What Should Be in a Lot Code? Formats & Best Practices for CPG Brands
Confused about whether to use date-based or sequential lot codes? This article demystifies lot code formats, explaining what information to include for maximum traceability and how to generate a system that is simple for your team to manage.
Lot codes. Feels like one more thing on a never-ending to-do list, right? Another piece of ops jargon for the big corporations.
But what if that simple string of numbers was one of the smartest tools you have to protect your brand?
The truth is, your customers and retailers want more transparency than ever. They want to know the story behind your product. A good lot code system helps you tell it. Let’s make this easier.
This guide will clear up the confusion around lot codes. We'll show you how to build a system that protects your brand, builds trust, and feels simple enough for your team to actually use.
Why Lot Codes Are Your Brand's Best Friend
A lot code system is more than a box to check. It’s a tool that speaks directly to what modern shoppers care about. Today, customers, retailers, and regulators all want complete and trustworthy data about the products they buy and sell.
This demand for transparency is changing the game. One analysis of CPG growth shows that products marketed with sustainability claims are growing nearly six times faster than conventional ones. A lot code is the foundation for proving those claims.
More importantly, it’s your brand’s insurance policy. When an issue comes up, a strong lot tracking system helps you isolate the problem in hours instead of weeks, protecting your customers and your reputation. With upcoming rules like the FDA's FSMA 204 Traceability Rule, good traceability is no longer a nice-to-have. Failing to comply can lead to significant fines or even operational shutdowns.
Breaking Down the Lot Code: How to Choose Your Format
So, what does a lot code actually look like? There’s no single right answer, but most brands use one of three common formats. The key is to pick one that’s simple but gives you the detail you need.
Date-Based Formats
This is the simplest approach, tying the code directly to the production date. It’s chronological and easy for anyone to read. For a product made on May 1, 2023, the code might be 230501 (YYMMDD).
Sequential Formats
This format uses a simple number sequence for each batch, like 1000, 1001, 1002. It’s straightforward and works well for smaller operations where you just need to tell one production run from the next.
Alphanumeric (Combined) Formats
This is where you can pack in the most information. By combining letters and numbers, you can embed a ton of detail into a short code. For example, DC500T011524 could mean: Dark Chocolate (DC), a batch of 500 units, made in the Toledo facility (T), on January 15, 2024. This format gives you the most control over your production planning
What to Put in Your Lot Code
Think of your lot code as a recipe. You can start with the basics and add more ingredients as you grow. Here’s what every CPG brand should think about including.
Must-Haves
Production Date: The day the product was made.
Batch/Lot Number: The unique ID for that specific production run.
Manufacturing Location: A code for the facility where it was produced.
Expiration Date: The "best by" or "use by" date, if it has one.
Nice-to-Haves
For even tighter stock control, you can add details like raw material batch numbers, a code for the product flavor or variant, or the specific production line used. Start simple and add what you need.
Four Habits for a System That Just Works
Building a bulletproof system is about creating simple, repeatable habits. Here are four to guide you.
1. Keep It Consistent
Establish a standard format and stick with it. Decide where the lot code will go on your packaging and put it in the same place every single time. Consistency makes it easy for your team, your retail partners, and your customers to find what they need.
2. Let Software Do the Heavy Lifting
Manual tracking on spreadsheets is a recipe for human error. Modern inventory management software can automate lot code creation and tracking, linking every batch to your raw materials and finished goods. Using tools like barcode labels and QR codes makes the whole process smoother and more accurate.
3. Run Drills
The best time to test your system is before you need it. Run a few mock recalls to see how quickly your team can trace a specific batch from raw ingredient to final shipment. This is the practice that turns a week-long crisis into a problem you solve in a few hours.
4. Train Your Team
Make sure everyone in production and fulfillment understands the system and why it matters. A clear, simple playbook ensures everyone is on the same page.
Four Habits for a System That Just Works
Building a bulletproof system is about creating simple, repeatable habits. Here are four to guide you.
1. Keep It Consistent
Establish a standard format and stick with it. Decide where the lot code will go on your packaging and put it in the same place every single time. Consistency makes it easy for your team, your retail partners, and your customers to find what they need.
2. Let Software Do the Heavy Lifting
Manual tracking on spreadsheets is a recipe for human error. Modern inventory management software can automate lot code creation and tracking, linking every batch to your raw materials and finished goods. Using tools like barcode labels and QR codes makes the whole process smoother and more accurate.
3. Run Drills
The best time to test your system is before you need it. Run a few mock recalls to see how quickly your team can trace a specific batch from raw ingredient to final shipment. This is the practice that turns a week-long crisis into a problem you solve in a few hours.
4. Train Your Team
Make sure everyone in production and fulfillment understands the system and why it matters. A clear, simple playbook ensures everyone is on the same page.
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