Abstract: A system and method for material control to allow tracking and prevent diversion of articles within the system having a computer connected to a visual display, a keyboard, and printer. The computer is also connected to an OCR device for reading labels associated with articles within the system. Each article is provided with a swerialized initial label when it enters the system having the nature of the article and a serial number disposed thereon. The initial label contains a character field which it is OCR readable by the OCR device. After a reading of the initial label of each article by the OCR device, the computer generates a unique identifying indicia for that article which is utilized by a printer to print a sequential label with the indicia disposed thereon. The sequential label is then associated with the article to allow tracing and to prevent diversion of the article.