Lot-level traceability for small makers

> Cost: Freemium. Katana is free for up to 30 products (SKUs), with all features, unlimited users, the API and a 15-day unlimited-SKU start; on Free, Shopify is the only store integration. Beyond that you need Advantage, a custom annual contract (by quote) that includes guided implementation, a success manager, traceability, the shop floor app and the AI connector.

Honest note: rule-based manufacturing software (recipes, stock and lot records), not AI. The 10 hours a week is from a Katana-published story, and the brand's operations director did the modelling. Katana doesn't make you compliant by itself; it keeps the records an inspector or recall needs. Check your state's rules with your compliance adviser. The story's accounting app (Finaloop) connects on its side, so check with Finaloop how it links.

Prerequisites

• Katana (Advantage likely for more than 30 SKUs and traceability), plus Shopify and ShipStation.
• Your recipes for each stage: inputs, quantities, labour time and expected yield.
• A label printer if you want batch barcodes.

Step-by-step setup

Step 1. Connect Shopify. In Katana: Integrations Marketplace → Shopify → Connect, enter the store name, Authorize, Install. Map every Shopify location to a Katana location, import products, then Activate sync.

Step 2. Model each stage as a recipe. Make each intermediate (for example extracted oil) a product with its own recipe (bill of materials) and operations, including labour time. Use that product as an ingredient in the finished-goods recipe. That creates a multi-level recipe, and Katana can automatically create manufacturing orders for the subassemblies.

Step 3. Turn on batch (lot) tracking. Open Items, open the item card, and in the tracking section choose Batch / lot numbers. Existing stock becomes "unbatched", so assign it to batches. Do this for raw materials, intermediates and finished goods.

Step 4. Print batch barcodes (optional). Set formats at Settings > Barcodes, then print from Stock → Batches → Print.

Step 5. Ship through ShipStation. The simplest route: Shopify sends orders to both Katana and ShipStation. In Katana's Sell screen, orders start as Open. Mark them Packed, ship in ShipStation, and the status changes to Delivered. (A direct route via Extensiv also exists; see Katana's help.)

Step 6. Trace a lot. From Stock → Batches, open the Traceability Explorer to see where a batch came from and which orders it went to. Do a practice "mock recall" once a quarter.

Step 7. Accounting. Connect Finaloop or QuickBooks Online. For Finaloop, check with Finaloop how it links to Katana.

Easier: let your AI do it

Katana has an official MCP server, a secure plug that lets an AI chat like Claude or ChatGPT read and update your Katana data with your permission. Katana's pricing page lists it under Advantage.

1. In Katana, the account owner has access by default. To give someone else access, open your profile → Team → pick the user → Admin tab → switch on Access to MCP.
2. In Claude, open Customize → Connectors, click +, then Add custom connector. Name it Katana, paste https://mcp.katanamrp.com (no slash at the end), click Add, then Connect and sign in to Katana. It also works with ChatGPT.
3. Ask things like "Which materials will run short for this week's manufacturing orders?" It can read, create and update records, but it can't delete anything.

What success looks like

Spreadsheet updates stop, true production cost per product is visible for pricing, and a mock recall takes minutes, not days.

Common issues & fixes

• Old stock shows as "unbatched": assign it to a batch after turning on tracking.
• Shopify stock looks low: Katana pushes In stock minus Committed. Check open sales orders.
• Subassembly orders not created: check the intermediate is a product (not a material) with its own recipe.

Optional: Maintenance

• Quarterly: run a mock recall from one raw-material batch.
• When recipes change: update the recipe before the next production run.

Copy-paste prompt

Help me write a mock-recall drill for a small [PRODUCT] manufacturer that tracks batches in its inventory software. Include: picking a raw-material lot, tracing it to finished batches and customer orders, who does what, a time target, and a short report template (lot, affected batches, customers, quantities, actions). Plain language, under 300 words.

Sources

• Case: Katana case study (vertically integrated CBD brand). Credit: the brand's operations director (vendor-published).
• Katana Help: Connect Shopify to Katana
• Katana Help: Understanding product recipes (BOMs)
• Katana Help: Automatically create MOs for subassemblies
• Katana Help: Enabling item batch tracking
• Katana Help: Order fulfilment with ShipStation, Katana and Shopify
• Katana Help: ShipStation integration via Extensiv
• Katana MCP overview
• Katana Help: Connect Katana to Claude (MCP)
• Katana pricing