What is Lot Tracking?
Lot tracking is a method for locating inventory movement by using lot numbers assigned to the different shipments and products. It can also be used to organize inventory by expiration and production date. Lot tracking is sometimes also known as batch tracking.
Significance of Lot Tracking?
Keeping a tab on the inventory allows companies to improve their product quality and provides greater inventory control. Here are some added advantages of lot tracking:
- By keeping track of your inventory in real-time, lot tracking can assist you with supply chain optimization.
- Implementing software that enables lot tracking can make it much simpler to handle moving inventory, making it possible for you to conduct inventory and warehouse audits more effectively.
- Some products have a short shelf life. Keeping a note of the lots can help with inventory management, selling items about to expire, and preventing excessive spending or unsalable goods.
How Does Lot Tracking Work?
During manufacture, lot numbers are assigned to various components of the items of the lots that need to be tracked. Either the packaging or the actual goods are marked with these lot numbers. These numbers are then used by lot tracking software to track each step in a batch.
Use Case of Lot Tracking
Industries like food and beverages and pharmaceuticals often use lot tracking since they produce high quantities of goods.
Organic raw materials and other components used in cosmetics manufacturing cannot resist severe temperatures or handling without being destroyed. In such situations, lot tracking can be useful. Besides the pharma, food and beverages, and cosmetics industries, lot tracking is used in many other industries.