Lot tracking explained simply

Batches are production units that were produced under the same conditions. They are therefore identical, but can differ in quality despite having the same material and raw materials. This is why lot tracking plays an essential role in ensuring the safety of product quality. If a defect is detected in one product, there is a high probability that it is also present in the other batch units.

Thanks to lot tracking, it is possible to identify products from defective batches and remove them from circulation as quickly as possible. Lot tracking is therefore particularly important for recalls, such as those that can occur in the chemical, pharmaceutical and food industries. However, lot tracking is also an essential component in normal operations. It is part of quality management and enables business processes to be designed efficiently.

Lot tracking typically takes place in the merchandise management or ERP system. First, the contents and materials are assigned to a batch in warehouse receiving. They are labeled using batch labels. The assigned batch number now runs in the ERP system at every step. This allows the entire goods movement process to be monitored and tracked.

The following tracing models are typically used in the course of lot tracking:

Downstream tracing

Downstream tracing involves tracking a production batch or an individual product. This is usually the case in the automotive industry and for household appliances with warranties and guarantees.

Upstream tracing

Upstream tracing is about the traceability of a product from the consumer to the producer. If a problem occurs, the causes and originators can be quickly filtered out and thus rectified.

Clear labeling with batch numbers

It is also possible to assign a unique batch number to a specific product batch. This is left on the product as an alphanumeric number, enabling it to be identified if necessary.

As maximum safety for consumers can only be guaranteed through the seamless traceability of batches, lot tracking is firmly established as one of the foundations of quality standards.

As part of lot tracking, companies are obliged to keep and record all information about suppliers, customers and manufacturers. This batch obligation mainly concerns

• Name of the supplier or customer name and address
• Date and time of the sale or service
• Identification of the raw, auxiliary or operating materials
• Product details of the product received and delivered
• Volume and quantity
• The batch number or lot number or any other number if these two do not apply

• Economic security: Thanks to lot tracking, corrective measures can be taken at an early stage. This prevents further damage and delivery stoppages.
• Compliant quality management: Lot tracking makes it possible to meet quality management requirements by using batch numbers to trace input materials across all production stages.
• Continuous optimization for safe products: Thanks to batch traceability, errors are more easily detected in the event of a complaint, which increases product safety in the long term.
• More transparency: Batch traceability enables customers to gain detailed insights into the individual components of products.
• Simplified production: The combination of batch traceability and the ERP system results in significantly simplified processes in the areas of production, warehouse and inventory.
• More satisfied customers: Smooth processes, transparency and maximum quality ensure long-term customer satisfaction.

Lot tracking is used in all industries that rely on batch production. In many areas, this is based on ISO 9001 as part of quality management. In some industries, lot tracking plays a particularly important role and is therefore required by law. These are primarily the following:

• Food
• cosmetics
• Chemicals
• pharmaceuticals
• biotechnology
• Medical devices

These industries must ensure that every batch of a product produced can be clearly identified and traced in order to guarantee the quality, safety and integrity of the products and to be able to react in a targeted manner in the event of a recall.

Legal basis for lot tracking in the food industry

The legal basis for batch traceability in the food industry is regulated by EC Regulation No. 178/2002, Article 18, which provides the basis for a high level of health protection and stipulates that every company in the food industry is responsible for ensuring the traceability of food.

It must be possible to prove

• where the food or raw materials come from and
• to whom they are passed on.

Article 18 also stipulates that traceability information must be made available to the competent authorities upon request. Since September 1, 2022, this must be done within 24 hours. These requirements also apply to materials and objects that have come into contact with food.

Manual lot tracking is time-consuming and error-prone - Yaveon 365 therefore offers a specialized industry solution for companies in process manufacturing to manage batches reliably and transparently. This allows supply chains to be tracked end-to-end and all relevant information to be recorded centrally. The most important functions include

• Automated data capture: every batch is recorded in the warehouse receiving area and tracked in all processes through to goods issue, increasing accuracy and reducing errors.
• Seamless traceability: Complete transparency along the entire supply chain, from raw material procurement to production and delivery to the end customer.
• Central database: All information is recorded under the respective batch number and can be easily retrieved by entering the number.
• Barcode tracking: Products can be efficiently tracked using barcodes and mobile devices.