Anonymous Auction Platform for OEM Inventory Trading

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Solution Overview

Problem

The existing system for selling excess component inventory among OEMs is inefficient due to multiple broker fees, confusion caused by different tracking numbers, and the need to protect usage rates, leading to unnecessary costs and complexities, especially when related entities within the same company engage in transactions.

Innovation Solution

A method is introduced where a closed forum allows OEMs to list components anonymously, using masked user identities and neutral descriptors like Manufacturer Part Numbers, with a system for creating pseudo-numbers and private sub-domains for bidding, ensuring anonymity and minimizing broker involvement.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Productivity

If multiple brokers are used to facilitate the sale of excess component inventory, then the transaction can be completed between parties with different tracking numbers, but multiple broker fees are incurred increasing transaction costs

Engineering Contradiction:
Improvetransaction completionVSAvoidtransaction cost
Core Design Contradiction:
ProductivityVSLoss of energy

Solution Approach 1:

The patent introduces a single neutral intermediary platform that facilitates transactions between multiple OEMs with different tracking number systems. This single intermediary replaces multiple brokers, reducing transaction costs while maintaining the ability to match buyers and sellers across different corporate ecosystems.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The patent merges multiple broker functions into a single unified platform that handles matching, negotiation, and transaction facilitation. By combining these functions, the system eliminates redundant fees and streamlines the transaction process while maintaining comprehensive market access.

Inventive Principle:
Principle #5Merging (Combining)

2Loss of information

If OEMs use their internal tracking numbers to list components, then their usage rates and production decisions are protected from competitors, but buyers cannot efficiently search for needed components using their own tracking numbers

Engineering Contradiction:
Improvecompetitive sensitivityVSAvoidcomponent search
Core Design Contradiction:
Loss of informationVSEase of operation

Solution Approach 1:

The patent applies different identification qualities to different users: sellers list components using their internal tracking numbers to maintain confidentiality, while buyers search using their own internal tracking numbers. The platform translates between these different identification systems, allowing each party to operate in their familiar system while enabling cross-company transactions.

Inventive Principle:
Principle #3Local quality

Solution Approach 2:

Instead of requiring buyers to adapt to sellers' tracking number systems, the patent inverts the approach by having sellers list in their own systems and the platform performing the translation to match with buyer requirements. This maintains seller confidentiality while enabling buyer efficiency.

Inventive Principle:
Principle #13The other way round (Inversion)

3Loss of information

If OEMs list excess inventory through brokers, then their competitive information is protected, but the transaction process becomes complex and costly

Engineering Contradiction:
Improveusage rate confidentialityVSAvoidtransaction process
Core Design Contradiction:
Loss of informationVSDevice complexity

Solution Approach 1:

The patent introduces a neutral intermediary platform that simplifies the transaction process while maintaining information confidentiality. The platform handles the complexity of matching different tracking number systems, negotiation, and transaction coordination, allowing OEMs to protect their competitive information without dealing with complex multi-broker processes.

Inventive Principle:
Principle #24Intermediary (Mediator)

Solution Approach 2:

The platform enables OEMs to self-list their excess inventory using their own tracking numbers and self-search for needed components. The automated matching and translation systems handle the complexity, reducing the need for manual broker intervention while maintaining confidentiality protections.

Inventive Principle:
Principle #25Self-service

4Loss of energy

If a closed forum with anonymous listing is used, then transaction costs are reduced and sensitive information is protected, but the system requires a trusted third-party platform

Engineering Contradiction:
Improvetransaction costVSAvoidplatform infrastructure
Core Design Contradiction:
Loss of energyVSDevice complexity

Solution Approach 1:

The patent establishes a neutral intermediary platform that enables anonymous listing and searching while maintaining transaction integrity. The platform infrastructure handles the complexity of anonymity management, tracking number translation, and transaction coordination, allowing cost reductions through eliminated broker fees while managing the necessary platform complexity centrally.

Inventive Principle:
Principle #24Intermediary (Mediator)

Data Source

PatentUS7797202B1Method of masking the identities of both a bidder and seller in an auction
Publication Date: 2010.09.14 ASIAN ATLANTIC INDS
  • US7797202B1 patent drawing
  • US7797202B1 patent drawing
  • US7797202B1 patent drawing

AI summary

A method of selling excess component inventory between manufacturers wherein a provider provides a forum wherein users may sell components anonymously in a closed sale by using a pseudonym or, preferably, a pseudo-account number. Further, other identifying information, such as any part numbers used internally by the seller are masked.