US Patent:
20060229956, Oct 12, 2006
Inventors:
F. De Witt - Poughkeepsie NY, US
Brenda Schmadeke - Raleigh NC, US
Karyn Schneider - Baltimore OH, US
Glenn Webb - Kyle TX, US
Assignee:
INTERNATIONAL BUSINESS MACHINES CORPORATION - ARMONK NY
International Classification:
G06Q 40/00
Abstract:
A central information processing system and method evaluate financial health of a supplier of at least one of goods and services for a business entity, by determining that a supplier spend rate exceeds a predetermined level, determining a risk factor for the supplier based upon a financial health report and requesting at least one financial measurement of the supplier at a given period, wherein the period is based upon the risk factor. The risk factor is one of low, medium, and high risk. If the risk factor is low, the method requests the financial measurement on an annual basis. If the risk factor is medium or high, the method requests the financial measurement on a quarterly basis, determines if the supplier financial health has a high impact on the business entity, and initiates a mitigation plan to reduce a current quantity of purchase by the business entity from the supplier.