Lot control is the process of managing inventory in defined groups (or “lots”) based on common characteristics like production date, origin, or quality level. It’s similar to batch tracking but typically used in manufacturing, food, and pharma. Each lot is assigned a code and monitored through its lifecycle. For instance, a pharmaceutical brand produces a lot of 10,000 tablets under Lot #A001 and must track its distribution, shelf life, and potential recall paths.

Lot control is the systematic process of managing inventory in defined groups (or "lots") based on common characteristics like production date, origin, supplier batch, or quality level. This comprehensive approach goes beyond simple tracking to encompass the entire lifecycle management of product groups from receipt through to final delivery or disposal.

Similar to batch tracking but with broader scope, lot control is essential in manufacturing, food, pharmaceuticals, and any industry where traceability matters. For instance, a pharmaceutical company producing 10,000 tablets under Lot #A001 must track not just location, but also storage conditions, quality test results, distribution paths, and potential recall routes.

The Complete Lot Control Framework

Lot control encompasses multiple interconnected processes:

1. Lot Definition and Creation

• Establishing what constitutes a "lot" for each product type

• Creating unique identifiers following business rules

• Capturing associated attributes (dates, quantities, specifications)

2. Lot Segregation and Storage

• Physical separation of different lots

• System-enforced storage rules

• Environmental condition tracking where required

3. Lot Allocation and Picking

• FEFO/FIFO enforcement

• Customer-specific lot requirements

• Lot mixing prevention where prohibited

4. Lot Genealogy and Traceability

• Parent-child relationships for manufactured goods

• Complete movement history

• Cross-referencing with quality records

Real-World Application: A food manufacturer implements comprehensive lot control:

• Incoming ingredients: Each supplier delivery creates a new lot

• Production: Multiple ingredient lots combine into finished product lots

• Quality control: Test results linked to specific lots

• Distribution: System tracks which customers receive which lots

• Recall capability: Complete forward and backward traceability

Common Challenges and Practical Solutions

Lot Mixing and Cross-Contamination

The Challenge: Warehouse operations naturally tend toward efficiency, which can lead to mixing lots in storage locations or during picking. This compromises traceability and can violate regulatory requirements.

Prevention Strategies:

• System-enforced single-lot locations

• Clear visual identification (colour coding, signage)

• Picker alerts when accessing lot-controlled items

• Audit trails for any lot mixing exceptions

When Mixing is Necessary: Some operations require controlled lot mixing:

• Configure specific mixing rules in WMS

• Maintain proportional tracking

• Document mixing rationale

• Preserve traceability at component level

Lot Proliferation

Too many small lots create operational complexity:

• Increased storage locations needed

• Complicated picking decisions

• Higher administrative overhead

• Potential for errors

Smart Solutions:

• Define minimum lot sizes during receiving

• Consolidation rules for compatible lots

• Automated lot closure procedures

• Regular review of lot creation criteria

System vs Physical Reality

The Challenge: Lot control systems show perfect segregation, but physical reality may differ due to operational pressures or errors.

Alignment Tactics:

• Regular cycle counts by lot

• Exception management workflows for discrepancies

• Photographic evidence of lot storage

• Random lot audits

• Staff training on lot importance

Business Impact of Comprehensive Lot Control

Proper lot control delivers significant operational and financial benefits:

Risk Mitigation Comprehensive lot control can mean the difference between a minor incident and a major crisis. When contamination occurs, precise lot control limits impact. A beverage company avoided a £2M total recall by identifying affected lots within 2 hours, limiting impact to 3% of production.

Operational Excellence Lot control drives operational discipline:

• Enforced procedures reduce variability

• Clear accountability for inventory accuracy

• Improved space utilisation through organised storage

• Enhanced picking efficiency via systematic allocation

Quality Assurance Link quality metrics directly to lots:

• Track defect rates by production run

• Identify supplier quality trends

• Correlate storage conditions with product quality

• Enable predictive quality management

Customer Satisfaction Meet increasingly sophisticated customer demands:

• Specific lot requirements for sensitive applications

• Complete documentation for audits

• Rapid response to quality inquiries

• Proactive communication during issues

Key Metrics to Monitor

Effective lot control requires comprehensive measurement:

• Lot Integrity Rate - Percentage of lots maintaining segregation

• Lot Traceability Score - Depth and completeness of tracking

• Lot Age Analysis - Distribution of inventory by lot age

• Lot Accuracy - Physical vs system lot agreement

• Lot Transaction Time - Speed of lot-related operations

• Compliance Achievement - Regulatory requirement adherence

Advanced metrics for mature operations:

• Lot velocity by product category

• Cost per lot maintained

• Lot-related error rates

• Customer lot satisfaction scores

Explore comprehensive inventory management strategies incorporating lot control.

Frequently Asked Questions

How does lot control differ from simple lot tracking?

Lot tracking typically means recording lot numbers. Lot control encompasses:

• Active management of lot lifecycles

• Enforcement of business rules

• Integration with quality systems

• Comprehensive reporting and analytics

• Proactive exception management

Think of tracking as recording data, control as actively managing outcomes.

What industries require lot control?

Mandatory lot control:

• Pharmaceuticals (regulatory requirement)

• Food & beverage (safety and recalls)

• Medical devices (patient safety)

• Aerospace (component traceability)

Beneficial lot control:

• Cosmetics (quality and safety)

• Electronics (warranty management)

• Chemicals (hazard management)

• Automotive (recall management)

Can lot control work with our existing processes?

Modern WMS platforms layer lot control onto existing operations:

• Gradual rollout by product category

• Configurable rules matching your requirements

• Integration with current labelling and scanning

• Minimal disruption to established workflows

The key is choosing flexible warehouse management software that adapts to your needs.

How do we manage lots for customer-specific requirements?

Configure customer profiles in your system:

• Minimum remaining shelf life requirements

• Specific lot allocation preferences

• Documentation needs

• Lot mixing permissions

• Quality certificate requirements

The system then automatically applies these rules during order allocation.

Integration Considerations

Implementing comprehensive lot control requires:

Foundation Elements:

• Unique location identifiers (bin codes)

• Scanning infrastructure for data capture

• Lot number assignment protocols

• Staff training programmes

System Capabilities:

• Multi-level lot tracking

• Configurable allocation rules

• Real-time visibility dashboards

• Exception alerting

• Comprehensive audit trails

Process Integration:

• Receiving procedures with lot capture

• Putaway strategies respecting lot segregation

• Picking methods enforcing lot rules

• Quality system integration

Extended Requirements:

• Customer portal for lot visibility

• Supplier integration for lot data

• Regulatory reporting capabilities

• Recall simulation tools

Alternative Approaches to Inventory Control

Basic Stock Control

Simple quantity tracking without lot differentiation. Adequate for non-regulated, low-risk products but provides no traceability or quality management capability.

Date-Based Management

Controlling inventory purely by dates without lot structure. Partially effective for perishables but lacks the granularity needed for recalls or quality tracking.

Serial Number Only

Tracking individual items without lot grouping. Provides unit-level detail but becomes unwieldy for high-volume operations and doesn't capture batch-level characteristics.

Comprehensive Lot Control

Full lifecycle management of inventory lots with system enforcement, quality integration, and complete traceability. Essential for regulated industries and quality-focused operations. Critical for 3PL providers serving diverse clients.

Next Steps: Implement Strategic Lot Control

Assess your lot control maturity:

• Current traceability capabilities and gaps

• Regulatory compliance status

• Quality management integration needs

• Customer lot visibility requirements

Schedule a Consultation to design a lot control strategy that balances compliance, quality, and operational efficiency.

Related Topics: Lot Number | Batch Tracking | FEFO (First-Expired-First-Out)