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Lot Consolidation Manager

Track when multiple supplier lots are combined into bulk containers. Maintain genealogy of component lots in consolidated batches for traceability and recall management.

Solution Overview

Track when multiple supplier lots are combined into bulk containers. Maintain genealogy of component lots in consolidated batches for traceability and recall management. This solution is part of our Inventory category and can be deployed in 2-4 weeks using our proven tech stack.

Industries

This solution is particularly suited for:

Food & Beverage Pharma Chemicals

The Need

Warehouses operate with fragmented inventory that accumulates across production shifts, supplier deliveries, and customer returns. A pharmaceutical warehouse may contain 847 partial lots of Raw Material A, each with different supplier lot numbers, expiration dates, and receiving dates, scattered across 23 different bin locations. These partial lots consume valuable warehouse space—a single pallet of 500-unit cases occupies 40 cubic feet but is now split into 12 separate locations with 35-72 units each due to production batches that partially consumed the lot. This fragmentation creates a compounding space waste problem: not only are partial lots inefficient, but they require additional buffer inventory because production planners cannot predict lot availability precisely. When the production scheduler needs 400 units of Material A for tomorrow's batch, they cannot check a single location—they must query across 23 locations, identify lots with sufficient remaining units and acceptable expiration dates, and coordinate with warehouse staff to stage units from multiple bins. This planning complexity often results in production planners ordering new material rather than consuming existing partial lots, despite available inventory sitting in the warehouse.

Lot fragmentation destroys picking efficiency and introduces traceability complexity at the operational level. When a picker receives a production order "Pick 1,000 units of Material A for Batch 2024-1847," they cannot grab 2 pallets and scan a batch number—they must pick from 8-12 different lot locations, tracking which specific supplier lot number went into which production batch to maintain genealogy. In a food and beverage facility, this tracking is not optional: FDA FSMA regulations require traceability at the supplier lot level. A consolidated lot of 1,000 units from a single supplier maintains a single genealogy record; 12 fragmented partial lots require 12 separate genealogy entries in the production record, each linking back to a different supplier batch number. This creates data entry errors ("Lot 4729 or Lot 4730?"), genealogy gaps (which supplier lot actually went into this batch?), and audit findings when an FDA inspector traces a quality event backward and finds missing genealogy linkages.

Consolidated lots improve warehouse space utilization, minimize picking errors, and simplify lot traceability for regulatory compliance. A pharmaceutical manufacturer consolidating 847 fragmented lots of Material A into 47 consolidated lots reclaims 180 cubic feet of storage space—equivalent to 4.5 pallets or 12% of the material's total storage footprint. A food facility consolidating fragmented ingredient lots reduces picking time by 35% because pickers stage fewer lot locations per production order. Chemical manufacturers consolidating hazardous material lots reduce label tracking errors and cross-contamination risk because consolidated lots require a single material safety data sheet (MSDS) review rather than verifying compatibility across 12 different partial lots. Manufacturing operations consolidated lots improve lot genealogy accuracy because production batches link to fewer parent lots, reducing data entry complexity and traceability errors that trigger FDA 483 observations.

The fundamental constraint is that lot consolidation is operationally risky without integrated traceability. A warehouse manager cannot simply combine Material A Lot 4729 (expiration 2025-06-15, supplier SupplierCo) with Material A Lot 4730 (expiration 2025-08-20, supplier SupplierCo) into a single consolidated lot without creating genealogy problems. If the consolidated lot is used in a production batch and later a quality event is discovered, investigators need to know: "Which specific supplier lot (4729 or 4730) was the source of the defect?" If genealogy is lost during consolidation, the investigation cannot proceed. FDA regulations mandate traceability "one step forward, one step back"—from any finished product, you must be able to identify the exact supplier lot that went into it. Consolidating without maintaining genealogy breaks this chain. The missing link is a system that enables lot consolidation while preserving granular lot genealogy: consolidate inventory physically (moving units to a single location), but maintain an immutable record of which original supplier lot each consolidated unit is traced to, enabling full traceability if a quality event occurs.

The Idea

A Lot Consolidation Manager enables warehouses to physically consolidate fragmented partial lots into efficiently-staged inventory while preserving granular genealogy traceability required for FDA compliance and quality investigations. The system operates across three integrated dimensions: lot identification and consolidation eligibility analysis, consolidation execution with genealogy mapping, and post-consolidation traceability queries.

**Lot Consolidation Eligibility Analysis:** The system identifies consolidation opportunities by analyzing warehouse inventory. It queries current inventory across all bin locations and groups by material (Material A, Material B, etc.), then within each material, it segments by consolidation constraint: supplier lot number (for traceability), expiration date (for shelf-life management), and receiving date (for FIFO compliance). The system generates a consolidation analysis report showing: Material A has 847 units across 23 locations in 12 supplier lots with expiration dates spanning June-September 2025. Of these, 127 units can be consolidated immediately (supplier lots with expiration >6 months, no quality holds), 420 units require FIFO sequence (consolidate by lot with earliest expiration first), and 300 units cannot be consolidated (supplier lots with quality holds pending investigation, different specification versions, or reserved for specific customer orders). The system recommends consolidation strategy: Group supplier lots 4729, 4730, 4731 (all from SupplierCo, all expiring August-September) into a single consolidated staging location, then flag expiration order (consume Lot 4729 first, FIFO). The system also calculates consolidation impact: estimated space savings (180 cubic feet), picking time reduction (35%), and genealogy simplification (from 12 supplier lot links per production order to 3 consolidated lot links).

**Consolidation Execution and Genealogy Mapping:** When consolidation is approved, the system guides the physical consolidation process while maintaining immutable genealogy. The consolidation workflow creates a Consolidation Record that maps every unit in the new consolidated lot back to its original supplier lot. For example: "Consolidated Lot CLB-2024-1847 contains: 347 units from original Supplier Lot 4729 (units 1-347), 283 units from original Supplier Lot 4730 (units 348-630), 370 units from original Supplier Lot 4731 (units 631-1000)." This mapping is stored as an immutable genealogy linkage—when production later pulls 400 units from Consolidated Lot CLB-2024-1847, the system knows that units 1-347 trace to Supplier Lot 4729 and units 348-400 trace to Supplier Lot 4730. The consolidation record includes: consolidation date, warehouse location moved from (23 bin locations → 1 staging location), consolidation approver, and genealogy audit trail showing all original supplier lots included. The system also captures consolidation quality gates: visual inspection confirming no contamination during consolidation, scale verification confirming unit count matches inventory records, and label verification confirming consolidation lot label is correct and legible. All consolidation activities are logged for audit trail—when an FDA inspector asks "How do you know this consolidated lot actually contains the materials claimed?", the manufacturer can show the consolidation record with approval timestamp, quality gate results, and genealogy mapping.

**Post-Consolidation Traceability Queries:** After consolidation, the system maintains genealogy queries at multiple levels. A production planner asking "Can I use Consolidated Lot CLB-2024-1847 for Batch 2024-2100?" receives: "Yes, available: 1,000 units, expiration: 2025-08-20 (FIFO: consume Lot 4729 units first), quality status: passed all incoming inspection, no holds. Genealogy: Original Supplier Lots 4729, 4730, 4731." When units are pulled for production, the system records which units from which original supplier lots were consumed: "Production Batch 2024-2100 consumed 400 units from Consolidated Lot CLB-2024-1847: units 1-347 from original Supplier Lot 4729, units 348-400 from original Supplier Lot 4730." This genealogy is stored in the production record, enabling precise traceability backward to original supplier lots. If a quality event is later discovered in finished product Batch 2024-2100, investigators can query: "Which supplier lots contributed to this batch?" The system returns: "Supplier Lots 4729 and 4730 from SupplierCo." Investigators can then assess whether the defect originates in SupplierCo or in the manufacturing process itself. Post-consolidation traceability also supports lot hold scenarios: if Supplier Lot 4729 is later placed on quality hold (supplier contamination discovered, quarantine initiated), the system identifies all consolidated lots containing units from Lot 4729 and flags them with "Partial quality hold"—the consolidated lot can still be used for production, but the system alerts quality teams that units from Lot 4729 are involved and should be monitored.

**Consolidation Impact Tracking:** The system tracks consolidation benefits over time. Warehouse managers can view space utilization reports: "Material A storage footprint reduced from 240 to 60 cubic feet (75% reduction) after consolidation of 847 units into 47 consolidated lots." Production planners track picking efficiency: "Pick requests for Material A now stage from average 2.1 locations (before consolidation 8.3 locations), reducing picking time by 34%." Quality teams track genealogy accuracy: "Genealogy errors in Material A production batches decreased from 3.2% of batches to 0.1% after lot consolidation implementation." Manufacturing operations track compliance: "No FDA 483 observations related to lot genealogy in the past 6 months since consolidation implementation." The system generates quarterly reports showing total units consolidated, space reclaimed, and projected annual savings in warehouse operations and logistics.

How It Works

flowchart TD A[Fragmented
Partial Lots] --> B[Inventory
Analysis] B --> C[Calculate
Consolidation
Candidates] C --> D{Meets
Consolidation
Criteria?} D -->|No| E[Exclude
from Plan] D -->|Yes| F[Generate
Consolidation
Work Order] F --> G[Warehouse
Staff Picks
from Original Lots] G --> H[Stage Units
to Consolidated
Location] H --> I[Quality Gate:
Visual Inspection
& Verification] I --> J{Quality
Pass?} J -->|No| K[Return to
Original Locations] J -->|Yes| L[Create Immutable
Genealogy Map] L --> M[Consolidated Lot
Ready for Use] M --> N[Production Order
Requests Material] N --> O[System Suggests
Consolidated Lot] O --> P[Production Pulls
Units FIFO] P --> Q[Record Genealogy:
Original Supplier Lots
Consumed] Q --> R[Traceability Complete:
Batch → Supplier Lots] R --> S{Quality Event
Discovered?} S -->|No| T[Batch Complete] S -->|Yes| U[Query Genealogy:
Which Supplier Lots?] U --> V[Assess Defect
Source & Scope] V --> W[Execute Targeted
Investigation] W --> X[Maintain Full
Audit Trail]

Lot consolidation workflow captures fragmented partial lots, maintains immutable genealogy mapping to original supplier lots, enables FIFO production pulling with genealogy recording, and supports traceability queries if quality events are discovered.

The Technology

All solutions run on the IoTReady Operations Traceability Platform (OTP), designed to handle millions of data points per day with sub-second querying. The platform combines an integrated OLTP + OLAP database architecture for real-time transaction processing and powerful analytics.

Deployment options include on-premise installation, deployment on your cloud (AWS, Azure, GCP), or fully managed IoTReady-hosted solutions. All deployment models include identical enterprise features.

OTP includes built-in backup and restore, AI-powered assistance for data analysis and anomaly detection, integrated business intelligence dashboards, and spreadsheet-style data exploration. Role-based access control ensures appropriate information visibility across your organization.

Frequently Asked Questions

How much warehouse space can lot consolidation save? +
Typical warehouse space savings range from 12-40% for consolidated materials, depending on fragmentation severity. A pharmaceutical manufacturer with 847 partial lots of a single material across 23 locations reclaimed 180 cubic feet of storage—equivalent to 4.5 standard pallets or 12% of that material's total footprint. Food and beverage facilities see average 15-22% space reductions because ingredients are frequently split across multiple receiving and production cycles. The consolidation calculator analyzes your current inventory fragmentation (units per location, number of locations) and projects space savings within 2 weeks of implementation. Conservative estimate: 15% space savings translates to $45,000-120,000 annual savings for a 10,000 pallet warehouse at $3-12 per pallet-month storage cost. Space reclaimed enables 6-8% revenue uplift by storing higher-margin SKUs in reclaimed locations.
What is the implementation timeline for lot consolidation? +
Typical implementation follows a 4-6 week timeline: Week 1 covers system setup, WMS integration configuration, and consolidation rule definition per material type (2-4 days). Week 2 includes pilot consolidation on 2-3 materials with 50-100 units each, quality gate testing, and genealogy record validation (4-5 days). Week 3-4 scales consolidation across 15-30 priority materials, staff training on barcode scanning and quality verification (5-7 days parallel execution). Week 5-6 establishes ongoing consolidation workflows, post-consolidation traceability testing via production batches, and audit trail verification for FDA compliance (3-5 days). Critical path depends on WMS API integration: REST API available = 3 weeks, manual WMS queries = 5 weeks. Most facilities complete core consolidation within 30 days and achieve full regulatory compliance verification by day 42.
Can lot consolidation maintain FDA traceability requirements? +
Yes. Lot consolidation maintains FDA traceability via immutable genealogy mapping that records which original supplier lots are contained in each consolidated lot. When a consolidated lot is consumed in production, the system records genealogy traceability back to original supplier lots with supplier name, lot number, and unit count. FDA regulations require 'one step forward, one step back' traceability—from any finished product, you must identify the supplier lot that contributed to it. Consolidated Lot CLB-2024-1847 containing units from Supplier Lots 4729, 4730, 4731 maintains this chain: finished batch → consolidated lot → original supplier lots. During FDA 483 audits, genealogy records answer regulatory questions: inspectors can confirm that genealogy links are preserved, audit trails show consolidation approvals and quality gates, and traceability mapping demonstrates which supplier lots contributed to any production batch. Zero genealogy gaps result when consolidation genealogy is recorded correctly.
How does lot consolidation reduce picking errors and labor costs? +
Lot consolidation reduces picking time by 30-45% because pickers stage from fewer locations per production order. Before consolidation: picking 1,000 units of Material A requires picking from 8-12 different lot locations, tracking 8-12 supplier lot numbers, creating 8-12 genealogy entries—error rate: 2-4% of picks (misidentified lots). After consolidation: picking 1,000 units from Consolidated Lot CLB-2024-1847 stages from 1 location, tracks 1 consolidated lot number (with internal genealogy maintained by system), creates 1 genealogy entry—error rate: <0.5%. Average warehouse saves 2-3 labor hours per shift on material staging and genealogy data entry. At $25-35/hour fully-loaded labor cost, consolidating 50 material types generates $800-1,200/month in picking labor savings. Physical consolidation work (picking partial lots and moving to staging location) requires 6-8 hours per 1,000-unit consolidation; ROI breakeven occurs within 6-8 consolidations.
What happens if a supplier lot is placed on quality hold after consolidation? +
The system executes a cascade hold: identify all consolidated lots containing units from the held supplier lot, flag them as 'Partial Hold,' and alert quality teams. Example: Supplier Lot 4729 (300 units) is discovered to have contamination and placed on quarantine. System queries all consolidated lots containing Lot 4729 and finds: Consolidated Lot CLB-2024-1847 contains 347 units from Lot 4729, Consolidated Lot CLB-2024-1848 contains 195 units from Lot 4729. Both consolidated lots are flagged as 'Partial Hold—Contains Lot 4729.' Quality teams can then assess risk: hold the entire consolidated lots, partially use them (avoiding Lot 4729 units via FIFO tracking), or quarantine them pending investigation. System also queries: which production batches consumed units from Lot 4729? Result: Batches 2024-2100 (347 units) and 2024-2101 (195 units) are flagged for quality review. This enables proportionate response: quarantine only the 542 units originating from Lot 4729, not 2,000-unit consolidated lots.
How are consolidated lots tracked during production picking with FIFO compliance? +
Consolidated lots maintain FIFO sequence through internal genealogy ordering. Consolidated Lot CLB-2024-1847 contains: Units 1-347 from Supplier Lot 4729 (earliest expiration: 2025-06-15), Units 348-630 from Supplier Lot 4730 (expiration: 2025-08-20), Units 631-1000 from Supplier Lot 4731 (expiration: 2025-09-10). When production requests 400 units, the system allocates: 347 units from Lot 4729 (fully depletes), then 53 units from Lot 4730 (begins Lot 4730 consumption). This allocation is recorded in the production batch: '400 units consumed: 347 from original Lot 4729, 53 from original Lot 4730.' WMS picks units in sequential order (FIFO), automatically consuming older lots first. Genealogy is recorded as units are picked via barcode scanning. This maintains full FIFO compliance while enabling physical consolidation—expiration dates are not mixed, and original lot traceability is never lost. FIFO sequence is preserved across 50+ consolidated lots with automated allocation.
What database size and query performance is required for lot consolidation? +
Typical deployment supports 50,000+ genealogy records (relationships between consolidated lots and supplier lots) with sub-500ms query response times. The IoTReady OTP platform's OLTP database includes core tables: consolidation_batches (10,000-50,000 records), consolidation_genealogy (50,000-250,000 records mapping consolidated lots to original supplier lots), production_genealogy_mapping (100,000-1M records tracing production batches to supplier lots). Common queries: 'Find all consolidated lots containing Supplier Lot X' typically executes in <200ms across 250K genealogy records via indexed supplier_lot_id lookup. 'Find all production batches using Supplier Lot X' executes in <300ms across 1M+ records. A 10,000-SKU warehouse with 30% consolidated SKUs generates approximately 2,000-3,000 genealogy records per month. Historical genealogy records are exported to Parquet format quarterly for long-term archival and compliance audits. Database size: 150MB-500MB for 1M+ genealogy records. Query performance remains <500ms even at scale because genealogy tables are append-only (immutable) with indexed lookups. No complex joins required—all queries are direct indexed lookups.

Deployment Model

Rapid Implementation

2-4 week implementation with our proven tech stack. Get up and running quickly with minimal disruption.

Your Infrastructure

Deploy on your servers with Docker containers. You own all your data with perpetual license - no vendor lock-in.

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