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INVENTORY TRACKING AND COSTING

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Inventory Tracking and Costing

One of MillTech’s main strengths is our ability to manage and cost inventory, including:

  • Track wood both as it goes through the many processes that one load or run of lumber may undergo and the resulting products and fall down and varying recoveries.

  • Track lumber as it makes one or multiple physical moves.

  • Flexible costing. In past sawmills and remanufacturers have not had any automated way to do their costing and as a result have evolved their own unique methods and philosophies regarding costing. MillTech was developed to be flexible enough to handle the vast majority of these unique costing demands.

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Costing Methods that MillTech Facilitates:

 

  1. Average Costing: Used primarily by wholesalers or companies that do not tag. It averages costs by volume coming in and going out. Provides an accurate reflection of inventory value on a volume / location basis.

  2. Standard Costing: Used by anyone wanting to standardized their inventory costing. Prevents salespeople from digging in the back of the yard for those cheaper tag packs, as every pack of lumber has the same cost.

  3. Tag Costing: the most accurate form of costing. Cost stays with tags and accumulates any remanufacturing costs as it travels through the system.

  4. LIFO and FIFO Costing: although this is mostly a manual procedure MillTech tracks how long the tag has been in your system (we can also track source tags if they have been remanufactured). This will allow companies to relieve inventory on a Last in First Out or First in First out method of costing / inventory control.

  5. Force Costing: allows the most freedom of costing methods without losing costing controls. Allocate costs as you like and leave 1 or more lines free of a cost. Then allow the system to allocate the remaining costs to these blank cost lines, preserving costing balance with the system.

  6. Manual Costing: Absolute freedom of costing, you can cost anyway you like the system will never force you to use on of the above costing methods.

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