Batch and serial number inventory management explained

Batches and serial numbers are all around us. Most of the products we use are manufactured somewhere.

Manufacturing products is often a complex process. Where mistakes can happen and can lead to serious trouble for the end consumer. Pharmaceutical and food production are very sensitive. All raw materials are quality checked, and each process is monitored. The final finished goods undergo a quality check and are approved as safe for consumption.

Even though there are so many checks and processes in place, mistakes still happen. Some of these mistakes go unnoticed, and the final goods are shipped to the market.

Now, in such a scenario, these products need to be recalled from the market back to the manufacturer. To do this, each item needs to be identified that has this mistake. The manufacturer gives a unique number or ID to the items.

In the case of medicines, food, toys, fabric, and many other products, a batch or lot number is given. For each production cycle, the same batch number is used. This way the manufacturer can know which batch is spoiled if any one item of a batch is spoiled.

For example, you buy a packet of cheese. When you open the packet, it is smelly and rotten, even before the expiration date. You inform the supermarket about this. The supermarket calls the manufacturer to return all the stock.

The manufacturer apologizes for the mistake and assures that only batch number B0128 is the spoiled one. They have already identified the issue and are recalling all the stock with this batch number

What are batch numbers?

Batch numbers are given to a group of items. For example, juice bottles are produced together. A batch number is associated with information about the items.

The most common information is the production facility name, expiry date, and manufacturing date. Thus, items with the same batch number have the same expiration date.

Batch numbers can be found on all packaged food items and medicines. Batch numbers are used to trace raw materials too. For example, a fabric manufacturer can trace back which dye was used to dye the fabric by noting down the batch number of the dye in the batch information of the fabric.

What are serial numbers?

Serial numbers are given to an individual item. A serial number is a unique number given to identify a single item. For example, the IMEI number of a mobile phone. Or the serial number of a laptop.

The IMEI number is a globally unique number for each mobile phone. There cannot be 2 mobile phones in the world with the same IMEI number. IMEI numbers are used by law enforcement agencies to track mobile phones.

Serial numbers are usually used in the case of special items like cars, weapons, mobile phones, and laptops where the government demands traceability of the item to individuals.

Serial numbers are also in case of expensive items like diamonds, luxury watches, and art pieces. The objective of giving a unique serial number to an item is to track who is the current owner and unique information specific to that item.

For example, in the case of art pieces, information about the artist, price, date of sale, previous owner, seller, etc. is associated with the serial number.

Who issues batch numbers and serial numbers?

In most cases, the manufacturer issues the batch number and serial number to items. Since they are responsible for the quality of the products. And the manufacturer can print the numbers on the product and its packaging.

But for inventory management purposes, anyone can issue batch or serial numbers to products. These self-generated numbers can be used by retailers or distributors to track inventory between their warehouses and stores. They can track sold items using these numbers.

For example, a retailer issues a unique serial number to track which customer bought the item. If the customer complains about the product, they can cross-check records to find out which salesman sold the item and when.

Almost all businesses use inventory software to generate and use batch and serial numbers. Managing batch numbers using excel sheets is highly difficult and error-prone.

Businesses with small operations can manage inventory using excel sheets, but as they grow, specialized software can make a huge difference in operational efficiency.

How Businesses Assign Batch and Serial Numbers

Assigning batch or serial numbers depends on the type of product, the level of traceability needed, and compliance requirements. Here's how businesses typically go about it:

Batch Numbers

• At the time of production: Manufacturers often assign a batch number once a production run is completed. All items produced in that run share the same batch number.
• On goods received: Businesses may also assign batch numbers when raw materials arrive from vendors. This is critical in industries like food, pharma, and textiles where traceability is important.
• Based on expiration dates: For perishable items, batch numbers often correspond to a specific expiry date to help with FIFO (First-In, First-Out) inventory control.

Serial Numbers

• At the time of manufacturing: Each item gets a unique serial number printed on the product or packaging. This is common for high-value or regulated goods like electronics, medical devices, and weapons.
• At point of sale: In retail, a serial number may be scanned and recorded during checkout to register ownership (e.g., IMEI number of a phone).
• By inventory software: Businesses using advanced inventory systems can automatically assign serial numbers to each product, allowing better tracking across warehouses and after-sales.

Common examples of serial and batch numbers

• Packaged food: batches numbers are given based on production cycle and expiry date
• Pharmaceuticals: very strict regulations on raw material traceability. So batch numbers have to used for all raw materials as well as finished goods
• Mobile phones: IMEI number is mandatory to be tracked during sales.
• Cars: Each car has a unique engine number and chassis number for serviceability.
• Fabrics: Fabrics have colour variations based on the dye used. So a batch number is given to fabrics, which maps the fabric to the dye number used.

How to track inventory using batch and serial numbers

Inventory management software is needed to effectively manage inventory with batch and serial numbers. A manufacturing software makes it very easy to use batches and serial numbers.

1. Set Product-Level Tracking Rules

Start by deciding how each product should be tracked:

• Batch Tracking: Use when multiple items are produced or received together and share attributes like production date, expiry, or material used (e.g., food, fabric, cosmetics).
• Serial Tracking: Use when each item must be uniquely tracked (e.g., electronics, vehicles, luxury goods).

Your inventory system should allow you to set this individually per product.

2. Assign Numbers at Key Inventory Stages

You can assign batch or serial numbers during different points in the inventory lifecycle:

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Optional: You can also assign serial or batch numbers only at dispatch, which is common for electronics that already have manufacturer-issued IDs like IMEI numbers.

3. Use Inventory Software for End-to-End Traceability

Manual tracking through spreadsheets becomes chaotic as you scale. A specialized inventory system like Sumtracker automates:

• Batch/serial assignment during GRN, production, or sales
• Real-time inventory tracking across locations
• Historical traceability logs for compliance and audits
• Reports filtered by batch number, expiry date, or serial ID

4. Track Expiry and Enable Alerts

For batch-tracked items like perishables or medicines:

• Track expiry dates and set alerts for nearing expiry
• Use FIFO/FEFO for fulfillment based on date
• Identify and recall only the affected batches, not entire product lines

5. Scan Barcodes to Reduce Errors

Barcode or QR scanning can speed up and improve the accuracy of tracking:

• Scan serial/batch codes during receiving and dispatch
• Eliminate manual entry errors
• Ensure correct items are picked and shipped

How Can I Check the Expiry Date Using a Batch Number?

If you're just a regular shopper trying to figure out whether a product is still safe to use, here’s what you can do:

1. Look for the Expiry Date on the Label

Most products that come with a batch number also show the expiry date on the packaging. It’s usually printed near:

• The batch number (e.g., "Batch No: B1032")
• The manufacturing date (e.g., "MFG: 02/2024")
• The expiry date (e.g., "EXP: 01/2025")

Tip- Check boxes, bottle caps, bottoms of containers, or the back of the label.

2. Search Online Using the Brand and Batch Number

Some pharmaceutical or skincare brands allow you to check product info online using the batch number or a unique code on the package.

Try searching:

"Brand Name batch number B1032 expiry date"

If the brand has an online batch checker, it may show you the expiry date or confirm the product is genuine.

This feature is usually available only for medicines, supplements, and cosmetics, not everyday products.

3. Contact the Brand or Manufacturer

If you still can’t find the expiry date, reach out to the customer care team of the product’s brand. Send them:

• The batch number
• A photo of the product/label
• Where and when you bought it

They’ll usually reply with the expiry date and let you know if the product is still safe to use.

4. Ask the Store You Bought It From

If it’s a supermarket, pharmacy, or online store, they may have purchase records or shelf-life info linked to that batch number.

ISO compliance traceability explained

ISO compliance is mandatory for companies to ensure the best product quality and processes. A lot of governments, organisations and companies require ISO compliance from vendors. The ISO definition of traceability requires 2 major points:

• Trace the flow of materials
• Identify necessary documentation and tracking for each stage of production

For any item, you should be able to track the raw materials used, work-in-progress (WIP) materials, and each production stage.

For example, you are producing a teddy bear toy for kids below the age of 9 years.

The basic raw materials required are: fabric, foam, and glass eyes.

You should be able to track the vendor, purchase date, and item specifications for each of the raw materials.

To be able to do this, the only method is to assign a batch number to the raw materials when they are received from the vendor.

When a material is used in production, you will have to create a production entry that mentions the batch numbers of the raw materials used. The WIP produced from this production task will also have to be assigned a batch number.

This process of production entry with batch or serial numbers will continue till we produce the final finished good.

The finished good will also be assigned a batch or serial number. Each document will have to be stored starting from the purchase of raw materials to production entries to final sales of the finished good. A great manufacturing software has the features to trace materials from start to finish.

Free Batch Tracking & Expiry Date Template for Inventory Management

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FAQS

1. What is the main difference between a batch number and a serial number?

A batch number identifies a group of items made or received together, while a serial number uniquely identifies a single item. Batch numbers are used for traceability at the group level; serial numbers track items individually.

2. Why are batch numbers important in manufacturing?

Batch numbers help trace the origin of raw materials, identify defective lots during recalls, manage expiry dates, and comply with regulations like ISO and FDA standards.

3. Which industries require serial number tracking?

Industries dealing with electronics, luxury goods, automobiles, firearms, and medical devices often require serial tracking for warranty, theft prevention, and legal compliance.

4. Can I assign batch and serial numbers manually in Excel?

Yes, but manual tracking in Excel is prone to errors and not scalable. As your inventory grows, specialized inventory software like Sumtracker makes batch/serial assignment and tracking much easier and more reliable.

5. Can a product have both a batch and a serial number?

Yes. In some industries, both are used together. For example, a mobile phone may belong to a production batch but still have a unique IMEI number for individual tracking.