobile manufacturer and have its own electronic marketplace such as block  224 .  
         [0029]    On the aftermarket side of the present invention  204  there is connected suppliers  208  OE aftermarket brands  212  as well as wholesale distributors  226 , auto recyclers  228 , other aftermarket marketplaces  230 , and jobbers  232 . Other proprietary networks  234  may interface with the aftermarket web portal  204  to provide smooth interface to others supply channels. Mechanic repair  236  and retailer  238  also interface with the aftermarket web portal  204 . Web portals  202  and  204  are all part of the inventive system and methods and operate seamlessly as shown by arrow  240 .  
         [0030]    The essence of the relationships of the present invention are shown in FIG. 3. Buyers  302 , and storefronts  304 , are connected through the present supply chain model  306  with sellers  308 , and selling agents  310 . Buyers maybe consumers or businesses depending on storefront rules. Buyers may invite or register directly depending upon the storefront rules. Consumers may shop before registering whereas businesses must pre-register. Buyers may register for several storefronts independently but they see no relationship between the storefronts. If a buyer registers with storefront X he will need to register separately for storefront Y even if using the same logon name and e-mail address. No two storefronts may share a single venue like a website otherwise login names could be ambiguous. However a single storefront may exist at several venues like multiple websites or web-enabled cell phones. Pricing is determined based on buying agreements with the individual storefront.  
         [0031]    Sellers may be dealerships, distributors, suppliers, manufacturers, recyclers, etc. Sellers access storefronts for a fee based on the selling agreements. Sellers get their requests for “orders” and returns from any storefront with a relevant selling agreement in place. The processing is conducted across the supply chain using various computer languages such as XML, HTML, or direct to DMS.  
         [0032]    All functionality of the inventive website is available to the storefronts. Support is made for one or more catalogs. Seller agents can assist in determining what is available and assist buyers in interfacing the supply chain.  
         [0033]    Shown in FIG. 4 is a relationship between the inventive system and methods and the OEM dealerships. The manufacturer  402 , interfaces through the web portal  100  to access the business to business marketplace  202 . A retailer website  404  and a manufacturer website  406  are connected to the parts portal  202 . Also connect to the parts portal are customers shown in box  408  such as garages, body shops, dealers or consumers.  
         [0034]    The present invention provides a rich set of e-commerce features that allow buyers to transact business either at a seller&#39;s site or through the parts.com portal. Illustrated in FIG. 5 is the present parts.com portal  502  which can interface to any of the customers  504 ,  506  or  508  as well as retailers  510 ,  512  and  514 . Separately various sellers sites such as  516  can interface to the customers  504 ,  506 , and  508  as well as to a corporate site  518  which represents a manufacturer. Likewise, manufacturer  520  can have a website which interfaces to all of the customers and all of the retail locations depending upon the agreements that they have put into place.  
         [0035]    In the present invention the business model does not anticipate warehousing or stocking of parts inventory but rather relies upon rapid fulfillment by major suppliers, distributors and wholesalers in the buyers local area having a broad selection of parts. The present invention focuses on redefining the supply chain model. Illustrated in FIG. 6 is a conventional supply chain model is shown as  602  wherein a purchase is made followed by delivery of that purchase. That purchase is then put on the market, subsequently sold, and delivered to the ultimate customer followed by customer support. A revised supply chain model is shown as  604  wherein a product is consigned, then delivered to be marketed, sold to a purchaser, delivered to the buyer and supported. Purchase  606  is finally made after the marketing is done. The one making the product available is not the owner of the part. In the present inventive business model, the supply chain  610 , employed is such that the market  612  offers for sale a product, the purchase and delivery is made upon the sale. The purchased part is then delivered to the ultimate customer and supported.  
         [0036]    Illustrated in FIG. 7 in more detail is the macro order process  700 , for the original equipment manufacturer supply chain model. The present invention envisions a business model and process that utilizes an intricate network that is based on a regional structure within a country such as five regions within the United States. The five regions are broken down into three tiers, which could for example represent the  34  dominant vehicle lines. The parts.com network suppliers are selected from an elite group of nationwide dealers that excel in both parts, sales and distribution. The tiers in the example are called platinum, gold and silver. Shown in FIG. 7 is the web portal  100  interfacing with buyers  702  who place orders  704 . Once placed the orders are filtered in step  706  using various business rules step  708 . The order is routed first if possible with the platinum supplier  710 . The platinum suppliers hold the first tier primary fulfillment opportunity to deliver OEM parts in their respective market areas. Platinum suppliers pack and ship parts for their vehicle line responsibility through a courier such as Federal Express or UPS. It is expected only small numbered on the order of 100-200 suppliers will make up the entire platinum tier to serving the world&#39;s automotive parts and accessory needs.  
         [0037]    The next tier is the gold suppliers  712 . If for any reason a platinum supplier cannot fulfill an order within a given time frame the order is then referred to a gold supplier network entity which may comprise approximately 6,000-10,000 suppliers throughout the country. In every case, however, platinum suppliers enjoy profit participation from sales referred to the gold supplier  712 . The gold supplier operates within the same regional territories as the platinum supplier. Gold suppliers earn on the profit from their sales.  
         [0038]    The third tier is the silver tier  714 . The third integral tier is the silver supplier network which provides the foundation for the largest online parts locator network. Silver network associates consist of traditional dealers or any agency that supplies and inventories automotive parts and accessories. The silver level is the final one in which a parts request defaults when both the platinum and gold suppliers cannot deliver on a product request. Silver associates are eligible to place parts and accessories online for sale and trading.  
         [0039]    An aftermarket business model order process  800 , is shown in FIG. 8. Business to business portal  100  can be accessed by buyers  802  for the placement of orders. If orders are able to ship in less than  8  hours, step  804 , a local parts supplier as a member of the inventive network  806  may ship the parts. If the parts are not able to be delivered within 8 hours as shown in step  808  the order is routed to the U.S. and Canadian market  810  for shipment within 24 hours. If the order can not be full filled with  24  hours, the request is sent for backup fulfillment, step  812 .  
         [0040]    An example of the supplier business transaction model  900 , is shown in FIG. 9. Again the present supply portal  100  is accessed by buyers  902  for placement of orders step  904 . An Internet agent, shown here as a human operator  906 , who can monitor the order process and assist in placement of the order and check the inventory or route the order to provide the human touch and level of intelligence that the automated system may not have. If the part requested is in stock step  908 , it is picked and packed in step  910 , payment is made in step  912 , and the part sent to the customer in step  914 . Acknowledgment to the customer that it is being sent. Any changes in the order can be noted in step  916 . An updated history is kept on file in step  918 . If the part is not in stock, step  920 , it may be back ordered in step  922 . The customer is informed in step  924  and the customer can choose to cancel the order in step  926 , with a record retained as in step  928 . The customer may choose to keep the order until the part becomes available as in step  930 . Alternatively, if the part is unavailable as in step  932 , the customer is notified and if still within the time parameters given by the customer, the part order can be routed to the nearest silver supplier  934 .  
         [0041]    What has been shown is a unique business model, marketplace and e-commerce solution to the supplying of parts worldwide. It should be understood that while the present system and methods has been shown relative to the automotive parts marketplace, the inventive concepts and techniques may be applied across a myriad of part types and industries. Variations may be made to the invention without departing from the spirit and scope of the appended claims.