WO2001075552A2

WO2001075552A2 - System and method for managing inventory and sales using a wireless network

Info

Publication number: WO2001075552A2
Application number: PCT/US2001/010930
Authority: WO
Inventors: Michael J. Massey; Gerald F. Kelly, Jr.; Jerel L. Williams
Original assignee: Payless Shoesource, Inc.
Priority date: 2000-04-04
Filing date: 2001-04-04
Publication date: 2001-10-11
Also published as: WO2001075552A3; AU2001249846A1

Abstract

A system (104) and method for managing inventory using a wireless computer (106) is web-enabled and has identification of inventory items for a whole distribution area. The wireless computer transmits item search information to the inventory management system (104) to determine if an item is in the inventory within a distribution area. If the item is present, the wireless computer receives payment information (206) which is transmitted to the inventory management system (104), which then generates an order and initiates delivery of the item to the customer (502).

Description

SYSTEM AND METHOD FOR MANAGING INVENTORY AND SALES USING A WIRELESS NETWORK

Field of the Invention The present invention is related to the field of managing inventory and selling inventory using a wireless computer network and an internet-based management system. Background of the Invention

In retail stores and other distribution areas, customer expectations relating to the availability of goods are not consistent with the reality of what stock presently is available within the retail store or other distribution area. These establishments suffer from difficulties in maintaining an adequate stock of products for purchase by customers without investing excessive capital to oversupply each potential customer choice. Therefore, of necessity, products will be out of stock for various periods of time within the distribution area as the establishment replenishes its supply of goods. However, a customer at such establishments many times sees similar products that the customer wants but are unavailable. An example of this occurs when a customer at an establishment sees a desirable shoe of a particular size and would like the shoe in another size. However, the shoe in the other size may be unavailable, thereby causing frustration with the customer. Therefore, an improved system is needed that can search and locate inventory within a whole distribution area that would encompass warehouses and other establishments including and outside of a specific retail establishment and that can provide a mechanism for a quick and mobile determination of inventory availability and processing of sales information for the customer. Summary of the Invention The present invention is directed to a system for managing inventory, the system comprising an inventory management system configured to be web enabled and to manage inventory comprising inventory items for a distribution area. The inventory management system further is configured to process a search request for a particular inventory item to determine if the particular inventory item is in the inventory, and, if the particular inventory item is in the inventory, to process an order for the inventory item to have the inventory item delivered to a location. The system further comprises a wireless computer configured to communicate with the inventory management system, to generate the search request, and, if the particular inventory item is in the inventory, to generate the order.

The present invention also is directed to a method for managing inventory comprising generating a search request for a particular inventory item from a wireless computer to a web based inventory management system that manages inventory having inventory items for a distribution area. It is determined if the particular inventory item is in the inventory. If the particular inventory item is in the inventory, an order to have the inventory item delivered to a location is generated and payment information for the order is processed.

The present invention enables a user to search for and locate inventory within a whole distribution area, such as a city, a region, or the whole United States. Optionally, the present invention also enables a user to first search for inventory within a local inventory management system, such as inventory at a local retail store, prior to searching the distribution area. Because the invention uses a wireless computer, the invention enables the user to perform the search and locate the inventory quickly and in a mobile environment. Additionally, because the invention can use the wireless computer to obtain payment information for payment processing, the whole process of locating the inventory and processing payment information for a sale is quick, convenient for a customer and a user, and mobile.

Because the present invention enables a user to locate inventory, to process a sale of the inventory, and to do so quickly and in a mobile environment, customer disappointment and frustration associated with not being able to purchase a desired piece of inventory is eliminated. In addition, a potential lost sale opportunity is converted to a sale of inventory. Brief Description of the Drawings

Figure 1 is a block diagram of a wireless inventory and sales system in accordance with an embodiment of the present invention.

Figure 2 is a block diagram of a wireless inventory and sales system connected via a web site in accordance with an embodiment of the present invention.

Figure 3 is a block diagram of a wireless inventory and sales system having a local inventory management system in accordance with an embodiment of the present invention.

Figure 4 is a block diagram of a wireless inventory and sales system having a wireless interface computer in accordance with an embodiment of the present invention. Figure 5 is a block diagram of an expanded wireless inventory and sales system having a wireless interface computer in accordance with an embodiment of the present invention.

Detailed Description The present invention allows a user of a wireless computer to connect to an inventory management system to determine if a requested item of inventory exists. If the inventory exists, a user of the wireless computer can have the inventory item shipped to a specified location. The inventory management system is a web-enabled central management and distribution system that contains the identification of, and tracks all, inventory throughout a distribution area, such as the United States. Because the inventory management system is able to manage and track all inventory within the whole distribution area, a user of the present invention can locate an inventory item in another store, in a central warehouse, or in another location and can have that inventory item transmitted to any other location. In addition, the present invention optionally may be configured to enable a user to first search for inventory within a local inventory management system for a local distribution area, such as inventory at a local retail store, prior to searching the distribution area. This optional local inventory management system search enables the user to first locate and sell inventory from the local distribution area. If the inventory is available from the local distribution area, the customer may see and purchase the inventory immediately, further increasing the contentment of the customer and converting a potential lost opportunity to a sale for the local distribution area.

Because the invention uses a wireless computer, the invention enables the user to perform the search and locate the inventory quickly and in a mobile environment. Additionally, because the invention can use a wireless computer to obtain payment information for payment processing, the whole process of locating the inventory and processing payment information for a sale is quick, convenient for a customer and a user, and mobile.

Because the present invention enables a user to locate inventory in a whole distribution area or the optional local distribution area, to do so quickly and in a mobile environment, and to process a sale of the inventory quickly and in a mobile environment, customer disappointment and frustration associated with not being able to purchase a desired piece of inventory is eliminated. In addition, a potential lost sale opportunity is converted to a sale of the inventory. Moreover, the efficiency of the user is increased by being able to locate the inventory and process the sale in a mobile environment and with a wireless computer. This increased efficiency and the converted sales increase the profits and cost savings for the user.

Figure 1 illustrates an exemplary embodiment of a wireless inventory and sales system (WISS) 102 of the present invention. The WISS 102 comprises an inventory management system 104 and a wireless computer 106.

The inventory management system 104 is a central distribution inventory system that contains an identification of all inventory items. For example, the inventory management system 104 may contain an item identification, such as a description of an item, a location where the item is stored or will be transmitted, an identification number, such as a bar code or other identification number, and/or a cost of the item.

The inventory management system 104 contains all the identification of inventory items throughout a distribution area. The distribution area can be a warehouse, a retail store, multiple retail stores, a city, a state, a region, a country, or another distribution area. Preferably, the inventory management system 104 contains an identification of inventory items for all the stores and warehouses in a country. The inventory management system 104 can be configured to receive communications, transmit communications, process and track inventory items, and provide the capability for a user of the system to search through any inventory data. In addition, the inventory management system 104 can be configured to receive and process payment information and other transactional information, such as credits, debits, cash receipts, and electronic checks. The inventory management system 104 also can be configured to automatically process a request for an item, locate the item within the inventory of the distribution area, perform actions necessary for the delivery of the item, remove the item from the inventory item identifications or update the inventory item identification. Because of the inventory management system's 104 capability to search and locate inventory and to receive and process payment information, potential lost sale opportunities are converted to sales of inventory.

Since the inventory management system 104 is web-enabled, i.e. internet protocol (IP) enabled, the inventory management system has connectivity via an intranet connection or an internet connection (IP connection). This allows a user to connect to the inventory management system 104 and view the entire inventory as well as identification of inventory items to allow a user to quickly determine if an inventory item exists within the inventory and, if the inventory item exists, to quickly locate the item. The inventory management system 104 is searchable by a user by any of the item identifications, such as the description, location, identification number, or cost. Moreover, because the inventory management system 104 is web-enabled, a user of the system can connect to the inventory management system from any location that has a web-enabled processor.

It will be appreciated that the inventory management system 104 also can be connected to computers and other users via connections other than IP connections. For example, the inventory management system 104 can be connected to users and other computers via local area network (LAN) connections, wide area network (WAN) connections, or direct access lines. These optional connections can increase the availability of the data stored in the inventory management system 104 and the inventory management and sales functions performed by the inventory management system. The inventory management system 104 can be configured with a security system for securely receiving and transmitting wireless and wireline communications. For example, wireless communications can contain an embedded security code that, when received and recognized by the inventory management system 104, would allow connection and communication between the inventory management system and the computer transmitting or receiving the wireless communication. This embedded security code can be implemented in a variety of ways, including recognition of an automatic number identification transmitted from a device to the inventory management system 104, a password transmitted separately after an initial connection to allow entry into the inventory management system, or another code that uniquely identifies a connecting computer device or user.

The wireless computer 106 preferably is a radio frequency (RF) device configured to transmit and receive wireless communications to and from the inventory management system 104. These wireless communications can be analog, digital, or a combination of analog and digital communications. Such communications can include cellular communications and PCS communications. The wireless computer 106 processes the received communications to provide data to a user regarding one or more inventory items. The wireless computer 106 also is used by a user to enter information, such as a requested inventory item, that is transmitted to the inventory management system 104. The wireless computer 106 can be configured as a wireless point of sale (POS) device. The wireless computer 106 may include a scanner, such as a bar code scanner, a payment acceptance system, such as a credit card swipe or a keypad entry system, and a printer for printing receipts. In addition, the wireless computer 106 can be configured to transmit a security code as described above. Preferably, the wireless computer is a mobile hand-held wireless computer.

The WISS 102 operates as follows. In the a example, the inventory comprises shoes, the wireless computer 106 is located in a retail store, and the inventory management system 104 is located off site from the retail store. A customer asks a user for a shoe that is not within the stock of the retail store. The user uses the wireless computer 106 to initiate a connection to the web site of the inventory management system 104. The user uses the wireless computer 106 to initiate a search by the inventory management system 104 to determine if the shoe is in the inventory managed by the inventory management system. If the inventory management system 104 determines that the shoe is within the inventory, an order is placed for the shoe upon acceptance by the customer of the shoe. Thus, the user of the wireless computer 106 can obtain payment information, such as by swiping a credit card through the credit card swipe, obtain delivery information, and transmit the payment information and the delivery information to the inventory management system 104 for processing. The inventory management system 104 processes the payment information and the delivery information and ensures that the shoes are delivered to the customer.

In another example, the wireless computer is located in a retail store, the inventory is shoes, and the inventory management system 104 is located off site from the retail store. In this example, a customer asks for a shoe that is not located within the stock of the retail store. A user of the wireless computer 106 initiates a connection to the web site of the inventory management system 104. The user of the wireless computer 106 enters the description of the shoe requested by the customer, and the inventory management system 104 initiates a search of its data to determine if the requested shoe is located within the distribution area. The inventory management system 104 determines that the requested shoe is located at a second retail store within the distribution area. The inventory management system 104 transmits a communication to the wireless computer 106 specifying that the requested shoe was found at a location of a second retail shop and requesting whether the customer would like the shoe. The user of the wireless computer initiates a transaction in which the user requests that the requested shoe be delivered from the second retail store to the first retail store. The inventory management system 104 processes the communication, initiates an order requesting the second retail store to deliver the requested shoe to the first retail store, and updates its data to identify the location of the requested shoe to be the first retail store. The inventory management system 104 can be configured to credit the first retail store's inventory, to debit the second retail store's inventory, and to debit and credit the stores respectively for the cost of the shoe. In this way, the inventory management system 104 can manage inventory as well as costs, debits, and credits for particular stores.

Figure 2 depicts an exemplary embodiment of optional systems used to process data and payments for the inventory management system 104. The WISS 102A depicts the web site 202 comprising the inventory management system 104, a database 204, and a payment processing system 206.

The database 204 stores and retrieves all the data associated with inventory, including inventory item identifications, and payments for the inventory management system 104. Thus, the database 204 receives data from and transmits data to the inventory management system 104 and the payment processing system 206.

The payment processing system 206 processes payment information and data for customer transactions. For example, the payment processing system 206 processes credit card information to validate the credit card information for purchases with external processing systems, to store the payment information to be used in association with delivery of inventory items, and to complete authorization and collect receipt of payment for a customer transaction.

Figure 3 illustrates an exemplary embodiment of a WISS 102B of the present invention having a local inventory management system 302 and a local payment processing system 304. The local systems 302 and 304 can be used for an initial local search or payment.

The local inventory management system 302 is used to manage inventory for a local distribution area, such as a retail store. The local inventory management system 302 contains data for the identification of items within the local distribution area. For example, the local inventory management system 302 can have data identifying the specific inventory of shoes within a retail store, such as the number and description of each style of shoe, including the shoe type, color, and cost. The local inventory management system 302 can be searched by the wireless computer 106 to determine if the local distribution area has an inventory item before a request is made to the inventory management system 104. The local payment processing system 304 is configured to process payments at the local distribution area. For example, the local payment processing system 304 can be configured to be a point of sale (POS) device within a retail store that can process credit card payments in addition to receiving cash and check payments. It will be appreciated that either one or both of the payment processing system 206 and the local processing system 304 can be used in the WISS 102B.

Figure 4 depicts an exemplary embodiment of a WISS 102C having a wireless interface computer 402. The wireless interface computer 402 can be any computer configured to receive and transmit wireless communications to and from the wireless computer 106, as described above. The wireless interface computer 402 also is configured to transmit and receive communications to and from the inventory management system 104. These communications between the wireless interface computer 402 and the inventory management system 104 can be wireless or wireline. Thus, the wireless interface computer 402 can be a computer having a LAN, a WAN, or a direct access line to the inventory management system 104 via a wireless or wireline intranet or internet connection and have an interface capable of transmitting and receiving wireless communications.

Figure 5 depicts an exemplary embodiment of a WISS 102D of the present invention. The WISS 102D is comprised of the inventory management system 104, the wireless computer 106, the database 204, the payment processing system 206, the wireless interface computer 402, and an optional delivery management system 502.

The delivery management system 502 coordinates processed orders and deliveries of inventory items. The delivery management system 502 receives order information from the inventory management system 104, locates the inventory items that are to be delivered, and packages the inventory items for delivery. The delivery management system 502 can be incorporated into a portion of the inventory management system 104. The other systems of the WISS 102D of Figure 5 operate as described above.

The WISS 102D of Figure 5 can be configured so that all communications between the wireless interface computer 402 and the web site 202 are directed to the inventory management system 104. In this way, the inventory management system 104 can determine whether information should be transmitted to or retrieved from the database 204 or the payment processing system 206. Alternately, the web site 202 can be configured so that communications can be transmitted directly to or received directly from the database 204 or the payment processing system 206. In this configuration, the wireless interface computer 402 also acts as a router for the communications.

The WISS 102D of Figure 5 operates as follows. In a first example, the wireless computer 106 and the wireless interface computer 402 are located in a retail store. The web site 202 and the optional delivery management system 502 are located off site from the retail store. In this example, the wireless interface computer 402 communicates with the inventory management system 104 via an intranet connection. In this example, a customer requests a shoe that currently is not present in the stock of the retail store.

A user of the wireless computer 106 transmits a search request for the requested shoe to the wireless interface computer 402. The wireless interface computer 402 initiates a connection to the inventory management system 104 via the intranet connection. Because the connection between the wireless interface computer 402 and the inventory management system 104 is an intranet connection, a security password is not required in this example. The wireless interface computer 402 transmits the information for the requested shoe to the inventory management system 104.

The inventory management system 104 receives and processes the communication from the wireless interface computer 402 and initiates a search of the database 204 to determine if the requested shoe is present within the distribution area managed by the inventory management system. A match for the requested shoe is found, and it is determined that the requested shoe is present within the distribution area. In this example, the inventory management system 104 determines that the requested shoe is present in a warehouse managed by the inventory management system.

The inventory management system 104 transmits a communication back to the wireless interface computer 402 specifying that the requested shoe is present within its inventory. The wireless interface computer 402 transmits the information received from the inventory management system 104 to the wireless computer 106. The user views the information on the wireless computer 106 and relays the information to the customer. The customer determines that it would like the requested shoe. The user of the wireless computer 106 enters payment information, such as credit card information and cost. That information is transmitted to the wireless interface computer 402 by the wireless computer 106. The wireless interface computer 402 processes the payment information and transmits it to the inventory management system 104.

The inventory management system 104 receives the communication from the wireless interface computer 402 and transmits the payment information to the payment processing system 206. The payment processing system 206 processes the payment information to validate the credit card information, obtain authorization for the payment of the requested shoes with the credit card, transmits an authorization to the inventory management system 104, and completes further processing to obtain payment from the credit card company. The inventory management system receives the authorization from the payment processing system 206 and transmits a communication to the delivery management system 502 specifying the item identification for the requested shoe. The delivery management system 502 processes the item identification information, marks the requested shoe for delivery, and packages the requested shoe for delivery. It will be appreciated that the delivery management system 502 is optional and not required. In other configurations, the inventory management system 104 completes processing and delivery of the shoe. In addition, one skilled in the art will understand that the systems of Figures 1-5 may operate differently in other exemplary processes and operations. Those skilled in the art will appreciate the variations from the specific embodiments disclosed above are contemplated by the invention. The invention should not be restricted to the above embodiments, but should be measured by the following claims.

Claims

ClaimsWhat is claimed is:

1. A system for managing inventory comprising: an inventory management system configured to be web enabled and to manage inventory comprising inventory items for a distribution area, to process a search request for a particular inventory item to determine if the particular inventory item is in the inventory, and, if the particular inventory item is in the inventory, to process an order for the inventory item to have the inventory item delivered to a location; and a wireless computer configured to communicate with the inventory management system, to generate the search request, and, if the particular inventory item is in the inventory, to generate the order.

2. The system of claim 1 wherein the wireless computer comprises a mobile wireless computer.

3. The system of claim 1 further comprising a wireless interface computer configured to transmit communications between the wireless computer and the inventory management system.

4. The system of claim 3 wherein the wireless computer interface is configured to communicate with the wireless computer using wireless communications and to communicate with the inventory management system using wireline communications.

5. The system of claim 3 wherein the wireless computer interface is configured to communicate with inventory management system using wireless communications.

6. The system of claim 3 wherein the wireless interface computer comprises at least one of a local area network and a wide area network.

7. The system of claim 1 further comprising a database configured to store at least one of inventory identification information and payment information.

8. The system of claim 1 wherein the order comprises payment information and the system further comprises a payment processing system configured to process the payment information.

9. The system of claim 1 further comprising a local inventory management system configured to manage other inventory at a local location only.

10. The system of claim 9 wherein the local location comprises a retail store.

11. The system of claim 1 wherein the distribution area comprises at least one of a warehouse, a plurality of retail stores, and a combination of a warehouse and a plurality of retail stores.

12. The system of claim 1 wherein the distribution area comprises at least one of a city, a state, a region, and a country.

13. The system of claim 1 further comprising a local payment processing center configured to process payment of the particular inventory item at a local location.

14. The system of claim 1 further comprising a delivery management system configured to manage retrieval, packaging, and delivery of the particular inventory item to the location.

15. The system of claim 1 wherein the location comprises at least one of a local store or an address of a customer.

16. A method for managing inventory comprising: initiating a connection between a wireless computer and a web based inventory management system that manages inventory having inventory items for a distribution area; generating from the wireless computer a search request for a particular inventory item; determining at the inventory management system if the particular inventory item is in the inventory; if the particular inventory item is in the inventory, generating an order to have the inventory item delivered to a location; and processing the order for the inventory item.

17. The method of claim 16 wherein the wireless computer comprises a mobile wireless computer.

18. The method of claim 16 further comprising transmitting communications between the wireless computer and the inventory management system using a wireless interface computer.

19. The method of claim 16 further comprising storing at least one of inventory identification information and payment information in a database.

20. The method of claim 16 further comprising processing payment information for the order.

21. A method for managing inventory comprising: generating a search request for a particular inventory item from a wireless computer to a web based inventory management system that manages inventory having inventory items for a distribution area; determining at the inventory management system if the particular inventory item is in the inventory; if the particular inventory item is in the inventory, generating an order to have the inventory item delivered to a location; and processing payment information for the order.