Commodity Procurement System
A system and method include generating an indication regarding a need for a commodity from a manufacturing and resource planning system, estimating future prices of the commodity via a simulation tool as a function of current, historical, and simulated commodity prices, correlating the estimated future prices with a lead time to identify an optimal time to purchase the needed commodities, and generating a list of purchase orders via a computer system as a function of the correlation.
1 . A method comprising:
generating an indication regarding a need for a commodity from a manufacturing and resource planning system;
estimating future prices of the commodity via a simulation tool as a function of current, historical, and simulated commodity prices;
correlating the estimated future prices with a lead time to identify an optimal time to purchase the needed commodities; and
generating a list of purchase orders via a computer system as a function of the correlation.
2 . The method of claim 1 wherein the indication comprises an alert.
3 . The method of claim 2 wherein the alert is based on a stock of the commodity falls below a minimum specified stock level or if a reorder point based on the lead time is reached.
4 . The method of claim 2 wherein the alert is based on the commodity price falling below a selected threshold.
5 . The method of claim 1 wherein the simulation tool comprises an in memory database based commodity price simulator.
6 . The method of claim 5 wherein the simulation tool integrates theoretical models regarding trend analysis.
7 . The method of claim 5 wherein the simulation tool integrates commodity exchange rules.
8 . The method of claim 5 wherein the simulation tool integrates social media analytics regarding human perceptions related to the commodity.
9 . The method of claim 1 and further comprising generating a dashboard user interface providing a graph of commodity cost versus time and a graph of projected commodity quantity in stock versus time.
10 . The method of claim 9 wherein the dashboard provides a list of commodities to select and alerts for the commodity selected and shown in the graphs.
11 . The method of claim 10 wherein the alerts comprise a price threshold met and a minimum stock threshold passed.
12 . The method of claim 9 wherein the dashboard further comprises an order button, selection of which generates purchase orders based on the alerts.
13 . The method of claim 12 wherein the generated purchase orders may be sent directly to suppliers on selection of the order button, or may be edited and sent to the suppliers.
14 . The method of claim 1 and further comprising providing analytics based on the list of purchase orders indicating cost savings realized by the purchase orders.
15 . A computer readable storage device having instructions for causing a computer to execute a method, the method comprising:
receiving an indication of a need for a commodity from a manufacturing and resource planning system;
estimating future prices of the commodity via a tool as a function of current, historical, and simulated commodity prices;
correlating the estimated future prices with a lead time to identify an optimal time to purchase the needed commodities; and
generating a list of purchase orders via a computer system as a function of the correlation.
16 . The computer readable storage device of claim 15 wherein the indication comprises an alert, wherein the alert is based on a stock of the commodity falls below a minimum specified stock level, if a reorder point based on the lead time is reached, or is based on the commodity price falling below a selected threshold.
17 . The computer readable storage device of claim 16 wherein the method further comprises generating a dashboard user interface providing a graph of commodity cost versus time and a graph of projected commodity quantity in stock versus time.
18 . A system comprising and in memory database programmed to:
generate an indication regarding a need for a commodity from a manufacturing and resource planning system;
estimate future prices of the commodity via a simulation tool as a function of current, historical, and simulated commodity prices;
correlate the estimated future prices with a lead time to identify an optimal time to purchase the needed commodities; and
generate a list of purchase orders via a computer system as a function of the correlation.
19 . The system of claim 18 wherein the indication comprises an alert based on at least one of a stock of the commodity falling below a minimum specified stock level, a reorder point based on the lead time being reached, and the commodity price falling below a selected threshold.
20 . The system of claim 18 and further comprising a dashboard user interface to provide a graph of commodity cost versus time and a graph of projected commodity quantity in stock versus time, wherein the dashboard provides a list of commodities to select and alerts for the commodity selected and shown in the graphs.