Inventory management requires accurate and meticulous tracking — when it comes to products, how can a manufacturer know which products need to be recalled back if a problem is found in them? It’s in situations like these where lot numbers can be very beneficial.
What Are Lot Numbers?
Lot numbers are identification numbers assigned to products from a single manufacturer. They’re also called batch numbers, lot codes, or code numbers. They’re a combination of numerical digitals that are assigned to a similar group of products.
Different companies have different ways of assigning lot numbers to their products, but it’s mainly based on date, location, expiry, and other combinations. No matter how a lot number is defined, it’ll always refer to a specific group of products, and all the items in that batch will have the same lot number.
Why Is It Important?
Lot Numbers are important for many reasons; they help in inventory management and in crises when products need to be recalled. With good inventory management software like AltheaSuite, you can do this easily. It’ll help increase your efficiency and save time, money, and labor.
Inventory management is already a critical part of a business, and using lot numbers just increases the precision of your orders and helps in shipping, restocking, and more.
When to Use Lot Numbers?
Some common situations where lot numbers are used include product recalling, differentiation, and expiry dates. Lot numbers are very common in food, beverage, and drug companies, but they’re also used outside.
Here’s when lot numbers are used:
Product Recalls
Recalls happen often, and to be thoroughly prepared, one must have lot numbers in place to tackle the issue instantly and efficiently.
Product Differentiation
Lot numbers are important for businesses that handle or manufacture products that are similar and only have slight variations. It helps in differentiating products and prevents mix-ups.
Expiration Dates
For products that expire, lot numbers are very important; they ensure products are shipped before their expiration date comes up. With a cloud-based inventory system, you can be alerted when you have an expired product in your inventory.
Quality Assurance
Lot numbers in the QA process help in testing batches; you can use them to locate defective items. This makes the process of pulling items easier.
Althea Suite — A Complete ERP Solution for Your Business
AltheaSuite is a complete and exclusive ERP software that provides affordable and scalable solutions to support business growth. Our software is the best ERP for inventory management and works on different platforms, including PC, MAC, and smartphones, with its complete range of features. AltheaSuite is a complete cloud based inventory management system ideal for all industries.
Contact us today to get started!
