Reverse Distribution Pricing Accuracy System
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Solution Overview
Problem
Reverse distribution, particularly in the pharmaceutical industry, faces challenges such as scarcity of convenient shipping options, complexity in tracking items and credit flow, and varied pricing options, making it difficult to implement accurately and efficiently.
Innovation Solution
A system that facilitates the collection, sorting, and shipment of items to appropriate manufacturers, along with precise tracking and disbursement of credits, using a computer system that organizes items by customer and manufacturer, generates refund estimates, and adjusts pricing and policy data based on actual credit received.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Productivity
If manual and automated techniques are used for forward distribution, then distribution efficiency is improved, but reverse distribution remains complicated and inaccurate
Solution Approach 1:
The patent applies inversion by reversing the traditional distribution flow. Instead of items moving from manufacturer to customer (forward distribution), the system processes returns from customer to manufacturer (reverse distribution) using similar automated techniques. The computer system inverts the data flow direction, tracking items and credits from the customer端 back to the manufacturer端, thereby applying proven forward distribution efficiency to the reverse process.
Solution Approach 2:
The patent implements universality by creating a multi-functional computer system that handles multiple aspects of reverse distribution: tracking item flow, calculating credit amounts, managing pricing options, and processing transactions. This single system performs functions that would otherwise require separate manual processes, reducing overall system complexity while maintaining comprehensive reverse distribution capabilities.
2Adaptability or versatility
If multiple pricing options are offered in forward distribution, then customer flexibility is improved, but credit calculation accuracy deteriorates
Solution Approach 1:
The patent applies feedback by implementing a system that continuously monitors and tracks the actual credit amounts received from manufacturers against the estimated credit amounts calculated using multiple pricing options. The computer system compares expected credit (based on various pricing scenarios) with actual credit received, identifies discrepancies, and adjusts future credit calculations accordingly. This feedback loop ensures that while multiple pricing options remain available for flexibility, the final credit calculation achieves high accuracy through continuous validation and adjustment.
3Adaptability or versatility
If reverse distribution process is made comprehensive to handle all item types, then service coverage is improved, but processing time increases
Solution Approach 1:
The patent implements preliminary action by pre-configuring the computer system with comprehensive pricing data, manufacturer information, and credit calculation parameters before reverse distribution transactions occur. The system pre-establishes multiple pricing options and credit calculation methodologies for different item types, manufacturers, and scenarios. When items are returned, the system can immediately apply the appropriate pre-configured parameters without time-consuming manual analysis, thereby achieving comprehensive service coverage while maintaining fast processing speeds.
Data Source
AI summary
In a reverse distribution environment, a technique for generating an accurate refund estimate for a pharmaceutical item returnable for credit by a customer to a manufacturer includes receiving item information that includes an identity of the pharmaceutical item, retrieving a pricing rule record for the pharmaceutical item that specifies an amount of credit expected to be received for the item, generating a refund estimate for the customer using the expected amount, receiving a credit memorandum that specifies an actual amount of credit payable by the manufacturer for the pharmaceutical item, comparing the actual amount of credit to the refund estimate, and adjusting the pricing rule record if the actual amount of credit is not equal to the refund estimate, subject to certain conditions.