Tag Archive for: ASN

What is Advanced Ship Notice (ASN) 856 Transaction Set?

This post was updated to reflect current trends and information.

Are you looking to streamline your supply chain and improve shipping efficiency? Look no further than EDI 856, the ultimate electronic document for advanced shipping notifications (ASN). In this comprehensive article, we will walk you through everything you need to know about EDI 856 and how it can optimize your logistics operations.

What is EDI 856 (ASN)?

An Advanced Ship Notice (ASN) is an X12 electronic document EDI (electronic data interchange).

In different EDI standards, this electronic document can have different names, for example, in ANSI standard this electronic document is called ASN or “Advanced Ship Notice” or 856 transaction. In EDIFACT the same document is DESADV “Dispatch Advice”. Nevertheless, no matter how this document is called: Dispatch Advice, 856 Ship Notice, Advanced Ship Notice, Advance Shipping Notice, 856 transaction set, 856 Ship Notice/Manifest, ASN, ASN message, EDI 856, ANSI x12 856, it has the same mission and has the same business meaning.

The EDI 856 document is essential for streamlining the supply chain process because it provides real-time visibility and transparency throughout the entire logistics journey. An 856 Ship Notice message is intended to simplify and speed up the process of receiving goods, detailed information about the cargo, transfer of information about the shipment, and tracking the delivery. This information is used for receiving and inventory control purposes.

By sharing this information electronically, suppliers and retailers can plan and track shipments more efficiently, reducing the risk of delays, errors, and unnecessary costs.

856 Ship Notice/Manifest does not physically accompany a shipment but is used to inform the recipient in advance, about the contents of the shipment.

Who Uses The Advanced Shipping Notice (ASN)?

The EDI 856 Advanced Shipping Notice is widely used in the supply chain by retailers, manufacturers, wholesalers, third-party logistics providers (3PLs), and even in Drop-ship fulfillment and e-commerce. It is a key document for tracking and managing shipments, providing detailed information about the contents and expected delivery of goods.

EDI 856 is especially important in traditional retail replenishment and drop-ship fulfillment scenarios, where it helps streamline inventory management and order processing.

By delivering advance shipment details, the ASN helps businesses optimize their operations, improve warehouse management, and reduce delays in receiving goods.

For more information about Drop-Ship, you can read our blog: 4 Challenges of EDI and Drop-Ship in eCommerce

Basically, the sender of Advanced Ship Notice is the warehouse, raw materials supplier, and carriers who are responsible for specifying and communicating the contents of a shipment.

The 856 Ship Notice/Manifest may be the most complicated document to implement because different trading partners can customize their requirements for EDI 856. In addition, ASN has a multitudes level of information and a great volume of data.

EDI 856 Hierarchical Levels of Information in the Ship Notice/Manifest

A key feature of the Ship Notice/Manifest is the hierarchical level of data. The supplier can describe the details of a shipment due to a multitude of levels of data. Each level in the Ship Notice/Manifest describes the related details about a physical shipment. Usually, in the retail industry there are six defined levels in an EDI 856 (ASN):

Shipment – Information about shipment moving from a supplier (origin place) to a receiving location (Client), such as a bill of lading number, ship to, ship from, etc. There is only one shipment level in each transaction set.
Unit load – Information about a physical shipping item marked with a Serial Shipping Container Code and, consists of transport packages marked for multiple final destinations.
Order – Information related to the client’s original Purchase Order (EDI 850) such as purchase order number, buying place, division number, etc.
Tare – Information about the pallets. This level may be skipped if there are no identifiable pallets.
Pack – Information about the shipping package (cartons, racks, bags, etc.,) such as carton serial number. If there are no identifiable packs, this level may be skipped.
Item – Information about the shipped goods, such as SKU identification, quantity shipped, etc.

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EDI 856: Understanding the Components of a Document

An EDI 856 document, also known as the Advanced Shipping Notice (ASN), is a detailed electronic record that conveys essential information about a shipment. Key components typically include:

Header Information: This section provides general shipment details, including the purchase order number, ship-to address, and expected delivery date. It sets the context for the entire shipment.
Line Item Details: This section includes specific information about each item being shipped, such as the product code, description, quantity, and unit of measure. It helps recipients identify and verify the contents of the shipment.
Packaging Information: Here, you’ll find details about the shipment’s packaging, including the number of pallets, cases, or individual units. This information is crucial for efficient handling and storage.
Carrier and Tracking Information: This part provides details about the carrier responsible for the shipment, including tracking numbers and shipping labels. It allows for tracking and monitoring the shipment’s progress.
Additional Details: Depending on industry requirements or business needs, the EDI 856 document may include additional information such as special handling instructions, lot numbers, or expiration dates. This ensures that all relevant details are communicated.

Understanding these components is crucial for businesses to ensure accurate and efficient data exchange with supply chain partners. Familiarity with the various fields helps streamline shipping processes, reduce errors, and enhance overall supply chain visibility.

Ship Notice/Manifest Business Flow

Below we give you a simple example of Business processes that cause the Ship Notice/Manifest.

The order process begins with an EDI 850 Purchase Order from the client. To confirm the receipt of a purchase order, the supplier generates a Purchase Order Acknowledgement or X12 855 transaction set. Then, the supplier has to start the order processing procedure.

When the order is ready for delivery, the supplier collects all pertinent data relative to the shipment. Using this information, the supplier creates a Ship Notice/Manifest. The supplier must generate the Ship Notice, and transmit it to the client, immediately upon closing the truck. The client needs to receive and integrate the data of ASN 856 into his business systems prior to the physical arrival of the merchandise.

Advanced Shipping Notice (ASN) Example

These two examples of Advanced Shipping Notice (ASN) 856 below show the XML file and the same file that was converted to EDI.

These two examples below describe how an Advanced Shipping Notice (ASN) 856 transaction set looks like in xml format, and then displays the same information in X12 format after it has been converted to EDI by our EDI2XML translation and communication service.

EDI 856 ASN (xml) Example:

EDI 856 X12 Example File:

The shipment level in the 856 EDI document refers to the level of detail provided about the shipment. This can include information such as the number of cartons or pallets in the shipment, the item numbers and quantities of the products being shipped, and other details about the shipment. The shipment level in the 856 EDI document may also include information about the carrier and transportation details associated with the shipment.

The order level in the 856 EDI document refers to the level of detail provided about the order that the shipment is fulfilling. This can include information such as the purchase order number, the customer’s order number, the date the order was placed, and other details about the order. The order level in the 856 EDI document may also include information about the items being shipped, including item numbers, quantities, and unit of measure. It also may include information about the shipping and delivery details, such as the requested delivery date, shipping address and shipping instructions.

The pack level in the 856 EDI document refers to the level of detail provided about the packaging of the items within the shipment. This can include information such as the number of items within each package, the type of packaging used, and the weight and dimensions of each package. The pack level in the 856 EDI document may also include information about the labeling of each package and any special instructions related to the packaging of the items. This level of information is important for the logistics and warehouse operations of the recipient of the shipment.

The item level in the 856 EDI document refers to the level of detail provided about the individual items within the shipment. This can include information such as the item number, the item description, the quantity being shipped, and the unit of measure. The item level in the 856 EDI document may also include information such as the item’s weight, dimensions, and packaging information. This level of information is critical for the logistics and warehouse operations of the recipient of the shipment. It also allows the recipient to match the received items with the purchase order and track inventory levels. This level of detail is important for the recipient to be able to process and receive the shipment accurately and efficiently.

What Are the Benefits of Implementing the Ship Notice/Manifest for the Supply Chain?

Implementing EDI 856 in your supply chain can unlock a wide range of benefits that can significantly improve your business operations and overall competitiveness. Some of the key advantages of adopting EDI 856 include:

Improved Inventory Management: With the detailed information provided in an EDI 856 document, businesses can better plan and manage their inventory levels, reducing the risk of stockouts or excess inventory.
Enhanced Shipping Efficiency: By automating the shipping process and eliminating manual data entry, EDI 856 can help businesses streamline their logistics operations, leading to faster delivery times and reduced shipping costs. Reduce off-loading time at receiving dock. Acceleration of goods acceptance, due to previously received information on the composition and structure (as packed) of the supply.
Increased Accuracy and Reliability: EDI 856 documents are transmitted electronically, which minimizes the risk of errors and inaccuracies that can occur with manual processes. This improved data accuracy helps to build trust and strengthen relationships with supply chain partners.
Better Visibility and Collaboration: The real-time information provided by EDI 856 documents allows businesses to track shipments more effectively and collaborate more closely with their suppliers and customers, enhancing overall supply chain visibility. The EDI 856 (ASN) connects with bar code labels on transported pallets, boxes, or cartons, so there is the possibility of using the RFID scanner and transport package sequence number (SSCC) when accepting goods.
Cost Savings: By automating the shipping process and reducing the need for manual intervention, EDI 856 can help businesses save on labor costs, paper expenses, and other administrative overhead associated with traditional shipping methods.
Improved Customer Satisfaction: With faster delivery times, better inventory management, and more reliable shipping information, businesses can improve their customer service and satisfaction levels, ultimately leading to increased loyalty and repeat business.

Implementing EDI 856 in your supply chain can be a transformative step, enabling your business to streamline operations, enhance collaboration, and gain a competitive edge in the market. By embracing this powerful EDI document, you can unlock new opportunities for growth and success in your supply chain management efforts.

Advantages of Implementation Advanced Ship Notice

The implementation of EDI 856, or the Advanced Shipping Notice, can significantly improve visibility and collaboration throughout the supply chain. By providing detailed, real-time information about shipments, this powerful EDI document enables better coordination and cooperation among all supply chain stakeholders.

Eliminates the need for paper-based communications
Optimization of the process of goods acceptance.
No data entry errors.
Reduce administrative costs by increasing the accuracy of forecasting orders.

Integrating EDI 856 with Other EDI Documents for Seamless Operations

To maximize the benefits of EDI 856 in your supply chain, it’s essential to integrate this Advanced Shipping Notice (ASN) with other key EDI documents. By enabling a seamless flow of data, businesses can increase operational efficiency, minimize manual intervention, and make more informed decisions.

EDI 810 (Invoice)

Integrating the EDI 856 with the EDI 810 Invoice allows for a more streamlined invoicing process. By automatically matching the shipment details in the EDI 856 with the corresponding invoice, companies can reduce discrepancies, accelerate payment processing, and improve financial management. This integration ensures that the details of what was shipped align with what is being billed.

EDI 940 (Warehouse Shipping Order)

Linking the EDI 856 with the EDI 940 Warehouse Shipping Order improves warehouse operations and inventory control. The EDI 856 provides the warehouse with specific details about the contents, quantities, and packaging of the shipment. This enables warehouses to better plan for receiving, allocate space, and expedite the fulfillment process.

EDI 945 (Warehouse Shipping Advice)

Integrating the EDI 856 with the EDI 945 Warehouse Shipping Advice improves coordination between suppliers, warehouses, and customers. The EDI 945 confirms the shipment details sent in the EDI 856, helping the receiving party prepare for incoming goods, facilitating smoother receiving processes, and reducing misunderstandings or delays.

EDI 997 (Functional Acknowledgment)

By linking EDI 856 with the EDI 997 Functional Acknowledgment, businesses can track and confirm the successful transmission of their ASNs. The EDI 997 serves as a receipt confirmation, ensuring that the EDI 856 has been successfully received by trading partners. This validation helps businesses monitor and improve the reliability of their EDI processes.

EDI 753 (Request for Routing Instructions)

Although EDI 753 (Request for Routing Instructions) is less commonly mentioned in ASN integration, it can be valuable in ensuring accurate shipping details. This document is used to request specific routing instructions from the buyer or consignee, often in transportation and logistics planning. When integrated with EDI 856, it can help ensure that the shipment follows the correct delivery path, aligning transportation and delivery instructions.

By integrating EDI 856 with these key EDI documents, businesses can create a more cohesive and efficient supply chain. This integration reduces errors, increases visibility into shipments, and strengthens collaboration with trading partners. A holistic approach to EDI integration is vital for staying competitive in today’s dynamic business environment.

Choosing the right EDI provider for your organization’s needs

Selecting the right EDI provider is a crucial step in successfully implementing and leveraging EDI 856 in your supply chain. The right partner can make all the difference in ensuring a smooth transition, reliable data exchange, and ongoing support for your organization’s evolving needs.
When choosing an EDI provider, consider the following key factors:

1. Expertise and Experience:
Look for an EDI provider with a proven track record of successfully implementing and supporting EDI 856 and other supply chain-related EDI documents. Their industry knowledge and understanding of best practices can be invaluable in navigating the complexities of EDI integration.
2. Scalability and Flexibility:
As your business grows and your supply chain needs evolve, your EDI provider should be able to scale their services and adapt to your changing requirements. Ensure that the provider can accommodate increased transaction volumes, new trading partner integrations, and any industry-specific compliance needs.
3. Integration Capabilities:
Assess the provider’s ability to seamlessly integrate EDI 856 with your existing enterprise systems, such as your ERP, warehouse management, or logistics software. A smooth integration process can significantly streamline your supply chain operations and reduce the risk of manual errors.
4. Customer Support and Responsiveness:
Reliable and responsive customer support is essential when implementing and maintaining an EDI solution. Look for a provider that offers comprehensive training, ongoing technical assistance.

How to Get Started with Ship Notice/Manifest Transaction Set (856)?

Simplify your business processes with the implementation of EDI. We offer up-to-date integrated solutions at an affordable price to enterprises of all sizes. Whether you are a supplier or retailer contact us for cost-effective EDI Implementation.

June 19, 2018/2 Comments

4 Challenges of EDI and Drop-Ship in eCommerce

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This post was updated to reflect current trends and information.

The term “drop-ship” has been used quite a lot in recent years by retailers and manufacturers alike. This supply chain management method looks to be gaining in popularity going into 2019 and will likely be in high demand for years to come as well.

Let me first explain the meaning of drop shipping and how it has become so popular…

What is Drop Shipping?

“Drop-ship” is a fulfillment method where a merchant does not carry any inventory on hand. Instead they sell products to consumers via an online store (eCommerce), send the customers’ orders to the manufacturer and have the manufacturer ship the goods directly to the customer. The customer will never know the difference since they pay the merchant and receive their goods in a box with the merchant’s labels. This method eliminates the need for the merchant to handle the goods.

The Rise of Drop-Ship Popularity

Due to the fast evolution of eCommerce, coupled with the continuous challenges that businesses face to reduce costs and increase profitability, the drop-ship method is in high in demand by major retailers. You’ll find that eCommerce giants like Amazon.com, Costco.com, Cabelas.com, Sears.com and others, are increasing the pressure on their supply chain to adopt the drop-ship concept. Of course, they also require their business partners to comply with their EDI requirements and specs for a full automation of the entire sales cycle.

The Complexity behind Drop Shipping

If we take a behind-the-scenes look at drop shipping from 2 perspectives, from the eCommerce retailer, like Amazon or Cabela’s, and from the manufacturer of goods, we’ll find the simplicities and complexities behind each process.

From the perspective of the eCommerce retailer, the drop-ship method allows them to eliminate the need to carry any inventory and to ship their goods. Their process is rather simple, profitable and quick. All they need to do is sell products online and ensure that their partnered manufacturers are EDI and drop-ship ready. Once they sell products from their eCommerce site, they will send the orders via EDI to their manufacturer and the manufacturer takes it from there.

From the perspective of the manufacturer, we’ll find some of the complexities. However, if they are setup correctly from the get-go, then it becomes rather simple and quick. In this case, the drop-shipper (manufacturer or distributer) is entirely in charge of the fulfillment of all incoming eCommerce orders (from the retailer). They need to process the sale all the while complying with the retailer’s business specifications such as EDI. Let’s go over the top 4 challenges a manufacturer must overcome during a drop-ship EDI implementation;

Top 4 Challenges the Drop-Shipper Might Face

If you are a manufacturer and have recently partnered with an eCommerce retailer to sell your products, then you might already know that they will require you to drop ship and automate your sales process through EDI integration. I have listed below the top 4 challenges you might face as a drop shipper;

1. Ability to submit accurate inventory feed (846) to the eCommerce retailer

When starting a new business relationship with an eCommerce retailer based on the drop-ship method, the first step will be to feed inventory & per-item stock statuses to the retailer in a timely manner. This inventory inquiry/advice document is called EDI 846. Major retailers such as Amazon.com, Cabelas.com, Costco.com and Wal-Mart.com require their Trading Partners to send them an 846 document at least twice a day so that their online store can properly show only available products, based on inventory available to ship. Most of the time, companies either don’t have an accurate inventory system or their stock status is not properly maintained, which can be a great challenge to overcome. Even if companies have accurate inventory statuses, many of their management software systems, even reputable and expensive systems such as JDE, do not have built-in capabilities to send the 846-inventory status in X12 format, as per the requirements of the retailers.

2. Ability to receive and process EDI orders (850)

Another challenge comes in the form of receiving EDI purchase orders (document 850). Many companies struggle with the capability to receive EDI orders, process them and integrate them quickly into their management system before it is sent to the pick/pack/ship process down the line in the supply chain. Most software systems are still missing this integration capability and require end users to manually key-in orders received in EDI x12 format, to then be able to process and ship. This is a great challenge for many manufacturing and distribution businesses. Dealing with eCommerce Stores, orders are continuously coming in, at all hours, in high volumes. The client (retailer) typically expects the manufacturers to ship within 24 to 48 hours (at the latest!). Moreover, eCommerce retailers are expecting to receive a P/O acknowledgment (document 855) via EDI. Therefore, it’s extremely critical that the drop shipper is equipped with a fully integrated software solution where EDI orders can automatically come through in real-time, so that they are quickly processed.

3. Ability to fulfill orders within a very short period of time

As previously mentioned, eCommerce retailers expect their partners to ship goods to the end-consumer within a very short time frame (24 to 48 hours). They expect them to package the products, print customized picking/packing slips to send with the goods and complete the shipping process in a very quick manner. In case of failure to comply, there is a risk the vendor will be eliminated from the program. At the logistics level, an important challenge is to have a management system and required resources to process orders, pick, pack and ship in the required time frame. Efficiency in this case is imperative since time is money.

4. Ability to electronically submit Ship Notices (856) & Invoices (810)

Two other EDI x12 documents are sent out to the eCommerce retailer by the drop shipper; the Advance Ship Notice or ASN (document 856) and of course an invoice (document 810). Most companies don’t currently have the capability to turn those business documents into an x12 EDI format and submit to the Trading Partner, straight from their management system.

Overcoming Drop-Ship Challenges

Our team’s experience with EDI drop-ship has allowed us to overcome the above challenges in an efficient and timely manner. Since every project varies, it’s important to do the following;

Surround yourself with experts in EDI who have the experience in dealing with drop-ship projects. It’s important to have enough knowledge and expertise in these methods prior to beginning any EDI drop-ship project. It’s important to get organized internally before any major project.
Ask an EDI Provider, who offers flexible and affordable EDI & IT services, to help you streamline your processes and advise you on best practices.
Opt for a full EDI integration with your current management software solution, if possible. Of course, such an option is not always possible or provided by your Software provider but if it is, it’s our recommendation to go ahead with this since it will eliminate chargebacks and increase efficiency in your EDI projects so you are best capable of complying with your Trading Partners’ demands. Don’t forget, partner demands and specs can change at any moment. It’s best to ensure you can handle changes at a moment’s notice. (Flexibility is the way to go!)

If you’re looking to complete an EDI Drop-Ship project, contact us today. We’ve got the experts and the EDI2XML service to get you drop-ship ready. Contact us today for your FREE consultation to evaluate your EDI project.

December 30, 2016