Definition
Lot tracking (also called batch tracking) is the practice of assigning a unique lot number to a group of products that were manufactured, received, or processed together. Every unit in the lot shares the same identifier, making it possible to trace the entire batch through the supply chain.
How lot tracking works
When inventory arrives at a warehouse, each delivery or production run is assigned a lot number. This number follows the products through storage, picking, packing, and dispatch. If a problem is discovered later, the lot number links back to the supplier, purchase order, manufacturing date, and every customer who received units from that batch.
- Goods-in: lot numbers are assigned or scanned when stock is received
- Storage: lots are tracked by warehouse location
- Picking: pick lists specify which lot to pick, often using FEFO (first expiry, first out) rules
- Dispatch: the lot number is recorded against each order line
- Tracing: any lot can be traced forward to customers or backward to suppliers
Why lot tracking matters
- Recalls: if a batch is defective or contaminated, you can identify exactly which customers received it and which stock to pull from shelves
- Compliance: industries like food, pharmaceuticals, and cosmetics require batch-level traceability for regulatory audits
- Quality control: tracking lots helps identify patterns - if complaints cluster around a specific batch, you can investigate the supplier or production run
- Expiry management: lots with expiry dates can be prioritised for dispatch before they expire, reducing waste
When you need lot tracking
Lot tracking is essential if you handle:
- Food and beverages with use-by or best-before dates
- Pharmaceuticals or supplements with batch-level regulatory requirements
- Cosmetics with shelf life and ingredient traceability needs
- Any product where a supplier recall could affect customer safety
- Wine, spirits, or other products tracked by vintage or production run
Lot tracking vs serial number tracking
Lot tracking groups multiple units under one identifier. Serial number tracking assigns a unique identifier to every individual unit. Lot tracking is used for consumable goods sold in quantity. Serial tracking is used for high-value items like electronics where each unit has a distinct history.