Competitive Procurement Patent Awarded to e-LYNXX
CHAMBERSBURG, PA— November 11, 2008—A U.S. business method patent (Patent No. 7,451,106) that will change the way organizations buy customized goods or services has been awarded to e-LYNXX Corporation, one of the leading procurement management firms in North America.
"U. S. Patent No. 7,451,106 is revolutionary because it forms the backbone for any electronic system that manages the procurement of a customized good or service. Systems are available today through such companies as SAP, Ariba and Oracle that manage the procurement of inventoried items — those items that are mass produced and kept in a warehouse until they are ordered, such as through an on-line catalogue. A customized good or service is very different. It must be ordered to precise specifications at the time of purchase. Examples, to name a few, include commercial print, construction services, direct mail, labels, machined parts, marketing materials, product packaging, temporary staffing, textiles, transportation, trucking, and more," said William Gindlesperger, inventor of the methodology for which the patent was awarded and founder and chief executive officer of e-LYNXX Corporation.
"The magnitude of the impact of this patent is enormous since 6 to 30 percent of a typical organization's sales/revenues are attributable to the purchase of customized goods and services before the organization can produce a product or deliver a service. Every organization with an electronic procurement system designed to procure customized goods or services — that follow the steps outlined in this new patent — will need a license to use the patented methodology. This would apply to systems that are developed internally as well as systems obtained through third party brokers, procurement services and system providers."
Known as The Gindlesperger Method, the patent covers any electronic system for procuring customized goods or services that automatically matches supplier attributes with contract specifications to identify qualified suppliers, disseminates a bid solicitation to at least two identified suppliers and receives and forwards a bid response to the buyer. The simple methodology of this patent allows for a buyer to maintain its own qualified supplier base, obtain optimal cost reductions by establishing an environment in which the supplier is permitted to sell its excess capacity by bidding high, low or not at all without regard to buyer pricing expectations, without setting a precedent for its next bid price and while ensuring inclusion in the next bid opportunity on which the supplier is qualified.
Anthony Hawks, e-LYNXX Chief Legal Officer said some companies may already be using this methodology since e-LYNXX filed the patent on Nov. 30, 1998. "During that ten-year period, it is conceivable that this approach to procurement may have been implemented somewhere, but our interest is to work with those organizations, because we see licensing use of this patent to be an attractive proposition for any entity that buys customized goods and services," he explained.
The Gindlesperger Method
U.S. Business Method Patent No. 7,451,106
Summary of process:
U.S. Patent No. 7,451,106 is a business method patent that applies to any electronic system of procuring customized goods or services that includes all of the following five activities:
PRE-QUALIFY SUPPLIERS: Store attributes of suppliers accepted into a buyer’s supplier pool;
ESTABLISH SPECIFICATIONS: Store specifications and other requirements for performing contract;
IDENTIFY BIDDING POOL: Automatically match supplier attributes with specifications and other requirements to identify suppliers qualified to perform contract;
SEEK BIDS: Send specifications and other requirements to identified suppliers;
PROCESS BIDS: Receive and communicate at least one bid response to buyer.
Examples of customized goods and services to which U.S. Patent No. 7,451,106 applies:
o print (e.g. direct mail, marketing materials, commercial print, labels and o product packaging)
o machined parts
o temporary staffing
o construction services
About William Gindlesperger
William Gindlesperger, founder, president and chief executive officer of e-LYNXX Corporation, is a nationally recognized entrepreneur, inventor, author and consultant in procurement and its positive impact on buyers through contribution pricing and on suppliers through excess capacity utilization and overhead absorption. He has testified before the U. S. Senate Committee on Rules and Administration regarding government print and procurement policy. He also has worked directly with numerous Congressional and Senatorial members and staff and has advised Congress on the development, operations and future of GPO print procurement and the federal print program in general. Mr. Gindlesperger invented the methodology, known as The Gindlesperger Method, that optimizes cost reduction in the procurement of customized goods and services. He was granted two separate business method patents by the U. S. Patent Office, first on the competitive procurement of print, and then on the competitive procurement of all customized goods and services. A native of Chambersburg, Pa., Mr. Gindlesperger is a graduate of Dickinson College. He founded e-LYNXX Corporation, and its predecessor ABC Advisors, Inc., in 1975.
About e-LYNXX Corp.
e-LYNXX Corp. (www.e-LYNXX.com) (888-876-5432) licenses its business method patent (U. S. Patent No. 7,451,106 - known as The Gindlesperger Method) to buyers and third party procurement system providers. e-LYNXX also works with print buyers to reduce their print costs through its American Print Management division (www.americanprintmanagement.com) and with print suppliers seeking to improve their revenues by winning government work through its Government Print Management division (www.governmentprintmanagement.com). Founded in 1975 as ABC Advisors, e-LYNXX Corporation is based in Chambersburg, PA 17201.