WO2001063524A1

WO2001063524A1 - Method and apparatus for sourcing products

Info

Publication number: WO2001063524A1
Application number: PCT/US2001/005555
Authority: WO
Inventors: Matthew J. Sample; Joe William Ramos; James Robert Wilch
Original assignee: General Electric Company
Priority date: 2000-02-22
Filing date: 2001-02-22
Publication date: 2001-08-30
Also published as: CA2370216A1; AU2001241628A1

Abstract

A method and apparatus for sourcing products. Information relating to products (102), locations (106), suppliers (104), and commodity categories (108) are collected in a master file and subjected to filters to generate a request for quote record (110). Requests for quote (110) are transmitted in the form of sheets with bid fields to be filled in by suppliers (104). The completed sheets are imported into the request for quote record (110) and target bids are calculated. The target bids are used for further negotiation. Various reports can be generated to facilitate negotiations and sourcing decisions. Master files and request for quote records (110) on plural computers can be synchronized.

Description

METHOD AND APPARATUS FOR SOURCING PRODUCTS

BACKGROUND OF THE INVENTION

The invention relates generally to sourcing goods and more specifically to a ^• method and apparatus for generating requests for quotes,- receiving and evaluating bids, and awarding bids.

Many manufacturers and other businesses ordinarily purchase components, supplies, inventory, or other goods from other parties generally known as "suppliers" through a procedure know as "sourcing". Of course, the purchase prices of the goods affects the operating costs of the business. In the case of a manufacturer purchasing components for a product to be manufactured, the purchase price of the components directly contributes to the manufacturing costs of the product. Accordingly, it is essential that the components be purchased at the lowest practical prices to ensure that the manufacturer can maximize profit and remain competitive in the marketplace. However, sourcing decisions often should not be based on purchase price alone. The quality of the goods, the integrity of the supplier, sales terms, and the like should also be considered. In the case were a plurality of goods are to be purchased, all of the goods may not be available from the same supplier. Further, different suppliers may offer the lowest price and best terms on different components.

Many manufacturers have plural locations or divisions purchasing various goods. The lists of products purchased by each location or division may be overlapping in nature. One location or division may purchase certain goods at a better price than others or all locations or divisions may not purchase as well as they should because they are not able to pool their information and purchasing power.

Accordingly, most businesses have established elaborate manual procedures for buying components or other goods. Typically, a goods list is developed based on the needs of the business. The list is then sent to plural suppliers as a "Request for Quote" (RFQ) which requests that the supplier provide pricing and terms for each of the goods on the list, or at least for any goods that the supplier can supply. Each supplier then provides a "bid" which includes the requested pricing and other information. A representative of the business, for example a sourcing agent, then reviews each bid individually to ascertain the best prices and terms. The sourcing agent then awards the bid of one or more of the suppliers for all or a portion of the goods on the RFQ. The procedure summarized above requires a great deal of manual evaluation of prices. Further, compiling the RFQs and sendmg them to select suppliers is tedious and takes a great deal of time. Accordingly, the sourcing procedure is quite cumbersome. For this reason, sourcing information is rarely centralized for an entire businesses and often is inefficient. Additionally, purchase negotiations often take place at various remote sites, and information relating to previous purchases and the like is not readily available. Finally, because evaluation and awarding of the bids is tedious, the sourcing agent is likely to award a bid to the supplier having the lowest overall pricing and may not take the time and effort necessary to purchase each component at the lowest bid price.

There have been several attempts at automating portions of the sourcing procedure. For example, U.S. patent 5,319,542 discloses a system for ordering items in which purchase requisitions are generated electronically based on plural electronic supplier catalogs of goods. However, this system does not address automation of the RFQ issuing and evaluation process. Similarly, U.S. patent 5,758,327 discloses a requisition and authorization process in which requisitions are generated by a computer. However, this process also fails to automate the RFQ procedure.

SUMMARY OF THE INVENTION

A first aspect of the invention is a method for sourcing the purchase of products from suppliers comprising the steps of, collecting product data relating to products to be purchased, collecting supplier data relating to suppliers of products, importing the product data and the supplier data into a master file, specifying filters for at least one of the product data and the supplier data, exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, generating a request for quote including the portions of the product data in the request for quote record, and transmitting the request for quote to the suppliers indicated in the request for quote record.

A second aspect of the invention is a method for sourcing the purchase of products from suppliers comprising the steps of, collecting product data relating to products to be purchased, collecting supplier data relating to suppliers of products, importing the product data and the supplier data into a master file, specifying filters for at least one of the product data and the supplier data, exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, generating a request for quote including the portions of the product data in the request for quote record, and transmitting the request for quote to the suppliers indicated in the request for quote record.

A third aspect of the invention is a computer system architecture for sourcing the purchase of products from suppliers comprising, a sourcing server including a memory device having a control program stored therein, the sourcing server being associated with a purchaser, at least one sourcing computer including a memory device having a control program stored therein, each of the sourcing computers being associated with a purchaser location, at least one supplier computer including a memory, each of the supplier computers being associated with a supplier, a first communication channel operatively coupled to the sourcing server and the sourcing computers, and a second communication channel operatively coupled to the supplier computers and the sourcing server. The control program in the memory device of the sourcing server includes instructions for collection of product data relating to products to be purchased, instructions for collection of supplier data relating to suppliers of products, importing the product data and the supplier data into a master file, instructions for specification of filters for at least one of the product data and the supplier data, instructions for exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, instructions for generating a request for quote including the portions of the product data in the request for quote record, and instructions for transmitting the request for quote to the suppliers indicated in the request for quote record.

A fourth aspect of the invention is a computer readable medium comprising instructions for collection of product data relating to products to be purchased, instructions for collection of supplier data relating to suppliers of products, instructions for importing the product data and the supplier data into a master file, instructions for specification of filters for at least one of the product data and the supplier data, instructions for exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, instructions for generating a request for -quote including the portions of the product data in the request for quote record, and instructions for transmitting the request for quote to the suppliers indicated in the request for quote record.

BRIEF DESCRIPTION Of THE DRAWINGS

The invention is described through a preferred embodiment and the attached drawin 'Bg in which:

Fig. 1 is a block diagram of a computer architecture of the preferred embodiment;

Fig 2 is a schematic representation of files in the memory device of the embodiment of Fig. 1 of the preferred embodiment;

Fig. 3 illustrates a supplier information display screen of the preferred embodiment;

Fig. 4 illustrates a location information display screen of the preferred embodiment;

Fig. 5 illustrates an RFQ generation display screen of the. preferred embodiment;

Fig. 6 illustrates a bid display screen of the preferred embodiment; Fig. 7 illustrates a target bid display screen of the preferred embodiment;

Fig. 8 illustrates a bid awarding display screen of the preferred embodiment;

Fig. 9 is a flow chart of a sourcing procedure of the preferred embodiment;

Fig. 10 illustrates a report generation display screen of the preferred embodiment;

Fig. 11 illustrates a supplier target report of the preferred embodiment;

Fig. 12 illustrates a no bid report of the preferred embodiment;

Fig. 13 illustrates a supplier award report of the preferred embodiment;

Fig. 14 illustrates a savings report of the preferred embodiment;

Fig. 15 illustrates a number of approved parts report of the preferred embodiment;

Fig. 16 illustrates a package summary report of the preferred embodiment;

Fig 17 illustrates a savings report of the preferred embodiment;

Fig. 18 illustrates a savings report of the preferred embodiment;

Fig. 19 illustrates a savings report of the preferred embodiment; and

Fig. 20 illustrates a utility display screen of the preferred embodiment.

DETAILED DESCRIPTION

Fig. 1 illustrates computer architecture 10 of a preferred embodiment of the invention. The preferred embodiment is discussed with respect to a manufacturer, as a purchaser, and the sourcing of component parts. However, the invention can be applied to any type of purchaser and any type of product to be sourced. The term "product" as used herein refer to any type of goods or services. Architecture 10 includes sourcing server 20, sourcing computers 22, 24, and 26, and supplier computers 30, 32, 34, 36, and 38. Sourcing server and sourcing computers 22, 24, and 26 are associated with the manufacturer, i.e. the purchaser. Supplier computers 30, 32, 34, 36, and 38 are respectively associated with a plurality of suppliers of component parts, i.e. products to be sourced. Sourcing server 20 can be identical to sourcing computers 22, 24 and 26 and is distinguishable in the preferred embodiment only in that sourcing server 20 is the primary data storage source with which data stored in computers 22, 24 and 26 can be synchronized therewith.

Sourcing computers 22 and 24 of the preferred embodiment are disposed in locations within facilities of the purchaser and are coupled to sourcing server 20 by communications channel 50 which can be a local are network (LAN), a direct cable connection, a connection via phone lines and modems, or the like. Communications channel 50 can include a radio frequency link, an infra-red link cables, or the like. Further, communications channel 50 can be continuous or intermittent and can be any mechanism for providing the communications described below. For example, communications channel 50 can include removable media, such as a diskette, and

.manual distribution of the media from one computer to the other to exchange information, a procedure often referred to as "sneaker-net." Data can be sent over communication channel 50 in any appropriate format, such as email in simple mail transfer protocol (SMTP), as attachments to email, as ASCII or binary files using file transfer protocol (FTP), or the like. Preferably, sourcing computers 22, and 24 are portable computers and can easily be physically disconnected from communicants channel 50 to facilitate taking data to a remote negotiation site.

Supplier computers 30, 32, 34, 36, and 38 are coupled to RFQ server 20 through communications channel 60 that comprises Internet backbone 62 and communications links 64 in the preferred embodiment. Each of communications links

64 can include, a modem, a phone line (POTS), an internet service provider (ISP) or any other mechanism for coupling to Internet backbone 62. Alternatively, communications channel 60 can be any mechanism for providing the communications capabilities described below, such as a LAN, modem and phone line, direct cable connection, sneaker-net, or the like. Communications channel 60 can be continuous or intermittent and can be any mechanism for providing the communications described below. Data can be sent over communication channel 60 in any appropriate manner, such as email in SMTP, as attachments to email, as ASCII files or binary files with FTP, or the like.

As noted above, sourcing computer 26 is also associated with the manufacturer., i.e. purchaser However, in the preferred embodiment, sourcing computer 26 is a remote computer, such as a portable computer, that is coupled to sourcing server 20 through communications channel 60. For example, sourcing computer 26 may be used by a soμrcing agent of the manufacturer while at home or traveling. Sourcing computer 26 can be identical to sourcing computers 22 and 24 and is distinguished in the preferred embodiment merely by its present physical location remote from the purchaser's location.

Sourcing server 20 includes memory device 21, such as a hard disk and random access memory (RAM). Memory device 21 stores a control program having instructions for accomplishing all of the functions described below. The control program can be written in any appropriate programming language, such as Basic,

C++, or the like, and can run under any appropriate operating system, such as Microsoft Windows , UNIX, Linux ™, or the like. Also, memory device 21 stores plural data files used by the control program. Fig. 2 is a schematic representation of files in memory device 21. Master file 100 can be in the form of a database, such as a file formatted in the Microsoft Access™ format, and includes component information

102, supplier information 104, manufacturer location information 106, and commodity information 108. Master file 100 can include additional information as needed or can omit some of the information noted above. Each sourcing computer 22, 24 and 26 can have a similar memory device storing the control program and data files, such as master files and request for quote files, that are periodically synchronized with data files in memory device 21. Accordingly, while the procedure of the preferred embodiment is described as being accomplished on sourcing server 20, it can be accomplished in any of sourcing computers 22, 24 and 26.

Component information 10, i.e. product information, can be in the form of a database spreadsheet lookup table or the like and include part descriptions, manufacture part numbers, supplier part numbers, standard component costs (obtained from previous purchases or estimates) projected estimated annual usage (EAU) of each component last year's annual usage of each component, current suppliers of each component, approved suppliers of each component (e.g. suppliers who have passed some sort of quality assurance test with respect to the component part), component part category information (e.g., "resistors"), or any other information relating to components to be sourced.

Supplier information 104 can include supplier contact information (including an email address for transmitting RFQs _. in the manner described below), supplier address information and the like. Fig. 3 illustrates supplier information display screen

200, which can be displayed on a display of sourcing server 20, showing the supplier information for • one supplier. Supplier information display screen 200 displays supplier ID code 202 to be used to uniquely identify the supplier, supplier description 204 (including the name~and address of the supplier), supplier contact information 206, and check box 208 indicating if the supplier is a distributor (as opposed to a manufacturer of the components). If the checkbox is checked, a window pops up displaying the distributor markup for the supplier, i.e. the percentage difference between a quoted price from the manufacture and the actual selling price of the supplier that is a distributor. Also, button 210 of supplier information display screen 200, can be selected (by a mouse click for example) to display a screen of supplier codes for all suppliers, from which the user can select a supplier to display supplier information screen 200 for the selected supplier.

Location information 106 (Fig. 2) includes information for each sourcing location of the manufacturer, such as divisions, subsidiaries, and the like. For example, location information can include a description of the location, a location LD, contact information, a target multiplier for the location, suppliers for the location, and the like. Fig. 4 illustrates location information display screen 220 which displays location ID 222, description 224, location contact information 226 (e.g. information relating to the purchasing/sourcing agent at the location), and a target multiplier for the location (described below). Location information display screen also includes supplier window 230 which illustrates the suppliers associated with the location (linked from supplier information 104) and distributor markups for each supplier (also linked from supplier information 104). Commodity information 108 (Fig. 2) includes predefined component categories, such as "Semiconductors" and subcategories, such as "Field Effect Transistors" to be used for categorizing components in the manner described below.

Location information 106, supplier information 104, and commodity information 108 can be entered initially by the manufacturer from existing records, such as quotes, invoices and the like. Component information 102 preferably is collected by transmitting spreadsheets or other forms to the various sourcing computers at various locations of the manufacturer over communications channels 50 and/or 60. Collecting component information from the locations allows engineering and other departments at each location to accurately and completely enter the component information for the components that they purchase for that location. For example, a component information sheet, requesting the component information for each part used by the location, can be transmitted and filled out, either manually or automatically, at the location. The completed component information sheet can be transmitted back to sourcing server 20 and imported into the master file 100. At this time, master file 100 contains completely updated component information 102, supplier information 104, location information 106, and commodity information 108 for all locations. The completed component information sheets can be checked for formatting errors or completeness manually or automatically and can be rejected and returned for review or correction if errors are present.

The updated version of master file 100 is used to generate an RFQ, i.e. a Request for Quote. Fig. 5 illustrates RFQ generation display screen 300. When the user elects to create an RFQ, by making a menu selection, mouse clicking on a button, or the like, RFQ generation display screen is displayed on a display of sourcing server 20 and an RFQ file 110 is generated from master file 100 and stored on memory device 21 (Fig. 2). The RFQ, and the associated RFQ file 110 are assigned an RFQ number as illustrated at 302 in Fig. 5. Using RFQ generation display screen 300, the user selects components, i.e. products to be included in the RFQ and stored as- data in

RFQ file 110. For example, the user can select "Transistors" from commodity selection box 306, which displays the various commodities and/or sub-commodities based on commodity information 108. The selection of a commodity will display the part numbers of components in the selected commodity category in part number box 308, based on component information 102, and store component information relating to the selected part numbers in RFQ file 110. Double clicking, or otherwise selecting a part number, will display the detailed component information relating to the part number, such as the part description, pricing and the like. Some or all of the part numbers can be selected for inclusion in the RFQ and storage in RFQ file 110 from part number box 308. Similarly, plural commodities could be selected from commodity box 306 and the part numbers associated with all selected commodities will be displayed in part number box 308.

Prior to transmitting an RFQ to suppliers, component information update sheets can be transmitted to locations for updating master file 100 in a manner similar to that described above by pressing button 310. In such a case, a list of locations based on location information 106 will be generated and the user can select the desired locations for sending component information update sheets. However, the component information update sheets generated for a particular RFQ ordinarily will only request information relating to components selected for inclusion in the RFQ. The component information sheets after being updated by the locations, can then be imported into master file 100 and RFQ file 110 prior to sending the RFQ to suppliers in order to make sure that the RFQ is based on the latest available information.

When the desired part numbers have been selected and component information 102 has been updated, suppliers to receive the RFQ are selected using supplier list window 304. Button 320 is then pressed and an RFQ communication is sent to each selected supplier by email or in another manner over communication channel 60. The

RFQ communication is sent in accordance with the contact information in supplier information 104 associated with each selected supplier. The transmitted RFQ of the RFQ communication is saved in the RFQ file 110 associated with the RFQ number.

The RFQ communication can contain plural files. For example, if the RFQ is sent via email, it may include the RFQ, a cover letter with instructions, a list of the locations needing parts including addresses for shipment, and, if the supplier is a distributor, a list of manufacturers from which the components will be accepted. Preferably, the RFQ is in the form of a spreadsheet, such as a Microsoft Excel™ file, or in some other predetermined format that permits the supplier to manually or automatically fill in pricing information in predefined fields to be imported back into the RFQ file 110. After filling in the pricing information in the proper fields, the supplier transmits a bid, i.e. the RFQ with pricing information filled in, back to sourcing server 20 to be imported into RFQ file 110. Bids can be imported one a time or in batch format. The bids are imported by selecting a menu selection or mouse clicking on a button for example. If there are errors in the bid, such as missing pricing information, or improper formatting, the errors will be flagged for correction. The RFQ, and thus the bid, can include RFQ number data so that they are imported into the proper RFQ file 110. Otherwise, the proper file can be selected manually.

Fig. 6 illustrates bid display screen 400. Part number window 410 displays the various part numbers included in the RFQ and the resulting bids. When a particular part number is selected, "SGS 123654" for example, bid information relating to the selected part number is displayed in bid information window 420. For example, the location requesting the bid, the supplier making the bid, the current cost, the bid amount, the adjusted bid amount (bid plus distributor markup percentage as indicated by supplier information 104) the extended bid (adjusted bid multiplied by number of components to be purchased), the component lead time, an approval indication

(indicating whether the supplier has been approved for the particular component) and the savings realized by purchasing through that particular supplier, all can be displayed. Also, an award column can be provided for manually or automatically indicating a bid award to a particular bid as described in detail below. Bid information can also be sorted by location to evaluate bids for a particular location only, by commodity, to evaluate categories of bids or subcategories of bids, or in any other desirable manner that facilitates evaluation of bids.

It is often expected that there will be subsequent bidding rounds and thus suppliers might not provide the best possible price, i.e. the lowest price they will accept, on initial bidding. To facilitate subsequent bidding target bid display screen 500 can be displayed as illustrated in Fig. 7. Target bid display screen 500 is similar to bid display screen 400 and includes part information window 510 and bid information window 520. However, target display bid screen 500 includes a "target bid" for each bid. The target bid is arrived at by reducing the bid price by the target multiplier in supplier information 104. For example, if the supplier's target multiplier is 0.3, the bid price is reduced by 30% to arrive at the target bid. The target bid is designed to be a reasonable "counter-bid" for negotiation purposes. The target bid multiplier can be determined based on any one or more of plural factors, such as the supplier's markup habits, the market conditions for the particular type of products, industry pricing standards, inflation trends and the like. The target multiplier can be determined using any appropriate algorithm. Further, instead of a target multiplier, any appropriate formula or algorithm can be used to determine the target bid.

A target bid information report can then be exported to each supplier, by selecting button 530, in_„a manner similar to RFQ exporting. The target bid information report can include the bid price, the target bid price, and a cover letter explaining that the manufacturer believes that the supplier should be able to meet the target bid and inviting the supplier to enter further negotiations relating to the bid. The target bid information report can be completed by the supplier, by filling in a lower bid price for example, and transmitted back to sourcing server 20 to be imported into RFQ file 110 in a manner similar to the first round of bids.

Once the completed target bid information is imported into the appropriate RFQ file 110, bids can be awarded to particular suppliers or further negotiations and/or bid rounds can be effected. If bids are awarded, they can be awarded for each location or for the entirety of the manufacturer by sorting the bids appropriately. Fig. 8 illustrates bid awarding display screen 600. Part number window 610 displays the various part numbers included in the RFQ and the resulting final bids after importation of the complete target bid information report. When a particular part number is selected, "SGS 123654" for example, final bid information relating to the selected part number is displayed in bid information window 630. For example, the location requesting the bid, the supplier making the bid, the current cost, the final bid amount, the final adjusted bid amount, the component lead time, an approval indication (indicating whether the supplier has been approved for the particular component) and the savings by realized purchasing through that supplier all can be displayed. Bid information can be sorted by location to evaluate bids for a particular location only by selecting a location from location information window 620. The final bid information for the elected location will be displayed in bid information window 630. A bid can be awarded to the lowest bid from an approved supplier, or any other desired supplier, by entering a "Y" in the award column as indicated in the Fig. 8. Alternatively, the control program can automatically award a bid to the lowest bid from an approved supplier or through any other algorithm. Bids are awarded in a similar manner for each component and each location. Alternatively, bids can be awarded for plural locations and/or components if appropriate.

Fig. 9 is a flowchart of the .sourcing procedure of the preferred embodiment. In step A, product information 102 is collected by transmitting component information sheets to appropriate locations. In step B, supplier information 104 is collected and imported or otherwise entered into master file 100. In step C, location information is collected and imported or otherwise entered into master file 100. In step D, commodity information 108 is collected and imported or otherwise entered into master file 100. In step D, the completed information sheets are imported into master file 100 to incorporate the component information into master file 100.

In step E, a request for quote file is established. In step F, filters are specified for a request for quote. Filters can be any parameter defining the request for quote. For example, a filter can include particular component part numbers, particular locations, commodity categories, any other parameter, or a combination thereof. Filters are specified by selecting the desired elements from RFQ generation display screen 300 of Fig. 5.

In step F, information in the master file that corresponds to the specified filters is exported to the request for quote file created in step E. In step G, a request for quote is generated based on the information in the request for quote file. For example, if one of the filters specified in step F was the commodity "transistors", the request for quote will only contain transistors. In step H, information is updated by generating component information update sheets based on the information in the request for quote file, transmitting the update sheets to the proper locations to be filled in, and importing the filled in update sheets into the request for quote file. Note that the request for quote file includes location information and thus the update sheets are only sent to locations that are relevant to the request for quote and only request information relevant to the request for quote.

In step I, the request for quote, including the updated information from step H, is transmitted to suppliers. Note that since the RFQ contains supplier information and a filter can be specified for supplier information, the RFQ can be generated to be sent only to specific suppliers based on supplier location, previous experience, supplier capabilities, or the like. In other words, the filters can be used to control the suppliers to which the request for quote is sent in step I. In* step J, the bid information contained in the completed request for quotes returned by suppliers is imported into the request for quote file. At this time, the procedure can continue directly to step K in which bids are awarded based on information in the request for quote file in the manner described above. Alternatively, a target bid step can be accomplished as described above, in step L, for further negotiation prior to continuing to step K.

Various reports, purchase orders, and the like can be generated to be forwarded to the supplier, purchasing departments, sourcing departments, engineering departments, accounting departments, and the others. Fig. 10 illustrates report generation display screen 700 of the preferred embodiment which includes report selection window 702, location selection window 704 and supplier selection window 706. Once a report type is selected from report selection window 702, the report can be generated for each location and supplier selected in location selection window 704 and supplier selection window 706 respectively. Any one or more of locations and suppliers can be selected as desired using known interface standards. Information from either master filed 100 or RFQ file 100 is filtered or sorted based on the selections to generate the selected report. Pressing button 714 will display a preview of the report on the display of the computer being used, sourcing server 20 for example. Fig. 11 illustrates a Supplier Target Report 800 for the supplier identified by the supplier code "SHI". For each component supplied by the supplier SuppHer Target Report 800 lists the item number, the bid number, the manufacturer part number, the supplier part number, the component description, the manufacturer location to which the supplier supplies the component, the projected EAU, the lead time, the current bid, and the target bid. Also, a column indicates whether or not the supplier has been approved for each component and another column indicates whether or not the supplier is an OEM for the component.

Fig. 12 illustrates a No Bid Report 810 which lists approved suppliers and other information relating to components in which no bids were received. No Bid

Report 810 facilitates sending subsequent RFQs to qualified suppliers to get bids on components not previously bid. Accordingly, it can be insured that a supplier bids on all components that the supplier can supply.

Fig. 13 illustrates Supplier Awards Report 820 listing all components to which a bid is awarded to a particular supplier from the RFQ. A contract number can be assigned to the award for reference. Supplier Awards Report 820 can be used to generate a purchase order or requisition order.

Fig. 14 illustrates Final Savings Report 830 which lists all awarded bids for a particular location and the savings for each bid as well as total savings for the location and lend times. Final Savings Report 830 is indicative of the success of the sourcing procedure.

Fig. 15 illustrates Number of Part Approvals Report 840 which lists each supplier and the number of components for which the supplier is approved. This report indicates which suppliers can be a source of the most components and facilitates achieving economies of scale in the sourcing procedure.

Fig. 16 illustrates Package Summary Report 850 showing the value of all components awarded. Fig. 17 illustrates Savings by Location Report 860 which lists the savings for each site based on the awarding bids to the lowest approved supplier.

Fig. 18 illustrates Potential Savings Report 870 which demonstrates potential savings for a particular location that could be achieved by using a non approved supplier. This report can be used to decide if exceptions can be made for purchasing from non approved suppliers or to decide if a particular supplier should be scrutinized for approval.

Fig. 19 illustrates Final Savings Report 880 which lists the final percentage savings for each component based, on the awarded bids for a particular location and totals for all locations.

Fig. 20 illustrates utility menu display screen 900 having buttons to perform various utility functions. Button 902 will purge all bid data from an RFQ file 110 selected in drop down box-904. Button 906 will restore data from an archived RFQ file 110. Button 908 will create a new RFQ file 1 10 for all components not having bids in an existing RFQ file 110. Button 910 will remove all duplicate bid information from a RFQ file 110. Button 912 removes all components not associated with an RFQ. Button 914 deletes all obsolete parts and related information from RFQ file 110. Obsolete components can be determined by comparing parts numbers in master file 100 with parts numbers in RFQ file 110.

Various computers can be used to implement the invention and the computers can communicate over any appropriate communication channels. Data can be stored on a central server and synchronized to various other computers to permit processing at one or more computers other than the server. Any appropriate information can be gathered to facilitate the sourcing procedure. The various data can be sorted and filtered as desired in any manner. Any appropriate user interface can be used to make the various selections and to activate the various buttons. Each window can have a plurality of listed elements and a standard interface can be used to scroll through and select a desired element. For example the standard Windows™ interface and API can be used. The RFQ file can be saved and reopened at any time. Therefore, there can be substantial time lapses between the steps described herein.

While the foregoing description includes many details and specificities, it is to be understood that these have been included for purposes of explanation only, and are not to be interpreted as limitations of the present invention. Many modifications to the embodiments described above can be made without departing from the spirit and scope of the invention, as is intended to be encompassed by the following claims and their legal equivalents.

Claims

WHAT IS CLAIMED IS:

1. A method for sourcing the purchase of products from suppliers, the method comprising the steps of:

collecting product data relating to products to be purchased;

collecting supplier data relating to suppliers of products;

importing the product data and the supplier data into a master file;

specifying filters for at least one of the product data and the supplier data;

exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters;

generating a request for quote including the portions of the product data in the request for quote record; and

transmitting the request for quote to the suppliers indicated in the request for quote record.

2. A method as recited in claim 1, wherein said generating step comprises generating plural requests for quote, each request for quote being directed to a particular supplier and having portions of the product data relating to products that can be supplied by the particular supplier.

3. A method as recited in claim 1, further comprising the step of updating portions of the product data indicating goods to be purchased in accordance with the filters prior to said exporting step.

4. A method as recited in claim 1 wherein said generating step comprises generating the request for quote including plural fields in a predetermined format.

5. A method as recited in claim 4, wherein the predetermined format is a spreadsheet format.

6. A method as recited in claim 4, wherein said generating step comprises generating the request for quote including a bid price field to be filled in by a supplier.

7. A method as recited in claim 6 further comprising the steps of;

receiving the request for quote after the bid price field has been filled in by a supplier; and

importing the bid price field into the request for quote record.

8. .A method as recited in claim 7 further comprising the steps of;

calculating a target price value for products based on the value in the bid price field corresponding to each product; and

conducting negotiations with the supplier based on the target price value.

9. A method as recited in claim 8, wherein said step of conducting negotiations comprises transmitting a final request for quote to the supplier including a target price field having the target price value and a final bid field to be filled in by the supplier.

10. A method as recited in claim 1, wherein said transmitting step comprises transmitting the request for quote electromcally in accordance with contact information in the supplier data.

11. A method as recited in claim 9, further comprising the step of importing the final bid field filled out by the supplier into the request for quote record.

12. A method as recited in claim 11, further comprising the step of awarding bids to suppliers based on information in the request for quote record.

13. A method as recited in claim 12, further comprising the step of generating a report based on supplier information and product mformation in the request for quote record.

14. A method as recited in claim 13, wherein said step of generating a report comprises displaying the target price values for particular products and particular suppliers.

15. A method as recited in claim 13, wherein said step of generating a report comprises displaying component information in the request for quote record in accordance with each supplier.

16. A method as recited in claim 13, wherein said step of generating a report comprises displaying information relating to products in which no bids were received.

17. A method is recited in claim 13, wherein said step of generating a report comprises displaying information relating to savings based on awarded bids compared to previous sourcing data.

18. A method as recited in claim 13, wherein said step of generating a report comprises displaying the components for which a particular supplier is approved.

19. A method as recited in claim 13, wherein said step of generating a report comprises displaying information relating to savings based on use of non approved suppliers compared to approved suppliers.

20. An apparatus for sourcing the purchase of products from suppliers, the apparatus comprising:

means for collecting product data relating to products to be purchased;

means for collecting supplier data relating to suppliers of products; means for importing the product data and the supplier data into a master file;

means for specifying filters for at least one of the product data and the supplier data;

means for exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters;

means for generating a request for quote including the portions of the product data in the request for quote record; and

means for transmitting the request for quote to the suppliers indicated in the request for quote record.

21. An apparatus as recited in claim 20, wherein said means for generating comprises means for generating plural requests for quote, each request for quote being directed to a particular supplier and having portions of the product data relating to products that can be supplied by the particular supplier.

22. An apparatus as recited in claim 20, further comprising means for updating portions of the product data indicating goods to be purchased in accordance with the filters prior to activation of said means for exporting.

23. An apparatus as recited in claim 20 wherein said means for generating comprises means for generating plural fields in a predetermined format.

24. An apparatus as recited in claim 23, wherein the predetermined format is a spreadsheet format.

25. An apparatus as recited in claim 23, wherein said means for generating comprises means for generating a bid price field to be filled in by a supplier.

26. An apparatus as recited in claim 25 further comprising; means for receiving the request for quote after the bid price field has been filled in by a supplier; and

means for importing the bid price field into the request for quote record.

27. An apparatus as recited in claim 26 further comprising;

means for calculating a target price value for products based on the value in the bid price field corresponding to each product; and

means for conducting negotiations with the supplier based on the target price value.

28. An apparatus as recited in claim 27, wherein said means for conducting negotiations comprises means for transmitting a final request for quote to the supplier including a target price field having the target price value and a final bid field to be filled in by the supplier.

29. An apparatus as recited in claim 20 wherein said means for transmitting comprises means for transmitting the request for quote electronically in accordance with contact information in the supplier data.

30. An apparatus as recited in claim 28, further comprising means for importing the final bid field filled out by the supplier into the request for quote record.

31. An apparatus as recited in claim 30, further comprising means for awarding bids to suppliers based on information in the request for quote record.

32. An apparatus as recited in claim 31, further comprising means for generating a report based on supplier information and product information in the request for quote record.

33. An apparatus as recited in claim 32, wherein said means for generating a report comprises means for displaying the target price values for particular products and particular suppliers.

34. An apparatus as recited in claim 32, wherein said means for generating a report comprises means for displaying component information in the request for quote record in accordance with each supplier.

35. An apparatus as recited in claim 32, wherein said means for generating a report comprises means for displaying information relating to products in which no bids were received.

36. An apparatus as recited in claim 32, wherein said means for generating a report comprises means for displaying information relating to savings based on awarded bids compared to previous sourcing data.

37. An apparatus as recited in claim 32; wherein said means for generating a report comprises means for displaying the components for which a particular supplier is approved.

38. An apparatus as recited in claim 32, wherein said means for generating a report comprises means for displaying information relating to savings based on use of non approved suppliers compared to approved suppliers.

39. A computer system architecture for sourcing the purchase of products from suppliers, the architecture comprising:

a sourcing server including a memory device having a control program stored therein, said sourcing server being associated with a purchaser;

at least one sourcing computer including a memory device having a control program stored therein, each of said sourcing computers being associated with a purchaser location;

at least one supplier computer including a memory, each of said supplier computers being associated with a supplier;

a first communication channel operatively coupled to said sourcing server and said sourcing computers; and a second communication channel operatively coupled to said supplier computers and said sourcing server;

wherein said control program in said memory device of said sourcing server includes instructions for collection of product data relating to products to be purchased, instructions for collection of supplier data relating to suppliers of products, instructions for importing the product data and the supplier data into a master file, instructions for specification of filters for at least one of the product data and the supplier data, instructions for exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, instructions for generating a request for .quote including the portions of the product data in the request for quote record, and instructions for transmitting the request for quote to the suppliers indicated in the request for quote record.

40. An architecture as recited in claim 39, wherein the control program in said memory device of said sourcing computers is identical to the control program in said memory device of said sourcing server and wherein the memory device in said sourcing computers includes a master file and a request for quote record that is synchronized with the master file and request for quote record in said memory device of said sourcing server.

41 An architecture as recited in claim 39, wherein said instructions for generating comprise instructions for generating plural requests for quote, each request for quote being directed to a particular supplier and having portions of the product data relating to products that can be supplied by the particular supplier.

42. An architecture as recited in claim 39, wherein said control program in said memory device of said sourcing server further comprises instructions for updating portions of the product data indicating goods to be purchased in accordance with the filters prior to executing said instructions for exporting.

43. An architecture as recited in claim 39 wherein said instructions for generating comprise instructions for generating the request for quote including plural fields in a predetermined format.

44. An architecture as recited in claim 43, wherein the predetermined format is a spreadsheet format.

45. An architecture as recited in claim 44, wherein said instructions for generating comprise instructions for generating the request for quote including a bid price field to be filled in by a supplier.

46. An architecture as recited in claim 45, wherein said control program in said memory device of said sourcing server further- comprises instructions for receiving the request for quote after .the bid price field has been filled in by a supplier, and importing the bid price field into the request for quote record.

47. An architecture as recited in claim 46, wherein said control program in said memory device of said sourcing server further comprises instructions for calculating a target price value for the product based on the value in the bid price field, and conducting negotiations with the supplier based on the target price value.

48. An architecture as recited in claim 47, wherein said instructions for conducting negotiations comprises instructions for transmitting a final request for quote to the supplier including a target price field having the target price value and a final bid field to be filled in by the supplier.

49. An architecture as recited in claim 39, wherein said instructions for transmitting comprise instructions transmitting the request for quote electronically in accordance with contact information in the supplier data.^'

50. An architecture as recited in claim 48, wherein said control program in said memory device of said sourcing server further comprises instructions for importing the final bid field filled out by the supplier into the request for quote record.

51. An architecture as recited in claim 50, wherein said control program in said memory device of said sourcing server further comprises instructions for awarding bids to suppliers based on information in the request for quote record.

52. An architecture as recited in claim 51, further comprising the step of generating a report based on supplier information and product information in the request for quote record.

53. An architecture as recited in claim 52, wherein said instructions for generating a report comprise instructions for displaying the target price values for particular products and particular suppliers.

54. An architecture as recited in claim 52, wherein said instructions for generating a report comprise instructions for displaying component information in the request for quote record in accordance with each supplier.

55. An architecture as recited in claim 52, wherein said instructions for generating a report comprise instructions for displaying information relating to products in which no bids were received.

56. An architecture as recited in claim 57, wherein said instructions for generating a report comprise instructions for displaying information relating to savings based on awarded bids compared to previous sourcing data.

57. An architecture as recited in claim 52, wherein said instructions for generating a report comprise instructions for displaying the components for which a particular supplier is approved.

58. An architecture as recited in claim 52, wherein said instructions for generating a report comprise instructions for displaying information relating to savings based on use of non approved suppliers compared to approved suppliers.

.

59. A computer readable medium comprising instructions for collection of product data relating to products to be purchased, instructions for collection of supplier data relating to suppliers of products, instructions for importing the product data and the supplier data into a master file, instructions for specification of filters for at least one of the product data and the supplier data, instructions for exporting portions of the product data indicating products to be bid and portions of the supplier data indicating suppliers to be asked to bid on each product from the master file to a request for quote record in accordance with the filters, instructions for generating a request for quote including the portions of the product data in the request for quote record, and instructions for transmitting the request for quote to the suppliers indicated in the request for quote record.

60. A computer readable medium as recited in claim 59, wherein said instructions for generating comprise instructions for generating plural requests for quote, each request for quote being directed to a particular supplier and having portions of the product data relating to products that can be supplied by the particular supplier.

61. A computer readable medium as recited in claim 59, further comprising instructions for updating portions of the product data indicating goods to be purchased in accordance with the filters prior to executing said instructions for exporting.

62. A computer readable medium as recited in claim 59 wherein said instructions for generating comprise instructions for generating the request for quote including plural fields in a predetermined format.

63. A computer readable medium as recited in claim 62, wherein the predetermined format is a spreadsheet format.

64. A computer readable medium as recited in claim 62, wherein said instructions for generating comprise instructions for generating the request for quote including a bid price field to be filled in by a supplier.

65. A computer readable medium as recited in claim 64 further comprising instructions for receiving the request for quote after the bid price field has been filled in by a supplier and instructions for importing the bid price field into the request for quote record.

66. A computer readable medium as recited in claim 65 further comprising instructions for calculating a target price value for the product based on the value in the bid price field, and conducting negotiations with the supplier based on the target price value.

67. A computer readable medium as recited in claim 66, wherein said instructions for conducting negotiations comprise instructions for transmitting a final request for quote to the supplier including a target price field having the target price value and a final bid field to be filled in by the supplier.

68. A computer readable medium as recited in claim 59, wherein said instructions for transmitting comprise instructions transmitting the request for quote electronically in accordance, with contact information in the supplier data.

69. A computer readable medium as recited in claim 67 further comprising instructions for importing the final bid field filled out by the supplier into the request for quote record.

70. A computer readable medium as recited in claim 69 further comprising instructions for awarding bids to suppliers based on information in the request for quote record.

71. A computer readable medium as recited in claim 70, further comprising instructions for generating a report based on supplier information and product information in the request for quote record.

72. A computer readable medium as recited in claim 71, wherein said instructions for generating a report comprise instructions for displaying the target price values for particular products and particular suppliers.

73. A computer readable medium as recited in claim 72, wherein said instructions for generating a report comprise instructions for displaying component information in the request for quote record in accordance with each supplier.

74. A computer readable medium as recited in claim 72, wherein said instructions for generating a report comprise instructions for displaying information relating to products in which no bids were received.

75. A computer readable medium as recited in claim 72, wherein said instructions for generating a report comprise instructions for displaying information relating to savings based on awarded bids compared to previous sourcing data.

76. A computer readable medium as recited in claim 72, wherein said instructions for generating a report comprise instructions for displaying the components for which a particular supplier is approved.

77. A computer readable medium as recited in claim 72, wherein said instructions for generating a report comprise instructions for displaying information relating to savings based on use of non approved suppliers compared to approved suppliers.