What Is Lot Tracking?

Lot tracking (also called batch tracking) assigns a lot number to each group of items received or produced together, then records every transaction for that lot from receipt through production and shipment. It lets a business find where any unit came from and which customers received it.

By the MOA Marketing Team Updated September 2026 7 min read

Key Takeaways

A lot is a group of items received or produced together, identified by one lot number.

Every receipt, transfer, production run, and shipment is recorded against that lot.

Traceability works in both directions: from supplier to customer, and from customer back to supplier.

A recall becomes limited to the affected lot instead of every unit of the product.

What Does a Lot Record Include?

A lot number is assigned when goods are received or produced. The lot record then holds the details needed to trace it later:

Field	What It Records
Lot Number	A unique ID for the batch, printed on labels and entered on every transaction.
Item	The part number or SKU the lot belongs to.
Supplier and Supplier Lot	Who the goods came from and the supplier's own lot number, for tracing back to the source.
Received or Produced Date	When the lot entered inventory.
Expiration Date	Used to pick the oldest stock first and block expired stock from shipping.
Quantity and Location	How much of the lot is on hand and in which warehouse or bin. Items sold by actual weight also record catch weight.
Status	Available, on hold, quarantined, or expired.

Lot Tracking Example

A granola maker receives two ingredient lots, uses them in one production batch, and ships the finished bags on three orders. Each step is recorded against a lot number.

Step	Document	Item	Lot No.	Qty
Receive	PO-4810	Rolled Oats, Organic	OAT-2609A	2,000 LB
Receive	PO-4816	Honey, Wildflower	HNY-0915	300 LB
Produce	WO-2231	Honey Oat Granola, 12 oz	GRN-260920	1,200 EA
Ship	SO-10452	Honey Oat Granola, 12 oz	GRN-260920	400 EA
Ship	SO-10467	Honey Oat Granola, 12 oz	GRN-260920	300 EA
Ship	SO-10471	Honey Oat Granola, 12 oz	GRN-260920	500 EA

Forward Trace

The oat supplier reports a problem with lot OAT-2609A. The record shows it went into batch GRN-260920, which shipped on three orders. Only those 1,200 bags are recalled.

Backward Trace

A customer on SO-10467 reports a quality issue. The bag's lot number leads back to batch GRN-260920 and the exact oat and honey lots used to make it.

Lot Tracking vs. Serial Number Tracking

Both methods make inventory traceable. The difference is whether one number covers a group of items or a single unit.

	Lot Tracking	Serial Tracking
Number Covers	A group of identical items	One individual unit
Best For	Food, ingredients, chemicals, cosmetics, fabric	Equipment, electronics, devices, high-value items
Tracks Expiration	Yes, per lot	Rarely
Supports	Recalls, FEFO picking, quality holds	Warranty, service history, RMA

Benefits of Lot Tracking

Faster, Smaller Recalls

Pull only the affected lot and notify only the customers who received it.

Expiration Control

Pick first expired, first out (FEFO) in inventory management so short-dated stock ships before it becomes a write-off.

Quality Holds

Put a questionable lot on hold so it cannot be allocated or shipped while it is reviewed.

Audit-Ready Records

Produce the traceability reports that regulators, retailers, and customers ask for without rebuilding them from paper.

How to Set Up Lot Tracking

1
Choose which items to track. Start with items that expire, are regulated, or go into finished goods you may need to recall.
2
Define a lot numbering format. Use a consistent pattern, such as item code plus date, and decide whether to keep the supplier's lot number as well.
3
Capture lots at receiving. Record the lot number and expiration date on every purchase order receipt, ideally by barcode scan.
4
Record lots used in production. Each work order should record which component lots were consumed and assign a new lot to the finished goods.
5
Record lots on every shipment. Pick, pack, and ship by lot in order management so each sales order shows exactly which lots went to the customer.
6
Run a mock recall. Pick a lot and trace it forward and backward in your ERP system. If the trace takes more than a few minutes, find the gap.

Common Lot Tracking Mistakes to Avoid

A trace is only as good as its weakest step. Most gaps come from one of these:

Skipping Lots at Receiving

If the lot isn't captured when goods arrive, every later transaction is guesswork.

Not Linking Production Lots

Without a record of which component lots went into each batch, the trace stops at the production floor.

Tracking in Spreadsheets

Manual logs fall behind real inventory, and a recall means searching several files under time pressure.

Mixing Lots in One Bin

When lots share a location without labels, pickers can't tell them apart and the wrong lot ships.

Which Industries Use Lot Tracking?

Any business that handles perishable, regulated, or batch-produced goods benefits from lot tracking. The most common are:

Food Services

Ingredient and finished-food lots with expiration dates and recall records.

Health & Beauty

Formulation batches tied to raw material lots and shelf-life dates.

Healthcare

Medical supplies tracked by lot and expiration for patient safety and compliance.

Manufacturing

Component lots linked to each production batch through the bill of materials.

Distribution

Supplier lots carried through the warehouse to each customer shipment.

Apparel

Dye lots kept separate so color stays consistent across an order.

Lot Tracking in Kechie ERP

Kechie Inventory Management records lot numbers on receipts, transfers, work orders, and shipments, connected to procurement, manufacturing, order management, and accounting. Any lot can be traced forward to customers or backward to suppliers from one screen. Related features include bills of materials for production and catch weight for items sold by actual weight.

Frequently Asked Questions

What is lot tracking in simple terms?

Lot tracking gives each batch of inventory an ID number and records every place that batch goes, so you can find out where any unit came from and who received it.

What is the difference between a lot number and a batch number?

In most businesses they mean the same thing. Some manufacturers use batch for a production run and lot for a group received from a supplier, but both identify items made or received together.

What is the difference between lot tracking and serial tracking?

Lot tracking assigns one number to a group of identical items. Serial tracking assigns a unique number to every individual unit.

What is forward and backward traceability?

Forward traceability follows a lot from receipt to every customer who received it. Backward traceability starts from a finished product or complaint and finds the supplier lots that went into it.

What is FEFO?

FEFO stands for first expired, first out. Stock is picked by expiration date, so the lots that expire soonest ship first.

Is lot tracking required by law?

In some industries, yes. Food, pharmaceutical, and medical device businesses often face traceability rules from regulators such as the FDA. Many other businesses use lot tracking because customers or retailers require it.

Can you do lot tracking in spreadsheets?

For a few items, yes, but it breaks down quickly. Every receipt, transfer, production run, and shipment must be recorded against the right lot, which is hard to keep accurate by hand.

Does lot tracking work with catch weight items?

Yes. Many food and meat products are tracked by both lot and actual weight, so each lot records its count and its catch weight.

Further reading: Traceability (Wikipedia)

See Lot Tracking in Kechie ERP

Trace any lot from supplier to customer, manage expiration dates, and run recalls in one cloud platform.

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