Inventory and Warehousing
Lot tracking is the practice of recording which production batch each unit belongs to so it can be traced from receiving to the customer.
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Lot tracking means recording the lot, or batch, number for inventory as it moves through the warehouse. Every unit from the same production run shares a lot number, and the warehouse keeps those lots separate in its records so it always knows which batch is where.
It is standard practice for supplements, skincare, cosmetics, food and other products where quality, safety or expiration varies by batch.
At receiving, staff record the lot number and, if applicable, the expiration date for each batch of a SKU. The warehouse management system stores the lot with its location. When an order is picked, the system notes which lot was shipped, creating a link between the batch and the customer order.
This chain of records makes it possible to answer questions quickly. If a manufacturer reports an issue with lot 24B-118 of a collagen powder, the brand can see how many units remain in stock, pull them from sale and identify which customers received units from that batch.
Lot tracking is your safety net for recalls and quality issues. Instead of pulling every unit of a product, you can isolate only the affected batch, which saves inventory and limits disruption.
It also supports better inventory rotation. Combined with expiration dates, lot data lets the warehouse pick first-expired, first-out, so short-dated stock ships before it goes bad. Retail partners may also ask for lot information as part of their compliance requirements.
FAQ
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Lot tracking groups many units from the same batch under one number, while serial tracking gives every single unit its own unique number.
It is strongly recommended. Lot tracking lets you trace batches, manage expiration dates and respond quickly if a quality issue comes up.
It shows exactly which units from an affected batch are still in stock and which orders they shipped in, so you can act on only the affected product.
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