What is Batch Tracking (Lot Tracking)?

Batch tracking (also called lot tracking) is the practice of assigning a unique identifier—a batch number or lot number—to a group of products that were manufactured, processed, or received together under the same conditions. This identifier follows the products through the entire supply chain, from the supplier’s production line to the warehouse shelf to the customer’s doorstep. Batch tracking enables full traceability: if a quality issue is discovered, the business can identify exactly which batch is affected, where those units are located, and which customers received them.

Why It Matters

Batch tracking is a regulatory requirement in industries like food and beverage, pharmaceuticals, cosmetics, and supplements, where product safety and recall capabilities are mandated by law. If a contaminated ingredient is discovered in a food product, the manufacturer must be able to identify every unit produced with that ingredient, notify affected retailers and consumers, and remove the products from circulation—all within hours, not days. Without batch-level traceability, a recall becomes a full catalog recall rather than a targeted one, which is exponentially more expensive and damaging to the brand.

Even for businesses not subject to regulatory mandates, batch tracking provides valuable operational intelligence. It enables FIFO and FEFO inventory rotation by identifying which batches arrived first or expire soonest. It supports quality control by correlating customer complaints or returns to specific production batches. And it provides the documentation trail needed for supplier accountability—if a batch from a particular supplier consistently generates quality issues, the data is there to support the conversation.

How It Works

Batch tracking involves several coordinated processes:

• Batch Assignment: When products are manufactured or received, a batch number is assigned. This number typically encodes or is associated with the production date, supplier, production facility, and any relevant quality control certifications. The batch number is recorded on the product label, packaging, and in the inventory management system.
• Inbound Recording: During warehouse receiving, each incoming shipment is logged with its batch number. The inventory system associates the batch number with the specific SKU, quantity, receipt date, and storage location. This creates the foundation for downstream traceability.
• Storage and Rotation: Batch information guides warehouse slotting and picking. Products with earlier expiration dates or older production dates are positioned for earlier picking, supporting FIFO or FEFO rotation. The warehouse management system directs pickers to the correct batch based on rotation rules.
• Outbound Tracking: When products are shipped to customers, the batch number is recorded against the order. This creates a linkage between specific customers and specific batches, enabling targeted communication in the event of a recall or quality notification.
• Recall Execution: If a quality issue is identified, the affected batch number is flagged. The system identifies all inventory locations holding that batch and all customers who received units from that batch, enabling a swift, targeted recall with minimal disruption to unaffected products.

How Nventory Helps

Nventory supports batch and lot tracking across the entire product lifecycle. During receiving, your team records batch numbers alongside standard inventory details, and Nventory maintains the association through storage, picking, and shipping. Batch-aware picking rules enforce FIFO or FEFO rotation automatically, ensuring the right batches move first. If a recall is necessary, Nventory can quickly identify where affected inventory is located and which orders contained units from the flagged batch. This end-to-end traceability gives you the confidence to meet regulatory requirements and respond to quality issues decisively.