Procurement Glossary
Lot number: Unique identification for traceability and quality assurance
November 19, 2025
The batch number is a central identification feature in procurement and production that enables the unique identification of batches of goods. It ensures complete traceability from the supplier to the end customer and forms the basis for effective quality assurance. Find out below what a batch number is, how it works and what strategic importance it has for modern procurement processes.
Key Facts
- Clear identification of product batches for complete traceability
- Legal requirements in many industries such as automotive, pharmaceuticals and food
- Enables targeted quality management and efficient complaint processing
- Basis for batch recalls and containment measures in the event of quality problems
- Integration into ERP systems for automated goods tracking and inventory management
Contents
What is a lot number? Definition and application in the process
A batch number is a unique alphanumeric identifier that is assigned to a specific production batch or delivery of goods.
Basic properties and structure
Lot numbers typically consist of a combination of letters and numbers that contain information about the production date, shift, supplier or production location. The structure varies depending on the company and industry, but usually follows standardized formats.
- Clear identification of each production batch
- Coding of production data and origin information
- Linking with quality data and test protocols
Lot number vs. serial number
While serial numbers identify individual products, batch numbers identify entire batches of items produced at the same time. A batch number can therefore comprise hundreds or thousands of individual parts that were manufactured under identical conditions.
Meaning of the lot number in Procurement
In procurement, the batch number enables precise traceability of deliveries and supports quality management. It is essential for compliance with regulatory requirements and enables quick reactions in the event of quality problems.
Procedure: How a lottery ticket number works
The systematic use of lot numbers requires structured processes from allocation to documentation.
Allocation and structuring
Lot numbers are assigned according to defined rules that encode the production date, shift and other relevant parameters. Modern systems generate batch numbers automatically based on predefined algorithms.
- Automatic generation at the start of production
- Coding of relevant production parameters
- Uniqueness across all production sites
Integration into incoming goods processes
During the incoming goods inspection, the batch number is recorded and compared with delivery bills. This enables the allocation of inspection results and the release or blocking of specific batches.
Documentation and archiving
All lot number-related data is systematically documented and archived for the legally prescribed periods. This includes production data, quality checks and delivery information for complete traceability.
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Important KPIs and targets
Key figures for lot number management measure the effectiveness of traceability and quality assurance.
Traceability rate
This KPI measures the proportion of products for which full traceability back to origin is possible. The target value should be 100% in order to meet regulatory requirements.
- Complete documentation of all production steps
- Seamless linking of lot numbers with supplier data
- Prompt availability of all relevant information
Response time for callbacks
The time between identification of a quality problem and complete localization of affected batches via batch numbers. Short response times minimize the risks and costs of containment actions.
Data quality and completeness
Measurement of the completeness and correctness of lot number-related data as a percentage. High data quality is a prerequisite for effective traceability and quality assurance.
Process risks and countermeasures in lot number
Inadequate lot number management can lead to significant compliance violations and quality problems.
Double allocation and confusion
Accidental multiple allocation of identical lot numbers or mix-ups during allocation can compromise traceability. Automated systems with plausibility checks minimize these risks.
- Implementation of automatic uniqueness checks
- Central lot number database for all locations
- Regular system audits and validations
Incomplete documentation
Incomplete or incorrect documentation of lot number data complicates containment measures and can lead to regulatory problems. Standardized recording processes and validation rules are essential.
System failures and data loss
Technical failures can affect lot number management and jeopardize critical traceability data. Redundant systems and regular backups ensure continuity even in the event of disruptions.
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Practical example
An automotive supplier implements a digital batch numbering system for brake pads. Each production batch is given a unique batch number that encodes the production date, shift, raw material batch and test results. In the event of a customer complaint, the company can identify all affected vehicles within minutes and provide targeted information. The system prevents unnecessary recalls and reduces costs by 60%.
- Automatic batch number generation at the start of production
- Integration in ERP system for real-time tracking
- Direct access to quality data and delivery information
Trends & developments around lot numbers
Digitalization and stricter compliance requirements are driving the further development of lot number systems.
Digital traceability and blockchain
Blockchain technology enables unalterable documentation of lot number data along the entire supply chain. This creates maximum transparency and trust between all parties involved.
- Unchangeable documentation of all transactions
- Real-time transmission between supply chain partners
- Automated proof of compliance
AI-supported quality prediction
Artificial intelligence analyzes historical lot number data to identify quality trends and recommend preventative measures. Machine learning algorithms recognize patterns that indicate potential quality problems.
IoT integration and smart labels
Internet of Things (IoT) sensors and smart labels enhance traditional lot numbers with real-time data on temperature, humidity and other environmental conditions during transportation and storage.
Conclusion
Lot numbers are indispensable tools for modern procurement and quality management systems. They ensure complete traceability, enable efficient complaints processing and support compliance with regulatory requirements. Digitalization opens up new possibilities for automated processes and preventive quality assurance. Companies that invest in robust lot numbering systems create the basis for sustainable quality management and risk minimization.
FAQ
What is the difference between a lot number and an article number?
While the article number identifies the product itself, the batch number identifies a specific production batch. Several batches of the same article have different batch numbers but the same article number.
How long must lot number data be stored?
The storage period varies depending on the industry and product. In the automotive industry, 15 years is often prescribed, in the food industry usually 2-5 years. Regulatory requirements define the minimum duration.
Can lot numbers be changed retrospectively?
In principle, lot numbers should be unchangeable to ensure the integrity of traceability. Changes are only permitted in exceptional cases with full documentation and approval.
How do lot numbers support quality management?
Lot numbers enable the targeted allocation of quality data to specific production batches. In the event of deviations, affected batches can be quickly identified and appropriate measures initiated without affecting other batches.
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