U.S. patent application number 12/587819 was filed with the patent office on 2011-02-17 for method and system for online sales and purchases.
Invention is credited to Oren L. Davis, Mirko Predosin, Richard A. Russell, Diane L. Slonaker, Richard J. Solar, JR..
Application Number | 20110040646 12/587819 |
Document ID | / |
Family ID | 22900782 |
Filed Date | 2011-02-17 |
United States Patent
Application |
20110040646 |
Kind Code |
A1 |
Davis; Oren L. ; et
al. |
February 17, 2011 |
Method and system for online sales and purchases
Abstract
Internet-based commercial network connects multiple qualified
participant buyers and sellers. Items are made available for
defined periods of time, referred to as an event (139). Event terms
and conditions include item types, price, quantity, volume or
units, discount, shipping terms (138). Reiterative offer and
counteroffers permit negotiation of terms for an event.
Participants may view anonymous competitive quotes for comparison
and analysis. Pooled purchases and auctions are envisioned.
Participants may create web presences and are subject to
restrictions on access (141) and purchase (142) authority. Central
system maintains participant data.
Inventors: |
Davis; Oren L.; (Tempe,
AZ) ; Slonaker; Diane L.; (Tempe, AZ) ;
Russell; Richard A.; (Goodyear, AZ) ; Solar, JR.;
Richard J.; (Phoenix, AZ) ; Predosin; Mirko;
(Sunnyvale, CA) |
Correspondence
Address: |
GALLAGHER & KENNEDY, P. A.
2575 E. CAMELBACK RD. #1100
PHOENIX
AZ
85016
US
|
Family ID: |
22900782 |
Appl. No.: |
12/587819 |
Filed: |
October 13, 2009 |
Related U.S. Patent Documents
|
|
|
|
|
|
Application
Number |
Filing Date |
Patent Number |
|
|
10399196 |
Apr 1, 2005 |
|
|
|
PCT/US01/32180 |
Oct 10, 2001 |
|
|
|
12587819 |
|
|
|
|
60239141 |
Oct 10, 2000 |
|
|
|
Current U.S.
Class: |
705/26.3 |
Current CPC
Class: |
G06Q 40/04 20130101;
G06Q 30/0609 20130101; G06Q 30/0611 20130101; G06Q 30/06 20130101;
G06Q 30/08 20130101; G06Q 30/0643 20130101; G06Q 30/00
20130101 |
Class at
Publication: |
705/26.3 |
International
Class: |
G06Q 30/00 20060101
G06Q030/00 |
Claims
1. A method of computer assisted procurement of products sought to
be purchased comprising: (a) providing an internet website, (b)
affording a participating buyer the ability to list on a page at
the website a list of items requiring recurrent replenishment, (c)
qualifying participating sellers to quote on items in the list of
items, (d) affording qualified participating sellers the ability to
award one or more sales to one of said qualified participating
sellers based on that seller's quote on an item or items on the
list, and (e) enabling the qualified participating sellers to quote
on a recurring basis on items on the list absent the need for
requalification.
2. The method according to claim 1, wherein step (e) includes
scheduling recurrent events during which quotes on listed items can
be received.
3. The method according to claim 1 wherein step (e) includes
maintaining a price list of items on the list continuously open for
receipt of quotes on listed items.
Description
CROSS REFERENCE TO RELATED APPLICATION
[0001] This application is a division of U.S. application Ser. No.
10/399,196 filed Apr. 1, 2005 and naming as inventors Richard J.
Solar, Oren L. Davis, Mirko Predosin, Diane L. Slonaker and Richard
A. Russell and having the same title as this application, which was
the U.S. National stage of, and claimed priority from, an
international application No. PCT/US01/32180, filed Oct. 10, 2001,
naming the above five inventors, and having the same title as this
invention, that international application claimed priority from the
U.S. provisional application, identically entitled, No. 60/239,141,
filed Oct. 10, 2000, naming as inventors Oren L. Davis, Mirko
Predosin, Diane L. Slonaker and Richard A. Russell. Priority from
each of the above-identified earlier-filed applications is hereby
claimed. Each of the above-identified, earlier-filed applications
is hereby incorporated by reference.
FIELD OF THE INVENTION
[0002] This invention relates to a system, software and method for
computerized procurement, sales, or contract formation using a
computer network, and more particularly to a system, software and
method using the internet to establish multi-item procurement, sale
or contracting events.
BACKGROUND OF THE INVENTION
[0003] For any product that can be described and priced per item,
per weight or by how it is packaged, procurement has often been
inefficient and time consuming for purchasers and sellers alike.
This applies to retail grocery and healthcare businesses and any
that regularly purchase a variety of items from various sources.
Additionally, past procurement methods have not been certain to
bring purchasers the best purchase terms available, or to assure
sellers a reasonable opportunity to fairly compete.
[0004] Typically, in a retail business, sellers would need to
schedule a meeting with a purchasing agent of a large retailer,
travel to the scheduled meeting, and make offers on products with
little or no knowledge of what competitive offer had been or would
be made by other sellers. This practice has been inefficient, time
consuming and not competitive. Sellers have been unable to react to
competitive offers and purchasers have been denied the benefit of
such reactive pricing.
[0005] A number of websites on the worldwide web offer auctions and
reverse auctions. These permit buyers or sellers to make offers or
"quote" on various posted items. The quoting often is set to close
at a particular time, and a feature has been offered whereby
quoting may be extended if a quote is received within an extension
threshold time approaching the scheduled close.
[0006] These sites are not tailored to a particular business's
procurement practices, however. They do not afford the opportunity
for a business purchaser to schedule an event among recognized,
qualified business suppliers, during which many items required by
the business purchaser are posted by that purchaser, and suppliers
are unable to quote against one another, not just on price, but on
other terms important to both the selling and purchasing parties.
Neither do prior sites allow for confirming a purchasing or selling
activity to the business practices of the relevant business. In
addition prior sites have not allowed for actual negotiation of
contract terms of a negotiated contract.
SUMMARY OF THE INVENTION
[0007] In accordance with this invention, a system, software and
method for computer-assisted procurement or sales of products are
provided in which an interne website allows for the listing of a
multiplicity of products to be sold or purchased by a seller or a
purchaser. An "event" is established at which qualified buyers or
sellers can visit the website to offer terms for the sale or
purchase of the products listed there. The establishment of such an
event includes making the website available for the posting of
offers ("quotes") during an identified time period. In a purchasing
event, qualified sellers are invited to offer terms of sale by
posting those terms at the website in association with the items
sought to be purchased, and doing so during the identified time
period for the event. In a selling event buyers are similarly
invited to the website to offer to purchase items listed there. In
a negotiated event, negotiable purchase contract terms are posted
for negotiation between buyer and seller. In a competitive branded
product event, similar products of differing brands may be sought
by a buyer, and sellers' proposals in response are objectively
compared despite differing proposed terms.
Buying and Selling Events
[0008] The system by which the invention operates includes one or
more servers, the internet-connected computers of buyers and
sellers, the interne equipped computer of the company that supports
the system and maintains the website and the programming of each
that establishes the interactions of the buyers, sellers and
company with the website and each other.
[0009] During the course of the purchasing event, software by which
the system operates provides that offers by each qualified seller
participating in the event are made known on the website to the
other participating qualified sellers. The terms offered by the
qualified sellers may be not just price, but such further important
considerations as quantity discounts, contributed advertising
dollars, shipping terms, payment terms, quality, scheduling of
deliveries, and such other terms and conditions as may be commonly
a part of a purchase contract in the particular business or
industry.
[0010] The website can offer the qualified sellers the opportunity
to quote on each item listed. It is able to provide for each seller
to convey the additional, non-price terms with respect to each
product listed or with respect to the entirety of the products
sought to be purchased. In addition, the website shows a total of
the prices offered by each seller and can indicate by a reduction
the value of the non-price terms offer by a seller. The purchaser
can buy from a qualified seller with respect to individual items or
can purchase from a single seller the entirety of the items
posted.
[0011] Typically, the event is scheduled in advance for a fixed
period of time, but if a quote by a seller is made within the
extension threshold near to the close of the event, the event is
extended to allow active participants placing quotes to respond.
Although the examples given here relate primarily to a purchasing
event (e.g. a reverse auction), the event may also be a selling
event (a traditional auction).
[0012] Purchasing events may be replenishment events. These are
regularly scheduled events at which previously approved sellers
quote on items designated by the purchaser from a list of regularly
purchased items.
[0013] Purchasing events may also be price list events. These are
replenishment events of a different kind. A list of regularly
purchased products is maintained open for quotes by approved
sellers. Buyers, then, have the opportunity to purchase at what
they perceive as the best quote for a particular item, as
needed.
[0014] Further, purchasing events may be spot buys. This event is
opened to cover a pressing need for a particular item or items.
That may arise from a shortage occurring because, for example, a
retailer-buyer has run a sale on the particular item, because the
retailer-seller wishes to extend a particularly successful
promotion, or because a retailer-buyer has scheduled an ad for a
particular item. The immediate need may be heightened by the
buyer's inability to purchase the desired item from the buyer's
usual suppliers. The spot buy event enables a spur of the moment
buy to cover a real or anticipated shortage.
[0015] Where the event is a purchasing event, the event may be of
several kinds. One is a market price event where the products
sought to he purchased have a "going price" against which the
sellers quote. In this kind of event, the quote may be plus or
minus some variance from the market price. In that case, the system
is able to convert this to a total price mathematically and display
that to the purchaser. The second kind of event does not have a
market price with respect to the items sought to be purchased, but
rather the sellers quote the actual price intended on an item by
item basis. In a preferred embodiment the system also provides
certain improvements over the reverse auction that assists a buyer
in the procurement of general merchandise items, large capital
items or branded products. One such improvement aids the purchaser
in evaluating the cost of money over time. Another improvement
helps level the decision making process when purchasing similar
products that are different brands.
[0016] The system is robust in the sense that it can accommodate
variance in the unit of measure posted by a purchaser and the unit
of measure on which a quote is made. For example, the desired
purchase may be posted in cases and the responsive quote may be in
pounds. The system can be equipped with conversion factors that
will accommodate this, making the calculation of the total value of
the quote so that the purchaser can readily compare quotes.
[0017] In the purchasing event, the quotes of each seller may be
made known to the other sellers participating in the event, while
the identities are not. Often, as with retail groceries, the events
may be constrained to related foodstuffs or goods, e.g. meat,
produce, paper products.
[0018] In a particular embodiment, the purchaser is able to
increase or decrease the volume of goods being sought manually or
have the system raise the volume base upon certain price points
that are configured before the event is run by the purchaser. The
automated feature is called proxy volumes. This may result, for
example, from a seller having offered an attractive volume discount
as a non-price term. In response to an increase or decrease in
volume being sought by the purchaser, an extension of the event is
provided to give sellers an opportunity to respond.
[0019] Participating sellers may increase their price offers or
quote within a specified period of time as well as decrease them.
This is to give inexperienced sellers the reassurance that it is
possible to correct an error in pricing.
[0020] The integrity of the scheduled event is maintained by
validation processes. Buyers and sellers must register and login at
the website. A publicly available registration page or pages is
afforded. There the registrant acquires the login number (or word)
and password. At the login, the registrant enters his or her login
number and password at a login page. These are checked for
validity, and if valid, the registrant's account is cross-checked
against a list of disabled accounts. If the account has not been
disabled, a cookie is placed on the registrant's machine. With the
cookie a file is provided on the registrant's machine. The file
provided contains the classification of the registrant, i.e. buyer,
seller or power buyer, qualifications for particular events and
other information particular to the registrant. The cookie
identifies the registrant by a code unique to that registrant, and
it also identifies the time zone of the registrant. Thereafter, all
times will be shown to the registrant in the applicable time for
that registrant's time zone.
[0021] From this point, the registrant can move to the registrant's
home page. Based upon the role of the registrant, there are three
different home pages. If the registrant is an "administrator" of
the system (e.g. one employed by the company operating the system)
then that registrant gets a listing of events that the registrant
is administering. If the registrant is a "power buyer" of the
system then that registrant is empowered to administer (or "host")
his or her own events and gets a listing of events that they are
hosting. If the registrant is a buyer or seller in the system (i.e.
participants that do not administer events) then that registrant
gets a listing of events that they may participate in. Only an
administrator from the administrator's home page can update any
user or company profile, add or update products or product
categories. Administrators can also update or create events, see
events that have not yet run, see events that are pending award,
see events that have not yet been scheduled, see events for
contracts that are coming due and see a full calendar of events to
be run on the system. From their home pages power buyers have only
the ability to update events that they created or create events for
their companies, see their events that have not yet run, see their
events that are pending award, see their events that have not yet
been scheduled, see their events for contracts that are coming due,
and see a full calendar of events that are associated with their
company. From their home page buyers and sellers have access to
events in which they have been invited to participate or which are
being administered for them by an administrator.
[0022] The participation in an event by a buyer or seller is
initiated by either an administrator or power buyer when creating
an event from an event setup page. From this page the user can send
invitations to prospective participants, send "thank you for
participation" messages or "thank you and award notification" via
email or fax. Once an invitation is sent to prospective
participants, they can either click on a link in the email or logon
to the website and from their home pages enter the program details
page for that event. The program details page summarizes all
details related to the event and allows a participant to accept or
decline participation in the event. The details will include: all
items and item descriptions, additional funds and/or terms,
samples, and all event options chosen by the host purchaser of the
event. If one accepts, then one will continue to have access to the
event. If one declines the event, then the event will be removed
from one's home page.
[0023] With each new page that a registrant moves to, two types of
authentication take place. First, user authentication verifies that
the current user is logged in and validated. Second, event
participant authentication verifies that the current user is a
valid event participant and that he or she has the necessary
permissions to the various event pages such as "quote view page,"
"quote/note pages," or "funds/terms pages." These verifications are
made checking the content of the cookie left during login. If no
cookie exists, the user is entitled only to publicly accessible
pages of the website. These include the homepage, registration page
and login page.
[0024] There are several varying degrees of access login depending
on the role(s) associated with the user. In addition to the buyers,
sellers, power buyers and administrators employed by the company
that maintains the system and provides the website, these include
shareholders of the company and brokers empowered to submit quotes
for others. During user authentication, if the user has logged in
previously and has a cookie, the users id (GUID) and time zone is
determined. If the session is still open, i.e. timeout has not
occurred, then the user is allowed access to any requested page for
which that user is qualified based upon the user's GUID.
[0025] Event authentication ensues if the user requests access to
an event. Information concerning the event is retrieved, and it is
determined whether the event has been disabled, i.e. cancelled or
postponed. If not, it is determined whether the user is authorized
for the event. If the user has been authorized, it is determined
whether the user has been disabled, and if that is not the case,
whether the user has accepted an invitation to the event (RSVP'd).
User disablement may occur by virtue of a user failing to after a
quote over a determined period or if the user's quote is not within
a specified amount above or below the then-best quote ("a
tolerance"). If a user has RSVP'd, the quote view page is displayed
to the user who may then submit a quote. The quote view page shown
to a qualified user lists the items that the buyer seeks to
purchase. Terms required by the buyer may be posted. In the case of
a market price type of event, the market price is given. Shipping
locations may also appear if the buyer desires quotes to be
delivered pricing.
[0026] The internal administrator, mentioned above, is permitted
access to all pages and all events. On the other hand, a power
buyer may change any detail of the particular event for which he or
she is responsible. By comparison, buyers for whom a reverse
auction event is administered by an administrator are permitted
only to see events for which they are registered. Like power
buyers, these buyers have the ability to determine which
participants will be allowed to make offers. They can bring up a
list of sellers who have RSVP'd and signal their acceptance of
particular sellers.
[0027] A quote view page is regularly updated as new quotes are
made, the lowest quote in each category may be highlighted. With
each quote, authentication again occurs. It is determined whether
the participant is qualified or has been disabled. It is further
determined whether the event is still open. A check is made to see
if the item has associated with it a reserve price, which is to
say, a minimum quote that will be accepted in the case of an
auction and a maximum quote in the case of a reverse auction. The
system also determines whether the event has been established as a
regular or a reverse auction. It is further determined whether the
particular item being quote upon has a quote increment, an amount
by which a quote must vary from a previous low or high quote
depending on the type of auction. In the case where there is a
quote increment, it is determined whether the quote is an even
multiple of that increment. If so, in the case of a market priced
item, conversion is made to indicate the market price plus the
quote (the total price).
[0028] Other features of the system include determination of the
extended price at a particular quote, quantity or "unit of measure"
conversions as previously mentioned, an indication of the time
remaining to the close of an event, five different levels of
transparency and many other features described below. By "levels of
transparency" is meant the set up of a page to show more or less
information such as "full view" of quotes and quoters, low quote
without color ranking, low quote only, "blind" (without competitive
information), etc. When the system and method is used for
traditional auctions, rather than reverse auctions, a seller is the
event originator and administrator. A participant can be a seller
in one instance and a buyer in another. This is useful when a
participant who is ordinarily a purchaser has overstocked an
item.
[0029] The system and method is conducive to the establishment of
such business rules as are already in place in a particular trade,
or that may desirably be implemented for better proceedings. For
example, a quote within a predetermined "threshold" time before the
time set for the close of quoting may result in an extension to
give active participants placing quotes a chance to respond. In
this situation, further rules can be implemented that participants
placing quotes who have not placed a quote or have not placed n
quote within a specified tolerance for an item a prior to a
configurable time period are disabled from further participation in
the event.
[0030] Upon the closing of an event a host buyer or administrator
can choose which sellers will be chosen to provide the specified
item from the event from the view award page. Subsequent to the
awarding business the host buyer or administrator can adjust item
volumes or pricing and add in additional purchase information (i.e.
PO number, comments, etc. . . . ). Once the award information is
completed the host buyer or administrator has the ability to send
system generated notification to the sellers that were awarded
business from the event. The notification can be sent via email or
fax. If it is sent via email the seller can then click on a link in
the email which will allow the seller to logon and go to the
participant award page. On the participant award page the seller
can view the buyer awarded information, enter their invoice number,
sales order number, update volumes and accept the award online. The
system will then send a message to the host buyer and administrator
notifying them of the completion of the award process.
Negotiated Events
[0031] In a negotiated event the user places a contract out for
responsive quotes by setting out proposed terms or "parameters."
Items to be bought or sold are identified and invitations are sent
to desired participants.
[0032] An invited participant gains admittance to the process by
accepting, first, the event details and then accepting the
initiating user's terms and conditions. Using the website page
provided, an invited participant then submits his or her proposed
terms, pricing, and contributed funds such as advertising
contribution or volume discounts.
[0033] The initiating user then is provided an analysis web page at
which the various proposals he or she has received can be viewed
side-by-side for comparison. Proposed contributed funds can be
categorized and compared by category. Various contingencies ("what
if scenarios") may be run. Negotiation with a responding user is
enabled. If desired that user can be shown the proposals of others
or just the contributed funds of others. The initiating user allows
the responding user to open its proposal for changes, and a
contract may then be awarded.
Competitive Branded Products Events
[0034] In one preferred embodiment, the system and method of the
invention facilitates a buyer's choice between competitive branded
products. This is done by affording a basis for comparing
supplier's proposals. An objective comparison is afforded even
though such terms as price, quantity, and additional funds may
differ among the proposals. The system compares the gross margin
that would result from a seller's proposal with the gross margin
that would be achieved under the buyer's proposed terms. Dollar and
percentage differences are shown. A comparison between sellers
proposals is made based on how each proposal differs from each of
the buyer's proposals.
[0035] The systems and methods provided in each of the
above-described events benefit the buyer by:
[0036] a. Enhancing buyer-supplier communication;
[0037] b. Providing a more time-efficient negotiation process;
[0038] c. Assisting in making quicker, better-informed decisions;
and
[0039] d. Showing real-time market information.
[0040] The same systems and methods benefit the supplier by:
[0041] a. Providing low cost, high volume sales opportunities;
[0042] b. Providing an opportunity for a broader customer sales
base;
[0043] c. Through transparency, exposing partial or full visibility
of competitors' responses, providing important market information;
and
[0044] d. Shortening negotiation processes and quicker purchasing
decisions.
[0045] The above and further objects and advantages of the
invention will be better understood from the following detailed
description of a preferred embodiment taken in consideration with
the accompanying drawings.
DESCRIPTION OF DRAWINGS
[0046] FIG. 1 is a flowchart representing a login validation
routine;
[0047] FIG. 2A is an illustration of an event listings page for a
participating seller;
[0048] FIG. 2B is an illustration of an event listings page for an
administrator;
[0049] FIG. 2C is an illustration of an event listings page for a
power buyer;
[0050] FIG. 3 is an illustration of a program details page for a
participating seller;
[0051] FIG. 4 is a flowchart representing a user authentication
routine;
[0052] FIG. 5 is a flowchart representing an event authentication
routine;
[0053] FIG. 6A is an illustration of an administrator, buyer or
power buyer's quote view page before an event begins;
[0054] FIG. 6B is an illustration of a participating seller's quote
view page, before an event begins;
[0055] FIG. 6C is an illustration of a quote/note page in full
view;
[0056] FIG. 6D is an illustration of a further participating
seller's subsequent quote view page for the same event as FIGS.
6A-6C after the event has begun with a low quote only view;
[0057] FIG. 6E is an illustration of a further participating
seller's quote view page for the same event as FIGS. 6A-6D after
the event has begun, and with a blind with low quote identifier
view;
[0058] FIG. 6F is an illustration of a participating seller's quote
view page for the same event as FIG. 6A-6E after the event has
begun, and with a blind w/out low quote identifier view;
[0059] FIG. 6G is an illustration of a participating seller's quote
view page for the same event as FIG. 6A-6F after the event has
begun, and with a ranking view;
[0060] FIG. 6H is an illustration of a quote funds/terms page for
the event of FIGS. 6A-6G;
[0061] FIG. 7 is an illustration of an administrator, buyer or
power buyer's quote view page for the same event as FIGS. 6A-6H
after the event has begun;
[0062] FIG. 5A is an illustration of a further, administrator,
buyer or power buyer's quote view page for the same event as FIGS.
6A-7, during an extension;
[0063] FIG. 8B is an illustration of a further participating
seller's quote view page for the same event as FIGS. 6A-8A, during
an extension;
[0064] FIG. 9A is an illustration of an administrator, buyer or
power buyer's quote view page for the same event as FIGS. 6A-8
during the review period;
[0065] FIG. 9B is an illustration of a further responding seller's
quote view page for the same event as FIGS. 6A-9A, during the
review period;
[0066] FIG. 10 is an illustration of a buyer's final quote view
page for the same event of FIGS. 6-9 after the close of the
event;
[0067] FIG. 10A is an illustration the view award page for the
event of FIGS. 6-10;
[0068] FIG. 10B is an illustration the award default page for the
event of FIGS. 6-10A;
[0069] FIG. 10C is an illustration the seller award page for the
event of FIGS. 6-10B;
[0070] FIG. 11A is a flowchart of the award of business
process;
[0071] FIGS. 11B & 11C are flowcharts representing an item
quoting routine;
[0072] FIG. 12 is a flowchart representing an item quotes trigger
routine;
[0073] FIG. 13 is a flowchart representing an event items trigger
routine;
[0074] FIG. 14 is a flowchart representing an event extension
routine;
[0075] FIG. 15 is a flowchart representing a funds/terms quoting
routine;
[0076] FIG. 16 is an illustration of an administrator, buyer or
power buyer's quote view page for a market price event similar to
the event of FIGS. 6A-10B;
[0077] FIG. 17 is an illustration of a participating seller's quote
view page for the market price event of FIG. 16;
[0078] FIG. 18 is a guide to the relationship of FIGS. 18A-F;
[0079] FIGS. 18A-F are a diagrammatic illustration of a data model
of a system according to the invention:
[0080] FIG. 19 is a flowchart of a first, Initializing Event,
component of a negotiated event;
[0081] FIG. 19A is a flowchart of a second, Create Proposal,
component of the negotiated event of FIG. 19;
[0082] FIG. 19B is a flowchart of a third, Analyze/Negotiate
Proposals, component of the negotiated event of FIGS. 19 and
19A;
[0083] FIG. 20 is an illustration of the quote view page for a
negotiated event;
[0084] FIG. 21 is an illustration of the quote view page for a
branded product event;
[0085] FIG. 21A is an illustration of a administrator, buyer or
power buyer's quote view page for a competitive brand event;
[0086] FIG. 21B is an illustration of a seller's quote view page
for a competitive brand event;
[0087] FIG. 22 is an illustration of the event setup page; and
[0088] FIG. 23 is an illustration of the event setup page with
negotiated event options.
DETAILED DESCRIPTION OF PREFERRED EMBODIMENT
[0089] Initially, one desiring to participate in an event according
to the present invention is asked to complete a registration page
available from the systems website. Typical information requested
may include a login id (this may be assigned), a desired password,
name, title, organization, address (actual and email), time zone,
billing address, phone number(s), fax number(s), and categories. A
listing of categories may characteristically be made available for
the user's assistance. Default settings are made, unless
overridden
[0090] Following registration, and after a participant has been
given a login id and password, the user is shown to a simple login
page (not shown) and proceeds as indicated at 101 in FIG. 1. Once
the user's id and password have been entered at the login page, the
validity of these is checked at 103 and at 104 (FIG. 1), the
determination is made whether the user's account has been disabled.
If either the id or password is invalid, or if in fact, the account
has been disabled, then an error is displayed to the user as
indicated at 105.
[0091] On the other hand, if the id and password have been
determined to be valid and the account is not disabled, then the
server with which the user is in communication generates a cookie
which is placed on the user's machine. This constitutes a global
unique identifier (GUID), a 128-bit number unique to this
particular user, and which identifies the user as well as the
user's time zone offset and time zone abbreviation. The time zone
offset and time zone abbreviation are used subsequently, so that in
all further communications the user's time zone time is that which
appears on all subsequent pages. At this time a file is established
in the user's machine. Here the user's classification as
administrator, buyer, seller or power buyer is recorded along with
other authorizations of the user as may pertain. Cookie placement
and file establishment of this kind are well understood
procedures.
[0092] The user then proceeds to their home page 108. This page, as
illustrated in FIG. 3, lists at 109 all of the upcoming events for
which this user is qualified. (In the exemplary FIG. 3, only one
event, a training event, appears.) The beginning and ending dates
and times for each event are shown and an event status column is
entitled "Status" in FIG. 3. Only upcoming events and events that
have an end date within the past 14 days are displayed on the
buyer/seller home page 108 of FIG. 3. Internal administrators can
view all events on their home pages as shown in FIG. 3A at 108'.
Event power buyers see on their home pages events they are hosting
or events for their company as illustrated at 108'' of FIG. 3B. If
the event is not a regularly occurring replenishment event, prior
to an event starting, the event organizer, whether a power buyer or
an administrator, can invite sellers to participate in an event.
Event participants, i.e., responding buyers or sellers, will
receive a notification to respond to the invite by reviewing the
program details of the event shown in FIG. 3D. They are not allowed
into the actual event until they have responded to the invite and
accepted it on the program details page, FIG. 3D.
[0093] If the event is a replenishment event that is repeated at
regularly scheduled times, then the responding sellers will be pre
selected and will be able to participate ill each replenishment
event as it arises.
[0094] As seen in FIG. 3D, the exemplary event here is an
olive-purchasing event. The program details of the page shown in
FIG. 3D include descriptions and packaging sizes of the items
sought, event start and stop times, and a listing of event details
set by a power buyer or by an administrator for a buyer as
described more fully below in connection with FIGS. 22 and 23.
[0095] Returning to the flowchart of FIG. 1, when a supplier
chooses an event from the events listing page at 108 the
determination is made at 110 whether they have accepted the
invitation to participate. If the answer is yes, the user is
permitted access to the event at 114. Likewise, if at 110, it is
determined that the user does not need to accept the invitation,
for example because such a response has already been made in the
case of replenishments event types, then the user is moved at 114
to the event.
[0096] At every new page, authentication takes place. Additionally,
event level authentication takes place for pages that display event
information. User authentication is a general authentication,
whereby the user is recognized as a qualified user of the website.
Event participation is more specific and determines that the user
is qualified to participate in the particular event.
[0097] As flowcharted at FIG. 4, user authentication proceeds as
follows. From the user's homepage 108, the user requests access to
an event. At 118 it is determined that this is a valid user. At 119
the user's profile is checked for completeness. If not complete,
the user is directed to a page 120 where the profile can be
completed. At 121 the cookie on the user's computer is checked, the
GUID is retrieved, as are timezone details. A determination is made
at 122 whether the requested event is still open, and if not, the
user is returned to the login page at 123. If the event is open,
the user's classification is determined using the GUID at 124. The
role of the user is determined, and if appropriate, the user is
afforded access to the event by providing the user with the
appropriate page at 125.
[0098] If initially, the user is not valid at 118, then it is
determined whether the user is seeking access to the server
homepage or the registration or login pages, each readily available
to the public. If that is the case, then the user is passed to that
page that the user has requested. However, if the user is seeking
another page, then the user is returned to the login page as
indicated at 123.
[0099] Event participant authentication verifies that the current
user is a valid event participant, and that the user has the
necessary permissions to read various event pages. This
authentication proceeds as indicated in FIG. 5. Where an event page
request by the user is detected at 135, but there is no event id or
an erroneous id is the request detected at 135, an error display is
made at 137. These can typically include the starting time, the
ending time, the allowable terms, etc. If at 135, a valid event id
is detected, at 138 event information is retrieved. Next, a
determination is made at 139 whether the event has been disabled.
If it has been, again, an error is displayed to the user as
indicated at 137. If the event has not been disabled, a
determination is made at 141 whether the user is authorized for
this event. If the user is not authorized, an error is displayed at
137, but if the user is authorized, then at 142 the determination
is made whether the user has been disabled. Again, if this is the
case, an error is displayed at 137, but if the user has not been
disabled, a further determination is made at 143 whether the user
has responded to an invitation to participate. If the user has not
so responded the user is denied access and may be returned to his
or her homepage. If at 143, it is determined that the user has
accepted the invitation, then the event page being requested is
provided to the user as indicated at 147.
[0100] FIG. 6A is a typical participating sellers quote view page.
This example is an olive event such as might be established by a
retail grocer. This event is not yet open. The header frame for the
quote view page provides navigation and general event information
like the time remaining in the event. The header automatically
refreshes every ten seconds. Each time it refreshes, it checks to
see if the quote view page has been refreshed since the last quote
was submitted. If it has not, then the page is automatically
refreshed when the header is done loading. This way the user will
only, at worst, be given data that is ten seconds old. At 150 is
seen the date and time of opening of the event, shown in the user's
local time. At 152, the time remaining until opening of the event
is seen. At 153 are the items that the grocer (buyer) wants to
purchase. Each description line 153 includes a description of the
product and a description of the number and size of containers per
case, e.g., "DW Spanish Olives Thrown Stuffed Manz," packed 12 jars
of 5.75 ounces each per case. At 154 appears the number of cases
sought. Because this is not a market price event, no market prices
appear. However, at 155 "Current Price" appears. This is the price
at which the items are available on the market at the time for the
purchaser's comparison with the quoted prices during the event.
Five sellers, identified by name, are participating as seen by the
columns 158 headed with those designations.
[0101] Turning to FIG. 6B, the participating seller's quote view
page of a not yet open event is shown. Again at 150, date and time
of event opening is shown. Competing sellers are identified only as
S1, S2, S3 and S4. Shown in the columns having the headings S1, S2,
S3 and S4 will appear the quotes submitted by those four
sellers.
[0102] FIG. 6C is a seller's quote view page for an open event. The
lowest quote for each item is listed and clearly highlighted (in
yellow, for example) at 159 and in the fields of the columns 158.
Two quotes by the present user are lowest in this example. The
sellers S2, S3 and S4 each have one low quote indicated at 161. The
total of all quotes appears at the line entitled "Gross" at 163.
The additional funds/terms appear at the line 164 entitled
"Additional Funds/Terms". The overall total, taking into account
both the total quotes and any additional funds/terms, appears in
the line 165 entitled "Net Total." Additional funds/terms may be
give-backs of the nature previously discussed, such as freight,
free advertising, quantity discount, etc.
[0103] FIG. 6D is a further quote view page. This page has a
different level of transparency from FIG. 6C. Here only the user's
quotes, at 160 and the low quotes at 159 are shown to the user.
[0104] FIG. 6E has yet another level of transparency available
according to this preferred embodiment. Here the page is "blind,"
providing the user only the user's own quote at 160 and an
indication when the user's quotes are the low quotes by the
highlighting in color at 160'.
[0105] FIG. 6F illustrates an alternative page. Again the view is
blind and here only the user's quotes appear at 160. No low quotes
are indicated.
[0106] FIG. 6G illustrates still another alternative page. Again
the view is blind, but here user's quotes are shown at 160, with
their ranking among competitive sellers at 160''.
[0107] An additional funds/terms page of a seller is shown in FIG.
6H. Minimum funds to be contributed by the seller as set by the
purchaser are shown at 1161. The user's quoted fund contribution of
$220 is shown at 1162 for the upper item. The user has not quoted a
fund for the lower item or the funded quoted was below the minimum
and is not shown. Competitive seller's fund contributions may be
shown at column 1163. Quoted terms appear at 1164 for the upper
item.
[0108] In FIG. 7, a refreshed administrator, buyer or power buyer's
quote view page for the same olive purchase event as is the subject
of the page shown in FIGS. 6A-6H. It reflects, at 150, that the
event is open and running and at 152 time remaining in the event.
Here the identity of the sellers is visible at column 165, so this
page is typical of that accessible to an administrator, a buyer or
a power buyer. Low bids are highlighted in color at 161. Indicia
162 in the Tee Pee Olives, Inc. column show that the quoting seller
has attached a note.
[0109] In FIG. 8A an administrator, buyer, power buyer quote view
page is shown during an extension of the same olive purchase event
as FIGS. 6A-7. That the event has been extended is indicated at
150. The time remaining in the extension is shown at 152.
[0110] In FIG. 8B shows a seller quote page during an extension as
indicated at 150. At 152 the time remaining in the extension is
shown. Low quotes are highlighted in color.
[0111] In FIG. 9A, the final administrator, buyer, power buyer
quote view page for the olive purchase event appears. Again, unlike
the pages available to the seller, the actual bidder's names are
available. At 152, it can be seen that the event is closed and time
remains in the review period, and to the right of that in the
header frame, the fact that the event has ended and that the event
is under review now appears at 150. The seller Tee Pee Olives has
the lowest gross line item total and net total at lines 163 and
165. The business rules provide that the buyer has until a certain
time as shown at 150 to choose among the quotes.
[0112] FIG. 9B is the final seller quote view page, similar to the
page at FIG. 9A.
[0113] FIG. 10 is the buyer's quote view web page with award
indicating boxes 166 for the buyer to "click" on. The buyer may
choose to award the sellers based on individual low quotes for
individual items as indicated by the check marks made at 166.
Alternatively, the buyer may award the quoting participant having
the lowest net total, or may make a selection based on other
factors such as reputation, past experience, etc.
[0114] FIG. 10A is a view award page. It shows the awards from the
olive buying event to which FIGS. 6-9 relate. The awarded sellers
are shown at 167, delivery date at 168, price at 169 and volume at
170. Purchase Order numbers appear at 171.
[0115] In the award default page of FIG. 1B, the term of the olive
sale contract that must be accepted by the seller are shown at 172,
along with the purchaser's contract at 173. The time period for
acceptance is set at 174.
[0116] FIG. 10C illustrates a seller award page. It lists the
terms, delivery date, price, etc. as established during the event
and by the purchaser's award. At the buttons 174 and 175, the
seller may decline or accept.
[0117] FIG. 11A flowcharts the award process. The purchaser begins
the award process 177 at the close of an event. The purchaser
evaluates the quotes at 178. The purchaser must identify the
awarded seller at 179, or an error is displayed at 180. At 182, the
purchaser completes the award information. At 184, the purchaser
indicates that the awards are complete; otherwise, the purchaser
returns to 179 to complete the awards. At 185, the seller reviews
the award or awards to him or her. Acceptance or decline is made at
186. The purchaser is notified at 187 if the award is declined, at
which time purchaser again identifies an award to another seller.
At 188, the seller also notifies the purchaser if the award is
accepted, and this completes this award process at 190.
[0118] The flowchart of FIGS. 11B and 11C illustrates how the
system deals with a quote. When a quote is submitted via the
quote/note page, at 195, it is checked at 196 to determine if it is
in the correct form, i.e. numeric. If it is not, an error is
displayed as indicated at 198, but if it is, the quoting party at
200 is checked to see if that he or she is a participant. If the
quoting party is not a participant, again an error is displayed as
indicated. If the quoting party is a participant, the next
determination that is made at 201 is whether the event remains
open. If not, again an error is displayed. If the event is open,
information concerning the event is checked at 203 to see if there
is a reserve price in place. If there is not, the routine proceeds
to FIG. 11B, where at 204 it is determined whether there is a quote
increment in place. However, if at 203 (FIG. 11B), it is determined
that there is a reserve price, then a determination is made at 206
whether this is a regular or reverse auction. If it is a regular
auction, the quote is compared to the reserve price at 207, and if
it does not exceed the reserve price, an error is shown again as
indicated at 198.
[0119] However, if the quote does exceed the reserve price, then
the routine moves to the quote increment determination 204 of FIG.
11C. Similarly, if at 203 it is determined that there is a reserve
price and at 206 that this is a reverse auction, then at 209, the
determination is made whether the quote is more than the reserve
price, in which case, an error is displayed at 198. If the quote is
less than the reserve price, the routine progresses to the quote
increment determination at 204 in FIG. 11C.
[0120] If a quote increment is in place, as determined at 204, then
the routine determines at 210 whether the quote is an event
multiple of the quote increment. If not, an error is displayed as
indicated at 212. If the quote is a multiple of the quote increment
as required, then a determination is made whether the particular
item is market price based at 213. Also, at 204, if it is
determined that there is no quote increment, the program steps
directly to the determination of whether the item is market price
based.
[0121] If this is a market price based item, then the quote will
have been made relative to the market price. In other words, a
quote of plus five cents would mean a quote five cents above the
market price. When it is determined that the item is market price
based at 213, then the quote is converted to actual price, by
addition of the quote to the market price at 215. At this point,
the quote table is updated at 216 and the buyer's quote view page
illustrates the full price as calculated at 215. If the event is
determined not to be market price based at 213, then a
determination is made whether the quote is greater than zero at
218. In other words, a quote less than zero is appropriate in a
market price based event because that quote less than zero can be
subtracted from the market price to arrive at a positive number,
but in other auctions, a quote less than zero is nonsensical, and
again, the error is displayed at 212.
[0122] Having determined that the quote is appropriate at 216, and
that update of the item quote table, i.e. the quote view page, is
appropriate, the routine then proceeds to the sub-routine
identified as item quotes trigger 219. This sub-routine is shown in
the flow chart of FIG. 12.
[0123] In FIG. 12, the routine SP sub-add item quote is the routine
described just above with respect of FIGS. 11A and 11B. The item
quotes trigger routine of FIG. 12 determines at 220 whether the
amount field is changing. If not, the routine of FIG. 12 is done.
If at 220 it is determined that the amount field is being changed,
then the particular seller's item low quote is modified at 222. At
224, it is determined whether the new quote is less than the
previous quote. If it is, then a determination is made at 226
whether an extension of the event is to be made, because, for
example, the new low quote is being made at a time close to the
close of the event. Whether the new quote is higher or lower, the
quote total is updated at 229. Next, data for the chart of FIG. 17
is updated at 230 and the routine is complete.
[0124] In FIG. 13, a further routine is shown triggered by an
update or the low quote field at 235. At the decision block 237, a
determination is made whether the new low quote value exceeds the
old low quote value or if the new low quote value equals zero
("NULL"). One of these two cases could occur where the previous low
quote contributor has been disabled. If either of these is the
case, then it is determined, based on the time of occurrence,
whether the event needs to be extended to give participants an
opportunity to respond as indicated at 238. In any event, at 240 a
determination is made if the unit of measure (ounces, pounds,
cases, quarts, etc.) quantity or if the quantities has been
updated, both occurrences that require new totals to be calculated.
If not, the routine is done, but if so, on the basis of previous
quotes, the item quote totals for the changed event item is
recalculated at 241.
[0125] In FIG. 14, an event extension routine is flowcharted.
Before an event is extended for any of the reasons mentioned above
or other reason, it is verified at 244 that the event is open, and
enabled. It is determined at 245 whether the event can be extended,
which is to say that the allowable extensions have not been used
up. If it cannot be extended, the event is done. If the event can
be extended, the time remaining is determined at 246, and if this
is determined, at 247 to be within the time-to-closing threshold
for extension, then the event is extended by the extend time at
249, and any participants who have not quoted yet, i.e. prior to
the first extension, are disabled at 251. If however, the time
remaining is not yet within the extension threshold determined at
247 then the routine is done.
[0126] FIG. 15 illustrates a routine that may be called upon by a
buyer by which a quote of additional funds or terms is submitted
via the webpage at 255. These may be of the nature previously
discussed, i.e. quantity discount or for advertising. The quote is
determined to be numeric at 257 or otherwise the error is displayed
at 258. At 259, it is determined whether the quoter is a
participant, otherwise again an error is displayed as indicated at
258. If the quoter is a participant, then at 261, it is determined
whether the event is still opened. If it is not, error is
displayed. If it is open, it is determined whether quoting is
allowed for this funds/terms at 262. If the answer is no, then the
error is displayed, but if the answer is yes, then it is determined
whether the quote is above a minimum amount at 263. Though a
minimum may be set as indicated at 263, still quoting may be
allowed on this particular funds/terms, which is why the decision
block 262 is provided. If the quote is above the minimum amount as
determined at 263, then it is accepted, and the funds/terms quote
table is updated at 264.
[0127] FIGS. 16 & 17 are quote view pages of a market price
event. The market price is displayed with respect to the first two
items at 270 in FIG. 16 and at 271 in FIG. 17. The participating
sellers are clearly visible to the buyer in FIG. 16, but not to the
seller in FIG. 17.
TABLE-US-00001 TABLE A Business rules for calculating the total
quote for an event item: 1. If the "Quote Unit of Measure" equals
the "Event Item Unit of Measure" "Item Total" = "Event Item
Quantity"/"Quote Quantity" * "Item Quote Amount" 2. If the "Quote
Unit of Measure" does not equal the "Event Item Unit of Measure" a.
If a `"Event Item Unit of Measure to Quote Unit of Measure Cross
Reference" exists "Item Total" = (("Event Item Quantity" * "Event
Item Unit of Measure to Quote Unit of Measure Cross Reference
Ratio")/"Quote Quantity") * "Item Quote Amount" b. If a "Unit of
Measure Cross Reference" exists from "Event Item Unit of Measure"
to "Pack Unit of Measure" and a "Unit of Measure Cross Reference"
exists from "Pack Unit of Measure" to "Quote Unit of Measure" Item
Total (("Event Item Quantity" * "Event Item Unit of Measure to Pack
Unit of Measure Cross Reference Ratio" * "Pack Unit of Measure to
Quote Unit of Measure Cross Reference, Ratio")/"Quote Quantity") *
"Item Quote Amount" c. If the "Event Item Unit of Measure" equals
the "Package" and the "Quote Unit of Measure" equals the "Tack Unit
of Measure" "Item Total" = (("Event Item Quantity" * "Pack
Quantity")/"Quote Quantity") * "Item Quote Amount" d. If the "Event
Item Unit of Measure" equals the "Package" and "Pack Unit of
Measure to Quote Unit of Measure Cross Reference" Exists "Item
Total" = ((("Event Item Quantity" * "Pack Quantity) * "Event Item
Unit of Measure to Pack Unit of Measure Cross Reference Ratio")
"Quote Quantity") * "Item Quote Amount" "Gross Event Value" = Sum
of the "Item Totals" for an event. Business rules for calculating
the event funds/terms item totals: 1. If the "Event Offering Type"
is "Dollar" represented by the integer value "0" in the table. a.
If the "Event Offering Quote Amount" is Null and the "Event
Offering Minimum Amount" is not null "Offering Item Total"= "Event
Offering Minimum Amount" b. If the "Event Offering Quote Amount" is
greater that the "Event Offering Minimum Amount" "Offering Item
Total" = "Event Offering Quote Amount" 2. If the "Event Offering
Type" is "Percent" represented by the integer value "1" in the
table a. If the "Event Offering Quote Amount" is Null and the
"Event Offering Minimum Amount" is not null "Offering Item Total" =
"Gross Event Value"/"Event Offering Amount" b. If the "Event
Offering Quote Amount" is greater that the "Event Offering Minimum
Amount" "Offering Item Total" = "Gross Event Value"/"Event Offering
Quote Amount "Total Funds/Term" = "Sum of the "Offering Item
Totals" for an event "Net Event value" = "Gross Event Value" =
"Total Offering
[0128] In Table A, there are listed in pseudo code business rules
for an event for arriving at "net event value" such as appears at
line 165 (there called "net total") of FIG. 6. First the items
totals as appear at the lines 154 of FIG. 6 are calculated using
the rule 1 or 2 a, b, c or d under "Business rules for calculating
the total quote for an event item." Under rule 1 if the quote is
made in the same units of measure as the event item is listed, the
calculation is straightforward. The first line 154 in FIG. 6
illustrates this. The event item unit of measure there is the case.
A quantity of 1,050 cases of jars of a given size of particular
olives is listed. The quote, by the seller S1 for example, is $7.92
per case. In this case, the item total is 1,050 cases/1 case
multiplied by $7.92 to equal $3,316, which is the "Item Total."
[0129] Where the quote is made in a unit of measure ("quote Unit of
Measure") other than the unit of measure listed in the event
("Event Item Unit of Measure"), if a cross reference or conversion
figure exists between the two units of measure, then that is used
in rule 2a to arrive at the item total. An example would be where
the quote is in dollars per ounce and the event quantity is listed
in pounds the "Event Item Unit of Measure to Quote Unit of Measure
Cross Reference Ratio" would be 16. Similarly, rule 2b applies
where the quote is made in a unit of measure other than the event
unit of measure and, instead of a direct conversion or cross
reference as in rule 2a, there exists a conversion figure from
event item unit of measure to a pack unit of measure and another
conversion figure for the pack unit of measure to the quote unit of
measure. For example, if the event quantity were listed in pounds,
but the quote was in ounces, and pounds per pack as well as ounces
per pack were known, then the total item quote could be
calculated.
[0130] Rule 2c applies when the event lists the quantity of product
by the package, but the quote unit of measure by which the seller
quotes is the pack unit of mea sure or in other words, the units
packaged together in a single package. For example, if the event
item quantity is 100 cases and each case contains 12 cans, then the
pack quantity is 12. The quote quantity, which is the quote unit of
measure, is one can and the item quote amount is the amount quote
per can so for 100 cases times 12 cans where the quote is $1.00 per
can, the total quote for the item is $1,200.
[0131] Rule 2d, immediately following, takes into account a further
removed quote unit of measure. If the event item quantity is 100
cases of beer and the pack quantity is 100 pounds per case, if the
bidder were to quote in price per ounce, then an event item unit of
measure to pack unit of measure cross reference ratio of 16 would
be necessary to arrive at the item total. In this example, if the
quote were of $1.00 per ounce, the total quote or item total would
be $160,000 or 100 cases times 100 pounds per case times 16 ounces
per pound times $1.00 per ounce.
[0132] The "Business rules for calculating the event funds/terms
item totals" relate to the non-price funds/terms listed at line 164
of FIG. 6 as previously discussed. The funds/terms may be in a
dollar amount, such as dollars in freight allowance or advertising,
or the funds/terms may be a percentage such as a percentage
discount based on volume purchased. For a dollar funds/terms, an
integer is set to zero in a field 387 in a table 385 in FIG. 18B of
the data model of FIG. 18, discussed below. If the event
funds/terms quote amount is null, which is to say no quoting of
additional funds has been made, and if there is an event
funds/terms minimum amount, then the funds/terms item total is the
event funds/terms minimum amount. What this means is that if there
is an event funds/terms minimum amount that has been set by the
purchaser as a requirement, the participating seller has accepted
this at the outset and consequently, this is a default value. If
the event funds/terms quote amount is greater than the event
funds/terms minimum amount, however, the event funds/terms quote
amount is the funds/terms item total rather than the event
funds/terms minimum amount.
[0133] If the event funds/terms type is of a percentage kind, then
the field 387 in the table 385 has an integer set to 1. Again, as
in rule 2a, if the event funds/terms quote amount is null and the
event funds/terms minimum amount is not null, then the funds/terms
item total is the gross event value divided by the event
funds/terms minimum amount (a percentage). Similarly, if the event
funds/terms quote amount is greater than the event funds/terms
minimum amount, then the funds/terms item total is the gross event
value divided by the percentage which is the event funds/terms
quote amount. The "gross" is the sum of the "Item Totals" for the
event, each as determined in the Business Rules for Calculating the
Total quote for an Event Item described above. "Total Funds/Terms"
is the sum of the "Offering Item Totals" for an event under
Business Rules for Calculating the Event Funds/Terms Item Totals.
Finally the Net Event Value is the Gross Event Value minus the
Total Funds/Terms.
[0134] The data structure of the system is as schematically
illustrated in the data model of FIGS. 18 A-F. These figures join
as indicated in FIG. 18. Table 350 defines the events. An integer
351 identifies an event. The event id serves as a primary key as
indicated by the entry <pk>. By this key, the event may be
called up and characteristics of the event set forth in the
remainder of the fields 352 of the table 350 are retrieved. The
entry "not null" indicates that the value in this field may not be
blank, whereas the entry "null", where present, indicates that the
entry may be blank.
[0135] Other tables in the data model take the event id from the
table 350 as indicated by the unnumbered arrows labeled "event
id=event id." Information for the chart of FIG. 17 is located in
the table 353. The chart id is provided by an integer 354. The
chart id is the primary key for this chart table 353. In the "event
id" field, the entry <fk>indicates that the field "eventid"
is a foreign key, i.e., the key to another table. In fact, it is
the primary key of the table 350 as just discussed.
[0136] Event items, many of which have been discussed above, are
set forth in the table 356. An event identifier in the form of an
integer 358 is the primary key for this table. The entries
<i1>, <i2> reference indices available as a quick way
to find associated data. Other event related data and cross
references are found in tables 361-364.
[0137] In table 390, FIG. 18D, user's identifications are located.
"Varchar" refers to variable characters of 10 to 255 characters in
length used to identify the user name, company, email address, etc.
As described above, disablement, shown in field 392, is determined
by the setting of a single bit.
[0138] Participants in an event are identified in the table 395 and
cross referenced in table 396 of FIG. 18D. In table 400 in FIG.
18E, product identity is contained. In table 405, units of measure
(UOM) are kept and UOM cross references are kept in table 401.
[0139] Various categories assigned to e.g. events, users and
products are kept in table 440, FIG. 18E, and are retrieved using
tables 441-446. Time zone information is in table 447.
[0140] Phone information and cross references are in the tables
410, 411 and 412 of FIG. 18F. Addresses, address cross references
and other address related information are contained in the tables
420-428 of FIG. 18C. Company identification is found in the table
430 of FIG. 118C. User id and company id are brought together in a
table 431 of FIG. 18D.
[0141] The user id or GUID is in a sessions table 435 of FIG. 18D.
The non-price items, called here "additional funds," are found in
table 385 of FIG. 18B. The additional non-price funds that have
been quote are in table 386, the history of additional fund quotes
is found in the table 387, and an additional fund award table is
table 388. Item quotes appear in table 450, the history of item
quotes in table 452, and the winning quote award in table 455.
Negotiated Event
[0142] The Negotiated Event is an electronic process for gathering
and analyzing proposals for a contract that has been sent out for
bid. The process is broken down into three components: Initializing
Event, Create Proposal, and Analyze/Negotiate Proposals.
[0143] The first component, flowcharted at FIG. 19, is Initializing
Event. It is the process that starts the whole event cycle. Once
the buyer has decided to place a contract out for bid, he or she
logs on to the website and creates an event as indicated at 601. In
order to create this event a buyer must fill out and select
information about the event. At 602 the buyer begins by answering
some parameter questions on the set-up page. These include event
time duration, contract begin date, contract duration, estimated
contract volume, discount & future rates of money and item list
indicator. The buyer proceeds by selecting items for the event at
603 and if desired requests a sample to be delivered for
qualification at 604. The buyer continues by selecting participants
who he or she would like to be involved in the proposal process at
605. Once selected the last step is to click on a button to send
out e-mail invitations to the selected participants notifying them
of this contract that is up for bid at 606.
[0144] As shown in the flowchart in FIG. 19A, the second component,
Create Proposal, is the supplier's process for responding to the
contract that is up for bid. If a supplier decides to participate
that supplier clicks on a link established on the e-mail he or she
receives from the buyer, at 607. This automatically takes the
supplier to the website login screen. Once logged in, the supplier
has the ability to review the details about the event for this
contract at 608. Upon this review, the supplier must decide to
accept or decline the event based on these details. If at 609 the
supplier declines, the supplier is not allowed to continue on at
610, but if at 608 he or she accepts, he or she is then sent on to
the user terms and condition-screen, at 611. The supplier again has
the decision to accept 611 or decline 612 with the same results as
the previous decision, but this time if the supplier accepts he or
she is taken into the proposal process.
[0145] The proposal begins at 613 by outlining the instructions on
how to proceed through this process. Once this has been reviewed,
the supplier enters into the proposal set-up screen at 614. Here
the foundation is built for the supplier's whole proposal. Required
information about the foundation is entered and submitted. This may
include Proposed Annual Dollar Volume, Proposal Duration, Payment
Terms and Annual Seasonal Distribution. The supplier is then faced
with entering in cost and movement for each individual item within
the event at 615. ("Movement" is a term understood in the grocery
industry to mean volume moved over time, e.g. case per week or
trucks per month.) Once completed, the supplier has the option to
add at 616 any additional funding (by event level or item level) to
round out their offering. The supplier has the ability to change
any aspect of this proposal until the deadline that the buyer has
determined in the set up process, but once the deadline has passed
changes only are allowed at the buyer's discretion.
[0146] As shown in the flowchart at FIG. 19B, the third component,
Analyze/Negotiate Proposals, is an analytical review process for
the buyer that takes into account the relationship between time and
money. From the buyer's perspective the buyer is able to see each
proposal in a side by side comparison at 621. He or she is able to
categorize any additional funds from the proposals at 622. This
permits the buyer to compare additional funds categories such as
advertising contributions, volume discounts, etc. The buyer is able
to run a "what if" scenario, or contingency, analysis on any
selected proposal at 623. The "what if" scenario is run by
permitting the buyer to change one or more terms of a quote and
then based upon the same analytical review, observing how the
buyer's results are effected. This flexibility for looking at the
proposal along with the comparative analytics such as the
calculation of the net present value, the item list cost
differential, and additional profitability between the different
proposals assists the buyer in his or her decision making process
on which proposal is a better option for the buyer.
[0147] Net Present Value is determined using the formula:
PV=CF/((1+i).sup.1)
[0148] The net present value for a given cash flow is stated as the
cash flow divided by 1+interest rate (i) taken to the power of the
number of periods being calculated (t).
[0149] The inputs for these various elements in the application are
as follows:
[0150] (a) Cash Flow (CF)--This amount derives from the quotes
being entered and the shipment distribution filled out by the
supplier.
[0151] (b) Interest Rate (i)--This is the "Net Present Value
Discount Rate" entered into the Setup Page. Typically, this will be
the return on investment or the interest rate on cash investments
for the client.
[0152] (c) Number of Periods (t)--This is the number of periods for
which the payment will be made. In the present case, compounding
occurs on a monthly basis, so this is the number of months the
payment will be made from the beginning of the contract.
[0153] Item List Cost Differential is a means of weighting the
extended amount to take into account the different volume of
product the totals cannot be readily compared. This calculation is
to alleviate that issue. The calculation is as follows:
(Maximum Price-Supplier's Price/Maximum Price).times.Supplier's
Price.times.Quantity
[0154] The process could stop at the point of receiving the sellers
quotes, but to add more flexibility to it the buyer is also
empowered to negotiate with each proposal as indicated at 625. By
negotiating the buyer may persuade a supplier to change certain
aspects of the supplier's offering. If the supplier agrees to these
changes the buyer has the ability to allow the supplier access to
the supplier's proposal and once the change are made the buyer can
close the access to the supplier. At this point the real time
calculations are refreshed with the changes and the buyer will see
at 628 the net effect on the changed proposal. If the buyer needs
some leveraging to help in the negotiating process, the buyer can
choose an option that allows the supplier to view certain aspects
of any other proposals as indicated at 626 and 627. After the
supplier reviews this information, then the buyer can again permit
access for the supplier to modify his or her offering again. Once
the proposals have been negotiated, the buyer can make a final
review of the information. After this review the buyer has the
ability to award the best offer electronically over the e-mail
while also sending out to the other participants a thank you for
their participation letter, all at 630. FIG. 20 is the
administrator, buyer, power buyer's quote view page of a negotiated
event affording the ability to award at 810, 811 and 812.
Competitive Branded Products Event
[0155] FIG. 21 is a quote view page for comparing quotes on
different brands of a product that a buyer seeks to purchase.
Shampoo is the product in the example. This page can be used, e.g.,
to compare promotional programs presented by two, three or more
different manufacturers or distributors. The buyer's proposed
program is first presented. Retail prices per unit are shown at
fields 701. The buyer's gross margins are shown at 702. At 703 the
quantity cases of six bottles each is shown for each brand. The
proposed price (cost to buyer) that will produce the desired margin
appears at 704.
[0156] Next the seller's or "supplier's" proposals or "quotes" are
shown. These include price per case at 706, additional funds at
707, program price or cost to buyer at 708. The resultant gross
margin is shown at 710.
[0157] The buyer's and seller's proposals are then compared. The
difference in price appears at 712 and percent difference at 713.
As can be seen the buyer's proposed price is less in each instance
by the dollar amount shown in parentheses. The best supplier
proposal from the buyer's point of view is Brand Z as indicated at
715.
[0158] At 717 the supplier proposals are compared, using the Brand
Z proposal as the basis for a normalized comparison. The difference
in percent difference between Brand X and Brand Z is shown at 718.
The difference in percent difference between Brand Y and Brand Z is
shown at 719. Corresponding dollar differences are at 720 and 721.
FIGS. 21A and 22B show the quote view page for the competitive
branded product event of FIG. 21. The administrator, buyer, power
buyer's page, FIG. 21A, shows all quotes as well as the comparative
figures. The seller's page shows just that seller's quotes plus the
comparative figures.
[0159] This then has allowed a comparison between proposals for
branded products differing in price, differing in additional funds
being offered and in which the buyer has made his or her proposal
in one set of units (retail price per unit) and the responding
supplier participants have made their proposal in another set of
units (price per case). Nevertheless, the differences between
sought-after gross margin and gross margin resultant from the
suppliers proposals are made apparent.
Event Setup Options/Features
[0160] The following outline sets forth the many various setup
options and features that the power buyer or administrator can use
in setting up an event. Again, the olive buying event of FIGS. 6-9
is the example. Reference is made in FIGS. 22 and 23.
[0161] 1. Ownership: [0162] a. Event: [0163] i. Event Name: The
name one allocated for the event on the initial create event page.
This field, 501, is automatically populated from what is entered on
the initial create event page. However, one may change the event
name on the event setup page. [0164] ii. Event Type: Indicates, at
502, the type of event and type of purchasing that the host user
desires. There are two classifications of events: [0165] 1. System,
at 503, which can be: [0166] a. Live--a binding event with some
economic outcome, [0167] b. Training--a non binding event with no
economic outcome, [0168] c. Template--an event that is not actually
run but used as the template for setting up similar events. [0169]
2. Classification, at 504, which can be: [0170] a. Contract, [0171]
b. Replenishment, [0172] c. Spot (spot buy) [0173] d. Price List,
or [0174] e. RFP (negotiated event). [0175] iii. Parent Event:
Identifies at 505, whether or not the event was a copy of another
event. If it was a copy, it will list the event name that the
current event was created from, i.e. the "parent event." [0176] iv.
Host Company Name: Refers, at 506, to the company that is hosting
the event. Is automatically populated from what is entered on the
create event page. [0177] b. Host User: [0178] i. Host User Company
Name: This field will default to the event host's company name at
507, but can be changed to another company. [0179] ii. Host User
Name: Provides a drop down list at 508 to select who will be the
host user or sponsor of the event. [0180] iii. Title: Lists the job
title of the host user at 509. Is automatically populated from the
user's profile. If incorrect, the user must update their profile to
correct it. [0181] iv. First Name: Lists the host user's first
name. Is automatically populated at 510 from the user's profile. If
incorrect, the user must update their profile to correct it. [0182]
v. Last Name: Lists the host user's last name. Is automatically
populated at 511 from the user's profile. If incorrect, the user
must update their profile to correct it. [0183] vi. Department:
Lists the department that the host user works in. Is automatically
populated at 512 from the user's profile. If incorrect, an
administrator from the company that maintains the website and
provides the system (the "Company") must update the profile to
correct it. [0184] vii. Phone Number: Lists the host user's phone
number at 513. Is automatically populated from the user's profile.
If incorrect, the user must update their profile to correct it.
[0185] viii. Fax Number: Lists the host user's fax number at 514.
Is automatically populated from the user's profile. If incorrect,
the user must update their profile to correct it. [0186] ix. Email:
Lists the host user's email address. Is automatically populated
from the user's profile. If incorrect, the user must update their
profile to correct it. [0187] x. Primary Administrating Company:
Lists at 515 the host user's primary administrating contact at the
Company. Is automatically populated from the user's profile. If a
primary Company contact docs not appear, one selects one's contact
from the drop down list. [0188] xi. Secondary Company Contact:
Lists at 518 the host user's secondary Company contact. Is
automatically populated from the user's profile. If a secondary
Company contact does not appear, one may select one's contact from
the drop down list. [0189] c. Setup: [0190] i. Event Setup By:
Indicates the user's name that set up the event at 517. This field
is automatically populated by the system. [0191] ii. Buyer Setup
Event: A Yes/No flag that indicates at 518 whether or not a user
with the `power buyer` role set up the event. This field is
automatically populated by the system.
[0192] 2. Setup: [0193] a. Event Start: [0194] i. Event Start Date:
Indicates at 520 the date that the event will start. Requires entry
of a four-digit year, i.e., 2001. [0195] ii. Event Start Time:
Indicates at 521 the time the event will start. [0196] b. Event
End: [0197] i. Event End Date: Indicates at 522 the date the event
will end. Requires entry of a four-digit year, i.e., 2001. [0198]
ii. Event End Time: indicates at 523 the time the event will end.
This will reflect the actual end time of the event including
extensions once the event has completed. [0199] c. Contract: [0200]
i. Contract Start Date: Indicates the date that the contract will
begin at 524. Only applies to user event type "Contract". [0201]
ii. Contract End Date: Indicates the date that the contract will
end at 525. Only applies to user event type "Contract". [0202] iii.
Reminder Date: Allows a user to indicate a date at 526 that the
system will remind the user who setup the event that the contract
is ending and that the event will need to be run again. [0203] d.
Delivery: [0204] i. Delivery Start Date: Indicates at 527 the date
that deliveries will begin. [0205] ii. Delivery End Date: Indicates
at 528 the date that deliveries will end. [0206] e. Anticipated
Award [0207] i. Anticipated Award Date: Indicates at 529 the date
that you host user expects to announce the decision on the award of
business. [0208] f. Event Status: Indicates the status of the event
530. Valid values are: Enabled, Cancelled, Postponed, Awarded, Not
Awarded.
[0209] 3. RFP Setup (Referring to FIG. 23): [0210] a. Contract
Period Negotiable: Indicates at 535 whether the buyer is willing to
allow the suppliers the ability to input their own proposal period
for the contract. [0211] b. Total Contract Value Negotiable:
Indicates at 536 whether the buyer is willing to allow the
suppliers the ability to input their own proposal values for the
contract. [0212] c. Listed Products are a subset of all items:
Indicates at 537 whether the item list for this event will be a
subset of all items or a complete list. [0213] d. Future Value
Discount Rate (%): This figure, at 538, is the percentage rate at
which one's company places value on the future rate of money.
[0214] e. Net Present Value Discount Rate (%): This figure, at 539,
is the percentage rate at which one's company places value on the
present value rate of money. [0215] f. Compounding Period:
Indicates, at 540, the compounding period for the discount rates.
[0216] g. Average Gross Margin (%): This figure, at 541, is the
average gross margin percentage for the items or categories which
the event is based on. [0217] h. Expected Inflation Rate (%): This
figure, at 542, represents the inflation rate that is expected to
influence this list of items or the category for the event. [0218]
i. Estimated total Value of Contract ($): This figure, at 543,
represents the estimated total of the contract value for the event.
This number will give the suppliers an idea of the value for this
contract.
[0219] 4. Details: [0220] a. Quote/Event Notes: [0221] i. Allow
Quote/Event Note: Indicates at 545 whether or not one is willing to
allow a supplier to place a single event or item quote notation.
[0222] ii. View Event Note: Indicates at 546 whether or not one is
willing to allow event notes placed by suppliers to be viewed by
other suppliers (only applies in a full view event). [0223] iii.
View Quote Note: Indicates at 547 whether or not one is willing to
allow notes placed by suppliers to be viewed by other suppliers
(only applies in a full view event). [0224] b. Volumes: [0225] i.
Allow Proxy Volume: Allows at 548 a buyer to increase volume based
on targeted price points. [0226] ii. Allow Items No Volumes: Allows
at 549 a host user to indicate whether or not one will be defining
volumes for items in the event. [0227] iii. Allow Suppliers Quote
Volumes: Allows at 550 a supplier to indicate the volume they have
available at the quoted price point. This option cannot be used if
the buyer is indicating desired volumes. [0228] c. Display: [0229]
i. Display Reserve Price: Indicates at 551 whether or not a host
user wants the reserve price to be displayed on the view page for
the suppliers to see. [0230] ii. Display Industry Price: Indicates
at 552 whether or not the host user wants to display an industry
price (such as current USDA or Georgia Dock pricing) to the
supplier for an item(s). [0231] iii. Display Weighted Quotes:
Indicates at 553 who can view weighted supplier quotes. Valid
options are Buyer, Supplier or Both. The buyer on the Participant
Item page adjusts quotes on a scale from 1 to 100%. [0232] iv.
Display Supplier Alias: Indicates at 554 whether or not a host user
wants to display a supplier alias on the view page. Reduces the
amount of characters on the view page in the supplier column header
and potentially allows for more supplier data to be viewed on a
single page. [0233] v. Display Low Net Indicator: Indicates at 555
whether or not a host user wants the lowest total net program value
highlighted on the view page. [0234] vi. Allow Branded Product
Event: Allows at 556 the quote view page to display additional
totals that enable a host buyer to make decisions on products that
are similar, but different brands (i.e. shampoo) [0235] vii.
Display Branded Product Details to Suppliers: Displays at 557 to
suppliers on the quote view page additional totals that enable a
host buyer to make decisions on products that are similar, but
different brands (i.e. shampoo) [0236] d. Quotes: [0237] i. Quote
Increment Type: Indicates at 558 what type of quote increment you
want the suppliers to place their quotes with. [0238] ii. Allow
Proxy Quote: Allows at 559 a host user to indicate whether or not a
supplier will allow the system place their quotes on their behalf
[0239] iii. Allow Matching Quote: Indicates at 560 whether or not a
host user will allow a supplier's quote to be matched by another
participating supplier (this is for all quotes, not including the
low quote). [0240] iv. Allow Matching Low Quote: Indicates at 561
whether or not a buyer will allow the low quote for an item to be
matched by another participating supplier. [0241] v. Max Matching
Quotes: Allows at 562 a host user to indicate the maximum number of
matching quotes that you will allow (is used in along with the
allow matching quote options above). [0242] vi. Allow Non-Quote:
Indicates at 563 whether or not a host user will allow a supplier
to stay in the event without placing any quotes. Prevents a
supplier from watching pricing and not participating. [0243] vii.
Non-Quote Threshold: At 564 works in along with the allow non-quote
option and indicates the point in time remaining on the event clock
that the system will disable a supplier if they have not placed a
quote. For instance, if it is a 15-minute event, and you one has
indicated 5 in this field, it means that with 5 minutes remaining
on the clock the system will automatically disable any supplier who
has not placed at least one quote. The supplier will not be able to
access the event again if they are disabled. [0244] viii. Allow
Quote Increase: Indicates at 565 whether or not a buyer will allow
suppliers to increase their current quoted price. [0245] ix. Quote
Increase Threshold: Indicates at 566 how much time after a supplier
places quotes that the buyer will allow a supplier to increase
their quoted price. [0246] x. Allow Quote Increase Extension:
Indicates at 567 whether or not a host user will allow a supplier
to increase their pricing during event extensions. If checked, then
the Quote Increase Threshold applies. [0247] xi. Reset Quotes Prior
Start: Allows at 568 the host user to have an event span multiple
days and the system will automatically change the date to the
following day at midnight each night. In addition, the view page
will appear as if it is n new event. [0248] xii. Start With
Previous Quote: At 569 works in conjunction with "Reset Quotes
Prior Start" and allows the suppliers' last quoted prices and notes
to be retained on their quote page so that they do not have to
re-enter the information the first time. [0249] e. Event: [0250] i.
Event Display Type: Indicates at 570 the view in which the
suppliers will be able to watch the event. Valid values are: Full,
Low Quote Only, Ranking, Blind, Blind w/Color. [0251] ii. Event
Review Time: Indicates at 571 the amount of time at the close of
the event that a host user will want the suppliers to stay
available by phone, in the case of the event needs to be re-opened
for some reason. [0252] iii. Supplier Award: Indicates at 572
whether one will award the business to a single supplier or
multiple suppliers. [0253] iv. Items Parent Event: Indicates at 573
whether or not the item "Pick List" will have only those items
associated to the parent event. This option does not apply if this
event was not a copy of another event. [0254] v. Allow Group Buy:
Indicates at 574 that the hosting buyer wants to hold an event,
which would allow multiple buying organizations to participate in
the consolidation of volumes of the selected item(s) and indicate
their own volume requirements. [0255] vi. Current Price Calc
Method: If group buy is checked, indicates at 575 how the current
price field should be calculated for each item in the event. Valid
values are: Lowest Current Price, Highest Current Price, or an
Average of all current prices entered for an item. [0256] vii.
Allow Extensions: Indicates at 531 whether or not the event will
extend if quotes are entered within the specified threshold. [0257]
viii. Extension Threshold: Indicates at 532 the threshold or at how
much time remaining in the event that the event will extend if a
significant event happens in the specified threshold. Significant
events are: Low quote changes, Any quote going down, An initial
quote by a supplier on an item, and any change to terms or funds.
For example, if the low quote changes within the last 1-minute
remaining on the clock, the event will extend. [0258] ix. Extend
Time: Indicates at 533 how long the event will extend if a
significant event occurs within the specified threshold. This is a
repetitive process and will continue until no significant event
occurs within the specified threshold. For example, the event will
extend 2 minutes if a significant event occurs within the specified
threshold. [0259] x. Departments In Event: At 579 users in the
selected departments are invited to view this event. These
departments are based on the departments of the Host Buyer.
[0260] 5. Categories: Indicates at 580 which category to which the
products and participants will be sourced from.
[0261] 6. Additional Information: At 581 allows a host user to
indicate any additional information that is needed for the supplier
to most appropriately prepare for the event.
[0262] 7. Payment Terms: [0263] a. Allow Terms: Indicates at 582
whether or not a host user will allow a supplier to quote early
payment discount terms (i.e. 2% 10, net 30). [0264] b. Minimum
Terms: Indicates at 583 that the host user is requiring minimum
terms and what those required terms are. If this field is
populated, the terms will automatically be calculated upon a
supplier placing an initial quote. [0265] c. Allow Terms Quote: At
584 allows suppliers to quote terms. [0266] d. Allow Decrease Terms
Quote: At 585 allows suppliers to decrease their term amount.
[0267] e. Allow Users Add Funds: If present allows a host user to
indicate whether or not one is allowing a supplier to quote on
funding that one did not specifically request as a part of the
program.
[0268] 8. Event Fees: [0269] a. Fee Type: Indicates at 587 the type
of fee that will be applied to the event. Intesource staff
completes this section.
[0270] 9. New Event: [0271] a. New Event Name: At 588 allows one to
indicate the name one wants the new event to be called when doing a
copy. [0272] b. New Company Name: At 589 allows a user to change
the company name when copying an existing event. [0273] c. With
Last Quotes: At 590 allows a user to copy an event that has
previously been quoted on and not copy the last quote per item to
the new event. [0274] d. Without Last Quotes: At 591 allows one to
copy an event that has previously been quoted without retaining the
last quotes per item.
[0275] From the above outline the breadth of choices given a buyer
or power buyer is apparent.
[0276] Whereas a specific, exemplary embodiment of the invention
has been described, it will be readily understood by one skilled in
the art that changes may be made without departure from the spirit
and scope of the invention as set forth in tile claims appended or
to be appended hereto.
* * * * *