GS1-128 Lot Transfer Scanning

This topic is part of the SG Systems Global traceability, warehouse & manufacturing operations glossary.

Updated November 2025 • GS1-128 case labels, SSCC, lot movements, EPCIS events, WMS/MES integration • Operations, Quality, Supply Chain, IT/OT, Compliance

GS1-128 lot transfer scanning is the practice of using GS1-128 barcodes to capture, verify and record every movement of lot-identified cases and pallets between locations, ownership buckets or process states. Instead of “we moved some product from here to there”, each transfer is a scan event that says “this specific lot, this weight, this SSCC moved from location A to location B at time T under reason code R”. It is the backbone of digital genealogy and mass balance in GS1-centric plants: slaughter to chill, chill to grind, cook to pack, warehouse to dock, and everything in between. When it is robust, lot history is clear and recall scopes are tight; when it is sloppy, traceability collapses into guesswork the moment something goes wrong.

“If a pallet can change location, ownership or process status without a GS1-128 scan, you’ve just created a blind spot in your lot genealogy.”

1) What “Lot Transfer” Really Means

In most plants, lots move constantly:

• From receiving dock to chill room or freezer.
• From raw storage to production staging, trim rooms or grinders.
• From cook/chill to finished-goods warehouse.
• Between internal warehouses or from plant to third-party logistics.
• From stock to rework, hold, or destruction zones.

Every one of those is a lot transfer—a change in where the lot physically sits and often in how it should be treated (available vs hold, raw vs WIP vs finished). GS1-128 lot transfer scanning is about making those movements explicit, traceable and auditable, using the barcodes you’re already printing on cases and pallets as the primary identifiers.

2) GS1-128 & SSCC: The Identifiers Behind the Scan

GS1-128 is a linear barcode symbology that can encode multiple data elements: GTIN (01), lot (10), best-before/use-by (15/17), net weight (310x), count (37) and more. For logistics units like pallets and large cartons, the core identifier is the Serial Shipping Container Code (SSCC) (AI 00).

Lot transfer scanning typically uses SSCC for pallet-level moves and, where needed, GTIN/lot/weight AIs for case-level moves. The scan tells WMS/MES unambiguously which unit is moving; business logic fills in the rest—what lot, what weight, what program, what status. Without consistent GS1-128 labels and SSCC allocation, lot transfer scanning will be fragile or impossible to standardise across sites and partners.

3) Why Scanning Matters: Traceability, Compliance & Money

There are three hard reasons to take GS1-128 lot transfer scanning seriously:

• Traceability & compliance – regulators and customers expect you to know where each lot is and was, not just approximately but precisely, and to be able to prove it quickly.
• Program segregation – organic, halal, NAE, retailer-specific programs all depend on clean location and movement records between segregated streams.
• Inventory & yield – if moves are recorded late or inaccurately, inventory goes out of sync, write-offs and “mystery loss” increase, and Finance starts doing creative spreadsheets to reconcile books with reality.

Manual movement sheets, unlogged shuffles and “we moved it yesterday” stories don’t cut it anymore. Lot transfer scanning provides the evidence that what your ledger says and what the forklifts actually did are in alignment—or, if they’re not, where and why they diverged.

4) Typical Lot Transfer Scenarios

GS1-128 scanning should be involved in every high-impact movement, for example:

• Receiving to storage – scanning pallet SSCCs as they are put away to chill bays, zones or racks.
• Storage to production staging – scanning SSCCs on pick from storage and on drop to staging lanes for a specific order or line.
• Production to finished-goods warehouse – scanning cooked/packed pallets into finished-goods locations, potentially after post-smoke re-labeling.
• Internal warehouse transfers – scanning SSCCs leaving and entering different facilities or zones (e.g., main DC vs quarantine warehouse).
• Hold/release moves – scanning lots into QA hold zones and back out after release, to make sure stock status and physical location match.

Every time someone touches a pallet jack or forklift with a GS1-128-labelled unit, there should be a corresponding scan event. If there isn’t, your genealogy is relying on forklift-driver memory and “I think it’s over there now.” That’s not good enough when FSQA or a retailer is asking hard questions.

5) WMS vs MES: Who Owns Lot Transfers?

In most architectures:

• WMS/ERP own inventory location and ownership – which SSCC is in which warehouse, bay, rack or zone and under which stock status.
• MES owns process state and genealogy – which SSCC was consumed in which production run, transformed into which child lots or pallets.

GS1-128 lot transfer scanning sits at the intersection. A move from storage to a grinder feed staging lane, for example, may be both a WMS and MES event. Good design ensures that scans either flow through an integration layer or are interpreted by both systems in a consistent way (e.g., via an event bus or EPCIS). Bad design splits responsibilities and leaves double-entry or gaps: WMS thinks a pallet is still in rack A, while MES thinks it’s in staging, and the fork driver knows it’s actually at the line—with no scan to tell the systems.

6) Scan Patterns: Pick/Drop vs Move Tasks

There are two common patterns for lot transfer scanning:

• Pick/drop scans – scan the SSCC (and sometimes the location) when picking from source and again on drop to destination. WMS/MES infers the move from the pair of events.
• Move-task scans – WMS assigns a move task with source and destination; the operator scans the SSCC and location at each step, closing the task.

Pick/drop is simpler to start with; move tasks are more disciplined and support directed putaway, wave picking and “no parking” in forbidden zones. Whichever pattern you choose, the golden rule is “no move without a scan, no scan without a transaction.” Anything looser than that invites unrecorded transfers and messy reconciliation later.

7) Status & Reason Codes: Not Just Where, But Why

Lot transfer scanning isn’t only about changing location; it’s also about changing status and recording why a move occurred. Typical examples:

• Moving to a QA hold zone because of pending micro tests or deviations.
• Transferring to a rework area after packaging or label non-conformance.
• Sending product to a downgrade or rendering/destruction stream.
• Reallocating pallets from one customer/program to another with appropriate approvals.

Scanners should capture a reason code along with the SSCC and location, so your systems can see patterns: where FSQA holds frequently originate, how much product is downgrading per month and why, which lines create the most rework. Without reason codes, transfer data is just a series of locations changing; with them, it becomes actionable intelligence for QA, Engineering and Finance.

8) Program Segregation: Organic, Halal, Retailer Brands

GS1-128 lot transfer scanning is also how you keep high-value and high-risk programs clean across the warehouse and plant:

• Organic vs conventional – SSCCs flagged as organic may only be moved into specific zones; scanners and WMS block moves into incompatible areas.
• Halal/kosher vs conventional – program flags on lots and locations ensure smokehouses, staging and shipping docks remain segregated.
• Retailer/private-label programs – dedicated bays, buffers and docks enforced by scanning and WMS logic, not just paint on the floor.

In disputes over program integrity, customers will ask for location and transfer histories. Proper GS1-128 lot transfer scanning lets you show, for example, that a halal pallet was only ever in halal-designated locations and never cross-stored with conventional. Without that proof, you’ll be relying on “we told the team to keep them separate,” which doesn’t carry much weight when money and reputation are on the line.

9) EPCIS & Lot Transfer Events

For digital traceability sharing, GS1-128 scans become EPCIS events:

• Object events – SSCC observed at a new location (e.g., “arrived at warehouse A, bay 12”).
• Aggregation events – SSCCs aggregated to shipments or de-aggregated during repalletization.
• Transaction events – SSCCs linked to purchase orders, production orders or outbound shipments.

Lot transfer scanning is the ground truth for these events. If scanning is weak or optional, your EPCIS feed becomes incomplete or misleading; trading partners may see pallets “teleporting” across the network with no intermediate history. That’s a fast way to convince them your traceability story is more marketing than reality.

10) Integration With Catch-Weight & Mass Balance

Because GS1-128 often carries weight (via AIs like 310x), lot transfer scanning can also support real-world mass balance:

• Tracking kilos into production vs kilos back out (finished goods, trim, rework, destruction).
• Comparing shipped weights to production weights for yield verification.
• Identifying shrinkage hot spots where unscanned or mis-scanned moves cause discrepancies.

If pallets can move without scans, mass balance will show unexplained loss or gain. Many plants discover, after tightening scanning, that a surprising percentage of their “normal shrink” was simply untracked movements and mis-allocations. Fixing that is often a quick financial win, in addition to the traceability benefits.

11) Hardware & Human Factors

Lot transfer scanning only works if it fits how people move product in the real world. That means:

• Choosing the right scanners – rugged handhelds, vehicle-mounted terminals, fixed readers at chokepoints (doors, docks, palletisers).
• Designing scan points where operators naturally pass anyway (exits from chill rooms, entrances to staging, dock doors).
• Using simple, low-friction UIs – minimal button presses, clear beeps/colours for success vs failure.
• Ensuring labels are scannable – correct placement, size, contrast and survivability in cold/wet environments.

If scanning is physically awkward, slow or unreliable, operators will find ways around it: stacking pallets in blind spots, writing notes on paper, “borrowing” SSCCs. Good layout, devices and UI design remove excuses and make scanning the path of least resistance—as it should be.

12) Implementation Roadmap

A staged approach to GS1-128 lot transfer scanning typically looks like:

• Baseline mapping – document current label usage, scan points (if any), and where untracked moves happen.
• Label & SSCC discipline – standardise GS1-128 formats, ensure every pallet/case leaving a process has a valid label and SSCC.
• Add scan gates at key transfers – receiving putaway, production staging, finished-goods receiving, docks.
• Integrate with WMS/MES – configure transactions for each scan type (putaway, pick, move, production issue/receipt).
• Refine & expand – add reason codes, program segregation rules, and additional scan points once the basics are stable.

Trying to implement an “every movement, every second” scanning regime from day one often fails. Start with the transfers that matter most for traceability and inventory accuracy, prove the value, then extend coverage with the operations team on side rather than resisting.

13) Common Failure Modes & Audit Red Flags

Signs that GS1-128 lot transfer scanning is not doing its job:

• Pallets with multiple labels (old and new) and no clear primary SSCC.
• Forklift drivers who can move product without ever scanning, especially between internal zones.
• WMS showing stock in one location while the physical pallet is clearly somewhere else.
• Mock recalls that stall because movement history is incomplete or contradictory.
• Frequent manual adjustments to inventory to “fix” discrepancies with no root cause analysis.

Auditors see these patterns all the time. Retailers increasingly bring their own audit teams and know what good looks like. The fix is not more paperwork; it is better label discipline, better scan coverage and a culture where “no scan, no move” is enforced consistently—even when the line is under pressure.

14) FAQ

Q1. Do we have to scan every movement, even inside a single room?
Not necessarily. You should scan every movement that changes logical location or status (e.g., from “available” to “hold”, from “raw chill” to “production staging”). Minor repositioning within a rack may not need scans if your WMS doesn’t track at that granularity. The key is that your chosen level of detail must support credible traceability and inventory accuracy.

Q2. Can we get by with internal barcodes instead of GS1-128?
For purely internal use, you can, but GS1-128 brings standardisation and compatibility with customers, 3PLs and EPCIS. If you’re already printing case and pallet labels, you might as well use GS1-128 and SSCC correctly and get the benefit across the ecosystem.

Q3. What if a label is damaged or unreadable?
There must be a controlled re-label process: verify identity and lot in WMS/MES, print a replacement GS1-128 with a new SSCC if needed, and link the new ID to the old in the system. Ad-hoc handwriting or copying another pallet’s label is absolutely not acceptable and destroys traceability.

Q4. Does lot transfer scanning slow down forklift drivers?
When poorly designed, yes; when done well, the impact is modest and more than offset by reduced hunting for pallets, fewer mispicks, and less time spent resolving inventory issues. The trick is to design scan points and flows around real forklift paths, not around idealised diagrams.

Q5. What is a practical first step to improve GS1-128 lot transfer control?
Pick one critical flow—e.g., finished pallets leaving packaging into the warehouse—standardise GS1-128 labels and SSCCs there, and make scanning at the transfer mandatory. Use the resulting clean data to run your first proper mass-balance and mock recall exercise. Once people see the difference, it becomes much easier to justify extending scanning to other transfer points.

Related Reading
• Identification & Standards: GS1-128 Case Label | SSCC | GS1 Application Identifiers
• Traceability & Events: End-to-End Lot Genealogy | Mass Balance | EPCIS Traceability Standard | Mock Recall Performance
• Systems & Operations: Post-Smokepath GS1-128 Re-Labeling | Smokehouse Load Verification Scanning | Packaging Line Catch-Weight Integration | Data Integrity