Lot tracking and traceability is an essential practice in inventory management for coffee roasters alike. In fact, enabling the lot control functionality is often the first step coffee roasters take once their new enterprise resource planning (ERP) software is live.
In this blog, you’ll learn about lot tracking and traceability and why it’s so important. You’ll also learn how an ERP solution can help you gain greater visibility and control over your inventory.
Lot tracking and traceability gives end-users the ability to assign identification labels to production runs called “lots,” which can then be tracked throughout the supply chain. The ID labels allow coffee roasters to then scan and store information about the material, including its location in the warehouse, when it was received, who the supplier is and when it was purchased.
The term “cradle-to-grave” traceability refers to the ability to track lots from the beginning to end of the supply chain: starting with the supplier who sends the raw materials, moving through the manufacturing process, and all the way to distribution and sale, when the finished product reaches end customers.
Effective and efficient warehouse management starts with lot tracking and traceability, and it begins the moment materials are received. When used in conjunction with wireless barcoding, this functionality enables strategic decision-making, providing full, real-time visibility into your inventory.
Bin location functionality allows you to label and barcode every spot in your warehouse according to a common naming convention (for example, “Aisle 1, Level 1” on a pallet rack).
Most lot numbers have dates embedded within the code, sometimes using characters or letters to represent different months. This allows manufacturers to determine manufacturing date simply by looking at the lot number, so they can easily track shelf life. ERP allows you to manually enter a lot number, use a sequential number or automatically generate one.
Lot control for raw materials also enables first in, first out (FIFO) and FEFO (first expired, first out) inventory tracking:
ERP solutions have functionalities to automatically select the first lots to expire as well as the oldest inventory to ensure maximum utilization and prevent waste.
Lot tracking and traceability functionality is especially important for manufacturers that produce food, consumable, and personal care products. Both the ingredients and finished products have shelf life and expiration concerns, which make lot tracking and traceability crucial.
Lot tracking and traceability helps you more accurately track what’s going on in your business and unlock the full potential of your ERP software. Some of the key benefits include:
At ACC Software Solutions, coffee and tea are the fuel that keep our team running smoothly. However, we’re not only expert consumers, we also provide a wide variety of ERP services for coffee and tea providers nationwide.
In our business, we’ve proudly served a number of both manufacturers and distributors in the coffee & tea industry. Meaning, we’ve got a pretty good idea of how your company already works and common pain-points throughout the industry. Our team of expert consultants can build upon that knowledge to provide the best solutions for your business.
Find out why manufacturing distributor centers across the United States have come to us for over 25 years to execute their software projects—contact ACC Software Solutions today!
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