#KeepCodingSimple

Lot coding is a simple but extremely helpful concept. Essentially, a manufacturer will mark each batch of a product with a code that differentiates it from the other batches. Sometimes, they base these numbers on a certain time that the batches were produced or a particular feature that makes them different from previous iterations. Whatever the system behind it, companies can use the lot coding system to trace their products back to their source, an invaluable feature in the event of a recall or any other reason to track down large quantities of a product.

Manufacturers who do not know why it’s important to have lot codes have very likely never been in a position where they had to trace back thousands of units from all corners of the globe. Once they have undergone the stress of a demanding recall, then they will likely understand.

Make Recalls More Manageable

A primary purpose of lot coding is to categorize batches in case of a recall. When recalls do occur—usually when health officials have deemed a product or product batch unsafe for the public—businesses can trace the affected products through lot coding. The general thinking is that quick and easy tracing allows for a more efficient recall.

For example, imagine that the manufacturer receives several complaints about a toy. The toy has been on the market for years, but small pieces of it have recently been falling off and now present a choking hazard. If the toy company has an efficient, thorough lot coding system, they can trace the batch number or numbers of the affected toys to see where units with the same defect are located. With this information, they can collect unsold toys from those distribution hubs and target recall campaigns within that region.

Prevent Foodborne Illnesses

The Food and Drug Administration (FDA) often recalls food from grocery shelves due to the presence of illness-causing organisms, like salmonella or botulism. The spread of foodborne illnesses is a major concern within the United States government, so the FDA heavily tests and regulates the food on the market and conducts recalls whenever they detect an issue.

By maintaining a sustainable, transparent, considerate coding system, businesses can track down batches of spoiled or compromised food products. Recalling those units is not only necessary for a company’s reputation, but it is also a moral imperative to remove dangerous foods from the general public. In that regard, lot coding is an essential part of strengthening and continuing public health.

Product Differentiation

Sometimes, manufacturers make such minute changes to their products that they need a numerical system to signify the difference. By lot coding the batches, people who work on the factory floor can find exactly the right iteration of the product they are looking for.

People familiar with working in factories or warehouses can attest to how hectic and haywire the environment can become. Lot coding is just one in a string of systems they use to lessen the confusion.

Lot coding, therefore, makes for a much more efficient factory overall. By using lot coding on the factory floor, employees need only to follow the numbers left by the industrial inkjet printer to uncover the date the product was produced, the size of its batch, and other identifying information.

Identify Inventory Trends

Lot coding is a superb way to determine the success of a product. It adds new data points that allow you to make more informed decisions moving forward. For example, by using the data you collect from lot coding, you can determine which product batches are moving faster than others or which batches sell at what times in the year. Couple that data with an advanced analytics dashboard, and you will be surprised by how much it helps in your decision-making process.

For instance, through analytics, we can uncover which batches are selling the best. By comparing the attributes of those batches with the others, you can begin to zero in on the advantages that the top seller possesses. All this information will be vital when it comes time to allocate a budget for the next batch, as you’ll have a stronger understanding of where your money should go.

Meet Regulatory Compliance

The two bodies that enforce the regulations and certifications of food and drugs are the Food and Drug Administration (FDA) and the International Organization of Standardization (ISO). If a company wants to see their work on shelves anywhere in America, they must make sure they pass the tests and inspections that the United States government and other bodies have deemed necessary. Those who do not know why it’s important to have lot numbers might not be entirely satisfied to hear the most literal answer: because the government says so.

You must prepare a coding system that matches the FDA and ISO standards. Living up to regulatory compliance in every area is a necessary part of running a business—but especially so when the regulations protect the health of consumers. Make sure to cross your t’s and dot your i’s when it comes to this sort of oversight. But once you get your certification, you can feel confident in knowing that you have built a strong enough foundation to withstand the challenges of federal rules and regulations.

Gauge Landing Cost

A landing cost is the total amount of money a company spends to get a shipment to its destination. Lot tracking gives you a better understanding of your landing cost; by following the batch numbers, you can know how much that batch costs to ship, even if the products go to different places. Less precise methods, like tracking based on SKUs, will only give you an average.

Summation

Lot coding systems are a necessary part of the supply chain. Without an efficient, organized way to trace product batches as they travel across the country—or the world—there would be no trustworthy method for recalling dangerous and faulty products. A company smart enough to #KeepCodingSimple will avoid many potential headaches in the future. Lot coding gives you that safety, the guarantee that if the worst were to happen, you would at least have the resources to handle it without too much trouble.

Furthermore, lot coding systems also offer a great many additional pieces of helpful information to businesses. The tracking allows companies to know which products are the most successful and where sales are the most impressive. All this information is invaluable when a business needs to decide where to allocate its time and energy.