How to Track Batch Numbers and Expiry Dates in Inventory
A practical guide to implementing lot numbers, FEFO stock rotation, and automated expiry alerts to prevent dead stock and ensure regulatory compliance.
Why is batch and expiry tracking essential in inventory management?
Batch and expiry tracking assigns unique lot codes and expiration dates to groups of products manufactured together, enabling First Expired First Out (FEFO) stock rotation, targeted product recalls, and compliance with healthcare and food safety standards.
1. What Is a Batch or Lot Number?
A batch or lot number is a unique alphanumeric identifier assigned to a specific production run of items made under identical conditions with the same raw materials.
In industries such as pharmaceuticals, cosmetics, food processing, and chemicals, batch tracking is legally mandated to protect consumers and facilitate trace-back during quality investigations.
2. Enforcing FEFO (First Expired, First Out)
Standard FIFO (First In, First Out) relies on purchase order arrival dates. However, in perishable goods, an older purchase batch might actually have a longer shelf life than a newly delivered shipment.
FEFO prioritizes dispatching whichever batch has the earliest expiration date, dramatically reducing inventory write-offs caused by expired products sitting in the back of your warehouse.
3. Capturing Batch Details at Every Stage
Batch tracking succeeds only when details are recorded at entry and exit points. When entering inward vendor bills, enter the lot number and expiry date alongside quantity.
When selling, choose the specific batch to ship. The customer invoice will display the batch number and expiry date, providing transparency for your customer and audit proof for regulators.
Common Questions
Yes. Your inventory can hold 50 units of Batch A expiring in October and 100 units of Batch B expiring in December under the same SKU.
Yes. Likhtam provides near-expiry reports, highlighting products expiring within 30, 60, or 90 days so you can discount or return them proactively.
Put these workflows into action with Likhtam.
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