What is a Lot Number and Why do Manufacturers need them?
Master lot numbers for efficient inventory management. This practical guide offers essential tips and strategies to streamline your processes. Read more!
In the chaotic world of manufacturing and inventory control, one small string of characters can make or break your operations: the lot number. Whether you’re dealing with raw materials, tracking expiration dates, managing recalls or ensuring your customers get quality products, lot numbers are your secret weapon. But what exactly is a lot number and why should consumer brands care? Let’s dive in.
What Does a Lot Number Tell You?
A lot number provides key data, like production date, manufacturing location and the specific batch a product came from. This makes it easier to:
Ensure product quality
Implement lot tracking and quality assurance
Track down and recall an affected batch
Make informed decisions based on production trends
How to Find and Read a Lot Number
Lot numbers are usually printed on product packaging or labels. They're often near the barcode, SKU code or serial number. They can be alphanumeric (e.g., A1234B) or numeric (e.g., 20240518).
Example:
Lot Number: L051824
L = Lot
05 = May
18 = Day
24 = Year (2024)
This means the product was manufactured on May 18, 2024.
How Many Digits is a Lot Number?
There’s no universal format. A lot number can be anywhere from 5 to 12 characters long based on the manufacturer's inventory management system and lot control processes. Some companies use inventory software to generate and manage lot codes automatically.
Lot Code vs Lot Number vs SKU vs UPC
Let’s clarify the jargon:
Lot Code / Lot Number: Identifies a specific batch of products
SKU (Stock Keeping Unit): Identifies a particular product type, not a batch
UPC (Universal Product Code): Identifies a product in retail stores and online marketplaces
So, multiple lot numbers can exist under a single UPC/SKU.
Why Lot Numbers Matter in Manufacturing
Here are the key reasons why lot numbers are essential:
1. Quality Control Measures: If a defect is found, manufacturers can quickly identify the specific batch involved rather than recalling every product.
2. Efficient Inventory Management: Lot tracking improves inventory levels, prevents overstocking and helps keep inventory fresh.
3. Regulatory Compliance: Many industries require lot tracking for safety and compliance, especially in food and beverage, pharma and cosmetics.
4. Customer Satisfaction and Product Safety: Some retailers or distributors might have specific shelf life requirements for perishable products. Lot numbers help ensure only high-quality and compliance products reach the end user, contributing to customer satisfaction and safety.
5. Streamlined Production Process: Lot numbers help trace raw materials, ingredients or components used during the manufacturing process, improving operational transparency.
How to Track Lot Numbers
There are a few different ways to track lot numbers:
Manual: Using spreadsheets or printed labels (not ideal for scaling)
Inventory Management Software (MRP/ERP): Automatically assigns and tracks lot numbers
Warehouse Management Systems (WMS): Integrates lot control with logistics
Tracking includes regularly recording data, managing expiration dates and integrating systems to track lot inventory through distribution.
How to Decode and Check Lot Numbers
To decode a lot number, you’ll need to know the format used by the manufacturer. This could be based on:
Julian Dates (e.g., 124 for the 124th day of the year)
Production Dates (e.g., MMDDYY)
Plant Codes or Line Numbers
To check a lot number, use your inventory management system or spreadsheets to:
Look up inventory data
Trace back raw materials
Identify quality issues tied to a particular batch
Is a Lot Number the same thing as an Expiration Date?
No. While lot numbers and expiration dates are often listed together, they serve different purposes:
Lot Number: Helps tracks the batch and locate issues internally
Expiration Date: Tells the customer when the product is no longer safe/effective
Sometimes, lot numbers can help you calculate expiration dates, especially if you know the product's shelf life.
Common Mistakes in Lot Tracking
❌ Too Much Data: Trying to track every detail manually can slow things down and create confusion.
❌ Too Little Data: Skipping lot tracking entirely can lead to lost inventory, compliance issues, and big problems during a recall.
How to Improve Lot Tracking
Here are some best practices for accurate tracking:
If budget allows, implement inventory management software to automate and centralize records. If not, implement clear inventory management techniques using spreadsheets
Train your warehouse team or third party logistics partner (3PL) to consistently place the lot number in the same location
Final Takeaway
Lot numbers are more than just random strings on packaging. They’re the backbone of efficient inventory management, quality control and product safety. From tracking raw materials to managing recalls, these unique identifiers are critical to keeping your supply chain running smoothly.
FAQ
What is a lot number in manufacturing?
A lot number is an identification number assigned to a specific batch of products made under the same conditions. It helps track product origin, production date and quality control status throughout the supply chain.
Where can I find the lot number on a product?
You can usually find the lot number printed on the product label near the barcode, serial number or expiration date. It may also be stamped directly on the packaging or product itself.
How do you read a lot number?
Lot numbers vary by manufacturer but often include a combination of letters and numbers that represent the production date and batch. For example, L051824 could mean the product was made on May 18, 2024.
Do I need a lot number?
Yes, if you manufacture or distribute products in industries like food and beverage, cosmetics or pharmaceuticals. Lot numbers help with traceability, quality control and regulatory compliance.
What is the difference between a lot number and SKU?
A lot number tracks a specific batch of products. A SKU (Stock Keeping Unit) identifies a general product type. Multiple lot numbers can exist under the same SKU.
