Jaros

Our customers use the Inventory and Costing module to track inventory levels and understand item costs. They can observe inventory levels and values to get a good read on how well they are managing their inventory.

Here are some of the questions that our customers are answering.

1. What are my available raw materials for a WIP job?
2. What are my stock levels for various materials?
3. Are we managing our inventory levels effectively?
4. I need to track material movement.
5. I need cycle count information.
6. I need inventory aging information.
7. What are my current item costs?
8. What are my current elemental item costs?
9. What are my current sub-elemental item costs?
10. What are my costs after a cost rollup?
11. Does my cost subsystem accurately reflect what I am paying for the purchased item?
12. How many of these items have I sold and how many have I used as a component in an assembly?
13. What is my inventory value? And for a particular item or groups of items?
14. What is my inventory turns? And for a particular item or groups of items?
15. What is my cost of sales? And for a particular item or groups of items?

The automotive industry has a substantial investment in inventory related to steel. The cost of steel has increased substantially over the past two years. One of our automotive suppliers uses our system to effectively manage inventory by getting detailed reporting on inventory value, cost of sales and inventory turns. Increasing their turns by more effectively managing their inventory is resulting in savings to the company. Another customer of ours reduced their inventory by over a million dollars by using our system to identify obsolete and excessive inventory. We provided them with information such as quantities on-hand, quantities sold by period, quantities used in WIP by period, demand going forward and inventory value. With this information they were able to better manage their inventory. Item costs and cost rollups are important in defining cost of sales. Our customers see cost of sales on every order line and every invoice line so that they can understand what their cost of sales and gross margins are at a very detailed level. They see the elemental costs as well as the unit costs. One of our customers associates some of the sub-elemental costs to the sales order and invoice lines.

Item costing in Jaros includes unit costing, the five elemental costs and all of the sub-elemental costs. Our customers use Jaros for bill of materials reporting with associated costs as a result of cost rollups. This helps them verify the costing has been correctly applied. In addition, all items in inventory have unit and elemental costs associated with them. This gives our customers inventory value reporting at any level of detail. Our customers also use our solution for PPV reporting. Each PO line has the current cost as defined by the costing system in Oracle®. This allows for a very detailed level of PPV reporting.