Lot Tracking

Lot tracking (also called batch tracking) is the practice of assigning unique identifiers to groups of products manufactured or received together, then tracking those identifiers through inventory and sales. This enables traceability for recalls, quality issues, and regulatory compliance.

What Is a Lot Number?

Definition

A lot number identifies a specific batch of products that were:

• Made at the same time
• Made with the same materials
• Received in the same shipment
• Subject to the same conditions

Lot Number Examples

LOT2024-0215A
  │    │   │
  │    │   └── Production run (A = first of day)
  │    └────── Date (Feb 15)
  └─────────── Year

Other formats:
- Manufacturer lot: MFG20240215
- Receiving lot: RCV-2024-00123
- Internal lot: L2024021501

Why Lot Tracking Matters

Recall Management

Issue discovered: Contaminated ingredient in Lot 2024-0215

With lot tracking:
- Identify exactly which products affected
- Find where those products are now
- Recall only affected items
- Notify specific customers

Without lot tracking:
- Must recall entire product line
- Cannot identify affected customers
- Massive scope and cost

Quality Control

• Trace quality issues to source
• Identify affected batches
• Root cause analysis
• Prevent future issues

Regulatory Compliance

• FDA requirements (food, drugs)
• ISO standards
• Industry regulations
• Audit trail

Lot Tracking Process

Lifecycle

1. RECEIVING
   Lot number assigned or recorded
         ↓
2. STORAGE
   Lot tracked to location
         ↓
3. PRODUCTION (if applicable)
   Input lots recorded, output lot created
         ↓
4. FULFILLMENT
   Lot recorded with outbound order
         ↓
5. CUSTOMER
   Lot linkable to customer/order

Data Captured

Lot Tracking Requirements

Industries Requiring Lot Tracking

Information to Track

• Lot number
• Manufacture/receive date
• Expiration date (if applicable)
• Quantity
• Location
• Supplier/manufacturer
• Associated orders

Implementing Lot Tracking

System Requirements

• WMS or inventory software with lot support
• Barcode/scanning capability
• Database for lot records
• Reporting tools
• Integration with other systems

Process Steps

1. Define lot numbering scheme
2. Configure system for lot tracking
3. Update receiving procedures
4. Modify picking processes
5. Train warehouse staff
6. Establish audit procedures

Lot Tracking in WMS

Receiving

Receive 500 units of Product A
System prompts: Enter Lot Number
Enter: LOT2024-0215A
System records:
- SKU: PRODUCT-A
- Quantity: 500
- Lot: LOT2024-0215A
- Location: A-1-3
- Date: 2024-02-15

Picking

Order: 50 units of Product A

WMS directs:
Pick from Location A-1-3
Lot: LOT2024-0215A
Quantity: 50

System records lot picked for order

Lot Tracking vs. Serial Tracking

Lot-Based FIFO

Combining Lot + FIFO

Lots in inventory:
LOT-001 (received Jan 1) - 100 units
LOT-002 (received Jan 15) - 100 units
LOT-003 (received Feb 1) - 100 units

FIFO + Lot rule:
Always pick LOT-001 first
Track which lot(s) go to which orders

Handling Recalls

Recall Process with Lot Tracking

1. Identify affected lot(s)
2. Query system for lot location
3. Quarantine in-stock units
4. Identify shipped orders with that lot
5. Contact affected customers
6. Process returns
7. Document everything

Recall Metrics

Lot: LOT2024-0215A
Total produced: 1,000 units
Currently in stock: 150 units
Shipped: 850 units
Orders affected: 127 orders
Customers affected: 98 customers

Best Practices

Lot Management

1. Clear numbering convention
2. Record at every touchpoint
3. FIFO by lot date
4. Regular audits
5. Quick lookup capability
6. Document retention

Common Mistakes

• Inconsistent lot recording
• Missing lot at picking
• No system enforcement
• Poor training
• Inadequate records