Is tracking serial numbers worth your time?
The short answer: absolutely.
The long answer? That’s exactly why we wrote this article.
Tracking serial numbers is not just helpful – it’s essential. And just as important is the ability to track them easily and accurately. This is where Warehouse Management Systems (WMS) play a key role.
In this article, we will explore the importance of tracking serial numbers and how technology like WMS can help you keep tabs on your inventory – and help you streamline recalls without disrupting operations.
So, with no more ado, let’s get right into it …
Serial numbers in warehouse management
Understanding serial numbers
The first step in understanding serial numbers in warehouse management? Understanding what a serial number is in the first place.
Serial numbers are like unique digital fingerprints for individual products. Like our fingerprints are unique to us as humans, serial numbers are unique to each item and help set it apart from identical-looking items.
Are serial numbers and SKU numbers the same thing?
No, serial numbers and SKU numbers are not the same thing. That’s because while SKU numbers group similar products together (like all medium blue t-shirts sharing one SKU number), serial numbers identify the specific unit by giving each t-shirt its own unique number.
The distinction between the two is vital for item-level tracking.
The importance of serial numbers
Serial numbers are unique identifiers that let businesses track individual items throughout their lifecycle – from manufacturing to delivery to even post-sale activities like returns.
The real magic of serial numbers lies in their ability to transform regular inventory into uniquely traceable assets. This is critical when customers report issues because serial tracking helps businesses instantly access that item’s full history (manufacturing date, batch details, warehouse journey, shipping information, etc.)
This detailed look into all essential information of the product provides a significant advantage over traditional inventory methods.
The strategic importance of serial number tracking
Enhanced inventory accuracy and control
You can’t keep track of what you cannot see.
Serial tracking brings item-level precision to inventory management. There’s no hiding here. With unique identifiers, discrepancies become obvious during counts or audits. This helps staff locate exact items and verify correct picks.
The financial benefits are also clear: less capital tied up in excess stock = fewer write-offs and better space utilization. Need a little more convincing? How about the fact that many businesses report accuracy rates above 95% after implementing serial tracking.
Product authentication and anti-counterfeiting
With shopping now largely online, counterfeit products have become a serious issue – because, let’s face it, the internet doesn’t always tell the truth (contrary to what Abe says).
Luckily, serial tracking helps fight counterfeiting by creating verifiable product histories from manufacturer to consumer.
Furthermore, this protection is not just reserved for the resale of luxury bags but extends to vital sectors like pharmaceuticals, auto parts, and electronics, where fake products are not just a “bummer” but are, in fact, safety risks. Luckily, strong serial tracking helps businesses protect their brand and ensure consumer safety and compliance.
Streamlined warranty and return management
Serial tracking simplifies complex warranty and return processes by making them faster and more manageable. This is because when a customer files a claim, the serial number instantly reveals the product’s complete history – purchase date, warranty details, service records, and even manufacturing information.
This eliminates common return hassles and makes it so there are no more questions about purchase dates or warranty status because the system provides the answers – instantly.
This results in faster processing, reduced customer service workload, and safeguards businesses against fraudulent claims. Not bad, right?
Even better? The benefits extend to reverse logistics, too. When returns arrive, scanning serial numbers immediately shows where items should go – restocking, repair, or recycling ensures everything is handled correctly.
Serial number tracking across different industries
Third-party logistics (3PLs)
For 3PLs, serial number tracking provides enhanced visibility that can help attract clients with high-value or regulated products that require item-level tracking.
Also, by capturing serial numbers throughout fulfillment, 3PLs can serve industries with strict requirements, like pharmaceuticals, luxury goods, etc.
When a 3PL uses serial tracking, it also creates opportunities for premium services. 3PLs can offer specialized handling, warranty registration, and custom reporting to give clients next-level visibility into their product distribution. For multi-client facilities, this also shows a serious commitment to accuracy and excellence – all things that potential clients love to see.
E-Commerce
For e-commerce businesses that have multiple sales channels like their own site, Amazon, BigCommerce, eBay, etc., serial tracking provides crucial item-level visibility to keep inventory accurate everywhere. This is a game-changer, and let me tell you why …
When a serialized item sells anywhere, its status updates across all platforms instantly – no more accidental double-selling.
Also, if you handle returns across all your channels, it’s now an easier process. Serial numbers instantly reveal original sale details, making proper crediting easy-peasy regardless of the channel the purchase was made.
Electronics & technology
Did you know that the electronics industry leads in serial tracking? It makes perfect sense when you think about it because every device, from phones to servers, has a unique ID. This serves multiple needs like warranty management, repair tracking, and fighting counterfeits.
For manufacturers and retailers, serial tracking shows complete product lifecycles. This is helpful because companies can quickly contact affected customers when component issues arise instead of doing a broad/sweeping product recall.
The tech industry also relies on serial tracking for software licensing, using serial numbers to link physical devices to their digital rights.
Pharmaceutical
When it comes to pharmaceuticals, serial number tracking is legally required – it’s not just a best practice. The Drug Supply Chain Security Act (DSCSA) mandates item-level serialization for prescription drugs, creating electronic tracking from manufacturer to patient.
These requirements ensure patient safety, prevent counterfeiting and deter theft. That’s because serial tracking enables verification at each supply chain stage, confirming medication authenticity. That way, when issues arise, serialization allows precise recalls.
But the benefits go beyond compliance. Healthcare providers can also automate inventory, reduce waste, and maintain accurate billing records by tracking serial numbers.
Medical device
Similarly, medical device makers face their own stringent requirements for tracking serial numbers, which are crucial for ensuring patient safety and regulatory compliance. One such requirement is the FDA’s Unique Device Identification (UDI), which requires unique IDs for most devices.
This system is designed to improve the traceability of medical devices throughout their lifecycle, from manufacturing to patient use. The UDI not only helps in identifying devices during recalls or adverse events but also enhances the ability to monitor device performance and safety. By providing a standardized way to document and track devices, the UDI system plays a vital role in maintaining the integrity of the healthcare supply chain and ensuring that healthcare providers have access to accurate and up-to-date information about the devices they use.
Other industries that require serial number tracking
But, wait … there’s more!
Many other industries have similar rules and requirements that require tracking serial numbers, each with its own unique set of challenges and standards.
For example, in the automotive industry, safety parts such as airbags and seatbelts must be serialized to ensure traceability and compliance with safety regulations. This serialization helps manufacturers quickly identify and address any defects or recalls, thereby enhancing consumer safety.
In the aerospace sector, components like engines and avionics systems are serialized to maintain rigorous safety standards and ensure that each part can be traced back to its origin, which is crucial for maintenance and safety audits.
Even the food industry is not exempt, as serialization is increasingly used to track products from farm to table, ensuring food safety and quality by allowing for precise recalls in the event of contamination.
These diverse applications of serial number tracking across industries highlight its critical role in maintaining safety, compliance, and operational efficiency.
How a WMS helps businesses meet industry-specific requirements
Within a WMS, tracking serial numbers generates comprehensive audit trails that record each product's path. These records are incredibly valuable for meeting regulatory requirements, resolving customer disputes, and handling insurance claims, and they can also enhance internal processes.
For regulated industries, these audit trails show you’re following all the handling and storage rules. Each scan creates a timestamped record of who handled what and when, aka exactly what those strict regulators want to see.
Also, when it comes to protecting your business, these audit trails are like a shield against liability claims. That way, if questions pop up about a product’s authenticity or handling, the serial number records will tell the whole story of what happened with each unit.
Serial number tracking technology heroes
Barcode scanning and mobile technologies
Barcodes are the real MVP when it comes to tracking serial numbers. They make it easy to track individual items by turning complex codes into information that’s simple to read.
Mobile scanning devices have also completely transformed how data is captured. Now, scanning devices are everyday devices that can move with you (I mean, they are practically attached to us night and day).
What also makes mobile scanning devices great is that they also enable serial tracking anywhere in the facility. So, go and roam if you want to and scan it with your mobile device.
Scanners have also been updated with some cool features for serial numbers as well. They can grab multiple barcodes at once – both product UPCs and serial numbers in one go. And get this … they can also work from any angle, so no more twisting and turning to get the perfect scan.
Integrating with warehouse management systems (WMS)
Okay, but here is where serial tracking really shines – when it connects seamlessly with your warehouse management system (WMS). Linking the two creates one unified data hub that links serial numbers to everything from purchasing to customer service.
WMS platforms are also constantly improving, and some, like Zenventory, have been built with powerful serial number tracking tools like serial number management and custom serial fields.
But, the real magic? Analytics! Your WMS can turn serial number data into valuable insights that you can use to spot patterns, optimize inventory based on product performance, and so much more.
These insights help improve operations across your entire business, not just in the warehouse.
How to implement serial number tracking in warehouse processes with a WMS
Receiving & inbound operations
Effective serial tracking starts at receiving. Why? Because that’s where proper implementation drives downstream success. Staff must accurately capture serial numbers and link them to purchase orders, vendors, and stock records.
WMS solutions use barcode scanning to eliminate manual entry errors and make the process faster and more streamlined.
How barcodes make receiving easy: Barcodes simplify receiving by allowing staff to quickly scan items, instantly verify deliveries, and generate accurate digital records on the spot. So, instead of having to manually enter the information all day, with one beep from the scanner, all the data is captured.
Storage and inventory management
After receiving, the WMS tracks each serialized unit’s exact location within the facility. This precise location tracking is like a “power-up” for your inventory management.
With the ability to precisely track inventory, staff can instantly locate specific units needed. This is especially valuable when it comes to items with expiration dates or lot numbers that affect picking choices.
Serial tracking enhances cycle counting, too. Staff can verify specific serialized units, quickly spotting differences between physical stock and system records. This enables regular, focused counts that maintain accuracy without disrupting work.
For FEFO or FIFO inventory management, serial tracking provides vital chronological data for proper rotation. A smart WMS, like Zenventory, should automatically guide picking based on receipt or expiration dates.
Picking & packing
When it comes to outbound fulfillment, serial tracking proves invaluable. The WMS guides pickers to the exact serialized units, which is crucial for regulated or warranty-tracked items.
Barcode scanning during picking confirms the correct unit selection, preventing errors. Each scan creates accountability, documenting handler details and timing. This audit provides complete process visibility.
The packing station provides a final verification stop, with serial scans confirming order accuracy before shipping.
While this concludes the order fulfillment process using serial numbers, serial tracking is also beneficial when handling returns.
Returns processing and reverse logistics
When something comes back, the serial number will instantly tell you everything – purchase details, return eligibility, etc. That means that your team no longer has to dig through old records. Instead, they will get answers instantly.
As a bonus, tracking serial numbers can also help you stop fraud. The system will catch if a customer is trying to return something from another store.
Finally, once returns are accepted, they are automatically routed to where they need to go, whether that is restocking, repairs, or whatever else is needed.
How to implement a serial number tracking solution
Assessing your business needs
Wondering how to start your serial tracking journey? Begin with a thorough assessment of your specific needs. Look at any necessary regulations, customer expectations, needed integrations, operational challenges, and strategic goals that serialization could tackle.
Selecting the right WMS with serial number capabilities
Once you have completed a thorough assessment of your specific needs, the first step is to see what WMS systems can best support your needs.
Also as you evaluate, look at how the different WMS operations handle serial numbers and ensure they align with your needs.
You want a system that makes your life easier, not harder.
Gain advanced serial number tracking functionality with Zenventory
You can count on Zenventory for serial tracking.
Zenventory not only aids in tracking serial numbers but also provides flexible options for managing additional serial data through custom fields, viewing serials, and generating reports. This makes it suitable for industries requiring detailed serial number traceability, such as electronics or high-value goods.
Let us show you! Book a free product tour to see it in action >>>
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