Lot Numbers Explained — What They Are, How to Create Them & Industry Format Examples

Lot numbers are a core part of any manufacturing process — and for small product businesses, they’re often the difference between a swift, targeted recall and weeks of digging through records.

This guide covers what lot numbers are, why they matter, how to format them, and how to track them effectively in your business.

Last updated: June 2026

What are Lot Numbers?

A lot number is a unique identifier assigned to a specific batch of products made together, used to trace those products back through the supply chain.

Let’s start with some definitions. A lot number is simply a unique identification number assigned to a batch of products. This can be anything from a single item to an entire shipment of goods.

The lot number allows manufacturers to keep track of where products come from and when they were made. It is an essential inventory management technique as it creates full traceability of your stock. For makers that create products that expire (such as food or beverage manufacturers), lot numbers can also help track this information too.

Let’s firstly take a look at the difference between similar tracking codes that are commonly used in inventory management so that we are all on the same page:

Lot numbers and batch numbers are essentially the same thing. They are also commonly known as lot codes, control numbers, or production codes.

Stock Keeping Units (SKUs) are a little bit different as they are unique identifiers for products, while lot numbers identify batches of products. SKUs track individual items, while lot numbers can be used to track an entire shipment of items.

Serial numbers are similar to lot numbers, but like a Stock Keeping Unit (SKU) they are typically assigned to individual items rather than batches of products.

Why are Lot Numbers Important?

Lot numbers matter because they let you trace any product back to its source materials — which is critical when a supplier issues a recall or a quality issue surfaces.

Now that we know exactly what a lot number is, let’s look at why they’re so important in practice.

Let’s use a typical situation to illustrate: imagine you have just received an email from one of your raw material suppliers. In this message, they indicate that they have discovered a contamination issue with one of the materials they sell that you have previously purchased. They are thus undertaking a full recall of the material and ask you to comply.

The email indicates that you need to do the following:

• Locate any impacted materials you still had on hand and either dispose or return to the vendor
• Identify any products on hand that have been made using this material and dispose if found
• Identify any products already sold to customers that have been made using this material and advise the customer to cease using the product immediately.

Sounds daunting right? With consistent traceable record-keeping processes in place, it is completely possible to locate these products and customers quickly and efficiently.

The key part of traceable record-keeping is Lot Numbers - these are unique identifiers assigned to specific quantities of the materials you purchase and the products you make. By creating a manufacture tracking system that records lot numbers, you’ll be able to see exactly what materials were used in each of the products you have sold.

Lot numbers are important because they allow manufacturers to track their products through the entire supply chain from start to finish.

By knowing the lot number of a product, manufacturers can easily find out when it was made and where it came from. This information can be critical for a number of other reasons too:

Industry and regulatory compliance

Depending on the products you sell and/or the locations you sell to, there may be regulations that you need to adhere to that require you to keep full auditable records of your material usage. As an example, recently the EU introduced the GPSR which requires all online sellers to keep and provide full traceability records.

Quality Control / Quality Assurance

Lot numbers can provide valuable information during an investigation of a product complaint or failure. The lot number can help identify when the product was made, who made it, and what materials were used.

Use this information to look for common factors behind the problem and check other products in the same batch for similar issues.

Lot tracking can also help make sure quality standards are maintained for raw materials. As an example, one particular supplier may be consistently providing materials that do not meet your quality standards. By tracking lot numbers, you can quickly identify when these materials were used and take appropriate action to find a new supplier.

Inventory Management

Lot numbers also give you a simple way to keep better track of your inventory levels and keep your manufacturing process running smoothly.

By knowing how much product you have in stock and when it was made, you can make sure you’re using and selling the right materials and products at the right time.

Fast Material Recalls

When a supplier recalls a raw material, lot tracking lets you immediately identify which products are affected and need to come off the shelves. You can quickly locate those products, remove them from your premises, and reach out to any customers who may have already purchased them.

Improved Customer Service

Lot tracking also pays off for customer service. If a customer has an issue with a product, lot numbers let you trace it back to its point of manufacture quickly. You can correct the problem, stop it happening again, and keep the customer in the loop throughout.

How are Lot Numbers Used?

Lot numbers track products and materials from receipt through production and sale, giving you a complete chain of traceability for every batch you make.

Lot numbers serve many purposes, but the most common is tracking products throughout the manufacturing process. With a lot tracking process covering both materials and products, you can see:

• When raw materials were received
• Which products were made with those materials
• When products were shipped and who they were shipped to

Lot numbers can also be used in conjunction with inventory management systems, using barcodes, QR codes or RFID tags to automate the tracking process (we’ll discuss a little more about inventory management later in this article).

How to create a lot number

A good lot number combines a date, a product code, and a sequence number (like 20260601-SOAP-001), giving you a unique, readable identifier for every batch you produce.

Now that you have the background on lot numbers, let’s get into how they’re actually created and used.

For a lot number to be effective, it should be:

1. Unique
2. Easy to read and to interpret
3. Be consistent in terms of numbering and formatting

The actual information included in lot numbers will vary from company to company based on specific workflows and requirements, but there are a few common pieces of information that are often included:

• The date the product was made

• The batch or lot number of the raw materials used

• The sequence number of the product within the lot

As a simple example, your lot numbers might look like this:

• 2026-01-01-001
• 2026-01-02-002

In this example, the lot numbers include the date the product was made (2026-01-01 and 2026-01-02) and the sequence number of the product within the lot (001 and 002). The sequence number would increase with each new product made so that the code is always unique.

How to handle expiration dates

If your products have expiration dates, you can optionally include this information in the lot number as well. For food producers, accurately calculating your product’s expiry date before encoding it into your lot numbers is an important first step. This can be done in a few different ways, but the most common is to include the expiration date as part of the lot number. For example:

• 260601-001-EXP260901
• 260601-002-EXP260902

In this example, the lot number would include the product’s date of manufacture, the sequence number of the product within the lot, and the expiration date. The expiration date would be included in all lot numbers so that it is easy to identify when a product expires.

Another common way to include expiration dates is to use a separate field for the lot number and the expiration date. This can be done with a barcode, QR code, or RFID tag. For example:

• lot number: 260601-001
• expiration date: 260901

With this method, the lot number and expiration date are stored in separate fields. This can be helpful if you need to track the lot number and expiration date separately.

Lot Number Format Examples by Industry

Lot number formats vary by industry and product type. Here are real-world examples used across different product categories:

Food and Baking

Food producers often need traceable lot numbers for food safety compliance. A typical format might look like:

• 20260301-COOKIE-001 — manufacture date, product code, batch sequence
• CB-20260301-001 — maker initials, date, batch number

For products with expiry dates, append the expiry directly: 20260301-001-EXP20260601

Cosmetics and Skincare

Cosmetics manufacturers (especially those selling in the EU or US) often need traceable lot numbers to comply with regulations like MoCRA. Common formats include:

• SK-20260301-001 — brand initials + manufacture date + batch number
• LIPSCRUB-260301-A — product abbreviation + short date + batch letter

If you sell the same product in different scents or shades, including a product code in your lot number makes tracing much easier in the event of a recall.

Candles and Soap

For candle and soap makers, lot numbers help trace raw material batches (fragrance oils, lye, waxes) through to finished products. A candle maker might use:

• CAN-20260301-LVRSCNT-001 — product type + date + scent abbreviation + batch
• 20260301-SOC-003 — date + soap/candle code + sequence

If you work with small measurements like drops and millilitres, including a batch sequence number is especially valuable for replicating successful batches and isolating quality issues.

Jewellery and Craft

For jewellery makers and other craft sellers, lot numbers can track material batches (beads, metals, thread) through to finished items:

• JW-20260301-SILVER-001 — brand + date + material + sequence
• 20260301-RING-004 — date + product type + sequence

What is Lot Tracking?

Lot tracking is the process of recording and following a specific batch of products or materials from production through to the customer, using lot numbers as the connecting thread.

Lot tracking, also known as batch or batch number tracking, is the process of monitoring and tracing specific groups of products or materials from production to distribution via their lot number.

Lot tracking enables businesses to identify and isolate any potential issues with a specific batch, whether it’s a product recall or quality control. It keeps the supply chain transparent and accountable, so customers consistently receive safe, high-quality products.

How to track Lot Numbers

Some small manufacturers start tracking lot numbers using written logs and excel spreadsheets, however as the exact relationship between purchases, manufactures and orders can be quite complex, the use of a spreadsheet can lead to errors and inconsistencies as your business grows.

A database maps those relationships correctly. You can try building one in Access or similar tools, or use specialised lot tracking software like Craftybase.

Whatever system for lot tracking you choose, your written records need to be good enough to be able to quickly generate:

a) Who you purchased a specific batch of materials from and when AND b) Which products were manufactured using this specific batch AND c) Who you eventually sold the products to

In practice, you’ll want to record lot numbers for each material purchase you make, then link that lot number to the manufacture batch you create. Finally, connect the manufacture to the customer order that purchased the product.

Using inventory software to track your lot numbers

For companies that have a lot of products and raw materials, it can quickly become unwieldy to keep track of lot numbers manually. In these cases, it can be helpful to use either a spreadsheet or specialized software for your lot tracking.

Manufacturing Resource Planning (MRP) software generates lot numbers and tracks lot inventory levels automatically. Large companies have long used MRP, but many affordable systems now exist for small businesses too.

MRP software typically assigns lot numbers based on the raw materials used and the production date. This works well in practice, but you still need to make sure every lot number stays unique across your product range.

Some MRP systems also track lot numbers through the entire manufacturing process — a feature that becomes critical for quality control and troubleshooting when issues arise.

Craftybase is an example of MRP software that features lot tracking functionality while also tracking your inventory levels in real-time. Craftybase lot numbers are automatically assigned to products based on the raw materials used and the production date so that you can see the full traceability of your raw materials through to sale. Sign up for a 14 day free trial today

Craftybase also includes full lot traceability software — forward from ingredient purchase to every order it shipped in, and backward from a customer order to every ingredient lot that went into it.

How does Lot Tracking work in Craftybase?

Using Craftybase, it is possible to track your exact material batch usage from purchase right through to sale.

This is wonderful news for small manufacturing businesses that are required to track manufacture and material provenance information for CPSC and GMP.

Lot numbers can be entered whenever a new batch of materials are purchased. This can be achieved via the Add Expense Item form. In the example below, the Lot Number for this purchase of a single jar of Coconut Oil is 23432DP:

Lot numbers can then be added as part of the manufacture process for each material used. This then provides a direct link between your purchase history and your manufacture history. Continuing the example above, the Coconut Oil material is added to the manufacture for a soap product with the Lot Number of 23432DP to indicate that this particular batch was used in this manufacture:

Finally, order line items can be associated with manufactures, which provides your link between manufactures and orders (see How do I link a manufacture with an order line item? for more details on this process).

The Material Traceability Report can then be used to create a full traceability summary of material usage, displaying all expenses, manufactures and orders that have involved a particular lot of a material.

As you can see from the report, we can identify very quickly that Kyla Olsen has been shipped a product that was manufactured using the 23432DP lot number of Coconut Oil. In the case of a material defect with the oil, this means you can analyse impact and begin recalls immediately, without taking weeks to comb through your records.

The bottom line

Lot tracking is a critical part of traceable record-keeping for any manufacturing business: large or small.

By incorporating lot numbers into your workflow, companies can quickly and easily track items throughout the production process and give you greater visibility of your inventory and stock movements which can be invaluable for quality control and customer service.

Frequently Asked Questions