Shared Inventory Management System for Dynamic Allocation
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Solution Overview
Problem
The unpredictability of demand for goods in digital retail environments leads to inventory management issues, such as unsold goods remaining in warehouses for extended periods, limited space for new inventory, and disrupted cash flows, particularly in 'just in time' supply chains.
Innovation Solution
A centralized inventory management system that allows users to efficiently reallocate items of inventory to other users within a shared inventory space, enabling flexible arrangements and concurrent use of multiple supply chains to maximize space utilization and cash flow efficiency.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If goods are stored in bulk in a warehouse, then availability for dispatch to end consumers is improved, but inventory space is consumed and cannot be used for additional goods
Solution Approach 1:
The patent merges multiple supply chains (bulk supply chain and e-commerce supply chain) into a single shared inventory system. Goods are stored once in a shared warehouse space and can be simultaneously allocated to both bulk buyers and end consumers, eliminating the need for separate inventory storage for each supply chain.
Solution Approach 2:
The shared inventory space serves multiple functions: it stores goods for bulk purchase, maintains inventory for e-commerce dispatch, and provides flexible allocation to different buyers based on demand. The same physical space and goods serve multiple purposes and multiple supply chains concurrently.
2Volume of stationary object
If goods remain in the warehouse for longer than expected due to decreased demand, then cash flow is disrupted, but the goods occupy valuable inventory space that could be used for newly purchased or manufactured goods
Solution Approach 1:
The system implements dynamic inventory allocation where goods can be rapidly reallocated between different buyers and supply chains based on changing demand conditions. When demand decreases in one channel, the system dynamically shifts goods to alternative buyers or purposes, preventing inventory stagnation and optimizing cash flow timing.
Solution Approach 2:
The patent changes the parameter of inventory ownership and allocation status through digital transfer mechanisms. Goods can be quickly transferred from one buyer's allocation to another, or from bulk purchase allocation to e-commerce dispatch allocation, enabling rapid response to demand changes and optimizing both space utilization and cash flow.
3Volume of stationary object
If the seller relocates goods or purchases additional warehouse space to accommodate new inventory, then space for new goods is improved, but additional costs and delivery logistics are incurred
Solution Approach 1:
The patent combines multiple inventory management functions into a single shared warehouse system. Instead of requiring separate warehouses or relocation operations, the system consolidates bulk storage and e-commerce dispatch operations in one facility, eliminating the need for additional warehouse space purchases and reducing relocation logistics.
4Volume of stationary object
If goods are sold in bulk at short notice to another goods seller, then inventory space is freed up, but cash flow is reduced and communication chains between sellers become inefficient
Solution Approach 1:
The patent introduces a digital platform as an intermediary that facilitates automated matching between sellers with excess inventory and potential buyers. The platform handles communication, negotiation, and transaction coordination, eliminating inefficient manual communication chains between sellers and enabling rapid bulk sales without significant time loss.
5Volume of stationary object
If the seller destroys goods to free up inventory space, then space is immediately available for new goods, but cash flow is disrupted and goods are wasted
Solution Approach 1:
Instead of destroying goods, the system recovers value by reallocating them to alternative buyers or uses. The digital transfer platform enables quick identification of alternative buyers for excess inventory, converting what would be waste into productive transactions that free up space while preserving cash flow.
Data Source
AI summary
An inventory management system for managing inventory ownership in a shared inventory space is described. The system includes receivers configured to receive data from sources external to the inventory management system. Transmitters are configured to transmit data to sources external to the inventory management system. A bundle generation is configured to receive transfer data from a first user via the one or more receivers indicating a group of items to be made available for a transfer of ownership. The transfer of ownership of the group of items is to be made as a single transaction. The system processes the received transfer data and generates a bundle data record of data parameters based on the transfer data. A transaction management processor provides information identifying available groups of items available for transfer of ownership and a transaction fulfilment processor provide the item data to the transaction management processor.