Lot code

Speaking of putting serial numbers to use, how do you use a lot number? Food and beverage
and drug companies use lot numbers the most. But other verticals make use of them as well.
In fashion, for example, dyed fabric may come out a different color in different lots.

With that, there are a few key scenarios when any retailer may want to reference lot
numbers:

 Product recalls: The FDA has ten pages that list recalls for 2018, a list that continues to
grow. Unfortunately, product recalls are a reality that can’t always be avoided. If it does
happen, you can easily apply the recall to the products with the corresponding lot number,
rather than recalling ALL of the products from the manufacturer.

 Quality assurance: Along the lines of being able to quickly address product recalls, you
can also use lot numbers as part of your QA process. As you randomly test products from
different batches, you can locate the lot number of a defective item. If the other items in
that batch are defective, you know to pull all of the merchandise with that lot number —
rather than having to take the product off the shelves/offline completely.

 Legal compliance: The FDA and various other governmental organizations may require lot
numbers and lot tracking for food and drug companies, as well as retailers that sell
firearms and fireworks. It’s best to do your research based on what and where you operate
and sell to make sure you’re complying.

 Official certifications: While you must abide by laws, you may also want to consider
acquiring additional certifications to accredit your business. The ISO has a general one,
and there are also many industry-specific certifications that may require lot tracking.

When to use a serial number

Remember our answer to lot number vs. serial number: A lot number is assigned to a group
of products, whereas a serial number is assigned to a single product. And we mentioned how
it’s easier for customers to get support for products when they have a serial number. There
are other uses for serial numbers, though:

 Product compatibility: If you have a specific serial number, you can look up whether
other products are compatible with that item. There may be different, updated versions of
products that don’t have added compatibilities than older versions. This is helpful both for
shoppers and sellers.

 Tracking warranties: For products that come with or have an optional warranty and have
serial numbers, it’s easier to look up that customer’s specific warranty stipulations and
address any issues.
 Lot inventory tracking
Understanding the lot number meaning and what serial numbers are is only half the battle.
Now, you’ll want to put that knowledge to work with lot tracking.

Lot tracking is the process of recording how each product moves in and out of your
inventory. You’ll apply the lot number to your reporting and be able to look at trends with
specific lots, and understand how some may have moved faster or slower than others, or
generated a larger or lesser profit. This is especially helpful if you notice you have a lot of
returns from the same lot — perhaps there’s a defect or similar issue to look into.

Manual lot tracking is nearly impossible; it’s absolutely essential to set your business up with
the tech stack to support a thriving, multi-channel business with various suppliers and
manufacturers.

Here are some of the basics:

 Barcode scanner: A barcode scanner eliminates the need for manual key input, increasing
accuracy and helping address shrink.

 Labels with barcodes: A label-maker that can integrate with your inventory management
techniques will help keep all of your products labeled appropriately.

 Inventory management software: Find the right inventory management software that will
integrate with barcode scanners and other tools to help you stay on top of lot numbers and
your inventory as a whole. Look for one that has a field for lot numbers to make this
process easier.

 Lot tracking software: There are specific tools made just for lot traceability and serial
tracking. These are often tailored for specific types of businesses and products, so look for
one that’s niched in your vertical.

The tools won’t do all the work, though. Here are a few tips to keep in mind:

Where to use the lot number: Include the lot number on all received merchandise (as well
as the number of units) as well as the pick list. This’ll help you easily identify lot numbers
for returned products.

Store products with the same lot number together: In case of a recall or similar issue, it’ll
be easier to locate the merchandise in question and address it. This’ll also help keep
employees from accidentally grabbing products from a lot that’s been identified as
substandard or unsellable.

Record expiration dates for lots: If you have products that expire quickly, record that in
your inventory tracking tools. Set an alert so you can be prepared to amp up the marketing
efforts on slow-moving or nearly expiring stock.