Lot tracking – explained simply

A lot is a production unit manufactured under the same conditions. While they are identical in origin, lots can still differ in quality despite using the same materials and raw substances. This makes lot tracking essential for ensuring consistent product quality. If a defect is identified in one product, it is highly likely to affect the other units of the same lot.

Thanks to lot tracking, products from defective lots can be identified and quickly withdrawn from circulation. This is especially important for recall actions, as commonly required in the chemical, pharmaceutical, and food industries. But even in day-to-day operations, lot tracking is a key component. It forms part of quality management and enables companies to design business processes more efficiently.

Lot tracking is typically carried out in inventory management or ERP systems. First, ingredients and materials are assigned to a lot upon goods receipt. Labeling is done using lot labels. The assigned lot number is then carried through every step in the inventory management system, making it possible to monitor and trace the entire goods movement process.

The following tracing models are typically used as part of lot tracking:

Downstream tracing

Downstream tracing follows a production lot or an individual product. This is commonly used in industries such as automotive or for household appliances with warranties and guarantees.

Upstream tracing

Upstream tracing ensures the traceability of a product from the consumer back to the producer. If a problem occurs, causes and sources can be quickly identified and resolved.

Unique identification with lot numbers

Another option is to assign a unique lot number to a specific product lot. This alphanumeric code is printed on the product, enabling identification whenever needed.

Because only complete lot traceability can guarantee maximum consumer safety, Lot Tracking is a fundamental element of quality standards.

As part of lot tracking, companies are required to store and document all information about suppliers, customers, and manufacturers. This lot obligation mainly includes:

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

• Economic security: With lot tracking, corrective measures can be taken at an early stage. This helps avoid further damage and delivery stoppages.

• Compliant quality management: Lot tracking enables companies to meet quality management requirements by using lot numbers to trace raw materials across all stages of production.

• Continuous improvement for safe products: Thanks to lot tracking, errors can be identified more easily in the event of complaints, which increases product safety in the long term.

• Greater transparency: Lot tracking gives customers detailed insights into the individual components of products.

• Simplified production: Combining lot tracking with an ERP system significantly simplifies processes in production, warehousing, and inventory management.

• Happier customers: Smooth processes, transparency, and maximum quality lead to lasting customer satisfaction.

Lot tracking is used in all industries that rely on lot manufacturing. The basis for this is, in many cases, ISO 9001 as part of quality management. In some industries, lot tracking plays a particularly important role and is therefore legally required. These include:

• Food
• Cosmetics
• Chemicals
• Pharmaceuticals
• Biotechnology
• Medical technology

These industries must ensure that every manufactured lot of a product can be clearly identified and traced in order to guarantee product quality, safety, and integrity – and to react in a targeted way in the event of a recall.

Legal basis for lot tracking in the food industry

The legal framework for lot tracking in the food industry is defined in EC Regulation No. 178/2002, Article 18. It forms the foundation for a high level of consumer health protection and requires every company in the food industry to ensure the traceability of food.

It must be possible to demonstrate:

• where the food or raw materials come from, and
• to whom they were supplied.

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

Manual lot tracking is time-consuming and error-prone – which is why Yaveon 365 offers a specialized industry solution for companies in process manufacturing to manage lots reliably and transparently. This enables continuous traceability across the entire supply chain and central recording of all relevant information. Key features include:

• Automated data capture: Each lot is recorded at goods receipt and tracked through all processes until goods issue, increasing accuracy and reducing errors.

• End-to-end traceability: Complete transparency across the entire supply chain – from raw material procurement through production to delivery to the end customer.

• Central database: All information is stored under the respective lot number and can be easily retrieved by entering the number.

• Barcode tracking: Products can be tracked efficiently using barcodes and mobile devices.