Method and system for multi-enterprise optimization using flexible trade contracts
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 computer-readable medium having encoded theron software for supply chain activity optimization involving multiple enterprises at a seller computer system, the computer-readable medium comprising instructions 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;
subsequent to execution of a flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, take one or more actions to perform under the executed flexible trade contract; and
subsequent to execution of the flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, take one or more actions to enforce the executed flexible trade contract.
2. The computer-readable medium 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium of claim 8 , wherein each flexible forward contract 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 computer-readable medium 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 computer-readable medium 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 computer-readable medium of claim 1 , further comprising instructions to:
automatically and without user input subsequent to evaluating the proposed flexible trade contract, generate an alternate contract term.
13. The computer-readable medium of claim 12 , further comprising instructions 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 computer-readable medium of claim 1 , further comprising instructions to:
receive a request from the buyer computer system to exercise an option in the flexible trade contract.
15. The computer-readable medium of claim 14 , further comprising instructions 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 computer-readable medium of claim 15 , further comprising instructions 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 computer-readable medium of claim 1 , wherein receiving one or more proposed flexible trade contracts from the buyer computer system comprises receiving one or more proposed flexible trade contracts from the buyer computer system through an intermediary.
18. The computer-readable medium of claim 1 , wherein the software is further comprising instructions to, as part of the collaborative system negotiation, communicate with the buyer computer system in a series of rounds in which the software and the buyer computer system successively propose one or more modifications or counter-modifications of the proposed flexible trade contract for automatic evaluation and possible acceptance to create the flexible trade contract.
19. A system for supply chain activity optimization involving multiple enterprises, comprising:
a computer system configured to:
generate, at a buyer computer system, one or more proposed flexible trade contracts for at least one item using a forecasted demand received from a seller computer system and communicate the proposed flexible trade contract to the seller computer system to initiate an automatic collaborative negotiation;
receive the proposed flexible trade contract at the seller computer system and evaluate the proposed flexible trade contract to determine whether the proposed flexible trade contract is acceptable;
automatically subsequent to evaluating the proposed flexible trade contract at the seller computer system, 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 at least one modification to the buyer computer system;
receive the at least one modification of the proposed flexible trade contract at the buyer computer system and evaluate the at least one modification to determine whether the modification is acceptable:
if the at least one modification of the proposed flexible trade contract is acceptable, accept the modified proposed flexible trade contract; and
if the at least one modification of the proposed flexible trade contract is not acceptable, communicate with the seller computer system in a series of rounds in which the buyer computer system and the seller computer system successively propose one or more further counter-modifications of the proposed flexible trade contract for automatic evaluation and possible acceptance to create a flexible trade contract based on the proposed flexible trade contract;
subsequent to execution of a flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, taking one or more actions to perform under the executed flexible trade contract; and
subsequent to execution of the flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, taking one or more actions to enforce the executed flexible trade contract.
20. A computer-implemented method of supply chain activity optimization involving multiple enterprises, comprising:
generating one or more proposed flexible trade contracts for at least one item using a forecasted demand received from a seller computer system and communicating the proposed flexible trade contract to the seller computer system to initiate an automatic collaborative negotiation;
receiving the proposed flexible trade contract at the seller computer system and evaluating the proposed flexible trade contract to determine whether the proposed flexible trade contract is acceptable;
automatically subsequent to evaluating the proposed flexible trade contract at the seller computer system, as part of the automatic collaborative negotiation:
accepting the proposed flexible trade contract, if the proposed flexible trade contract is acceptable; and
generating at least one modification of the proposed flexible trade contract and communicating the at least one modification to the buyer computer system, if the proposed flexible trade contract is not acceptable;
receiving the at least one modification of the proposed flexible trade contract at the buyer computer system and evaluating the at least one modification to determine whether the modification is acceptable:
accepting the modified proposed flexible trade contract, if the at least one modification of the proposed flexible trade contract is acceptable; and
communicating with the seller computer system in a series of rounds in which the buyer computer system and the seller computer system successively propose one or more further counter-modifications of the proposed flexible trade contract for automatic evaluation and possible acceptance to create a flexible trade contract based on the proposed flexible trade contract, if the at least one modification of the proposed flexible trade contract is not acceptable;
subsequent to execution of a flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, taking one or more actions to perform under the executed flexible trade contract; and
subsequent to execution of the flexible trade contract created based on the proposed flexible trade contract as a result of the automatic collaborative negotiation, taking one or more actions to enforce the executed flexible trade contract.