Walkthrough: Understanding the Use of Lot Numbers In Businesses

A lot number is a combination of a unique number sequence that is given to products during the manufacturing process.
Product-lot
A lot number is a combination of a unique number sequence that is given to products during the manufacturing process. It is given to identify a group of products made simultaneously, using the same materials, and on the same equipment. Lot numbers are sometimes confused as serial numbers, but both are different. Serial numbers are unique to each product in the lot, while every product in the same lot has the same lot number.

Having lot numbers helps companies keep track of the products when they were made and when they will expire. It also helps in inventory management to keep track of when and where the lot was distributed in case there are any issues with the products.

Why Are The Numbers Important?

Helps During Recall

Let’s say a product was manufactured in a batch that has been contaminated or the machines weren’t working properly at that time; the company might need to recall it. However, it can be impossible to find which of the products were contaminated if there’s no identification on them. This is where lot numbers come in handy, as they can be used to track the product and find out how many of them have been sold. Using these lot numbers, companies can inform their vendors and even track how many products have been sold.
Inventory-management-numbers

Helps In Product Differentiation

Sometimes companies manufacture products that differ slightly in color, size, or some other criteria, but the product is pretty much the same. In this case, lot numbers help ensure certain colors, materials, and sizes aren’t mixed during shipping and delivery. Even if the product is incredibly similar, the lot number will tell which lot it belongs to and its specifications.

Expiry And Waste Reduction

Certain products come with expiration dates, such as food, medicines, and cosmetics. Companies need to ensure that they ship the products from the warehouse before their expiry date approaches. Similarly, vendors need to sell them before their expiry too. Lot numbers can help identify which products need to be shipped and sold first to prevent product wastage.

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