Sherwin Shao is the principal consultant at DBA PRO CORP. He is referred to as the “Inventory Guy” at his
client organizations, as he helps focus on improving inventory operations.


The techniques he developed for inventory management were motivated by the difficulties he faced when he
owned physical retail stores. “Selling supplements retail was a very competitive environment”, Shao says. “The
intense margin pressure left no room for operational mistakes.
When asked about systems support for his operations, Shao said, “The existing systems did not help optimize
our operations. Inventory On Hand is a static number, but I wanted context on how long that inventory will last.
Sales reports were all based on time ranges such as months, which is a rough measure that ignores real-time

Retail Science

Shao continues:  “So we built our own system, leveraging best practices in finance and engineering. We simply inverted the bucketing concept, and came up with a new Speed metric representing the number of days between sales for each UPC.”

“Here’s the problem we’re solving. If your report shows you sold 25 items last month, you may order 25 more to restock. What if all the sales were in the first week, and inventory on shelf did not move in the last 3 weeks?”

“So imagine items flying off the shelf every 2 days regularly.  In that case 30 items in inventory should last 60 days.  Now imagine 3 days pass before the next sale, then 4 days pass, instead of the regular 2 days. It’s clearly slowing. Traditional reports using time range buckets will show nothing until two months later. Using dynamic data from Retail Science, you can be alerted to the change in speed immediately, and respond quickly.”

Free Consulting Offer

Using concepts derived from Retail Science, Sherwin helped dozens of retailers optimize their operations, which touches upon order management, marketing, and pricing.

Our free offer is to analyze your timestamped chain of sales data for one single product or product line, including price and quantity (Usually from your POS system). We will then use our data infrastructure to calculate the speed and the trend, and give you insights on your inventory that helps you make better decisions. For example:

  • How many days before stockout?
  • When to place your next order, and for what quantity?
  • What’s the sensitivity of sales to price changes ?
  • What’s the sensitivity of sales to events?

Book Your Free Consultation Now