A mechanism for tracking parts or components linked with a set of products directly to a manufacturer or supplier is known as lot tracking. Stock is also organized by lot tracking, which is used to manage inventory by production or payment terms.
It is crucial for a business to maintain it’s stock and inventory so as to ensure that they don’t fall short on consumer demands or roll out more products in the market than needed. In either case, the company will have to suffer from loss – reputation in one case, product loss in the other.
Which Items Necessitate the Use of Lot Tracking Numbers?
Many items can profit from a lot tracking system, but it is more costly to implement because each lot requires its storage area and cannot be stored with comparable quantities of the same product.
Of course, there are some products for which lot tracking is required. The Food and Drug Administration (FDA) of the United States is in charge of improving the protection of the following goods marketed or produced in the country.
A lot tracking system is required for any product that requires FDA approval (due to an expiration date or the presence of components that must be regulated). Here are some examples of FDA-regulated product types:
- Drinks and food
- Cleaners for the home
- Various technological gadgets
- Supplements and vitamins
- Medical equipment
- Beauty products
Lot tracking is a warehouse management standard protocol for organizing and storing online inventory to assure quality control, traceability, and appropriate fulfillment.
If you are concerned about finished products expiring before their expiration dates, for example, you can employ a lot tracking system to guarantee that the things that entered the FDA-approved warehouse initially are also the ones to be delivered.
This cash flow method is known as “FIFO” (first in, first out), and it serves to limit the number of products that go old before they’re supplied to clients.
What is the Significance of Lot Tracking in Inventory Management?
Lot tracking is a critical inventory management procedure that allows firms to track products by expiration date, manufacturer, or production date is required to conform to rules and respond quickly in the event of a recall. Ecommerce organizations can also use food tracking to keep inventory organized and ensure that a whole batch of products is delivered first.
Here are a few other methods that lot tracking aids inventory management in firms.
Obtain the Detailed Information on Product Lots
Have you seen a pattern of products from the same lot being brought back? With lot tracking, you can get customized production run reports from your warehouse to figure out which products aren’t fulfilling the needs of your clients. This can assist with returns management, for example, by allowing you to instantly recognize which batch of inventory is creating a massive number of returns.
Have a Complete Picture of the Supplier Chain
By maintaining track of your inventory promptly, lot tracking can enable you to streamline your supply chain. You can keep inventory refers to a shared property with lot tracking, allowing you to see where batches of goods are housed and which products are delivered first.
Remove Human Error from the Equation
Ordering validity can also be improved by using lot tracking. Lot tracking eliminates the need to manually track inventory, allowing you to prevent frequent picking errors like shipping an outdated item out. Installing software that enables users to create up lot tracking may make managing moving inventory easier and faster, as well as conducting inventory audits and warehousing audits.
Assist with Recalls
You must be capable of acting promptly in the event of a product recall. You may track which goods or lots are being recalled, when they were made, and where they are now being kept by consistently tracking products associated with particular characteristics. This way, bad batches can be swiftly removed from one or more retail stores before more items are delivered and dispatched.
Recommended Techniques for Inventory Lot Tracking
Order fulfillment and inventory management operations can both benefit from lot tracking. Here’s a rundown of some lot tracking best practices to think about and apply to your warehouse management.
At the Lot Stage Fulfillment
When it comes to products with an expiry date, meat tracking via lot tracking can help you enhance your fulfillment process. You can give lot numbers to a collection of products depending on their expiration dates using inventory management software, ensuring that the older things are dispatched first.
Make use of a Barcode Scanner
Using a stock scanner system to tag each lot with a barcode is one of the finest ways to reduce manual labor. You can also save time by scanning a barcode instead of manually entering data for each batch. This feature can assist improve productivity and efficiency and human error while also expediting the retail fulfillment process.
Make use of Fulfillment Centers
You can divide inventory across several fulfillment distribution sites while still adhering to FDA rules thanks to lot tracking. For example, if you work with a third-party logistic (3PL) business, you can give each batch of inventory a number so that they can be kept independently. This ensures that the necessary things are kept accurately, delivered appropriately, and are identifiable.
How Companies Incorporate Lot Tracking into Their Supply Chain Management System
Lot tracking is used by companies to guarantee product quality during the fulfillment process. You can allocate a lot number to individual items kept in our fulfillment facilities from the company’s dashboard. Companies store the items in distinct locations based on their lot number after we obtain your warehouse receiving order (WRO). Additional information regarding our lot tracking method can be achieved here.
You can divide products depending on their lot numbers using our lot feature. They will not keep a lot of items alongside other non-lot goods or other lots of the same product if you provide us one.