Warehouse & logistics
Lot Tracking (Batch Tracking)
By the Supply Chain Manager team · Updated October 16, 2026
Lot tracking records which production batch each unit belongs to, so every lot can be traced from supplier receipt to the customers who received it.
It matters for regulated and perishable goods: food, chemicals, pharmaceuticals and many industrial products. If a supplier recalls a lot, you can find exactly where it went instead of recalling everything.
For lot tracking to work, the lot must be captured at every step: receiving, putaway, picking and shipping. A single step that skips the scan breaks the chain, and a recall then has to fall back on broad estimates. Barcode labels that carry the lot number make this practical without slowing the warehouse down.
Lot tracking example
Illustrative: a supplier recalls lot 23-118 of a sealant. With lot tracking, the distributor finds 140 units still in stock and 6 customers who received the rest, and contacts only them.
Why lot tracking matters for distributors
Lot tracking limits the cost of a recall and is often required by customers or regulators. It also supports first-expired-first-out picking.
Common lot tracking mistakes
- Recording lots at receiving but not at picking, which breaks the trace.
- Mixing lots in the same bin without recording them.
Examples on this page use made-up round numbers to show the calculation. They are not benchmarks or results from real businesses.