Recently, Hengtian has collaborated with Nike (China) Ltd. (hereafter referred to as Nike) to create a store level DSI (*Day Sales of Inventory) classification model system. The system, which has already finished the POC, will provide big data service for Nike’s stores across the country, and aim to analyze inventory turnover more scientifically and accurately. At this point, Hengtian has won another important client in the field of FMCG, following Nongfu Spring, Wuliangye, China Tobacco and other leading FMCG enterprises.

There are thousands of Nike distributers across China, but sales strategy and volume of sales can vary greatly between stores. In addition, the original DSI classification model has few functions, and stores will sometimes rely on the store manager’s personal experience to determine the final distribution volume. This can result in many problems including inventory backlog, high warehouse costs, or insufficient stock, etc.

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Based on Big Data solutions and rich project experience, Hengtian’s team was able to thoroughly understand the customer’s specific needs, such as industry safety stock formula, data model and logic adjustment to develop the day sales of inventory system. The data analysis model and system architecture incorporate many data factors into the DSI model system. This allows users to easily calculate the final safety inventory days according to actual business needs. Through historical data, the system is able to predict the stores sales fluctuation in the next quarter, reduce resource consumption, and make store management more intelligent.

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Day Sales of Inventory Model Analysis

* Day Sales of Inventory: refers to the number of days between the acquisition of inventory to final consumption and sales. The fewer turnover days, the faster the inventory is being sold. However, not enough inventory in stock can cause problems meeting circulation demands. Excessive inventory will take up too much capital, resulting in waste of resources. Only through careful planning of production and operation can enterprises maintain an optimal inventory level.

About Insigma Hengtian Software Ltd.

Hengtian is a technology services company in Hangzhou, China, created in 2004 as an alliance among State Street Corporation, Insigma Technology (a Global Outsourcing 100 Company) and Zhejiang University. We provide offshore and onshore technology development, research and consulting services.Hengtian has been certified for compliance with ISO270001 and CMMI level 5.

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