As we have already discussed, inventory is regularly moved and therefore there is a risk of inaccuracy. In order to ensure full control over the inventory as it is moved around, most organisations will have an effective tracking system in place.
Many companies therefore will use an Inventory Tracking or Lot Control system which provides information about where the inventory is currently and where it should be going next.
Inventory will generally be given a unique number. This number might refer to:
- A specific, single item. Possibly a unique, one off item;
- A quantity or lot of identical items; and/or
- A quantity or lot of raw material.
This number should be maintained throughout the entire production process in order to ensure that the whereabouts of the stock is known at all times but also that in the event of a problem the individual batch of material or assemblies are known.
This is called a full traceability system and should flow from suppliers upstream to customers downstream.
