What is a product L code?

A product L code, also known as an LPN or license plate number, is a unique identifier assigned to a specific product in a warehouse or distribution center. L codes allow items to be tracked as they move through the supply chain. Understanding L codes is important for anyone working in inventory management, logistics, or supply chain operations.

What does the L stand for in an L code?

The L in L code stands for “license plate.” This refers to the concept that each product is assigned a unique identifying number, similar to how a car has a unique license plate number. So an L code serves as a product’s unique license plate as it travels through the warehouse or distribution network.

How are L codes generated and assigned?

L codes are typically generated and assigned by a warehouse management system (WMS) or warehouse execution system (WES). When new inventory arrives at a warehouse, the WMS will automatically generate and assign a unique L code to each product type or SKU.

The L code is then printed on a barcode label, RFID tag, or other automatic identification method and affixed to a product’s packaging or pallet. This allows the item to be scanned and tracked by the WMS as it is putaway, stored, picked, packed, and shipped.

L code formats

While there is no universal standard format, most L codes follow a basic alphanumeric format using a combination of letters and numbers. Here are some common L code formats:

• Sequential – AXXXXXXX (starts with a letter, followed by sequential numbers)
• Date-based – YYMMDDXXX (uses year, month, day, and sequence number)
• Location-based – AAABBBCCC (uses codes for warehouse, aisle, and bin location)
• Random – ABCD1234 (randomly generated with no sequence)

The length and format may vary by warehouse, company, WMS software, or industry. The key is that each L code uniquely identifies a specific product type or unit.

How are L codes used in warehouse management?

L codes and their attached barcode/RFID tags are scanned by warehouse staff and equipment at various points throughout inventory handling processes. This allows the WMS software to track the physical location and status of each item in real-time. Here are some key uses of L codes in warehouse management:

Receiving

When new inventory is received at the loading dock, each item is scanned and assigned an L code by the WMS before being put into stock.

Putaway

During putaway, items are scanned and the WMS directs workers to the correct storage location based on the L code and inventory plan.

Replenishment

As pick locations run low on certain products, L code scans alert warehouse staff to replenish those items from reserve storage or inbound receipts.

Picking

When orders are filled, pickers scan L codes to confirm they’ve pulled the correct items required for the order.

Packing

In packing, L code scans verify the right products have been pulled and packed for each shipment.

Shipping

Final L code scans during loading confirm which products are contained in each outbound truck, container, or pallet.

Cycle Counting

Regular cycle counts scan L codes on-hand to verify inventory accuracy and correct any errors with the WMS.

By leveraging L codes at each stage, the WMS provides end-to-end visibility and tracking of inventory movement through the facility.

Benefits of L code tracking

Using L codes and scanning in warehouse management offers important benefits:

• Real-time inventory visibility – The WMS always knows where each product is located.
• Improved accuracy – L code scans reduce errors in order fulfillment and inventory counts.
• Increased productivity – Workers don’t have to manually enter codes or look up locations.
• Enhanced traceability – Items can be traced back or recalled if quality issues arise.
• Better reporting – Detailed records of inventory activity improve planning and analysis.
• Omnichannel readiness – L codes sync in-store and warehouse inventory across channels.

Challenges of L code management

Despite their benefits, using L codes does present some challenges, including:

• Manual assignment – Manually assigning codes takes time and can result in duplicates.
• Labeling issues – Damaged, missing, or unscannable labels disrupt tracking.
• Data maintenance – Keeping L code data accurate requires diligent audits and cycle counting.
• Training – Workers must be properly trained on scanning processes and WMS procedures.

These challenges can be mitigated through proper setup, training, audits, maintenance, and using automated numbering and printing of L code labels where possible.

Best practices for L code management

Follow these best practices for managing L codes in your warehouse operations:

• Use automated L code creation and printing – Automate the generation and barcode label printing process to avoid duplicates and errors.
• Have a defined L code structure – Follow consistent naming conventions that meet your inventory planning needs.
• Integrate with your WMS – Tie L codes to your WMS for real-time visibility and directed picking.
• Print high-quality barcodes – Use durable labels and high barcode print quality to avoid scanning issues.
• Train staff on procedures – Provide scanning guides and reinforce WMS processes through training.
• Conduct audits and cycle counts – Regularly verify inventory accuracy and correct discrepancies.
• Reprint damaged labels – Replace unscannable labels immediately to maintain chain of custody.

Transitioning from another tracking method

For organizations transitioning from another tracking method (like SKUs) to L codes, careful planning is required. Steps include:

1. Freezing activity at a changeover point – Pick a transition date and time to switch over.
2. Developing conversion plan – Map how current product numbers will convert to new L codes.
3. Programming WMS and scanners – Configure the system and devices to use new L code data.
4. Generating and printing labels – Produce new barcode labels for all inventory.
5. Changing processes – Update SOPs and train workers on new L code procedures.
6. Swapping labeling – Affix new L code labels as inventory moves through changeover point.
7. Cutting over – Go live with new L codes at the designated changeover time.
8. Monitoring transition – Watch for any issues immediately after cutover.
9. Auditing – Perform cycle counts and audits to verify successful transition.

With careful execution, facilities can transition to L code tracking and gain the benefits without business disruption.

Conclusion

L codes give each product a license plate number that allows warehouses to track inventory through the supply chain. Scanning L codes enhances visibility, accuracy and productivity. While managing L codes does require attention, the benefits significantly outweigh the costs. Implementing L codes as part of a robust warehouse management system is critical for flawless fulfillment and omnichannel success.