Patent Application
20100185497
The present invention is directed to system and method for facilitating acquisition of automotive cores from the automotive recycling industry for remanufacture.
Automotive recyclers such as salvage yards acquire used automotive parts, such as powertrain, chassis, and body parts of automobiles. Many of the mechanical parts from these vehicles are referred to in the salvage industry as “cores.” Cores are typically extracted from automobiles that were purchased by the recyclers for the purpose of disassembling them to sell the cores. In other instances, cores may be acquired from manufacturers of the parts themselves, where a defect has been found in the manufactured part so that the part cannot be used unless remanufactured.
The automotive recyclers sell the extracted cores from automobiles to core suppliers that gather large quantities of a particular core for a particular vehicle. Core suppliers identify the purchased cores and then verify that the cores can be remanufactured or otherwise reconditioned. These gathered quantities of cores for a particular vehicle are then sold to remanufacturers who recondition these parts. For remanufacturers, receiving good, rebuildable cores in large quantities is important since remanufacturing of the cores often requires tooling and machining lines that must be set up for a particular core. Thus, remanufacturers typically prefer to purchase cores from core suppliers in bulk rather than from automotive recyclers one piece at a time.
The remanufacturers recondition or remanufacture these cores and then sell these remanufactured/reconditioned parts to wholesale or retail automotive part suppliers. Because these cores are reconditioned rather than being entirely manufactured, the remanufactured parts can be sold for less than the corresponding new parts.
Automotive recyclers use a standard parts identification system referred to as an interchange, such as the Hollander interchange, for example, to help identify parts from vehicles. Such interchange systems allow an automotive recycler to identify the make, model, and year range of most parts on a given vehicle, and to identify the parts using a proprietary alphanumeric identification system. In contrast, core suppliers and remanufacturers may utilize different identification numbers than the automotive recyclers. For example, core suppliers and remanufacturers may use Original Equipment Manufacturer (OEM) numbers, casting numbers, and remanufacturer-specific proprietary stock keeping unit (SKU) numbers. These numbers are very specific and do not have the same year make model breakdown availability that salvage industry interchanges have. The core supplier numbers are very specific whereas the salvage industry interchange numbers are very broad and may encompass many different numbers.
Efforts to date to improve the ability to cross reference core supplier numbers to salvage industry interchange numbers have been largely unsuccessful in providing a cost-effective manner of identifying specific cores sought by core suppliers. Additionally, core suppliers have not been able to satisfactorily characterize salvage yard inventories. Efforts aimed at improving the ability of the parties to accurately identify and supply the required parts have been extremely labor-intense and have not provided a satisfactory return on the amount of resources expended. What is needed is a system and a method for quickly and accurately determining salvage yard inventories and determining the value of a particular part from a particular automobile.
The above-described difference in automotive part identification systems and methods used has been found to be a significant problem for the salvage industry and for the core supplier industry, where most of the acquired cores are purchased from salvage facilities of automotive recyclers. In particular, automotive recyclers are unaware of demand and pricing of the specific cores being sought after by the core suppliers. In the present application, the term “cores” refers to mechanical and electrical automobile parts, which are to be rebuilt, refurbished, or otherwise reconditioned. For the purposes of this application, the term “cores” and automobile parts that are to be rebuilt, refurbished, or otherwise reconditioned are synonymous.
In addition, automotive recyclers do not have an efficient way to easily determine the value of a particular part from a particular automobile. Correspondingly, valuable labor may be expended by the automotive recycler in removing a partfrom an automobile, only to find that the core supplier is not willing to purchase the part due to a lack of demand, a sufficient or overabundant existing supply inventory, and the like. In addition, valuable labor may be expended by the automotive recycler in removing a partfrom an automobile, only to find that the value of the part offered for purchase by the core supplier is not enough to cover even the labor cost incurred for the removal of the part.
Conversely, the automotive recycler may choose not to remove a particular first part from an automobile in view of the labor costs involved, and instead, the automotive recycler removes other certain parts of the automobile in a separate dismantling facility. The automotive recycler then stores the dismantled automobile in the salvage yard. The automotive recycler may later find that there was sufficient demand for the first part so that a profit could have been made by removing the particular in-demand first part from the automobile when it was in the dismantling facility, where tools for removal are immediately available. However, removal of such first part may no longer be profitable because the automobile has been stored in the salvage yard and is no longer at the dismantling facility.
In both of the above described situations, the result is that the automotive recycler receives reduced profits, either by incurring unnecessarily increased labor costs, or by foregoing potential sales. The automotive core fulfillment system and method in accordance with the present invention addresses these problems to increase the automotive recycler's profits, as well as to provide the automotive recycler with a guaranteed and predetermined sales outlet for their inventory.
An automotive core fulfillment system in accordance with the present invention includes an interchange database that includes automotive core descriptions with corresponding interchange identification indicators. The system also includes a core supplier database that includes automotive core descriptions with corresponding core supplier identification indicators. The core supplier identification indicators may include original equipment manufacturer (OEM) part numbers or other core supplier numbers. The system also includes an interchange number matching module that equates a database entry in the interchange database with a database entry in the core supplier database. The system of the present invention may utilize Hollander numbers as the interchange identification indicators, or the system may use other interchange identification indicators, such as Lester numbers, and the like. The interchange number matching module matches interchange identification indicators with corresponding core supplier identification indicators.
Additionally, the automotive core fulfillment system of the present invention may include an interface module that provides access to the automotive core fulfillment system and accepts vehicle information and provides demand and pricing information regarding automotive cores. Further, the system of the present invention may utilize an on-site interface, or may include an interface module that provides remote access to the automotive core fulfillment system with a terminal or other communication device through a computer network or other communications network.
A method of the present invention identifies an automotive core and determines the value of the automotive core with a core fulfillment system. The method includes receiving vehicle identification information, comparing the vehicle identification information to automotive core descriptions and automotive interchange numbers and core supplier identification indicators that correspond to the vehicle identification information. The method also includes identifying the automotive core based upon the comparison of the vehicle identification information to automotive core descriptions and automotive interchange numbers and core supplier identification indicators, the automotive core including a part type identifier, a yard description, and a core value. Of course, all parts of an automobile may be identified, including all mechanical and electrical parts of the automobile, and the value of the part may be determined using the system and method of the present invention. For brevity, this application refers to such mechanical parts and electrical parts as “automotive cores” or simply “cores.”
Additionally, the method of identifying an automotive core and determining the value of the automotive core includes determining a demand for the automotive core. The vehicle identification information may include the year the vehicle was manufactured, the make of the vehicle, and the model of the vehicle. Additional identification information may also be used, including engine type, engine displacement, transmission type, brake type, number of doors, and the like, to expand or restrict the search based upon the more specific or less specific type of vehicle.
Multiple cores may be identified using a list of vehicle identifiers, and the value of those cores may be determined simultaneously. The list of vehicle identifiers may be a manual list, a bar code or bar codes, an electronic YIN number or YIN numbers, or any other notation of multiple vehicle identifiers. With this vehicle identifier information, a core inventory value may be determined based upon an aggregate total of core values of identified automotive cores.
An alternative method of identifying an automotive core and determining the value of the automotive core with a core fulfillment system in accordance with the present invention includes receiving part type identification information, receiving an automotive interchange number, and comparing the part type identification information to automotive core descriptions and core supplier identification indicators that correspond to the vehicle identification information and the automotive interchange numbers. The results of this comparison are then used to identify the automotive core based upon the comparison of the part type identification information and automotive interchange number to automotive core descriptions and core supplier identification indicators. The identified automotive core may include a part type identifier, a yard description, and a core value. Additionally, the automotive core entry may include demand information for the automotive core.
In the illustrated embodiment, the automotive core fulfillment system 10 is connected to a network 2 that allows remote access to the automotive core fulfillment system 10 so that vehicle information and interchange information can be entered, and so that demand and pricing information regarding automotive cores can be retrieved from the system. The network 2 allows the automotive core fulfillment system 10 to interact with remotely located terminals 4, which are utilized by automotive recyclers 6. The network 2 may be any type of communications channel, such as the Internet, a local area network (LAN), a wide area network (WAN), direct computer connections, and the like, and may be connected in a wireless manner using radio frequency, infrared, or other communication technologies, using any type of communication hardware and protocols. The terminals 4 may be implemented using a server, a personal computer, a portable computer, a thin terminal, a hand held device, a wireless device, and any other computing devices, or any combination of such devices.
It should also be noted that the automotive core fulfillment system 10 in accordance with one embodiment of the present invention is illustrated and discussed herein as having a plurality of modules and/or components that perform particular functions. It should be understood that these modules are merely schematically illustrated based on their function for clarity purposes only, and do not necessary represent specific hardware or software. In this regard, these modules and/or sub-modules may be implemented as hardware and/or softwareto substantially perform the particular functions explained. Moreover, two or more of these modules may be combined together within the automotive core fulfillment system 10, or divided into more modules based on the particular function desired. Thus, the present invention as schematically embodied in
In the above regard, the automotive core fulfillment system 10 in accordance with the illustrated embodiment also includes an interface module 30 that allows the automotive recyclers 6 to easily enter a particular vehicle's information such as year, make and model, and retrieve demand and pricing information for the various automotive cores of the particular vehicle from the automotive core fulfillment system 10 via the terminals 4. Similarly, interface module 30 provides an input and output pathway from automotive recyclers 6 and core fulfillment system 10. In this regard, the interface module 30 includes a graphical user interface (GUI) for receiving vehicle information and other information input by automotive recyclers 6, and a GUI for displaying the demand and pricing information for the various automotive cores of the inputted vehicle.
Numerous databases are provided in the automotive core fulfillment system 10 in accordance with the illustrated embodiment. In particular, the automotive core fulfillment system 10 shown includes an internal interchange database 40, which includes automotive core descriptions and automotive recycler's interchange numbers for numerous vehicle makes, models, years, and the like. Other information regarding the automotive cores can be stored in the interchange database 40 as well such as corresponding core supplier's part numbers and/or other interchange numbers, as well as additional core information. The automotive core fulfillment system 10 shown also includes a core supplier database such as Original Equipment Manufacturer (OEM) number database 50, which includes automotive core descriptions and their corresponding OEM part numbers for numerous vehicle makes, models, and years, for example. Of course, other information regarding the automotive cores can be stored in OEM number database 50 as well.
In addition, the automotive core fulfillment system 10 in accordance with the illustrated embodiment of the present invention includes an interchange matching module 60 that allows matching of the recycler's interchange number stored in the interchange database 40 with a corresponding OEM number stored in the OEM number database 50. Thus, when the automotive recycler 6 enters various vehicle information or interchange information using the terminal 4, the automotive core fulfillment system 10 identifies the various automotive cores and their corresponding recycler's interchange numbers in the interchange database 40, and matches these interchange numbers with the corresponding OEM numbers stored in the OEM number database 50. In this regard, the data that is stored in the interchange database 40 and the OEM numbers database 50 is updated periodically to include new vehicle models and corresponding part numbers for the cores. Therefore, the automotive core fulfillment system 10 greatly facilitates accurate identification of automotive cores between the automotive recycler and the core supplier and remanufacturer so that any transactions regarding the cores between these parties can be facilitated.
Furthermore, the automotive core fulfillment system 10 in accordance with the illustrated embodiment also includes a Demand and Pricing database 70, which includes demand information for particular cores that indicates whether there is an existing remanufacturer requesting particular cores for purchase. In addition, the Demand and Pricing database 70 also includes pricing information that identifies the price at which the particular cores will be purchased by the core supplier and/or by the remanufacturer from the automotive recycler 6. It is important to note that the pricing information is an offer for purchase price, and not an offer for sale price. The demand and pricing information is largely provided by the demands of the remanufacturers for the particular parts. Correspondingly, because the remanufacturers utilize OEM part numbers, the demand information and pricing information stored in the Demand and Pricing database 70 is correlated to the OEM parts. This information stored in the Demand and Pricing database 70 is also updated periodically to include new demand and new pricing information as demand and prices change in the marketplace. With up-to-date demand and pricing information, automotive recyclers 6 and core suppliers can make informed decisions about transactions to which they are a party.
It should also be understood that the price for a particular core will typically differ between the core supplier and the (end-user) remanufacturer since the core supplier is in the business of aggregating large quantities of a particular core for the remanufacturers, and the core supplier will purchase the cores from a plurality of automotive recyclers, and then sell the aggregated quantity to the remanufacturers at a higher price to make some profit. Thus, inone application of the present invention in which the automotive core fulfillment system 10 is utilized by a core supplier, the Demand and Pricing database 70 includes the prices that the core supplier is willing to pay to the automotive recyclers for the cores. That is the core value quoted is an offer to purchase price. When the core supplier's offer to purchase price is accepted by an automotive recycler, the core supplier makes a profit after covering the costs of aggregation and inspection of the cores and other services that the core supplier may provide. Of course, in other applications, for example where the automotive core fulfillment system 10 is utilized by a remanufacturer, the Demand and Pricing database 70 includes the prices that the remanufacturer is willing to pay directly to the automotive recyclers for the cores, or similarly, a price that the remanufacturer is willing to pay to a plurality of core suppliers.
The automotive core fulfillment system 10 in accordance with the present invention provides an output to the automotive recycler 6 that includes the “salvage value” for a particular vehicle input into the system 10. The output identifies those cores of the particular vehicle for which there is a demand, and an offer to purchase price can be identified to purchase the identified parts from the automotive recycler.
As shown in
Search by Vehicle
A user may search for automotive cores by a particular vehicle. For example, if an automotive recycler 6 selects the search vehicle button 221, a user input screen 240 as shown in
As shown in
Regardless of the manner in which the vehicle information is provided, in step 1120, automotive core fulfillment system 10 receives the vehicle information via interface module 30.
As further shown in step 1140 of
In step 1200 of
Vehicle evaluation page 250 lists automotive parts that the core supplier wishes to purchase and the offer price that the core supplier is willing to pay to a dismantler or to a recycler or to a salvage yard for the particular part. The vehicle evaluation page 250 returns a list of parts with the part type 252 and a yard description 254 with which to identify each core. The yard description 254 may also include appropriate interchange numbers, such as Hollander numbers or Lester numbers, and the like, as well as OEM descriptions to help further determine the identity of each part. Additionally, the core supplier may also provide additional descriptive information with which to identify and confirm the parts listed. Further, the listed parts may also include additional description information requiring a Cast number or an OEM number on the part in order for the part to be worth the core value listed. For example, cast descriptions may be shown in bold face type, while other information may be displayed in italics or within parentheses or in any similar manner so as to identify the notations in the yard description 254 field. The core value 256 is listed for each part offered by the core recycler. Cores that have no demand or no value to remanufacturers may be listed with a core value of $0.00 as in the present example, or may be omitted from the vehicle evaluation page 250. The core values help automotive dismantlers determine if it is cost effective to remove particular cores from the vehicle. Of course, vehicle evaluation page 250 may display different interchange numbers, be arranged differently, and provide additional information in other implementations of the present invention.
As shown in
Optionally, the system of the present invention may also include an optional button or hot link indicating or confirming that by submitting this batch of core parts, the automotive recycler 6 agrees to comply with any materials requirements specified by the core supplier or any other shipping and exchange policies that the core manufacturer has put in place.
Once the automotive recycler 6 completes these entries, the automotive recycler 6 may select the Save Batch button 280 and advance to the Vehicle Summary page 320 shown in
From the Vehicle Summary page 320, an automotive recycler 6 may then view and print a dismantling report by selecting the print dismantler report button 362. Similarly, a dismantler report may be printed without core value prices by selecting the print dismantler report (no prices) button 364. For example, by selecting print dismantler reporter report button 362, the dismantling report 402 depicted in
Similarly, returning to
The system and method of the present invention may use the tags and tag printers of the automotive recycler 6 and may be printed in a uniform format for ease of inventory control, shipping, and payment upon receipt by the core supplier. Further, a number of tag options may be presented to the automotive recycler 6 the first time that the automotive recycler 6 prints tags. The options may then be saved as a default format with which to print the tags to attach to the parts as the parts are removed from the vehicles.
After the automotive recycler 6 prints the dismantling report 402 and the tags 404, the automotive recycler 6 may then begin dismantling the vehicle, add notes or memos to the system, log out, or create additional reports on other vehicles and parts.
Once the vehicle has been dismantled, and the dismantler has returned the paperwork indicating which parts were actually removed, the automotive recycler 6 may now add the removed parts to the BIN inventory. The typical core supplier BIN is considered to be a 48″ cube Gaylord box where all the tagged cores you remove are placed. Of course, other bin types and shipping and storage containers may also be used depending upon the typical shipments, inventory values, and methods of transportation required.
To add the dismantled items to the BIN inventory, the automotive recycler 6 must verify that the parts have been removed from the vehicle. To verify that the parts have been removed, the automotive recycler selects the In Progress tab 406, such as that shown on
As shown in
An overall dollar value is displayed for your entire “In Progress” inventory. A total in-process value 458 is shown that is the sum of the individual in-process batch totals 456 for each of the batches listed. In the example of
As outlined above, once the automotive recycler 6 selects the view link 424 from the “In Progress” page 420, the “vehicle summary” page 320 as shown in
Once the automobile recycler 6 verifies that parts were removed and placed in the core supplier BIN, the automotive recycler 6 selects the “Add to RAS Bin” button 398. By selecting the “Add to RAS Bin” button 398, the checked parts are added to the automotive recycler's BIN inventory. Once the selected parts are added to the BIN inventory, the BIN screen 520 illustrated in
The BIN inventory is electronically monitored by the core supplier. The system and method of the present invention permits the core supplier to keep a running total of the number of parts and the dollar value of the parts in the BIN inventory. The core supplier contacts the automotive recycler 6 to schedule a materials pick up when it appears that the automotive recycler 6 has enough parts in the BIN inventory to warrant a shipment. Flexibility is built into the system of the present invention, and if the automotive recycler 6 has an inordinate volume of inventory, or an inventory with a high dollar value, additional pick ups may be scheduled through the BIN screen 520.
Once the Bin contents are confirmed, the automotive recycler 6 checks box 590 to select the created batch. Alternatively, the automotive recycler 6 may check the check all button 592 to choose all material currently in the BIN inventory. Once the appropriate batches have been checked, the automotive recycler 6 selects the “Create Invoice” button 594 to create an invoice 620 as shown in
After invoice 620 is displayed, the automotive recycler 6 may review the invoice 620 and then confirm the invoice 620. To ensure accuracy with in-transit inventory, the automotive recycler 6 confirms the accuracy of the invoice 620 before the material is removed from inventory. To confirm the invoice 620, the automotive recycler 6 selects the “confirm invoice” button 624. The process then advances to the Invoice Detail page 720 as shown in
As shown in
Search by Interchange Number
In addition to searching the automotive core fulfillment system 10 by vehicle, an automotive recycler 6 may search by interchange number, such as a Hollander number, a Lester number, and the like.
For example, returning to start screen 220 shown in
Once the part type and interchange number are entered, the automotive recycler 6 selects the Go box 962 in
As shown in
Optionally as above, the system of the present invention may also include an optional button or hot link indicating or confirming that by submitting this batch of core parts, the automotive recycler agrees to comply with any materials handling requirements specified by the core supplier or any other shipping and exchange policies that the core manufacturer has put in place.
Once the stock numbers 978a-978d are entered and the automotive recycler 6 saves the batch by selecting the save batch button 975, the batch results of the search will then be presented as the vehicle summary page 980 shown in
Once the automotive recycler 6 reviews the vehicle summary page 980, the process continues in a similar manner as was the case outlined above with regard to
Memos
In addition to searching the automotive core interchange system 10 by vehicle or by interchange number, the automotive core fulfillment system 10 includes the facility to review critical system information by selecting the memos button 226 shown in
Manual
In addition to searching the automotive core fulfillment system 10 by vehicle or by interchange number and accessing memos regarding updates and other information, the automotive core fulfillment system 10 includes the facility to review the operations manual by selecting the manual button 229 shown in
The automotive core fulfillment system 10 in accordance with the illustrated embodiment as described above is invaluable to automotive recyclers because it allows them to determine what the cores of a particular vehicle and their core inventory is truly worth, while also enabling them to have better control over labor costs. As described, the present invention allows automotive recyclers to control their labor costs because they will no longer waste time removing core parts that have little or no value, and can readily identify the core parts with value.
Moreover, the automotive core fulfillment system 10 in accordance with the illustrated embodiments provides an especially advantageous use in that it can be used during the dismantling process before the vehicle is moved into storage, for example, in a salvage yard, thereby allowing the automotive recycler 6 to remove a wider range of cores that are of value. The system and method of the present invention allows the automotive recycler 6 to make quick determinations as to whether to invest in the labor required to remove the particular automotive cores with value.
For example, a power brake booster core for a particular vehicle model may be worth $15 based on current demand and pricing information as provided by database 70. With the vehicle in the dismantling facility of the automotive recycler, the removal of the core with the available tools in the dismantling facility may only be 5-10 minutes, thus, making it economically worthwhile to remove the brake booster core. If the brake booster core has to be removed while the vehicle is in the storage facility of the automotive recycler, it may take much longer, for example, 15-20 minutes. Such labor requirements would render the brake booster core not worth removing.
While various embodiments in accordance with the present invention have been shown and described, it is understood that the invention is not limited thereto. The present invention may be changed, modified and further applied by those skilled in the art. Therefore, this invention is not limited to the detail shown and described previously, but also includes all such changes and modifications.
The present application is a continuation application of U.S. patent application Ser. No. 12/017,767 filed on Jan. 22, 2008, entitled “Automotive Core Fulfillment System and Method,” which claims the benefit of priority of U.S. Provisional Patent Application No. 60/881,524 filed on Jan. 22, 2007. These applications are incorporated by reference below in their entirety.
| Number | Date | Country | |
|---|---|---|---|
| 60881524 | Jan 2007 | US |
| Number | Date | Country | |
|---|---|---|---|
| Parent | 12017767 | Jan 2008 | US |
| Child | 12691956 | US |
