Lot tracking allows inventory to be identified and managed by its production batch, lot number, and expiration date. It provides greater visibility into which inventory was received, stored, and shipped to customers.
What Is a Lot?
A lot is a group of products manufactured or produced under the same conditions. The manufacturer assigns a unique lot number or batch code to identify that group.
For example, a supplement SKU may have the following inventory:
Lot number | Expiration date | Quantity |
LOT-2026-001 | June 30, 2027 | 500 |
LOT-2026-002 | September 30, 2027 | 750 |
Although both lots belong to the same SKU, they are tracked separately in the ShipTop system.
When Should Lot Tracking Be Used?
Lot tracking is commonly used for products where batch traceability or expiration management is important, including:
Supplements and vitamins
Food and beverages
Cosmetics and skincare
Health and wellness products
Pet food and supplements
Products that may be subject to recalls
Products with expiration or best-before dates
Lot tracking may also be required by a retailer, marketplace, regulatory authority, or your company’s internal quality-control procedures.
How Lot Tracking Works at ShipTop
When lot tracking is enabled for a product, inventory is recorded by:
SKU
Lot or batch number
Expiration date
Warehouse location
Quantity
This allows ShipTop to distinguish between different lots of the same SKU throughout the fulfillment process.
Receiving
When lot-tracked inventory arrives at ShipTop, our receiving team records the lot number and expiration date associated with the inventory.
Clients must provide accurate lot and expiration information on their inbound shipping plan. The lot information must also be clearly visible on the product or its packaging.
Different lots should be separated and clearly labelled before arriving at ShipTop. If lot information is missing, unclear, or does not match the inbound shipping plan, receiving may be delayed while we request clarification.
Storage
Different lots of the same SKU are tracked separately in the warehouse.
A warehouse location can only contain one lot of a particular SKU at a time. This helps prevent inventory from different lots from being mixed together and maintains accurate traceability.
Order Fulfillment
During fulfillment, the system directs our team to pick inventory from the appropriate lot based on the configured inventory-rotation method.
The two most common methods are:
FIFO — First In, First Out: Inventory received first is prioritized for fulfillment.
FEFO — First Expired, First Out: Inventory with the earliest expiration date is prioritized for fulfillment.
FEFO is generally recommended for perishable or expiration-dated products.
If lot verification is enabled, the warehouse team may also be required to scan or confirm the lot number during picking.
Shipment History
Once an order is fulfilled, the lot information associated with the inventory remains connected to the shipment record. This can help identify which customers received inventory from a particular lot.
Expiration-Date Management
Lot-tracked inventory must have an expiration date recorded in the system. If a product does not expire, please contact ShipTop before enabling lot tracking so we can determine the appropriate setup.
Clients may also establish a picking-disabled period. This determines how many days before expiration the inventory should no longer be allocated to customer orders.
For example, if the picking-disabled period is set to 90 days, inventory will become unavailable for regular fulfillment when it reaches 90 days before its expiration date.
Please notify ShipTop of any required minimum shelf-life rules, particularly if they vary by retailer, sales channel, or customer.
Product Recalls
Lot tracking can help identify:
The quantity remaining from an affected lot
Where the inventory is stored
Which orders were fulfilled using that lot
Which customers may have received affected products
However, enabling lot tracking does not replace a formal recall, quality-control, or regulatory compliance program. Clients remain responsible for determining recall requirements, notifying the appropriate parties, and providing ShipTop with clear written instructions.
If a lot needs to be placed on hold, recalled, inspected, or removed from inventory, contact ShipTop Support immediately.
Client Responsibilities
To maintain accurate lot tracking, clients are responsible for:
Enabling lot tracking before the inventory arrives
Providing the correct lot number and expiration date
Including lot details on the inbound shipping plan
Ensuring lot information is clearly visible and scannable on the product or packaging
Keeping different lots separated and identified during inbound shipping
Communicating minimum shelf-life requirements
Notifying ShipTop of recalls, product holds, or special allocation instructions
Reviewing lot and expiration information for accuracy
Lot tracking should be enabled before inventory is received. Enabling it after inventory has already been stored may require an inventory count, relabelling, segregation, or other additional work.
Important Limitations
A lot number should correspond to only one expiration date.
Inventory from different lots should not be mixed in the same carton or pallet unless each lot is clearly separated and identified.
Lot tracking does not automatically validate information provided by the manufacturer or client.
ShipTop cannot determine a product’s lot number or expiration date if it is not clearly marked.
Custom lot allocation requests may require additional coordination and handling.
Orders manually marked as fulfilled outside the standard warehouse workflow may not follow the configured FIFO or FEFO rules.
Enabling Lot Tracking
Lot tracking must be enabled individually for each applicable SKU.
For setup instructions, see Enabling Lot Tracking for Products.
If you are unsure whether lot tracking is appropriate for your products, contact [email protected] before sending inventory to ShipTop.