Batch and lot numbers solve this. They are group-level identifiers that tie products to a production or supply-chain history. Terminology varies by industry and company, so one team's "batch" is another's "lot."
This guide covers how batch and lot numbers differ, how they compare with serial numbers and SKUs, and how to manage them through inventory and production workflows.
Key Takeaways
- Batch and lot numbers identify products made or handled together; many organizations use the terms interchangeably.
- A serial number identifies one unit; an SKU identifies a product type.
- Link identifiers to materials, records, locations, shipments, and customers for full traceability.
- A written numbering policy plus digital tracking improves recall readiness and auditability.
What Are Batch and Lot Numbers?
Definitions in practice
A batch number identifies a defined production run made under shared conditions: the same materials, equipment, time period, or process.
A lot number groups products or materials for inventory control, traceability, quality management, or distribution. Every unit in the group shares the identifier.
In many US manufacturing and warehouse environments the two are interchangeable. FDA's drug regulation 21 CFR 210.3 defines lot number, control number, and batch number together as a distinctive combination of letters, numbers, or symbols. That code lets you determine the complete history of manufacture, processing, packing, holding, and distribution.
Some companies still reserve "batch" for the manufacturing run and "lot" for a broader traceability or release group.
No universal format
There is no standard decoding key. The same-looking code can mean different things depending on the manufacturer, facility, or software configuration. FDA prescribes no national code syntax.
Here is an illustrative code, not a standard: BR-240615-A2-07
- BR: product or product family
- 240615: production date (June 15, 2024)
- A2: facility or line
- 07: sequence number for that day
Another company might encode a shift instead of a facility, or keep the expiry date in a separate field entirely.
Batch Numbers vs. Lot Numbers, Serial Numbers, and SKUs
Batch and lot numbers usually identify a group of related products. Serial numbers identify individual units. The finer the identifier, the more precise your traceability, and the more data you must capture and store.
| Identifier | Answers the question | Scope |
|---|---|---|
| SKU | Which item type? | All units of a product |
| Batch/lot | Which production group? | Many units made or handled together |
| Serial | Which individual unit? | One unit |
GS1's model follows the same layers: GTIN for the product class, GTIN plus batch/lot for the group, and GTIN plus serial for the single instance.
SKUs and lots
An SKU is a company's internal product identity used to track inventory. Multiple lots can sit under one SKU. If lot 0612 of a SKU is bad, lot 0613 of the same SKU may be perfectly fine.
Using identifiers together
A common pattern for a serviceable, high-value product:
- SKU for the product
- Lot or batch number for the production group
- Serial number for each unit, supporting warranties and repairs
Where group-level tracking fits
- Food and beverage
- Pharmaceuticals
- Chemicals
- Raw materials and components
- Work-in-process manufacturing
One caution: similar terms don't guarantee identical data fields across systems. Document your definitions, numbering rules, and relationships before configuring software or labels.
How Batch and Lot Numbers Support Traceability
The traceability chain
Identifiers should stay connected from supplier receipt through production, storage, transfers, picking, shipment, returns, quarantine, and disposal. At each stage, keep these records tied to the identifier:
- Supplier lot and receiving record
- Production record and materials used
- Storage location and movements
- Shipment, order, and customer
- Quality holds, returns, and disposal
Backward and forward traceability
Backward traceability starts with a finished-product lot and finds the source materials, supplier lots, equipment, and quality records behind it.
Forward traceability starts with a material or finished lot and finds current inventory, locations, shipments, customers, and other products that used it.
Recalls and regulation
Lot identifiers let you isolate the affected group instead of treating every unit of a SKU as suspect. FDA's guidance notes that smaller traceability lots might lead to less food being affected in a recall.
In February 2022, FDA's Abbott formula notice named specific codes and expiration dates, and said one Similac PM 60/40 lot was the only type and lot of that specialty formula included at that time.
Requirements are product-specific. The FDA Food Traceability Rule covers foods on the Food Traceability List and requires traceability lot codes at events such as initial packing and transformation. FDA may not enforce it before July 20, 2028.
Drug makers must keep batch records and make each lot's distribution readily determinable to facilitate recall.
Inventory benefits
- Expiry management and FIFO or FEFO rotation (first expiry, first out)
- Stock segregation and quarantine
- Less manual searching during investigations
- Better reporting by lot, location, and date
How to Create and Manage a Batch and Lot Number System
Write the numbering policy
Define the rules before printing a single label:
- When identifiers are assigned, and who owns them
- How uniqueness is enforced
- Which fields the code includes: product, date, facility, line, shift, sequence
- Whether expiry lives in a separate field
Keep codes readable. Don't encode information nobody will use. If you use GS1 identifiers, note that lot and serial fields each allow up to 20 characters.
Build controls around the identifier
- Capture supplier lot codes at receiving
- Assign internal numbers at production when needed
- Print and scan labels
- Verify the identifier during movements and picking
- Preserve it through returns, holds, rework, and disposal
What tracking software should support
- Barcode scanning and multi-location inventory
- Work-in-process tracking
- Lot or batch genealogy and expiry management
- Audit history and recall reports
- Integrations with ERP, accounting, shipping, or factory systems
Configurable platforms can cover this list without locking you into one process. HAL Systems builds HAL Traxx, a configurable platform for organizations that need inventory, warehouse, asset, or manufacturing tracking shaped to their own workflows. It links specific raw-material lots to specific finished-goods batches, keeps an audit trail from source materials through delivery, and enforces lot and date control.
Its glossary lets teams substitute the terms their workforce already uses, which helps when "batch" and "lot" mean different things internally. It also integrates with ERP, shipping, and accounting systems through APIs, ODBC, and transfer files.
Conclusion
Batch and lot numbers are more than labels. They link products to production history, inventory status, quality records, and distribution paths.
Start by documenting your terminology and workflow. Then choose a tracking process or configurable system that delivers reliable group-level traceability as operations grow.
Frequently Asked Questions
What is the difference between batch number and lot number?
The terms are often interchangeable. Some organizations use batch for a specific production run and lot for a broader traceability or release group.
Can you provide an example of a lot number?
A code like BR-240615-A2-07 could mean product BR, made June 15, 2024, on line A2, sequence 07. Manufacturers use their own keys, so this is illustrative only.
What does a batch number tell you?
It points to a production group made under shared materials and conditions. With the right records, it supports quality investigations and recalls.
Are batch and lot numbers required for US businesses?
It depends on the product, industry, supply-chain role, and regulations. Prescription drugs, infant formula, and dietary supplements have lot rules, and covered foods fall under FDA's traceability rule. Check current FDA, USDA, or other agency guidance.
How do you create a batch or lot number?
Use a unique, consistent, searchable format. Define where numbers are assigned, required fields, labeling rules, and how long records are retained.
What is the difference between a lot number and a serial number?
A lot number is shared by a group of products. A serial number is unique to one unit and supports finer tracking, such as warranties, repairs, or chain of custody.
