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ERP Glossary

Lot Tracking

Lot tracking (also called batch tracking) is the practice of assigning unique identifiers to batches of products or materials so they can be traced through the entire supply chain. It enables forward traceability (where did this lot go?) and backward traceability (where did this lot come from?).

Understanding Lot Tracking

Lot tracking is mandatory in regulated industries like food, pharmaceuticals, and medical devices, but it provides value in any manufacturing or distribution business. When a quality issue is discovered, lot tracking lets you determine exactly which customers received the affected products and which supplier lots were used in production. Without lot tracking, a recall might require pulling every unit of a product from every customer. With it, you can target only the specific lots affected. The process begins at receiving, where incoming materials are assigned lot numbers (or the supplier's lot numbers are recorded). As materials move through production, the system tracks which input lots were consumed to produce each output lot. When finished goods ship, the system records which lots went to which customers. This creates a complete genealogy for every product. Lot tracking intersects with shelf life management for perishable goods. Each lot carries an expiration date, and the system enforces First-Expired-First-Out (FEFO) picking to minimize waste. For pharmaceutical companies, lot tracking supports serialization requirements where individual units, not just batches, must be traceable. Implementing lot tracking adds complexity to warehouse operations because workers must scan lot numbers at each transaction point. But modern barcode and RFID technology makes this relatively seamless. The investment pays off in reduced recall scope, better quality investigation capability, and regulatory compliance.

How Yukti Handles This

Yukti provides full lot and serial number traceability across purchasing, manufacturing, inventory, and sales. Barcode scanning at every transaction point captures lot data without slowing operations, and AI-powered recall analysis instantly identifies all affected downstream customers.

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