Every product that a company manufactures comes with its own unique lot number that helps identify it. While this may not be a big problem for smaller businesses that sell a limited number of goods, it’s a huge deal for bigger companies. The lot numbers can make the tracking and inventory process much easier, that is, unless the lot numbers are incorrectly assigned. Without tracking and lot numbers, companies could potentially lose a lot of money and even their reputation. If you are still wondering what exactly is so special about lot numbers, here are a few things that make them incredibly important while running a business.
Recalls And Health Regulations
If you sell anything other than clothes, then you have probably experience recall at least once. It is not uncommon for a specific batch of products, particularly makeup, skincare, and food, to become hazardous. When that happens, the FDA recalls the product, which is then taken off the shelf.
If the problem is only with certain batches, then the entire lot with that certain lot number will be called back. And if you don’t have lot numbers, then not only will tracking become difficult, but you might even have to take all the products off the shelf. This is because there is no way of knowing which ones are causing the problem.
Product Differentiation
For companies who make very similar products, such as facemasks that are only slightly different in color and packaging, lot numbers are essential. This is so that the products don’t get mixed up and all the items are distributed to the correct locations.
Less Waste
When a product is produced, it is assigned an expiration date, and lot numbers typically serve the same function. Milk, for example, is produced, divided, and assigned a lot number and is then sent out to grocery stores. This allows stores to arrange products by expiration date so that the cartons closest to the expiration date are sold first.
Barcoding and QR codes are among the most efficient ways to assign lot numbers to products and manage inventory. If you are looking for an efficient barcoding system, consider AltheaSuite. Our inventory management system is cloud-based and is definitely one of the best in the market. Aside from that, we also sell purchase management and order fulfillment systems.
To learn more about our software, contact us.
