How to use lot tracking in manufacturing

Lot tracking in manufacturing helps companies ensure that they don’t sell faulty items, expired food and beverage, and outdated goods. In this article, you’ll learn all about the world of lot traceability.

Lot tracking in manufacturing is the ability to track and trace a product or material back to its origins.
Last updated: 02.11.2022

Product recalls are considered by many to be a fact of life when it comes to doing business.

But, that doesn’t mean you should resign yourself to fate and blindly wander into a scenario where you have to recall items. According to a Food Marketing Institute and the Grocery Manufacturers Association study, a company can lose around $10 million per recall, just in direct costs alone. That’s a lot of cheddar.

What can you do to prevent being in a costly situation like this?

Many other manufacturers implement lot traceability in manufacturing to help them better track their item’s movements. In this article, we look (a lot) into lot traceability in manufacturing and the best tool for implementing end-to-end tracking in your business.

Lot tracking in manufacturing

Katana ERP system can get you set up with lot traceability and batch tracking for end-to-end inventory management for free.
Lot traceability in manufacturing is process can be used to track individual items or batches of items through the production process.

What is lot tracking in manufacturing?

Lot tracking is identifying and maintaining information about groups of units or items that are produced as a unit.

This production process can be done manually or with the help of specialized lot tracking features that come along with food manufacturing software, which makes it easier, faster, and more accurate than traditional tracking methods. At its core, lot tracking ensures quality control and compliance standards. For manufacturers, in particular, lot tracking allows them to identify product issues and make necessary adjustments to prevent future issues.

It helps keep track of any recalls or defects to quickly address these issues when needed.

One key benefit of using digital lot tracking software for this process is that it automates many aspects of lot tracking, allowing you to manage and monitor your product data easily.

This can save you a significant amount of time and resources while also reducing the chance of human error. Overall, lot tracking is an essential process for manufacturers who want to ensure the quality and safety of their products. Using digital lot tracking like food inventory management software can streamline this process and make it more efficient and effective.

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Ebook on batch production for manufacturing
Lot traceability can help identify issues with products or materials and be used for quality control purposes.

Which manufacturing industries use lot tracking?

Tracking a batch of products is a key component of the manufacturing industry, and it can be applied to businesses in many different fields.

Some of the main industries that benefit from lot tracking include:

Food and beverage manufacturers

One area where lot tracking is extremely important is in food production facilities. When products are stored and prepared for manufacturing and distribution, it’s vital to keep track of individual batches. This ensures quality control and compliance with regulations related to:

Pharmaceutical manufacturing

Similar rules and regulations apply when dealing with pharmaceuticals. These substances must be handled carefully, so having access to up-to-date product information helps ensure safety throughout the process. In addition, any human errors can be easily traced back to the original source.

Cosmetics manufacturing

In many cases, in cosmetics manufacturing, products are made from organic raw materials and other components that cannot withstand extreme temperatures or handling without being damaged. This makes lot tracking a crucial aspect of this industry as well — it ensures that batches stay fresh, safe for consumers, and traceable should something go wrong.

Manufacturing in general

Lot tracking can be beneficial for all types of manufacturing processes.

Businesses can better track their sources and improve quality control by clearly understanding where products come from. Whether you’re producing clothing, electronics, machinery, or anything else, lot tracking offers many benefits that make it an important part of manufacturing.

Lot number tracking data can be stored electronically or on paper records.

Benefits of a Lot tracking in manufacturing

Lot tracking in manufacturing can:

  1. Improve product quality
  2. Help identify manufacturing defects
  3. Assist in root cause analysis
  4. Improve customer satisfaction
  5. Reduce the number of product recalls

Product quality is critical to the success of any manufacturing business. Lot tracking can help improve product quality by identifying manufacturing defects and analyzing the root cause. Manufacturers can reduce customer complaints by improving product quality and increasing customer satisfaction.

Lot tracking can also reduce the number of product recalls. In a recall, lot tracking can help identify the affected products and isolate them from the rest of the inventory. This can minimize financial losses and damage the company’s reputation.

Overall, lot tracking provides many benefits to the manufacturing industry. It can improve product quality, assist in root cause analysis, and improve customer satisfaction. Implementing an effective lot tracking system can be a key part of success for any manufacturing business.

Do you need to integrate lot tracking and traceability in manufacturing with your current accounting software? Some ERP systems can integrate with your favorite accounting tools, for example:

Most manufacturing companies use some form of batch number tracking in their operations.

Essential features of lot tracking software

Lot tracking capabilities are a critical component of any ERP system. It provides complete traceability of product lots, essential for recalls and regulatory compliance. The following are some of the key features of lot tracking software:

Lot creation

This feature allows users to create new product lots. The software can store all relevant information about the lot, such as production date, expiration date, and batch number tracking.

Lot tracking

This feature allows users to track the movement of product lots throughout the supply chain. Information such as where the lot was shipped, when it was received, and who handled it can be tracked.

Lot traceability

This feature allows users to trace product lots back to their origins. This is essential for product recalls and for meeting regulatory requirements.

Lot Reporting

Lot reporting is a feature that allows users to generate reports on product lots. This information can be used to track trends, assess risk, and make decisions about a product recall or other actions.

There are various software applications available to help manage lot tracking data.

Why is lot traceability important?

Lot management and traceability ensure product quality and safety in the food supply chain and other manufacturing industries.

By tracking finished products from fsupplier to table, businesses can quickly identify any issues that may arise and take corrective action to prevent problems from occurring in the future.

Lot management involves maintaining records of where each batch of products came from and when they were produced. This information is valuable if there is a problem with a particular batch, as it can help businesses pinpoint the source of the issue. In addition, lot management can also help businesses keep track of inventory levels and ensure that they always have enough products on hand to meet customer demand.

Traceability is the ability to track a product back to its origin.

This is important in the food supply chain because it allows businesses to quickly identify and recall products that may be contaminated or otherwise unsafe. By tracing products back to their source, businesses can also discover any issues with the manufacturing process and take steps to correct them. Both lot management and traceability are important for ensuring the safety and quality of food products.

By tracking products from supplier to table, businesses can prevent problems before they occur and keep their customers safe.

With improved lot management and greater traceability, your business can ensure that its products are always the highest quality.

Katana ERP software for manufacturing

Lot tracking software that supports you with managing and tracking live data. Get an overview of your entire business and inventory at a glance. Try it for free.
batch production ebook for manufacturers

Katana lot tracking in manufacturing software

Katana ERP manufacturing software gives factory owners and managers real-time insights into all the moving parts that make their business — from sales to inventory and beyond.

Katana is a one-size-fits-all solution that gives manufacturers end-to-end traceability with an inventory system like barcode scanners and other features, empowering users to easily start batch tracking for products and raw materials with lot number tracking. This means you can easily monitor where the ingredients of a finished product came from, the product’s manufacturing progress status, and track exactly where an item has gone once it leaves your warehouse. You can even assign expiry, or best before, dates to items, giving you total control over your shelf life management — perfect for those who make food products or sell time-sensitive goods like computers.

Try it for free. Katana offers users a 14-day free trial, so they can implement lot traceability in manufacturing and see firsthand how you can take your business to the next level.

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James Humphreys

Senior Content Manager

James Humphreys has a background in creative writing and has been writing about the manufacturing industry for 3+ years.

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