You may have heard of LPN labels and the increasingly important role they’re playing in modern warehousing. In short, they help businesses track, identify and manage different groups of goods as they move around different parts of the storage and distribution process. But what does LPN stand for in warehousing, and why is it so widely used across supply chains today?
That’s what we’re covering in this blog post, as the warehousing and storage experts at LTS Global Solutions explain what LPN labels are, how they work and the myriad benefits they could bring to inventory management, warehouse efficiency and supply chain visibility in your business. Let’s begin.
What are LPN Labels?
LPN labels are barcode labels that affix to a group of products to identify what they are, how many there are and other key information that helps you run a more efficient warehouse. Similar to how SKU (stock keeping unit) codes track individual products, LPN (licence plate number) identifiers track larger groupings of stock, such as shipping containers, pallets, crates, bags and other storage units.
The name is deceptive, as it has nothing to do with licence plates in the traditional sense. They can be thought of as a ‘group stock keeping’ identifier, helping track batches of products around your warehouse and supply chain.
Like a barcode or SKU, each LPN is unique and linked to information stored within your warehouse management system (WMS). When scanned, it allows warehouse operatives to instantly identify the contents, location and status of the pallet, container or batch of goods, helping with visibility and traceability.
The Importance of LPN Labels
LPN labels might seem like a relatively small system, but they can have a big impact on the visibility, traceability and overall efficiency of your warehouse. By making batches or products easier to identify, track and manage, LPN labelling helps you maintain much greater control over your inventory while boosting efficiency and reducing unnecessary delays and mistakes.
Here are just some of the most practical and effective reasons to use LPN labelling in your business.
Improved Supply Chain Visibility
At every touchpoint on the supply chain, an LPN label can be quickly scanned to tell your WMS where the products are in the process and inform your operatives what needs to happen to them next. They can even contain detailed information, such as expiry dates for food products, helping ensure batches go out in the order they were made.
Streamlined Warehouse Workflows
With LPN labelling, operatives can scan one label to access all the information they need, rather than having to manually check several products, documents or other records. This helps goods move through the system with fewer delays.
Reduced Human Error
Manual data entry and stock checks always leave the door open for mistakes. LPN labels reduce this risk by linking each group or batch of stock to a unique identity number, making it easier for operatives to scan and move the correct goods.
Cost Efficiency
Reducing errors is always good for cost efficiency. By improving stock visibility and reducing time spent searching for goods, LPN labels can help lower operating costs across the warehouse. Even small time savings across oft-repeated tasks can create meaningful efficiency savings.
Improved Warehouse Efficiency
Combining all the above points could add up to some impressive efficiency savings across your entire operation. Quite simply, LPN labels help teams locate, identify and process stock more quickly, keeping warehouse activity moving.
Better Inventory Management
Space is always at a premium in storage facilities, but because each LPN is linked to live stock information, your business can maintain more accurate inventory records. This makes it easier to monitor stock movement, reduce discrepancies and understand exactly where goods are within your warehouse, helping you maximise available space.
Meets Regulatory Standards
In sectors such as food logistics, traceability is especially important. LPN labels can support regulatory standards by linking product groups to batch numbers, expiry dates, storage expectations and more, helping maintain robust audit trails.
What Information is Included on LPN Labels?
The beauty of the LPN system is that the label itself is just a unique number. This number is linked to a record in your WMS, and this record can contain as little or as much information as you need it to, and can be customised for each batch or product type you deal with. For example, information that could be recorded against each LPN could include:
- A product description
- SKU numbers within the batch
- Quantity of items within the batch
- Batch or lot numbers
- Serial numbers (where applicable)
- Manufacturing dates
- Expiry or best-before dates
- Storage requirements (such as ambient, chilled or hazardous)
- Warehouse location information
- Destination or dispatch information
- Supplier details
- Order or shipment references
- Quality control or inspection status
- Handling instructions
Essentially, an LPN can contain as little or as much information about each group of products as your WMS allows, and can be customised to be as specific or as broad as it needs to be for your business and sector.
What Businesses Use LPN Labels?
LPN labels are useful for any business that stores, handles or moves grouped stock. This includes e-commerce companies, third-party logistics (3PL) providers, manufacturers, retailers, wholesalers and distribution centres. As we’ve already touched on, they can be especially valuable in sectors where traceability matters, such as food warehousing, but this can also cover specialisms such as ambient storage, medical supplies, automotive parts and more. In the simplest terms, if your business needs to track goods accurately across your warehouse and the wider supply chain, LPN labelling could revolutionise your process.
Trends in LPN Labelling
Like many aspects of the warehousing industry, LPN labels are not standing still and are constantly evolving to become more useful and efficient. While their core purpose remains the same, modern LPN systems are becoming more sophisticated and better integrated with wider warehouse operations. Some of the key recent trends include:
- Greater integration with warehouse management systems for real-time stock tracking and reporting
- Increased use of colour-coded labels to help quickly identify different products, customers or destinations (and outgoing or returning items)
- More detailed tracking information linked to each LPN, improving traceability across your entire operation
- Improved label durability to withstand demanding warehouse environments, external storage needs and longer storage periods
- Greater use of automated scanning and data capture technologies to reduce reliance on manual scanning and input
Anyone who finds themselves asking what LPN stands for in warehousing should understand these developments, as they demonstrate just how valuable, flexible and future-proof the system can be.
Creating an LPN Label
Creating LPN labels is generally straightforward. First, determine what information you need to track for each batch, pallet or container. Then, using specialist software that can integrate with (or may already be a part of) your WMS, generate a unique licence plate number.
This LPN can then be printed as a barcode label (which can be produced in moments using specialist label printers) and attached to the relevant container, such as a pallet, crate, shipping container or bag. Once complete, your operatives can scan the label at relevant points throughout the storage process, allowing your WMS to update records automatically as goods move through your warehouse.
Warehousing & Logistics at LTS Global Solutions
We hope our guide has helped give you a clearer idea of what LPN labelling is and why it has become such a valuable tool in modern warehousing.
At LTS Global Solutions, we provide flexible warehousing, logistics and supply chain solutions tailored to businesses of all sizes, across a wide range of sectors and specialisms. We’re BRCGS-Certified and provide everything from secure pallet storage and specialist food warehousing to reliable ambient storage. For over 25 years, we’ve been helping businesses of all sizes maintain efficient, well-organised operations supported by our excellent customer service, safe storage facilities and fast response times. UK-wide or globally, we have the experience and expertise to meet your needs.
To find out more about our services, discuss your requirements or request a bespoke quote, get in touch with our team today on 0121 753 0080, email info@ltsglobalsolutions.com or fill out our online contact form.
