Sourcing under quantity pricing rules
View Patent ↗A method for sourcing an item requirement includes receiving an item requirement that identifies an item and a quantity of the item that needs to be sourced from one or more suppliers. The method also includes determining one or more sourcing criteria that affect the sourcing of the item. The sourcing criteria include one or more quantity pricing rules that are associated with each of a number of suppliers and the quantity of the item available at each of the suppliers. Furthermore, the method includes determining one or more suppliers from which the item should be sourced and a quantity of the item to obtain from each such supplier based on the sourcing criteria. In addition, the method includes automatically generating one or more transaction documents that each identify the item and the requested quantity of the item and that include a request that a supplier provide the requested quantity of the item. These transaction documents are communicated to the associated suppliers.
1. A computer-implemented sourcing system, comprising:
one or more data storage locations on a computer-readable medium comprising sourcing criteria;
a sourcing engine stored on a computer-readable medium and coupled with the one or more data storage locations, the sourcing engine configured to implement the following instructions when executed by a processor:
receive one or more item sourcing requirements, the one or more item sourcing requirements identify an item and a quantity of the item to be sourced from one or more suppliers;
access the sourcing criteria in the one or more data storage locations, the sourcing criteria comprising one or more quantity pricing rules associated with the one or more suppliers, the price and quantity information of the item available at each of the one or more suppliers, and two or more sourcing rules associated with the sourcing of the item, one of the two or more sourcing rules including a minimum sourcing requirement associated with one or more of the one or more suppliers, the two or more sourcing rules further comprising at least one hard sourcing rule and at least one soft sourcing rule, wherein the hard sourcing rule cannot be violated and the soft sourcing rule can be violated;
determine one or more suppliers from which the item should be sourced and a quantity of the item to obtain from each of the one or more suppliers based on the sourcing criteria; and
a transaction execution module on a computer-readable medium and coupled with the sourcing engine, the transaction execution module configured to implement the following instructions when executed by a processor:
receive the determination of the one or more suppliers;
generate one or more transaction documents each identifying the item and the requested quantity of the item, and including a request that a supplier provide the requested quantity of the item; and
communicate the one or more transaction documents to the identified one or more suppliers.
2. The system of claim 1 , wherein the sourcing criteria further comprise information identifying approved suppliers of the item, the suppliers used to supply the item being limited to the approved suppliers.
3. The system of claim 1 , wherein the sourcing criteria further comprise contractual requirements with one or more suppliers that affect the sourcing of the one or more item sourcing requirements.
4. The system of claim 1 , wherein the sourcing criteria further comprise a limit on the amount of parts that may obtained from a particular supplier.
5. The system of claim 1 , wherein the one or more suppliers from which the item is sourced are determined using a heuristic algorithm, wherein each of the one or more suppliers has an associated minimum requirement of the item that must be obtained from the supplier.
6. The system of claim 1 , wherein determining one or more suppliers from which the item should be sourced comprises:
fulfilling minimum sourcing requirements associated with one or more of the suppliers;
sourcing any remaining required item quantity from the least expensive supplier subject to the quantity of the item available from the least expensive supplier; and
repeating the previous act until all of the required item quantity is sourced.
7. The system of claim 1 , wherein the one or more item requirements represent the combined item sourcing requirements of multiple entities.
8. The system of claim 1 , wherein the transaction execution module is further configured to communicate the one or more transaction documents using a communication technique selected from the group consisting of electronic mail, fax, web-based communications, and electronic data interchange (EDI).
9. The system of claim 1 , wherein the sourcing rules comprise rules selected from the group consisting of:
a rule specifying that the item requirement is sourced at the lowest cost;
a rule limiting the quantity of the item to be sourced from a particular supplier; and
a rule specifying that the number of suppliers for supplying the item should be minimized.
10. The system of claim 1 , wherein the sourcing criteria further comprise one or more penalties to enforce the at least one soft sourcing rule, the one or more penalties can allow the at least one soft sourcing rule to be violated without a penalty, based on a sourcing determination.
11. A computer-implemented method of sourcing one or more item sourcing requirements comprising:
receiving, by a computer, one or more item sourcing requirements, the one or more item sourcing requirements identify an item and a quantity of the item that needs to be sourced from one or more suppliers;
accessing, by the computer, one or more sourcing criteria that affect the sourcing of the item, the sourcing criteria comprising one or more quantity pricing rules associated with the one or more suppliers, the price and quantity information of the item available at each of the one or more suppliers, wherein the price and quantity information is provided by the one or more suppliers, and two or more sourcing rules associated with the sourcing of the item, one of the two or more sourcing rules including a minimum sourcing requirement associated with one or more of the one or more suppliers, the two or more sourcing rules further comprising at least one hard sourcing rule and at least one soft sourcing rule, wherein the hard sourcing rule cannot be violated and the soft sourcing rule can be violated;
determining, by the computer, one or more suppliers from which the item should be sourced and a quantity of the item to obtain from each of the one or more suppliers based on the sourcing criteria;
automatically generating, by the computer, one or more transaction documents each identifying the item and the requested quantity of the item, and including a request that a supplier provide the requested quantity of the item; and
communicating, by the computer, the one or more transaction documents to the identified one or more suppliers.
12. The method of claim 11 , wherein the sourcing criteria further comprise information identifying approved suppliers of the item, the suppliers used to supply the item being limited to the approved suppliers.
13. The method of claim 11 , wherein the sourcing criteria further comprise contractual requirements with one or more suppliers that affect the sourcing of the one or more item sourcing requirements.
14. The method of claim 11 , wherein the sourcing criteria further comprise a limit on the amount of parts that may obtained from a particular supplier.
15. The method of claim 11 , wherein the one or more suppliers from which the item is sourced are determined using a heuristic algorithm, wherein each of the one or more suppliers has an associated minimum requirement of the item that must be obtained from the supplier.
16. The method of claim 11 , wherein determining one or more suppliers from which the item should be sourced comprises: fulfilling minimum sourcing requirements associated with one or more of the suppliers; sourcing any remaining required item quantity from the least expensive supplier subject to the quantity of the item available from the least expensive supplier; and repeating the previous act until all of the required item quantity is sourced.
17. The method of claim 11 , wherein the one or more item sourcing requirements represent the combined item sourcing requirements of multiple entities.
18. The method of claim 11 , wherein the transaction documents are communicated using a communication technique selected from the group consisting of electronic mail, fax, web-based communications, and electronic data interchange (EDI).
19. The method of claim 11 , wherein the sourcing rules comprise rules selected from the group consisting of:
a rule specifying that the item requirement is sourced at the lowest cost;
a rule limiting the quantity of the item to be sourced from a particular supplier; and
a rule specifying that the number of suppliers for supplying the item should be minimized.
20. The method of claim 11 , wherein the sourcing criteria further comprise one or more penalties to enforce the at least one soft sourcing rule, the one or more penalties can allow the at least one soft sourcing rule to be violated without a penalty, based on a sourcing determination.
21. A computer-readable medium storing a plurality of instructions that sources one or more item sourcing requirements, which, when executed by a processor, causes one or more computers to:
receive the one or more item sourcing requirements, the one or more item sourcing requirements identify an item and a quantity of the item to be sourced from one or more suppliers;
access one or more sourcing criteria that affect the sourcing of the item, the sourcing criteria comprising one or more quantity pricing rules associated with the one or more suppliers, the price and quantity information of the item available at each of the one or more suppliers, wherein the price and quantity information is provided by the one or more suppliers, and two or more sourcing rules associated with the sourcing of the item, one of the two or more sourcing rules including a minimum sourcing requirement associated with one or more of the one or more suppliers, the two or more sourcing rules further comprising at least one hard sourcing rule and at least one soft sourcing rule, wherein the hard sourcing rule cannot be violated and the soft sourcing rule can be violated;
determine one or more suppliers from which the item should be sourced and a quantity of the item to obtain from each of the one or more suppliers based on the sourcing criteria;
generate one or more transaction documents each identifying the item and the requested quantity of the item, and including a request that a supplier provide the requested quantity of the item; and
communicate the one or more transaction documents to the identified one or more suppliers.
22. The software of claim 21 , wherein the sourcing criteria further comprise information identifying approved suppliers of the item, the suppliers used to supply the item being limited to the approved suppliers.
23. The software of claim 21 , wherein the sourcing criteria further comprise contractual requirements with one or more suppliers that affect the sourcing of the one or more item sourcing requirements.
24. The software of claim 21 , wherein the sourcing criteria further comprise a limit on the amount of parts that may obtained from a particular supplier.
25. The software of claim 21 , wherein the one or more suppliers from which the item is sourced are determined using a heuristic algorithm, wherein each of the one or more suppliers has an associated minimum requirement of the item that must be obtained from the supplier.
26. The software of claim 21 , wherein determining one or more suppliers from which the item should be sourced comprises:
fulfilling minimum sourcing requirements associated with one or more of the suppliers;
sourcing any remaining required item quantity from the least expensive supplier subject to the quantity of the item available from the least expensive supplier; and
repeating the previous act until all of the required item quantity is sourced.
27. The software of claim 21 , wherein the one or more item sourcing requirements represent the combined item sourcing requirements of multiple entities.
28. The software of claim 21 , wherein the sourcing rules comprise rules selected from the group consisting of:
a rule specifying that the item requirement is sourced at the lowest cost;
a rule limiting the quantity of the item to be sourced from a particular supplier; and
a rule specifying that the number of suppliers for supplying the item should be minimized.
29. The software of claim 21 , wherein the sourcing criteria further comprise one or more penalties to enforce the at least one soft sourcing rule, the one or more penalties can allow the at least one soft sourcing rule.