Serial tracking assigns a unique code to each individual product, while lot tracking assigns a shared identifier to a batch of items. Serial tracking is essential for electronics, medical devices, or high-ticket items. Lot tracking is used when traceability is required but individual tracking isn’t practical—like food batches or cosmetics. For example, a WMS may use lot control for hand cream production (Lot #C202507) and serial tracking for limited-edition hairdryers (Serial #HD-12345).