Lot tracking, expiry and kitting
A 3PL with lot tracking that actually tracks lots
Many 3PLs say they track lots. Fewer capture them at receiving, pick by expiry, and record the lot on every order and every kit. Here is how to tell the difference.
What to require from a lot tracking and kitting 3PL
Lots captured on the advance ship notice
The cleanest lot data starts before the truck arrives. Ask whether they accept lot and expiry on the ASN, and what they do when a carton does not match.
Lot-level stock, not just SKU-level
You should be able to see how much of each lot sits in each location, and that view should match yours.
Configurable picking rules
FEFO, FIFO, or a specific lot for a specific customer. Ask which rules they support and whether they can be set per SKU or per customer.
Holds and quarantine
A held lot must stop shipping everywhere at once. Ask how a hold is placed, how fast it takes effect, and who can release it.
Kits that record component lots
When a kit is built, the lots of the components inside should be recorded. Otherwise a component recall becomes a guessing game.
Lot data you can pull
Shipments with lots, receipts with lots, adjustments with lots, through an API or a scheduled export. If you cannot get the data out, you cannot use it.
Questions to ask before you sign
- Do you accept lot and expiry on the ASN? What happens when a carton has no lot?
- Can we see stock by lot and location at any time?
- Which picking rules do you support, and can we set them per SKU or per customer?
- How do you place a lot on hold, and how fast does it stop shipping?
- When you build a kit, do you record the component lots?
- How do we get lot-level shipment data: API, export, or report?
- Which warehouse system do you run, and will you give us API access to our account?
Lot tracking and kitting 3PLs
A short list of 3PLs whose own websites say they serve this specialty.
We are checking lot tracking and kitting 3PLs now
Every listing is checked against the 3PL’s own website before it goes live, so this list fills in over the coming weeks. The guide above and the readiness kit below are ready today.
Run a 3PL that fits? Request a listingThe 3PL readiness kit
Everything we would want in hand before talking to a 3PL: questions to send before the sales call, an onboarding checklist, and a worksheet to compare quotes line by line. Free to print, no sign-up.
3PL readiness kit
Choose, compare and onboard a 3PL
Questions to ask every 3PL
Send these before the sales call, and ask for answers in writing.
- Receiving: how fast is inbound stock available to ship, and what do you charge for unlabeled or mixed cartons?
- Lots and expiry: do you capture lot and expiry at receiving, and are they on every shipment record?
- Picking rules: FEFO, FIFO, or a lot we choose? Can we set a minimum shelf life per customer?
- Holds: how do you quarantine a lot, and how fast does it stop shipping?
- Accuracy: how do you measure order accuracy and inventory accuracy, and how do you credit errors?
- Cut-off: what is the same-day ship cut-off, and what happens on peak days?
- Returns: how are returns inspected, restocked or disposed of, and how is that reported?
- Integrations: which warehouse system do you run? Will you give us API access to our own account?
- Retail and Amazon: can you handle routing guides, EDI orders and FBA prep?
- Insurance and liability: what is your liability per unit, and what does your insurance cover?
- Contract: term, notice period, minimums, and how we get our stock out if we leave.
Onboarding checklist
Work through this in the four to six weeks before your first inbound shipment.
- Clean SKU list: one SKU per sellable unit, with barcodes, weights and dimensions.
- Units of measure: each, inner pack, case and pallet quantities for every SKU.
- Lot and expiry rules: label format, where the lot sits on the carton, and your minimum shelf life.
- Kits and bundles: component lists for every kit, and who builds them.
- Packaging: boxes, mailers, inserts and coolant, and who supplies them.
- Channels connected: store, marketplaces and wholesale orders flowing to the 3PL.
- Inventory sync: stock counts, lots and shipments flowing back into your own system.
- First inbound: advance ship notice sent, with lots and expiry on it.
- Test orders: one of each order type, including a retail order and a return.
- Reconciliation: weekly count comparison between your system and the 3PL for the first two months.
Cost worksheet
Fill in one column per quote, using your real monthly order and pallet numbers.
| Line item | 3PL A | 3PL B | 3PL C |
|---|---|---|---|
| Account or setup fee | |||
| Receiving (per hour, pallet or carton) | |||
| Storage (per pallet, shelf or bin, per month) | |||
| Pick and pack (first item) | |||
| Pick and pack (each additional item) | |||
| Packaging and inserts | |||
| Kitting or assembly | |||
| Retail or B2B order handling | |||
| Returns processing | |||
| Monthly minimum | |||
| Estimated monthly total |
Frequently asked questions
What does lot tracking mean at a 3PL?
The 3PL records the lot number of every unit it receives, stores, picks and ships. Done well, you can ask which orders shipped lot 2410A and get an answer the same day.
Is kitting the same as assembly?
Close. Kitting usually means grouping finished items into a set, like a gift box or bundle. Assembly can mean building a product from parts. Both should record which component lots went into each kit.
Should my 3PL or my own system be the source of truth for lots?
Your own system should hold the full history, from ingredient lots to production to shipment. The 3PL is the source of truth for what is physically on its shelves, so the two should sync.
Other 3PL specialties
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