Inventory balancing system
View Patent ↗A system by which a central hub and transport means, listing means, matching engine, and operating method will capture overstock and understock information from participating retailer or distributor nodes and create congruent matches, with subsequent shipments of one to the other to improve the inventory of both nodes.
1. A system for a carrier to provide an inventory equalization service to a client, the system comprising:
(a) at least two geographically separate nodes of each client;
(b) a carrier-operated hub at which retailer identification is removed from product packaging to produce a resalable condition of the products;
(c) carrier-operated vehicles to collect inventory from participating retail nodes where a surplus inventory is present and deliver the surplus inventory to the hub, collect said surplus inventory at the hub after processing and deliver the surplus inventory to the participating retail nodes where the surplus inventory is needed;
(d) at least one communication means to interconnect system participants; and
(e) a labeling system at a shipping node to print and apply a label to the surplus inventory for shipment, the label excluding the identity of the shipper and the identity and location of the recipient;
(f) a label reading system at the vehicles to read the label and generate a recipient label including destination identity and address;
(g) an accounting system of the hub to credit the account of the shippers when the surplus inventory is picked up and to debit the account of the recipient when the surplus inventory is delivered, and wherein the clients can include transients, unaffiliated businesses or competing businesses.
2. The system of claim 1 , comprising a software and hardware data processing system further comprising:
(i) a retail system chain-wide inventory database that is updated by retail process and inventory management software and programmed to identify surpluses and deficiencies within the chain, and is accessible by said nodes via said communication means;
(ii) a human interface whereby cost-effectiveness, logistics, and other parameters can be set by management;
(iii) a comparison means by which the software correlates surpluses and deficiencies;
(iv) a transaction management means wherein the communication means transmits inventory deficiencies and surpluses to the comparison means, wherein compatible matches result in transport instructions being acted upon by the hub, and the carrier-operated vehicles providing inventory transfers to complete the compatible matches.
3. The system of claim 1 , further being replicated at geographically efficient locations to optimize logistical factors between a given hub acting as a distribution center and participating nodes.
4. The system of claim 1 , further being applied to retail nodes that are not part of an integrated chain, in which participating independent retail nodes are provided a method for listing surpluses and deficits, vendors are provided a means for controlling distribution of their own branded products, wherein the carrier transports inventory from locations deficient locations, and debits and credits are applied by the carrier to accounts of the individual retail nodes.
5. The system of claim 1 , further being applied to distributors and distribution centers to provide inventory balancing at supply chain levels prior to the point where inventory reaches the retailer.