Note: Descriptions are shown in the official language in which they were submitted.
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
PRODUCTION PLANNING AND VENDOR MANAGED INVENTORY SYSTEM
FIELD OF THE INVENTION
(Ol] This invention relates generally to production planning and inventory
control for
merchandisers and suppliers of goods. More particularly, the present invention
provides a method and system for optimizing inventory control and for
providing
improved production plans for future sales of goods.
DESCRIPTION OF THE RELATED ART
[02] It is well known in the business world that suppliers and merchandisers
of goods
can increase profits with inventory control and accurate planning for fixture
sales.
Suppliers do not want to overproduce products and merchandisers do not want to
have in stock more items than they can sell. In addition, it is a goal of
merchandisers to have an inventory that efficiently meets the demands of the
customers. Correspondingly, suppliers desire to produce products at a rate
that
meets the demand of the merchandisers.
[03] It is a drawback of current business methods that suppliers either
produce too
much or too little of a product, while merchandisers either do not have enough
product on hand to meet sales or have product and goods left over in inventory
at
the end of a retail season.
[04] Thus there is a need for an improved method and system for product
planning and
inventory control of goods for both suppliers and merchandisers.
SUMMARY OF THE INVENTION
[OS] The present invention overcomes the problems and limitations of the prior
art by
providing methods and systems that allow for accurate inventory control and
planning for future sales. Suppliers and merchandisers can use computer
systems
to assists in control and planning functions. The disclosed systems and
methods
t
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
allow the suppliers and merchandisers to accurately and efficiently control
inventory and plan for future sales.
[06J In a first embodiment, the invention provides a computer-implemented
method
for establishing an inventory plan. A computer server receives a sales trend
from
a merchandiser, wherein the sales trend includes expected future sales by the
merchandiser. The server receives a first notification from a supplier,
wherein the
first notification includes an indication that the sales trend is approved.
The
server receives an intake plan from the supplier, and the server receives a
second
notification from the merchandiser, wherein the second notification comprises
an
indication that the intake plan is approved.
[07) In another embodiment, there is a computer-implemented method of managing
an
inventory. A computer server receives a sales trend from a merchandiser,
wherein
the sales trend is based at least in part on current sales data. The server
receives
notification that the merchandiser and a supplier have approved the sales
trend.
The server receives an updated intake plan from the supplier, and receives a
notification from the merchandiser, wherein the notification comprises an
indication that the intake plan is approved.
[08] In one embodiment of another aspect of the invention, there is a data
processing
system for establishing an inventory level. The data processing system
includes a
processor and memory for storing computer readable instructions that, when
executed by the processor, cause the data processing system to perform a set
of
steps. The system receives a sales trend from a merchandiser, wherein the
sales
trend includes expected future sales by the merchandiser. The system receives
a
first notification fi-om a supplier, wherein the first notification includes
an
indication that the sales trend is approved. The system receives an intake
plan
from the supplier, and receives a second notification from the merchandiser,
wherein the second notification includes an indication that the intake plan is
approved.
2
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[09] In another embodiment, there is a data processing system for managing an
inventory, including a processor and a memory for storing computer readable
instructions that, when executed by the processor, cause the system to perform
a
set of steps. The system receives a sales trend from a merchandiser, wherein
the
sales trend is based at least in part on current sales data. The system
receives
notification that the merchandiser and a supplier have approved the sales
trend.
The system receives an updated intake plan from the supplier, and receives a
notification from the merchandiser, wherein the notification includes an
indication
that the intake plan is approved.
[10] In some embodiments, a contract between the supplier and the merchandiser
may
be based on the sales trend and intake plan.
[11] In some embodiments, when the supplier and merchandiser do not agree on
the
sales trend or intake plan, an alternate trend or plan may be suggested.
[12] The sales trend and intake plans may be respective to a specific style
and color
combination of a retail product_
[13] In other embodiments, the present invention can be partially or wholly
' implemented on a computer-readable medium, for example, by storing computer-
executable instructions or modules, or by utilizing computer-readable data
structures.
[14] Of course, the methods and systems of the above-referenced embodiments
may
also include other additional elements, steps, computer-executable
instructions, or
computer-readable data structures. In this regard, other embodiments are
disclosed and claimed herein as well.
[15] The details of these and other embodiments of the present invention are
set forth
in the accompanying drawings and the description below. Other features and
advantages of the invention will be apparent from the description and
drawings,
and from the claims.
3
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
BRIEF DESCRIPTION OF THE DRAWINGS
[17] The present invention is illustrated by way of example and not limited in
the
accompanying figures in which like reference numerals identify Like elements
and
in which:
[18] Figure 1 illustrates a flowchart of initialization procedures of an
embodiment of
the invention.
[19] Figure 2 illustrates a flowchart of a production planning method
according to an
embodiment of the invention.
[20] Figure 3 illustrates a flowchart of production planning method according
to an
embodiment of the invention, and depicts roles that a merchandiser and
supplier
may perform in the method.
[21] Figure 4 illustrates a block diagam of an embodiment of the invention.
[22] Figure 5 illustrates a detailed flowchart of a product planning method
according to
an embodiment of the invention.
[23] Figure 6 illustrates a flowchart of a vendor managed inventory method
according
to an embodiment of the invention.
[24] Figure 7 illustrates a screenshot of a login screen.
(25] Figure 8 illustrates a screenshot of a production planning VMI Overview
screen.
[26] Figure 9 illustrates a sereenshot of a selection screen.
[27] Figure 10 illustrates a workstation and communication connections.
[28] Figure 11 illustrates a screenshot of a production planning Merchandiser
Overview screen.
[29] Figure 12 illustrates a screenshot of a production planning Create VMI
Plan
screen.
4
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[30] Figure 13 illustrates a screenshot of a production planning style/color
screen for
all channels according to an embodiment of the invention.
(31] Figure 14 illustrates a screenshot of a production planning style/color
screen for a
one channel according to an embodiment of the invention.
[32] Figure 15 illustrates a screenshot of a production planning SKU screen
for one
channel according to an embodiment of the invention.
[33] Figure 16 illustrates a .screenshot of a vendor managed inventory
style/color
screen for all channels according to an embodiment of the invention.
[34] Figure 17 illustrates a screenshot of a vendor managed inventory
style/color
screen for a channel according to an embodiment of the invention.
[35] Figure 18 illustrates a screenshot of another vendor managed inventory
style/color
screen for a channel according to an embodiment of the invention.
[36] Figure 19 illustrates a screenshot of yet another vendor managed
inventory
style%olor screen for a channel according to an embodiment of the invention.
[37] . Figure 20 illustrates a screenshot of still another vendor managed
inventory
styleJcolor screen for a channel according to an embodiment of the invention.
[38] Figure 21 illustrates a screenshot of yet still another vendor managed
inventory
style/color screen.
[39] Figure 22, illustrates a block diagram of a computer readable medium
storing
computer software according to an embodiment of the invention.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
[40J The present invention provides a method and system for providing
production
planning and inventory control for merchandisers and suppliers of goods. With
the present invention, production planning capabilities allow a supplier to
provide
a low level production plan, taking into account an assortment of goods and
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
season estimates, and allow a supplier and merchandiser to bargain and agree
on
sales trends and inventory intake plans. The production plan may be developed
at
a styleJcolor level, and can be shared with the supplier during a pre-season.
That
is, the plan is developed for each particular style and color of a consumer
good so
that suppliers can efficiently provide merchandisers with an appropriate
quantity
of each good at the beginning of a retail season. The plan is then monitored
and
re-forecast during the season based on actual sales and re-forecast data via a
vendor management inventory process, such that suppliers provide a more
accurate quantity of goods to merchandisers throughout the retail season,
based on
consumer buying trends. Although the present invention may be utilized with
any
type of goods in any area of business, it is particularly advantageous for use
in
manufacturing and selling of clothing. Styles and colors of clothing typically
change from one season to another and thus, production planning and inventory
control are extremely important for merchandisers and suppliers in the retail
industry.
[41] Elements of the present invention may be implemented with computer
systems,
such as the system 1100 shown in F1G. 10. Computer 1100 includes a central
processor 1110, a system memory 1112 and a system bus 1114 that couples
various system components including the system memory 1112 to the central
processor unit 1110. System bus 1114 may be any of several types of bus
structures including a memory bus or memory controller, a peripheral bus, and
a
local bus using any of a variety of bus architectures. The structure of system
memory 1112 is well known to those skilled in the art and may include a basic
input/output system (BIOS) stored in a read only memory (ROM) and one or
more program modules such as operating systems, application programs and
program data stored in random access memory (RAM).
[42] Computer 1100 may also include a variety of interface units and drives
for
reading and writing data. In particular, computer 1100 includes a hard disk
interface 1116 and a removable memory interface 1120 respectively coupling a
hard disk drive 1118 and a removable memory drive 1122 to system bus 1114.
6
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
Examples of removable memory drives include magnetic disk drives and optical
disk drives. The drives and their associated computer-readable media, such as
a
floppy disk 1124 provide nonvolatile storage of computer readable
instructions,
data structures, program modules and other data for computer 1100. A single
hard disk drive I 118 and a single removable memory drive 1122 are shown for
illustration purposes only and with the understanding that computer 1100 may
include several of such drives. Furthermore, computer 1100 may include drives
for interfacing with other types of computer readable media.
[43] A user can interact with, computer 1100 with a variety of input devices.
Figure I 1
shows a serial port interface 1126 coupling a keyboard 1128 and a pointing
device
1130 to system bus 1114. Pointing device 1128 may be implemented with a
mouse, track ball, pen device, or similar device. Of course one or more other
input devices (not shown) such as a joystick, game pad, satellite dish,
scanner,
touch sensitive screen or the like may be connected to computer 1100.
[44] Computer 1100 may include additional interfaces for connecting devices to
system bus 1114. Figure 11 shows a universal serial bus (USB) interface 1132
coupling a video or digital camera 1134 to system bus 1114. An IEEE 11394
interface 1136 may be used to couple additional devices to computer 1100.
Furthermore, interface 1136 may configured to operate with particular
manufacture interfaces such as FireWire developed by Apple Computer and
i.Link developed by Sony. Input devices may also be coupled to system bus 1114
through a parallel port, a game port, a PCI board or any other interface used
to
couple and input device to a computer.
[45] Computer 1100 also includes a video adapter I 140 coupling a display
device 1142
to system bus 1114. Display device 1142 may include a cathode ray tube (CRT),
liquid crystal display (LCD), field emission display (FED), plasma display or
any
other device that produces an image that is viewable by the user. Additional
output devices, such as a printing device (not shown), may be connected to
computer 1100.
7
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[46] Sound can be recorded and reproduced with a microphone 1144 and a speaker
1166. A sound card 1148 may be used to couple microphone 1144 and speaker
1146 to system bus 1114. One skilled in the art will appreciate that the
device
connections shown in figure 11 are for illustration purposes only and that
several
of the peripheral devices could be coupled to system bus 1114 via alternative
interfaces. For example, video camera 1134 could be connected to IEEE 11394
interface 1136 and pointing device 1130 could be connected to USB interface
1132.
[47) Computer 1100 can operate in a networked environment using logical
connections
to one or more remote computers or other devices, such as a server, a router,
a
network personal computer, a peer device or other common network node, a
wireless telephone or wireless personal digital assistant. Computer 1100
includes
a network interface I 1 SO that couples system bus 1114 to a local area
network
(LAN) I 152. Networking environments are commonplace in offices, enterprise-
wide computer networks and home computer systems.
[48) A wide area network (WAN) 1154, such as the Internet, can also be
accessed by
computer 1100. Figure 11 shows a modem unit 1156 connected to serial port
interface l 126 and to WAN 1154. Modem unit 1156 may be located within or
external to computer 1100 and may be any type of conventional modem such as a
cable modem or a satellite modem. LAN 1152 may also be used to connect to
WAN 1154. Figure 11 shows a router 1158 that may connect LAN 1152 to WAN
1154 in a conventional manner.
[49] It will be appreciated that the network connections shown are exemplary
and
other ways of establishing a communications link between the computers can be
used. The existence of any of various well-known protocols, such as TCP/IP,
Frame Relay, Ethernet, FTP, HTTP and the like, is presumed, and computer 1100
can be operated in a client-server configuration to permit a user to retrieve
web
pages from a web-based server. Furthermore, any of various conventional web
browsers can be used to display and manipulate data on web pages.
8
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[50] The operation of computer 1100 can be controlled by a variety of
different
program modules. Examples of program modules are routines, programs, objects,
components, data structures, etc., that perform particular tasks or implement
particular abstract data types. The present invention may also be practiced
with
other computer system configurations, including hand-held devices,
multiprocessor systems, microprocessor-based or programmable consumer
electronics, network PCS, minicomputers, mainframe computers, personal digital
assistants and the like. Furthermore, the invention may also be practiced in
distributed computing environments where tasks are performed by remote
processing devices that are linked through a communications network. In a
distributed computing environment, program modules may be located in both
local and remote memory storage devices.
[51) In one embodiment, with reference to Figure 4, the product planning
procedure
may be performed by a web-based application 407, facilitating the distribution
of
the application to supplier and merchandiser sites 41 S and 419, and enabling
effective, secure communication of business data. A web server 401 includes a
processor 403 and a memory 405. The memory may store web server software
409, application software 407, and trend library data 411. Merchandisers and
suppliers may be connected to the web server directly, such as through-direct
connection 413, or they may connect through one or more networks, such as the
Internet 417. As stated above, merchandisers and suppliers may use product
planning procedures to facilitate agreement on pre-season demand forecasts and
intake plans. An intake plan may be derived from the estimate of demand for
each color and style of retail goods, and details the supply schedule for that
color
and style from the supplier to the merchandiser.
[52] Similarly, the vendor managed inventory procedures may also be embodied
in a
web-based application. The vendor managed inventory procedure allows
suppliers to view relevant stock data (e.g., quantity of an item in the
supplier's
warehouse that can be delivered to merchandisers), contract data and sales
data
online via a web browser. Using this in conjunction with their knowledge of
the
9
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
retail marketplace, the suppliers will be able to adjust their production and
intake
plans to suit merchandiser needs.
[53] Figure 1 illustrates a flow chart of initial log on procedures in an
embodiment of
the invention. As depicted in Figure 1, a user, such as a merchandiser or
supplier,
logs on in an initial step 100. In step 102, the user selects either the
product
planning or vendor managed inventory. When the user selects product planning,
it
is initiated in step 104 and the product planning plan is then formulated in
step
106 between the merchandiser and supplier, as further described below. When
the vendor managed inventory is selected, it is initiated in step 108 and then
implemented in step 110 between the supplier and merchandiser with regards to
the commitment and intake of products, respectively. The product planning plan
formulated in step 106 is formulated relative to intake requirements and
capacities
of the merchandiser and supplier, respectively.
[54] Figure 2 illustrates a more detailed flowchart for a production planning
procedure,
referred to above in step 106. The merchandiser provides an initial sales
trend in
step 200. The initial sales trend is the merchandiser's sales estimate of the
quantity of each item to be sold, and optionally includes time periods during
which the merchandiser expects to sell specified quantities of goods. The
sales
trend estimates a predicted trend profile for the retail season and represent
a
forecast of expected sales for a given item or style. Suppliers generally
offer
views of complete market trends while merchandiser trends generally offer a
view
of only their own market. Thus the trends may not match in the initial
instance,
and the supplier and merchandiser must agree on a combined sales trend. This
combined trend often provides very useful information as a result of the
combined
viewpoints.
[55] A supplier reviews the initial sales trend and either approves or
disapproves of the
trend in step 202. If the supplier approves the trend, the procedure proceeds
to
step 208. If, however, the supplier does not approve the trend in step 202,
the
supplier suggests an alternative trend in step 204, which the merchandiser may
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
either approve or disapprove in step 206. If the merchandiser approves the
trend,
the procedure proceeds to step 208. If the merchandiser does not approve the
trend in step 206, the procedure proceeds back to step 200 where the
merchandiser may provide another trend. This cycle may continue until the
merchandiser and supplier agree on the sales trend to be used.
[56] Once the supplier and merchandiser agee on the sales trend, the supplier
applies
an intake plan in step 208. In step 210, the merchandiser either approves or
disapproves of the intake plan. If the merchandiser does not approve the
intake
plan, the procedure returns to step 208 where the supplier may apply another
intake plan. If the merchandiser approves the intake plan, the general product
planning procedure is done.
(57] Intake plans may vary for a variety of reasons, including that there are
multiple
possible intake plans that may accommodate the same sales trend. The supplier
intake plan represents the delivery dates and quantities that a supplier
suggests
will meet the needs of the retailer based on the sales trend and his own
production/distribution schedules. The supplier intake plan may for example
consist of several large deliveries over a period of months - rather than a
weekly
delivery of the theoretical volume required for that individual week, as may
be
requested by the merchandiser. In addition, distribution center capabilities
may
also affect scheduling of deliveries.
[58] Figure 3 illustrates a flow chart of an embodiment, depicting the roles
that a
merchandiser and supplier may play in a production planning procedure.
Initially
(not shown), when a user logs on to the system, the system authenticates and
identifies the user as a merchandiser or supplier using his or her user name
and
password. The system is configured to then present each user with appropriate
displays, menus, and functions as are appropriate to his or her role (i.e.,
merchandiser vs. supplier). In the merchandiser role, merchandisers view and
work with all suppliers and products, apply trends, define new trends, approve
supplier-suggested trends, approve supplier intake plans, and agree to hard
11
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
contract plans. Suppliers, however, only view and work with their own
products,
as well as review trends, apply alternative trends, define new trends and
suggest
intake plans.
[59] More specifically, in Figure 3, high-level production planning parameters
are
identified in step- 300. High-level production parameters may include the
supplier, style, color, and trend, in addition to other parameters discussed
below.
The user specifies these parameters in order to provide basic information that
defines which supplier and product they would like to work with. After
identifying high-level production parameters, the merchandiser selects a
production-planning supplier in step 302. That is, the merchandiser identifies
a
supplier with which to formulate a production plan. The merchandiser then
identifies a product of the selected supplier in step 304, and applies a trend
profile
from a library in step 306. Alternatively (not shown), the supplier may create
and
apply a new trend. The supplier reviews the trend profile and generates an
intake
plan in step 308. Optionally, the user may suggest alternative trends from the
library (or create new trends) in step 310. The trend library may be used to
store
actual historical trends from which a present trend may be selected.
[60] The merchandiser considers the trend presented by the supplier in step
312. If the
merchandiser does not agree with the supplier's suggested trend, then there is
a
return to step 306. When agreement is reached in step 314 the merchandiser
publishes the generated intake plan in step 316. The user is able to review
the
generated intake plan in step 318 and in step 320 enters a supplier intake
plan.
The merchandiser then reviews the supplier intake plan in step 322 and if the
merchandiser does not agree in step 324, then there is a return to step 316.
When
agreement is reached a contract may be formed between the merchandiser and
supplier in step 326. Step 328 is an optional selling period preview during
which
the product is put on sale for a trial period. This may result in a different
selling
period total forecast and all or some of the elements may be reviewed and the
process may be restarted.
12
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[61] Figure 5 illustrates a flowchart for an embodiment of a production
planning
method. After a login by a user in step 500, high level production planning
parameters are identified in step 502. High level production parameters may
include a desired channel, a selling period, a number of weeks in the selling
period, start date, end date, and the like, as well as those parameters
discussed
above.
[62] The term channel is used to refer to a sales channel. For instance, one
sales
channel may be a traditional bricks and mortar store or chain of stores, where
customers can physidally go to buy a retail item or service using the
merchandiser's traditional point of sale (POS) systems. Another channel may be
a catalogue channel, where a merchandiser mails or otherwise delivers
catalogues
to customers, from which the customers may order merchandise for delivery
through the mail or other delivery service. Catalogues allow merchandisers to
easily alter their selections of goods by merely producing and sending an
updated
catalogue to customers, e.g., seasonally. Yet another channel may be an
interactive channel, such as WebTV, DTV, the Internet, and other similar
mediums. Using an interactive channel, customers may browse a merchandiser's
web site, WebTV or DTV channel (actual channel on a TV versus a sales channel
as used herein). The customer may purchase an item directly through the
interactive channel, without requiring the customer to either visit the
merchandiser's traditional store or to read the merchandiser's catalogue. It
should
be readily apparent to those of skill in the relevant art that other channels
may
easily be envisioned. The disclosure herein is intended to include all sales
channels through which a merchandiser may sell goods and/or services to
consumers.
[63] Outputs from step 502 may include the channel identification, and season
and
selling period identified for the plan. In step 508 a user inputs his or her
selection
of the product planning supplier. In step 514 the user selects a product by
the
selected supplier. Assortment planning for the selected product may be
automatically performed in step 516. Assortment planning may be performed by
l3
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
the user or may be performed automatically by the product planning system.
Assortment planning is a precursor to the Production planning phase and may be
a
separate process utilizing separate planning capabilities. User input in step
514
may include the product description and other product identification, as well
as an
estimate of the product's quantity of sales. The user applies a trend profile
in step
522, optionally selected from a trend library. The system applies the selected
trend to provide a weekly breakdown of the sales estimate.
[64] In step 528, the system (or optionally, the user) determines whether the
product is
a stock item or a direct dispatch item. A stock item is an item that is
manufactured in bulk and surplus inventory is readily available to ship to
merchandisers. A direct dispatch item is an item that is only manufactured to
the
extent it is ordered, while manufactured items are typically shipped
immediately
to the ordering merchandiser. If the product is a stock item, in step 530 the
user
inputs information pertaining to low level production plan parameters, such as
channel requirements and supplier requirements. Outputs from step 530 may
include the number of weeks of stock cover, carryover stock figures, and lead
time. In step 536 a stock intake plan is generated from user input that may
include the number of weeks of stock cover required, carryover stock figures,
and
lead time, amongst others. Output from step 536 may include the stock plan
calculated by week. In step 542, the merchandiser shares the sales profile and
stock intake plan with the supplier for the supplier to review. In step 548
the
merchandiser seeks agreement with the supplier. If no agreement is reached,
then
a return to step 522 occurs. In step 528, if the product is not a stock item
then the
process goes to the step 548.
[65] Afler step 548, if the product is not a stock item, then the merchandiser
may
create a hard contract where appropriate, in step 566, so as to confirm the
purchaser of the non-stock item(s). If the product is a stock item, then the
merchandiser generates a revised sales intake plan in step 552 and receives a
supplier intake proposal in step 558, In step 564, if the supplier intake
proposal is
not acceptable, a return is made to step 558, otherwise a hard contract may be
14
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
created where appropriate in step 566, such as when a merchandiser needs or
wants a guaranteed supply of a style/color. Step 572 determines whether the
product is in preview. If the product is in preview then a preview estimate is
made at step 574. The preview estimate is based in part on monitored preview
sales. The preview estimate may also be shared with the supplier. Return is
then
made to step 522 of applying a trend profile. If the product is not in preview
then
the system may begin providing result information, in step 580, to other
processes
such as contracting and ordering, pipeline procedures, warehouse information,
supplier information, payment information, and style%olor management.
[66] After the product planning phase is complete, inventory may be
continually
managed and updated using a vendor managed inventory (VMI) system, as further
described below. The VMI system allows suppliers to monitor relevant stock
information, contract information, and sales date online via a web browser,
such
that they are able to adjust their production and intake plans to better suit
consumer demand as it fluctuates throughout a sales season.
[67J Figure 6 illustrates a flow chart for a typical sales trend revision
process within
the VMI system. In step 600, the merchandiser provides an original or initial
selling period sales trend. This sales trend may be entirely based on actual
sales
data of the same or similar goods. Alternatively, the merchandiser may apply a
sales trend profile from a sales trend library. In step b02, the supplier and
merchandiser both review the current trend. If the supplier does not approve
of
the trend in step 604, then the supplier may provide an alternative trend in
step
606, and the process goes back to step 602. If the supplier approves the trend
in
step 604, the merchandiser is given the opportunity to approve the trend in
step
608. If the merchandiser approves the trend, then the new trend may be used by
the supplier, in step 610, to base production of the product in question. If
the new
trend is not approved in step 608, the procedure goes to step 606 where the
supplier may provide an alternative trend.
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
[68] After the merchandiser and supplier agree on a sales trend, an intake
plan may be
updated based on the new sales trend. In step 612 the supplier creates or
provides
an intake plan. 7fie merchandiser reviews the plan in step 614, and approves
or
rejects the proposed intake plan. If the intake plan is disapproved, the
process
returns to step 612 where the supplier may provide or create an alternative
intake
plan. If the merchandiser approves the intake plan in step 614, then a
contract
may be prepared in step 616. Once the contract is ratified or accepted, the
system
sends information to other processes and modules, such as to contracting and
ordering modules, pipeline procedures, a warehouse, suppliers, and payment
modules. It should be appreciated by those skilled in the art that the above
steps,
as with other disclosed methods, may be performed in other than the recited
order
and by other than the recited performer.
[69] As stated above, each user logs in using a login ID, password, and
optional
connect string that identifies the database to which the user desires to
connect.
The database is the underlying application data structure that the user uses.
Of
course, in alternative embodiments, users may login with other parameters that
might not include a password.or connect string, or may include just a login
and
password, and the database identification may be performed automatically based
on the login >D. Figure 7 illustrates a screenshot of a login screen that may
be
used. After the user logs.in to the system, the user selects whether to
perform
product planning or vendor manages inventory procedures. Figure 9 illustrates
a
screenshot of a selection screen that may be used. The system displays menus
and provides fimctionality according to each user's role, e.g., supplier vs.
merchandiser.
[70] When a merchandiser logs in to the system and selects VMI procedures, the
merchandiser is shown a list of all available suppliers associated with the
merchandiser, such as is illustrated in Figure 11. The merchandiser overview
screen allows a merchandiser to select suppliers by season, or allows
merchandisers to create a new VMI. The user may also exit the VMI system from
the merchandiser overview screen. When a user selects to create a new VMI, the
16
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
system displays the Create VM1 Plan screen, as illustrated in Figure 12. The
user
inputs information associated with a VMI plan, including information such as
the
season (or season ID), the supplier, the style/color of the item, and a
description
of the item. The Create VMI Plan screen is generally only available to
merchandisers. However, one of skill in the art may easily envision an
embodiment where suppliers also create a VM1 plan, such as when a
merchandiser owns retails stores and also acts as a merchandiser.
[71] Upon selecting a supplier and pressing the associated 'Go' button on the
merchandiser overview screen, the system displays the VMI Overview screen for
the selected supplier, such as that illustrated in Figure 8. The VMI Overview
screen displays a list of stock items by style%olor, and may include a
description
of each item and various trends associated with the item(s). Pressing the 'Go'
button associated with a style/color on the VMI Overview screen causes the
system to display an all channel styleJcolor screen for the selected
style/color,
such as that shown in Figure 13.
[72J The all channel style/color screen includes summary information
pertaining to the
selected style%olor across all selling channels (i.e., physical store,
catalogue, etc.)
for the selected style%olor/supplier combination, optionally including status
information across all the channels, as well as a season estimate of the stock
required for the entire season across all the channels. Additional information
may
also be displayed for each week within the season. This information may
include
the original product plan estimate, a weekly gross demand forecast, cumulative
gross demand/forecast, gross estimates, weekly net actuals/forecast, net
estimates,
stock actualslforecast, contracted intake, and proposed weekly intake, among
others. From the all channel style/eolor screen, the user may select to view
detail
information for other style/color screens, as well as go back to the overview
screen.
[73J Figure 14 illustrates a screenshot of a styleJcolor screen for a single
channel, but
which is otherwise similar to the all channel style/color screen, above.
Figure 15
17
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
illustrates a SKU screen for a selected style/color/supplier within a single
channel.
The SKU screen provides current trading positions for each SKU within the
selected style/color/supplier combination selected for analysis. The user may
view additional screens for each channel (not shown), similar to those
illustrated
in Figures 14 and 15. Additional channels for which screens may display
information include a physical store channel, a catalogue channel, an
interactive
channel, and the like.
[74] When the user selects Product Planning (PP) from the selection screen
(Figure 9),
the system displays a PP Overview screen similar to the VMI Overview, above
(not shown). Upon selecting a specific supplier and style/color (e.g. by
pressing
an associated 'Go' button), the system may display the all channel style/color
screen for the selected combination, such as is shown in Figure 16. Similar
screens may be displayed, each showing only the information for a single
channel
within the distribution system, such as are shown in Figures 17-2I .
(75] Figure 22 illustrates a block diagram of a computer readable medium 2201
storing
computer software according to an embodiment of the invention. The computer
readable medium may be any data storage device or article, including but not
limited to system memory 1112, hard disk drive 1118, or a removable storage
device such as floppy disk I 124. The computer readable medium may include
software modules 2203-2213 for performing carious portions of the invention
method within the PP/VMI system. There may be on ore more of a login/security
module 2203 for performing user administration and security, a product
planning
module 2205, a vendor managed inventory module 2207, a database module
2209, web server module 2211, and trend I'brary module 2213. Additional or
difference modules may also be used depending on design choices, system
configuration, and the specific industry for which the system is being used.
[76] The above described method and system allows retailers to perform
collaborative
planning, forecasting, and replenishment of stock levels before and during a
retail
is
CA 02471286 2004-06-18
WO 03/054758 PCT/IB02/05585
season. In this manner retailers may dynamically modify stock intake plans
based
on shifting sales trends throughout a retail season.
[77] While the present invention has been described in connection with the
illustrated
embodiments, it will be appreciated and understood that modifications may be
made without departing from the true spirit and scope of the present
invention.
For example, an invention can be used with any type of goods that are to be
sold
by merchandisers and manufactured by suppliers. Relevant parameters of such
goods (for example size, color, etc.) are utilized with the present invention.
19
