What Is a License Plate Number (LPN) in Warehousing?
A license plate number (LPN) is a unique ID on a label attached to a pallet, case, or tote. In the system, the LPN is linked to every item, quantity, lot, and serial number inside, so the whole container can be received, moved, or counted with one scan.
How License Plate Numbers Work
An LPN turns a container into a single unit the system can track:
A Label on the Container
A barcode with a unique number is printed and attached to the pallet, case, or tote.
Linked to What's Inside
The system records each item, quantity, lot, and serial number held in that container.
One Scan Moves Everything
Receiving, putaway, transfers, and shipping scan the LPN instead of every item inside.
Nested Containers
Case LPNs can sit inside a pallet LPN, so stock can be handled as a full pallet or case by case.
LPN Example
A health and beauty distributor receives a mixed pallet of skincare. At the dock, the pallet and each case get an LPN label:
| LPN | Level | Contents | Units | Lot |
|---|---|---|---|---|
| P-000431 | Pallet | 3 cases (below) | 144 | Mixed |
| C-001207 | Case | Vitamin C Serum, 30 ml | 48 | L2609A |
| C-001208 | Case | Vitamin C Serum, 30 ml | 48 | L2609A |
| C-001209 | Case | Hydrating Cream, 50 ml | 48 | L2611C |
At putaway, the operator scans P-000431 and rack location R-12-A. All 144 units, with their lots, move in the system with two scans. When a salon orders 48 serums, the picker scans case C-001207 and ships it whole. The pallet LPN updates to 2 cases and 96 units, and lot L2609A is recorded on the shipment.
LPN vs. SKU, Lot Number, and Serial Number
Warehouses often use all four identifiers at once. Each answers a different question.
| LPN | SKU | Lot Number | Serial Number | |
|---|---|---|---|---|
| Identifies | A container | A product type | A batch | One unit |
| Label On | Pallet, case, or tote | Product and shelf | Product packaging | Each unit |
| Contents Change? | Yes, as stock is added or removed | No | No | No |
| Main Use | Fast moves and counts | Ordering and selling | Recalls and expiration | Warranty and service |
Learn more about lot tracking and serial number tracking.
Benefits of Using LPNs
Faster Receiving
A pre-labeled pallet is received with one scan instead of item-by-item counts.
Quicker Moves and Counts
Putaway, replenishment, and cycle counts work at the container level.
Fewer Errors
Fewer manual entries means fewer wrong quantities, items, or locations.
Built-In Traceability
Lots and serials travel with the LPN, supporting inventory traceability without extra scans.
How to Start Using LPNs
- 1Decide which containers get LPNs. Most warehouses start with pallets and full cases, then add totes.
- 2Set a numbering format. Use a unique, never-reused sequence. If you ship to retailers, check whether they require GS1 SSCC labels.
- 3Label at receiving. Print and apply LPN labels at the dock, or use supplier labels sent with an advance ship notice.
- 4Scan the LPN on every move. Putaway, transfers, picks, and shipments should all record the LPN and its location.
- 5Update contents when a container is split. When units are picked from a case or pallet, the LPN's contents must change with them.
- 6Close empty LPNs and count by container. Retire LPNs once emptied, and scan LPNs during cycle counts to confirm what is in each location.
Common LPN Mistakes to Avoid
An LPN is only useful if the system record matches what's physically in the container.
Reusing LPN Labels
A reused number mixes the history of two containers and breaks traceability.
Breaking Cases Without Updating
If units are pulled without a scan, the LPN still shows the old quantity.
Poor Label Placement
Labels that are hidden, torn, or wrapped over can't be scanned from a forklift.
Mixing Labeled and Unlabeled Stock
Loose units dropped onto an LPN pallet aren't in its record. Add them with a scan or keep them separate.
Which Industries Use LPNs?
LPNs are common in any warehouse that handles pallets and cases in volume, including:
Distribution
High-volume receiving and shipping of full pallets and cases.
Manufacturing
Raw materials staged to the line and finished goods palletized off it.
Food Services
Pallets carrying lot and expiration data for FEFO picking.
Health & Beauty
Mixed-SKU pallets of small items that are slow to count one by one.
Apparel
Cartons of mixed sizes and colors tracked as one unit.
Healthcare
Medical supply totes and cases with lot and serial records.
LPNs in Kechie ERP
Kechie Inventory Management tracks stock by location, lot, and serial number, and supports container-level handling for receiving, putaway, and shipping. Because procurement, order management, and accounting share the same data, every scan updates on-hand quantities, orders, and inventory value at the same time.
Frequently Asked Questions
What does LPN stand for in a warehouse?
LPN stands for license plate number. It is a unique barcode ID attached to a pallet, case, or tote that identifies the container and everything inside it.
What is the difference between an LPN and a SKU?
A SKU identifies a product type. An LPN identifies one physical container, which may hold one SKU or several, along with their quantities, lots, and serial numbers.
What is a nested LPN?
A nested LPN is a container inside another container, such as case LPNs on a pallet LPN. Scanning the pallet moves all the cases; scanning a case moves only that case.
Is an LPN the same as an SSCC?
An SSCC (Serial Shipping Container Code) is a GS1 standard 18-digit number used to identify shipping containers between trading partners. An SSCC can be used as an LPN, but many warehouses also use their own internal LPN format.
Can an LPN be reused?
It is best not to. Reusing an LPN mixes the history of two different containers. When a container is emptied, its LPN should be closed and a new one issued next time.
What happens when a case is broken open?
The LPN's contents are updated to show the units removed. If the remaining units are moved to a new container, they get a new LPN or are placed into a bin as loose stock.
Do you need warehouse software to use LPNs?
Yes. The LPN is only a number on a label; the software stores what is inside each container and updates it with every scan.
What is printed on an LPN label?
At minimum, the LPN as a barcode and human-readable text. Many labels also show the item, quantity, lot number, and expiration date for quick visual checks.
Related Guides
See Warehouse Tracking in Kechie ERP
Receive, move, and ship stock with fewer scans and accurate records at every step.