Method and system for multi-enterprise optimization using flexible trade contracts
View Patent ↗A method of multi-enterprise optimization at a buyer computer includes accessing a forecasted demand for at least one item and generating one or more proposed flexible trade contracts using the forecasted demand for the item. The proposed flexible trade contract is communicated to a seller computer and subsequently executed after acceptance of the proposed flexible trade contract at the seller computer to create a flexible trade contract. Each proposed flexible trade contract may be a forward contract, an option contract, or a flexible forward contract.
1. A system for supply chain activity optimization involving multiple enterprises, comprising:
a computer system, comprising:
a negotiation module tangibly embodied on a computer-readable medium configured to:
receive, as part of an automatic collaborative negotiation, one or more proposed flexible trade contracts from a buyer computer system for automatic evaluation and possible acceptance, each proposed flexible trade contract reflecting a buyer's forecasted demand for at least one item;
automatically and without user input subsequent to receiving a proposed flexible trade contract from the buyer computer system, as part of the automatic collaborative negotiation, evaluate the proposed flexible trade contract to determine whether the proposed flexible trade contract is acceptable;
automatically and without user input subsequent to evaluating the proposed flexible trade contract, as part of the automatic collaborative negotiation:
if the proposed flexible trade contract is acceptable, accept the proposed flexible trade contract; and
if the proposed flexible trade contract is not acceptable, generate at least one modification of the proposed flexible trade contract and communicate the modification to the buyer computer system for automatic evaluation and possible acceptance;
an execution module tangibly embodied on a computer-readable medium configured to execute a flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation to enable one or more actions to be taken to perform under the executed flexible trade contract; and
a tracking module tangibly embodied on a computer-readable medium configured to monitor the terms of the flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation to enable one or more actions to be taken to enforce the executed flexible trade contract.
2. The system of claim 1 , wherein each proposed flexible trade contract is selected from the group consisting of a forward contract, an option contract, and a flexible forward contract.
3. The system of claim 2 , wherein each forward contract comprises a quantity of the item that the buyer is obligated to purchase and a seller is obligated to supply.
4. The system of claim 3 , wherein each forward contract comprises a unit forward contract, and wherein the buyer is obligated to purchase and the seller is obligated to supply a quantity of one unit of the item.
5. The system of claim 2 , wherein each option contract comprises an option, the option comprising at least one parameter selected from the group consisting of:
a maximum quantity of the item that a seller is obligated to supply;
a maximum number of item types that the seller is obligated to supply; and
a maximum number of locations where the item must be provided.
6. The system of claim 5 , wherein each option contract comprises a unit option contract, and wherein the parameter is selected from the group consisting of:
a maximum of one unit of the item;
a maximum of one item type; and
a maximum of one location.
7. The system of claim 5 , wherein each option contract comprises an exercise period after the execution of the option contract during which the buyer must exercise the option.
8. The system of claim 2 , wherein each flexible forward contract comprises:
a total quantity of one or more items that the buyer is obligated to purchase and a seller is obligated to supply.
9. The system of claim 8 , wherein each flexible forward contract further comprises:
a plurality of subcontracts each comprising an option, each option comprising at least one parameter selected from the group consisting of:
a range of quantities for one item;
a range of quantities for one item type; and
a range of quantities for one location where the item must be provided.
10. The system of claim 9 , wherein each flexible forward contract comprises a unit flexible forward contract, and wherein the total quantity is one unit and the parameter is selected from the group consisting of:
a range of zero to one unit for the item;
a range of zero to one unit for the item type; and
a range of zero to one unit for the location.
11. The system of claim 9 , wherein each flexible forward contract comprises an exercise period after the execution of the flexible forward contract during which the buyer must exercise the option.
12. The system of claim 1 , wherein the negotiation module is further configured to:
automatically and without user input subsequent to evaluating the proposed flexible trade contract, generate an alternate contract term.
13. The system of claim 12 , wherein the negotiation module is further configured to:
automatically and without user input subsequent to generating the alternate contract term, communicate the alternate contract term to the buyer computer system for automatic evaluation and possible acceptance.
14. The system of claim 1 , wherein the tracking module is further configured to:
receive a request from the buyer computer system to exercise an option in the flexible trade contract.
15. The system of claim 14 , wherein the tracking module is further configured to:
automatically and without user input subsequent to receiving the request from the buyer computer system, accept the buyer's request if the buyer computer system submitted the request within an exercise period and the request does not exceed a term of the flexible trade contract.
16. The system of claim 15 , wherein the tracking module is further configured to, automatically and without user input subsequent to execution of the flexible trade contract, calculate a penalty if the buyer fails to comply with a term of the flexible trade contract.
17. The system of claim 1 , wherein the negotiation module is further configured to receive one or more proposed flexible trade contracts from the buyer computer system through an intermediary.
18. The system of claim 1 , wherein the negotiation module is further configured, as part of the collaborative negotiation, to communicate with the buyer computer system in a series of rounds in which the negotiation module and the buyer computer system further successively propose one or more counter-modifications of the proposed flexible trade contract for automatic evaluation and possible acceptance to create the flexible trade contract.