Lot Tracking
What is lot tracking?
Lot tracking is a warehouse inventory management practice that groups products and tracks them through the supply chain. Each lot receives a unique identifier.
Lots can be tracked by a range of variables, including production batch, serial number and manufacturing date or expiry date.
It is sometimes called inventory lot tracking, lot number tracking or batch tracking.
What are the benefits of lot number tracking?
Lot tracking ensures complete traceability. For example, if a particular product batch is defective, lot tracking can be used to identify the relevant batch and remove it from the supply chain.
Lot number tracking can also be used in first-expired-first-out (FEFO) warehouse management to prioritize older inventory, preventing products from expiring and reducing waste.
Lot number tracking is essential in the food and beverage and pharmaceutical sectors, as well as where strict regulatory compliance is vital.
How a lot management system works
A lot management system assigns and tracks lot numbers as well as data associated with lots, like manufacture and expiration dates. It generates alerts when products approach expiration thresholds and can generate compliance reports showing complete movement history.
A lot management system can be integrated with a warehouse management system (WMS) to determine where to locate batches and which batches should be picked first.
How inventory lot tracking works
When goods arrive in a warehouse, the lot management system captures the lot number provided by the manufacturer through supplier documentation. If the goods are produced in-house, the lot management system generates a unique lot number.
If integrated with a WMS, the WMS records which lots occupy which storage locations. During picking, the WMS directs operatives to specific lots. Operatives then scan the lot barcode on the item to confirm the exact lot number, preventing them from picking the wrong lot.
Lot tracking numbers are captured on shipping documentation, creating a complete chain of custody from manufacturer through to end customer.