License Plate Number (LPN) in Warehousing

What is a License Plate Number (LPN)?

In warehousing, a license plate number (LPN) is a unique identifier, usually printed as a barcode label, that is attached to a container such as a pallet, carton, case or tote. The LPN represents everything inside that container, so the warehouse management system (WMS) knows which products, quantities and batches the container holds without anyone opening it.

Significance of License Plate Numbers (LPN)

LPNs let a warehouse handle a container as one unit instead of item by item:

• Faster movements: Staff scan one LPN to receive, move or ship a whole pallet or carton, rather than scanning every product inside it.
• Inventory accuracy: Each scan updates the WMS with the container’s exact location and contents, which reduces miscounts and lost stock.
• Traceability: Because every container has its own ID, the warehouse can trace where goods have been, from receiving through put-away, picking and dispatch.
• Better use of space: Knowing what each container holds and where it sits helps the warehouse plan storage and replenishment.

How License Plate Numbers (LPN) Work

1. Receiving: When goods arrive, the warehouse assigns an LPN to each pallet or carton and records its contents in the WMS.
2. Put-away and moves: Each time the container moves to a new location, staff scan the LPN and the location, and the WMS updates in real time.
3. Picking and packing: Pickers can take a whole LPN for large orders, or pick individual items from it and the WMS adjusts the remaining contents.
4. Shipping: Outbound cartons or pallets can carry their own LPN, so the shipment’s contents are confirmed with a single scan at dispatch.

For LPNs to work, every label must be unique, printed clearly and kept attached to its container, and the contents recorded against it must be accurate.

Use Case of License Plate Numbers (LPN)

A brand sends a pallet of 40 cartons to its fulfillment partner. At receiving, the pallet gets one LPN and each carton gets its own. When the pallet is moved to a storage rack, a single scan of the pallet LPN updates the location of all 40 cartons. Later, when a retailer orders 10 cartons, the picker scans those 10 carton LPNs and the system knows exactly which products and quantities are leaving the warehouse.