Automated Purchasing Contract Allocation System
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Solution Overview
Problem
Current methods for allocating purchasing contracts over multiple budgeting periods lack automation in applying budget rules, leading to inefficiencies in determining sufficient funding availability for retail products and services, particularly in dynamic industries like fashion where inventory management and budgeting require timely adjustments.
Innovation Solution
A computerized system and method for allocating purchasing contracts over temporal periods, which involves receiving data, distributing it across associated periods, and applying rules to determine whether the distribution should be accepted or rejected, ensuring sufficient funding is reserved for each budgeting period.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If purchasing contracts are allocated manually across multiple budgeting periods, then flexibility in adjusting budgets is maintained, but automation and efficiency in determining funding availability are reduced
Solution Approach 1:
The system performs self-service by automatically distributing purchasing contract quantities across budgeting periods and applying budget rules without manual intervention. The computerized system autonomously determines funding availability by comparing distributed quantities against budget constraints, eliminating the need for manual budget allocation while maintaining accuracy and efficiency.
Solution Approach 2:
The patent replaces manual mechanical processes with an automated computerized system. The manual allocation of purchasing contracts across budgeting periods is substituted by an automated distribution mechanism that uses algorithms to allocate quantities based on predefined criteria, thereby improving efficiency and reducing human error in determining funding availability.
2Reliability
If purchasing contracts are distributed across multiple budgeting periods, then budget compliance is improved, but complexity in managing and tracking allocations increases
Solution Approach 1:
The patent applies segmentation by dividing the purchasing contract quantities into discrete allocations across multiple budgeting periods. Each period receives a specific distributed quantity based on the total contract value and period-specific budget constraints. This segmentation ensures that each allocation can be independently tracked and verified against budget compliance requirements, simplifying management while maintaining reliability.
Solution Approach 2:
The system implements feedback mechanisms by continuously monitoring the distributed quantities against actual budget availability and spending. The computerized system provides real-time feedback on budget compliance status, allowing automatic adjustments to subsequent allocations if constraints are violated. This feedback loop simplifies management by providing clear visibility into compliance status without requiring complex manual tracking.
3Productivity
If automated distribution of purchasing contracts is implemented, then efficiency in procurement process is improved, but adaptability to dynamic industry changes may be reduced
Solution Approach 1:
The patent incorporates dynamics by allowing the automated distribution algorithm to adapt to changing conditions. The system can adjust distribution parameters based on dynamic industry trends, sales performance data, and updated budget constraints. This dynamic capability enables the automated system to respond to fashion industry changes while maintaining procurement efficiency, as the algorithm can recalculate optimal allocations in response to new information.
Solution Approach 2:
The system enables parameter changes by allowing key distribution parameters such as allocation ratios, budget constraints, and time period definitions to be modified based on industry conditions. When dynamic industry changes occur, users can adjust these parameters in the computerized system, and the automated distribution will recalculate accordingly. This maintains adaptability while preserving the efficiency gains from automation.
Data Source
AI summary
A method of and system for allocating a purchasing contract over a temporal period associated with the purchasing contract is disclosed. The method includes receiving data regarding the purchasing contract in a computerized system, distributing the received data regarding the purchasing contract over the associated temporal period, and applying at least one rule to the distributed data to determine whether the distribution of the data regarding the purchasing contract should be accepted or rejected. The system includes means for receiving data regarding the purchasing contract, means for distributing the received data regarding the purchasing contract over the associated temporal period, and means for applying at least one rule to the distributed data to determine whether the distribution of the data regarding the purchasing contract should be accepted or rejected.