Inventory39

How to Use Serial and Lot Numbers to Track Your Products

Posted by Thomas WongLast Updated January 6th, 2026
— 8 minutes reading

Key takeaways

  • Accurate inventory tracking involves batch, serial, and lot number tracking to ensure traceability from manufacturing to sale. 
  • Lot numbers identify groups of products produced simultaneously with the same materials and are common in industries such as food, pharmaceuticals, and automotive.
  • Not only are lot numbers often required for regulatory purposes, but they also help facilitate targeted recalls, which reduces waste.
  • Serial numbers uniquely identify individual units of a product and are essential for warranty services, tracking specific items, and aid in product recalls and service eligibility verification.
  • Businesses should record lot and serial numbers upon receipt and during stock transfers.
  • Barcodes can be used to streamline the identification of serial and lot numbers to minimize errors.

The importance of lot and serial tracking in inventory

Accurately tracking inventory can require more than just stock counts. Many products have batch, serial, and lot number tracking; properly managing these is just as important as monitoring your inventory levels.

For example, lot and serial numbers can track components from the manufacturing level to the final product’s sale. This traceability is essential in certain industries like food and pharmaceuticals, but other sectors also benefit significantly by using serial and lot number tracking. In this post, we’ll dig through what each of these numbers represents and how you can effectively track them.

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Batch Tracking | Secret Life of Inventory

Batch and lot number tracking: ensuring traceability & compliance

Tracking batch and lot numbers is critical for maintaining quality control and traceability across your supply chain. They help streamline recalls and audits while also supporting compliance with industry regulations and customer safety standards.

What are batch and lot numbers?

The terms batch number, code number, and lot number are interchangeable, so we’ll use lot number for simplicity going forward. What is a lot number? A lot number identifies a group of products that were all produced at the same time using the same batch of ingredients or raw materials. You’ll find lot numbers commonly used in the food, automotive, and pharmaceutical industries. They can also help track children’s products.

A visual representation of lot number tracking. Two clusters of bottles that all contain the same thing but that were produced at two different times are tagged with two different lot numbers.

Lot number tracking can save manufacturers a lot of money and effort. If a product has a problem, you can recall specific lot numbers. For example, a pharmaceutical company discovers a dangerous ingredient in one of its drugs. Rather than disposing of everything on their shelves, they can use lot number tracking to target a recall of the affected products.

Are you having an issue with a product? You’ll likely report it to a manufacturer using lot number tracking. Sometimes, manufacturers give lot numbers a prefix (e.g., Lot 114321). Other times, they might stamp or print them on the product.

Benefits of lot number tracking (traceability & compliance)

Some of the most common benefits of lot number tracking for manufacturers include:

  • Comply with regulatory standards: If you manufacture perishables, food products, or pharmaceuticals, lot number tracking may be a legal requirement
  • Improve customer satisfaction: Lot number tracking means you can more quickly identify and respond to any potentially defective, damaged, or dangerous products.
  • Reduce waste: When you issue a recall, you can pinpoint specific batches of products, eliminating the need to purge everything you have on hand. This can drastically improve your margins.
  • Better product forecasting: By using data in lot numbers, such as when you produce certain items and how many are available, you can create accurate customer demand forecasts.
  • Clear communication: Utilizing lot number tracking will ensure everyone across all departments has a clear line of sight into the production process. 

Best practices for lot tracking

No matter how you start lot number tracking, there are some best practices to follow when tracking lot numbers in inventory:

  • Use specific lot numbers when fulfilling orders to maintain traceability and prevent product mix-ups.
  • Using a barcode system for lot number tracking helps streamline data entry and ensures fast, accurate identification during receiving, transfers, and picking.
  • Implement inventory management software that supports lot and serial tracking to centralize records and minimize errors.

How to start tracking products by lot number

If you’re wondering how to track lot numbers in inventory, the process is fairly straightforward. Here’s a step-by-step method you can follow.

  • Step 1 – Record lot numbers at receiving: Log the lot number and quantity for each product batch on the corresponding purchase order as goods arrive. Recording lot numbers on purchase orders is critical for maintaining traceability from the start.
  • Step 2 – Store units by lot number: Group and store items with the same lot number in a single, clearly designated location to simplify traceability.
  • Step 3 – Use your inventory system’s lot field: If your software supports it, enter the lot number in the dedicated field. For example, inFlow users now have the ability to easily track lot numbers & expiration dates.
  • Step 4 – Track lot numbers on pick lists: Even if you don’t include them on customer invoices, always include the lot number on your internal pick lists for accurate fulfillment and recall tracking.
  • Step 5 – Use pick list data for returns and defect tracing: When handling returns, refer to the pick list to identify the lot number tied to any defective product and trace issues back to the source.
A visual representation of two laptops marked with serial numbers. Both laptops have the same model number but unique serial numbers.

Serial number tracking: managing individual units

Serial number tracking is the process of monitoring each individual product throughout its entire lifecycle, making it essential for high-value goods, warranty management, and fraud prevention.

What is a serial number?

When it comes to lot numbers vs serial numbers, both serve a similar purpose. Unlike lot numbers, which apply to groups of products, serial numbers identify individual units. In other words, they’re even more specific than batch or lot numbers. Manufacturers could give the same lot number to tens, hundreds, or even thousands of identical products. On the other hand, you would only assign one serial number per unit. In other words, serial numbers make products unique, so you can differentiate one unit from another.

If you look at the bottom of a laptop, you’ll likely find a serial number printed or engraved on it. If you don’t see it there, the number is often associated with your purchasing account. The retailer will print the serial number on the original invoice in this case.

You can use serial numbers for recalls, but they’re also handy for service eligibility. For example, warranty and repair services often require you to provide the manufacturer with a serial number. Additionally, invoices that include the serial number will help identify the date of purchase.

Serial numbers can also contain more information about the product. The encoding can vary from company to company, but you can commonly use a product’s serial number to identify its model number, date of manufacture, and even manufacture location.

How to track serial numbers in inventory

If you’re learning how to track serial numbers in inventory, the process starts the moment products arrive. When you receive goods, record both the quantity and the unique serial number assigned to each individual unit. Continue tracking those serials through all product movements. This includes all external movements, such as sales or customer returns, as well as any stock transfers between other warehouses. The goal is to maintain an unbroken chain of visibility for every unit from purchase to sale.

Tips for effective serial number tracking

If you sell serialized products, you’ll need an extra level of precision in your inventory tracking. Here are some tips you can follow:

  • Use barcode scanners: Scannable serial barcodes speed up data entry and reduce human error during transfers and transactions.
  • Avoid manual spreadsheets: While spreadsheets may work for small volumes, they’re prone to input errors and overwrites. As product lines grow, manual systems become inefficient and risky.
  • Automate wherever possible: Use tools that prompt for serial input at each stage of your process. This includes receiving, transferring, picking, or selling. This will help prevent gaps in tracking.

Using inventory management software for lot & serial tracking

Inventory software for lot and serial number tracking simplifies the process by tying these identifiers directly to product records, transactions, and locations. For example, inFlow Inventory ensures serial numbers are recorded consistently across all movements, from receiving through to final sale. Features like barcode scanning, automated pick lists, and transaction history eliminate the need for precarious spreadsheets. If you’re looking to streamline your tracking process and gain better control over serialized products, an integrated system like inFlow can make all the difference.

    Conclusion: achieving full traceability

    Whether you manage high-volume batches or serialized units, accurate tracking is essential for quality assurance, recalls, and compliance. Implementing some best practices alongside the right tools will ensure you can trace every item from production to the end of its lifecycle. Lot and serial number tracking isn’t just a safeguard; it’s a competitive advantage.

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