Using commercial share of wallet to manage vendors

Abstract

Commercial size of spending wallet (“CSoSW”) is the total business spend of a business including cash but excluding bartered items. Commercial share of wallet (“CSoW”) is the portion of the spending wallet that is captured by a particular financial company. A modeling approach utilizes various data sources to provide outputs that describe a company's spend capacity. Government agencies, procurement departments, and others that patronize small businesses can use CSoW/CSoSW to determine businesses that should be awarded contracts and businesses that should be denied. CSoW/CSoSW may also be used to manage approved vendor lists.

1 . A method of managing vendors, comprising: 
 (a) modeling industry spending patterns using individual and aggregate corporate data, including financial statement data;    (b) estimating a commercial size of spending wallet of a company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and    (c) managing inclusion of the company on a vendor list based on the commercial size of spending wallet of the company.    
     
     
         2 . The method of  claim 1 , wherein step (c) comprises: 
 managing inclusion of the company on an approved vendor list based on the commercial size of spending wallet of the company.    
     
     
         3 . The method of  claim 1 , further comprising: 
 (d) managing retention and removal of the company on the vendor list based on the commercial size of spending wallet of the company.    
     
     
         4 . The method of  claim 1 , wherein step (c) comprises: 
 determining whether to include the company on the approved vendor list based on the commercial size of spending wallet of the company.    
     
     
         5 . The method of  claim 1 , wherein step (c) comprises: 
 awarding a contract to the company based on the commercial size of spending wallet of the company.    
     
     
         6 . The method of  claim 1 , wherein step (c) comprises: 
 determining whether to require a performance bond from the company based on the commercial size of spending wallet of the company.    
     
     
         7 . The method of  claim 6 , wherein step (c) further comprises: 
 determining the amount of the performance bond based on the commercial size of spending wallet of the company.    
     
     
         8 . The method of  claim 1 , wherein step (b) comprises: 
 outputting the commercial size of spending wallet as a score.    
     
     
         9 . The method of  claim 1 , further comprising: 
 (d) estimating a share of wallet for the company.    
     
     
         10 . A system for managing vendors, comprising: 
 a processor; and    a memory in communication with the processor, the memory for storing a plurality of processing instructions for directing the processor to: 
 model industry spending patterns using individual and aggregate corporate data, including financial statement data;  
 estimate a commercial size of spending wallet of the company based on financial statement data of the company, total business spend of the company, and the model of industry spending patterns; and  
 manage inclusion of the company on a vendor list based on the commercial size of spending wallet of the company.  
   
     
     
         11 . The system of  claim 10 , wherein the processing instructions for directing the processor to manage inclusion of the company on a vendor list further comprise processing instructions for directing the processor to: 
 manage inclusion of the company on an approved vendor list based on the commercial size of spending wallet of the company.    
     
     
         12 . The system of  claim 10 , further comprising instructions for directing the processor to: 
 manage retention and removal of the company on the vendor list based on the commercial size of spending wallet of the company.    
     
     
         13 . The system of  claim 10 , wherein the processing instructions for managing inclusion comprise instructions for directing the processor to: 
 determine whether to include the company on the approved vendor list based on the commercial size of spending wallet of the company.    
     
     
         14 . The system of  claim 10 , wherein the processing instructions for managing inclusion comprise instructions for directing the processor to: 
 award a contract to the company based on the commercial size of spending wallet of the company.    
     
     
         15 . The system of  claim 10 , wherein the processing instructions for managing inclusion comprise instructions for directing the processor to: 
 determine whether to require a performance bond from the company based on the commercial size of spending wallet of the company.    
     
     
         16 . The system of  claim 15 , wherein the processing instructions for managing inclusion further comprise instructions for directing the processor to: 
 determine the amount of the performance bond based on the commercial size of spending wallet of the company.    
     
     
         17 . The system of  claim 10 , wherein the instructions for directing the processor to estimate comprise instructions for directing the processor to: 
 output the commercial size of spending wallet as a score.    
     
     
         18 . The system of  claim 10 , further comprising instructions for directing the processor to: 
 estimate a share of wallet for the company.