Batch Tracking: Pros, Cons, and Where to Start
Two dye lots look the same under warehouse lights.
They’re not.
A week later, returns pile up and you’re writing off stock.
Or a pallet of pet food sits at the back. Nobody’s sure on dates, so it gets left. By stocktake, it’s past safe sell and you’re binning it.
Batch tracking prevents those losses, once you’ve set up the basics: clear labels, simple rules, and a well-maintained record of product movement.
Batch vs lot
“Batch” and “lot” are two words for the same idea: an ID for a production run. Put that ID on the label and record it when stock comes in, moves, and goes out. That lets you answer three vital questions quickly:
Where did this stock come from?
Where is it now?
Where did it go?
It also helps you see which batches perform best, spot supplier issues early and buy more confidently.
Pros (in plain terms)
Fewer write-offs and returns - issues are isolated to one run, not the whole SKU.
Faster answers - you can trace units in minutes during recalls or quality checks.
Better buying - spot patterns (good and bad) by batch and supplier.
Better efficiency - less time wasted searching your warehouse for specific batches.
Waste into revenue - odd lengths or sets become saleable one-offs, not write-offs.
Cons and trade-offs (the honest bit)
Process changes - you’ll need to label on arrival, store by batch and batch movement effectively.
Training - it takes time for teams get used to new habits and rules (FEFO/FIFO, locations).
Label discipline - unlabelled items create gaps in history.
Data hygiene - badly keyed lots make tracing harder than it should be.
Tools later - as volume grows, you’ll likely add barcode scanning to prevent manual keying mistakes.
The cost of not tracking
A client of ours kept losing metres of fabric to faults that showed up mid-roll. They had no way of recording batches or cut lengths, so 7 metres here or 6 metres there went straight to waste.
Then they added one small habit: batch the roll, mark the fault, cut a clean remainder. Now the odd lengths go online as one-offs instead of in the bin. Less waste. More stock to sell.
Who really needs batch tracking?
If your products expire, vary by shade or pattern, or can differ by production run, you’ll benefit. Very small ranges in a single location can usually manage manually for a while because you can see everything and spot issues by eye. The need grows with volume, more product lines and variants, and more locations. As those increase, the risk of mis-picks, colour mismatches and date slips rises, and batch tracking becomes essential.
Examples where it matters most:
Food and drink
Cosmetics and skincare
Supplements
Fabrics, yarn, wallpaper, tiles, paint
Pet food
How to start (keep it light)
You don’t need a full Warehouse Management System (WMS) on day one. A lightweight ERP is often the cheapest way to get purchase orders, receiving and batches under control as you grow. If you’re not ready for new software, start with the habit and keep it consistent.
Receiving - record SKU, batch, quantity, supplier and date. If stock arrives unlabelled, print a simple label before putaway so the batch exists from the start.
Locations - store by batch. Give each shelf or bin a code. Keep different batches apart. It speeds picking and stops accidental mixing.
Pick rules - use FEFO (first-expiry, first-out) for dated goods and FIFO (first-in, first-out) for the rest.
Adjustments - when you find damage, a count difference or a stray box, adjust that batch, not just the SKU. That keeps your records clean and makes it easy to show what changed later.
Regular reviews - look at three basics: what arrived (and from who), what shipped (and to who), and what you wrote off (and why).
Short checklist (pin this by the goods-in desk)
Put the batch/lot on every incoming label
Store by batch, not just by SKU
Pick FEFO for dated goods, FIFO for the rest
Log who moved what, when, where
Review weekly: arrivals, shipments, write-offs, and any returns tied to a batch
Not sure where your biggest friction is?
Book an operations audit. We’ll walk your receiving, labels, locations and pick rules, and tell you where batch tracking will help - and where they won’t.
