Inventory management is a major aspect of any business, and bottled water businesses are no different. From managing raw materials and water bottles to ensure a consistent water supply, inefficient management can lead to unnoticed losses and operational delays. This blog covers batch or lot tracking, one of the most important aspects of inventory management. Batch or lot tracking in the bottled water businesses enables them to keep precise track of the specific water bottle batch they have at any time.
The blog includes
What is batch/lot tracking?
Batch tracking, also known as lot tracking, is one of the most common inventory management techniques used by bottled water manufacturers to track groups of filled bottles or raw materials (bottles, labels, and caps) that were manufactured, processed, or received together and share the same batch or lot number. It enables businesses to monitor the journey of a specific batch throughout the bottled water supply chain, from production to sales or distribution.
The batch or lot number contains
Upstream information, including
- Supplier Data
- Components used to produce a batch of products
- Bottled water type
- Serial numbers
- Expiry date
Manufacturing data
- Where the water bottles were manufactured
Downstream data
- About the company’s distributors that received products from the batch
- The customers who received the water bottles
Batch tracking is essential for bottled water businesses seeking to deliver the highest product quality and services to their customers, building long-term loyalty. It is used to gain a descriptive image of the sourcing, production, inventory, and distribution processes associated with each bottle manufactured. This empowers businesses to track the raw material used to produce a particular batch of water bottles.
Implementing a batch tracking system can help you document the quality controls applied to a given batch and who conducted and signed off on those tests, combining accountability with quality control. It can help you track water bottles that have left your warehouse, record which distributors have received from the batch in question, and which bottles have been sold to the customers.
How does batch tracking work?
Batch tracking works by assigning a unique identifier (batch number) to a group of water bottles that are produced, received, or processed under the same conditions. This batch number is used to monitor and trace the movement, usage, and status of water bottles throughout the supply chain. Step-by-step working of batch tracking;
Lot number assignment
When raw materials or products are received or manufactured, they are grouped into lots and assigned a unique batch number. This number includes information like production date, location, supplier, or batch code. Example: A water bottling plant processes 200 bottles in one shift using the same purification cycle and is assigned batch number #WB20250718.
Data entry and labeling
The batch number is entered into the bottled water ERP or inventory system. The water bottles are labeled with this batch number using barcodes, QR codes, or printed labels.
Tracking throughout the supply chain
As the water bottles move through storage, packaging, sales, or distribution, the system logs each movement by batch number. This enables backward (where did the material come from?) and forward (where did the finished product go?) traceability of the bottles.
Usage and expiry management
Batch tracking helps monitor expiration dates, shelf life, and FIFO/LIFO movement rules.
Quality control and recall management
If any issue is discovered, affected batches can be quickly identified, isolated in inventory, traced to customers or distributors, and recalled efficiently without affecting other products.
Audit and compliance reporting
Regulatory bodies require detailed batch traceability for safety and compliance. Batch tracking provides an audit trail for inspections and legal requirements.
Why is batch tracking important to inventory management?
Batch tracking is crucial for the bottled water industry, as without it can expose your operations to serious risks, impacting quality control, customer safety, regulatory compliance, and brand trust. Here are the key challenges:
Inability to trace product origin
Without batch number tracking, it is nearly impossible to trace which raw water source was used, which purification cycle or machine produced a specific bottle, and when and where the bottle was filled. In case of any issues, pinpointing the source or affected units is challenging.
Poor quality control
Without proper tracking, you can’t isolate defective or substandard batches. There is no record of test results, machine settings, or operator performance for specific production runs. This can lead to an unnoticed low-quality water supply to the customers, harming your brand reputation.
Inefficient recalls
If a contamination or safety issue arises, you may have to recall all the bottles and not just the affected ones, increasing the costs, losing inventory, and causing panic in distribution. This can lead to broad, unfocused recalls that can hurt credibility and profits.
Non-compliance with regulations
Regulatory bodies often require a traceability record for each batch and the details for production, storage, and distribution, which is difficult without batch tracking. This can result in fines, penalties, or shutdowns for failing to meet regulatory standards.
Inventory inaccuracy
Without batch number tracking, you can’t track expiry dates, especially for flavored or mineral-enhanced water, making managing a FIFO strategy difficult. This results in older stock going unsold or being delivered accidentally, leading to wastage.
Damaged brand reputation
If an issue arises and you can’t provide when and where it was produced, what quality checks were done, and who received it, customers lose trust and switch to more transparent competitors.
No visibility across the supply chain
You can’t track which distributor got which bottles, blinding you to which batches are still in warehouses or retail outlets.
See How We Can Help You Drive Massive Amounts of Profit
- Customer App – automate online ordering for customers
- Driver App – optimize delivery routes for faster deliveries
- Sales & Analytics – know you business in details
Features of batch tracking software for bottled water businesses
Batch tracking for bottled water businesses ensures complete control, safety, and transparency across the production and distribution process. Here are the essential features:
Batch creation
The system can automatically generate unique batch or lot numbers for each production run. It also records key details like date/time of production, purification cycle, filling line, and operator information. It supports custom naming conventions and barcode labeling. This streamlines the documentation process of every bottle batch for traceability.
Batch tracking
A batch tracking system enables you to track the movement of each batch from production to delivery. You can monitor stock levels of specific batches across multiple warehouses or delivery vehicles. It enables real-time visibility into where each batch is located, providing complete control over inventory and faster identification of issues.
Batch traceability
It enables forward and backward traceability. You can check where the material came from and which customers or locations received this batch. It links batches with supplier data, purification tests, packaging dates, and delivery records. This simplifies recall management and ensures product accountability.
Batch reporting
The system can generate detailed reports on batch performance, quality testing, shelf life, and expiry status. It supports custom filters for tracking batch status by region, delivery route, or production line. It also offers a real-time dashboard for the operations and compliance team. These are data-driven insights from the production, quality assurance, and inventory teams.
Integration
Batch tracking systems can be integrated with ERP systems, inventory management systems, CRM, and delivery management systems. At Water Delivery Solutions, we provide a bottled water ERP that has an in-built batch tracking system. You can also integrate barcode and RFID scanners for easy batch identification. It centralizes operations and reduces manual work.
Compliance management
The system maintains a complete batch history for regulatory audits. You can track quality checks, purification logs, and expiration dates for each batch. It supports digital documentation and version control. This ensures safety standards and regulatory compliance with minimal effort.
Scalability and flexibility
Our ERP for bottled water businesses can adapt to your growing production volume, multiple product lines, and delivery networks. It supports custom batch workflows, labeling rules, and distribution patterns. The system grows with your bottled water business, from small-scale to large-scale operations.
Benefits of batch tracking in the bottled water business
Adopting batch tracking software in your bottled water operations offers a range of operational, safety, and customer-centric advantages. It provides real-time traceability, improves decision-making, and ensures consistent product quality, helping you stay compliant and competitive. The benefits of batch tracking in the bottled water business are;
Efficient inventory management
You can track every batch from production to delivery. The system enables you to implement inventory management strategies such as FIFO stock movement. This reduced the chances of overstocking and product expiration risks, enabling you to optimize storage, have fewer disruptions, and lower waste.
Improved product quality
Batch number tracking links each batch to specific purification cycles, machines, and staff. It enables routine checks and audits on water quality per batch, resulting in consistent, high-quality water reaching your customers.
Identifying defects in the bottles
You can easily isolate issues like weak caps, mislabeling, or underfilled bottles. It helps you trace defects back to specific equipment or material lots, providing quick root cause analysis and fewer product issues in the market.
Boosting customer satisfaction
It ensures faster response to customer complaints and confirms product safety and freshness through traceability. This builds trust and strengthens customer loyalty.
Manage recalls and returns
You can identify exactly which batches are affected in case of contamination or defect. It helps avoid mass recalls by targeting only the faulty batch, resulting in cost savings, brand protection, and regulatory compliance.
Eliminate human error
Automating tracking reduces manual data entry and mislabeling, ensuring consistent recording of production and delivery data. This leads to fewer mistakes and more accurate reporting.
Reduced theft and losses
You can track the movement of each batch across warehouses and routes. It helps detect anomalies or missing inventory, improving security and reducing shrinkage.
Ensure safety and compliance
Batch number tracking helps maintain audit-ready records for government bodies. It supports hygiene tracking and water quality certifications. Full traceability ensures faster audits and compliance with regulations.
Conclusion
Batch tracking or lot tracking is crucial for perishable products such as bottled water. It is mostly perceived that water doesn’t degrade; however, water stored in plastic bottles degrades after some time. This makes implementing FIFO (first-in, first-out) inventory management strategies and expiration tracking easy, reducing wastage and maximizing revenue.
At Water Delivery Solutions, we provide a centralized ERP system for the bottled water businesses that includes an integrated batch tracking system. Are you a bottled water business owner? If yes, you may relate to how important batch tracking is for you. Schedule a meeting to discuss your business model and see how we can help.
Frequently asked questions
Q1. What is batch tracking in inventory management?
A1. Batch tracking is also known as lot tracking. It is a major aspect of inventory management that includes tracking a group of products or raw materials that were produced, processed, or received together. They share the same batch number or lot number. It enables the bottled water business to trace the journey of a specific batch throughout the supply chain.
Q2. What is the purpose of batch tracking in inventory?
A2. Batch tracking in inventory ensures complete traceability of the produce back to its source. Implementing batch tracking offers operational, safety, and customer-centric advantage, ensuring consistent product quality and helping you stay compliant.
Q3. What is batch traceability in the bottled water business?
A3. Batch traceability in the bottled water business is the ability to trace the complete history and journey of a specific batch of water bottles or raw materials (plastic bottles, labels, and caps) within a supply chain. It includes tracking a batch’s origin, production processes, quality checks, and distribution with unique identifiers and detailed records.
Q4. How to track batch numbers?
A4. Bottled water manufacturers can track batch numbers manually in a spreadsheet or automatically in batch tracking software. Manual tracking is inefficient for larger productions and is prone to errors. Implementing batch tracking software with a bottled water ERP system enables you to automate processes and mitigate human errors. You can also generate barcodes and stick them to individual products. You can then integrate scanning devices for easy and quick traceability.
Q5. What is the difference between “lot tracking” and “batch tracking?”
A5. The terms lot tracking and batch tracking are used interchangeably. Both include monitoring and tracing the activities of specific product groups with the same production history.
He loves to explore. His passion for helping delivery industries in all aspects flows through in the vision he has. In addition to providing smart solution to make delivery process flawless, Ravi also likes to write sometimes to make it easier for people from business industry looking for digital solutions.
