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How EDI Streamlines Supply Chain Management

Companies are constantly looking for ways to optimize their supply chain, ensuring they can quickly adapt to market changes and meet customer demands on time.

In this blog post, let’s explore how EDI streamlines supply chain management and why it’s essential for businesses today, and the benefits it brings to modern businesses.

Introduction: Electronic Data Interchange (EDI) and Supply Chain Management

The evolution of technology, standards and protocols, revolutionized this field. Electronic Data Interchange (EDI) stands is one of the main facilitators at the level of supply chain innovation.

EDI (or Electronic Data Interchange) is a standard that allows the exchange of business documents between business partners. It is based on structured format and follows some EDI standards (i.e. X12, EDIFACT…). By automating EDI exchange, business partners will be able to transform most of the manual processes into efficient, real-time tasks, increasing efficiency and eliminating human errors.

What is EDI?

Electronic Data Interchange (EDI) is a technology that allows companies to exchange standard business documents—such as purchase orders, invoices, shipping notifications, and inventory updates—in a standardized electronic format.

I’m not going to go further on this topic, since we already published extensive articles about EDI and its use, which I recommend reading for more information about EDI.

For a more detailed guide on how EDI works and its common use cases, check out our articles:

What is Supply Chain Management?

Supply Chain Management (SCM) refers to complete coordination of the different elements and partners involved in the production flow of any good or service. This flow starts from its initial stages of purchasing and buying raw materials to its final delivery of the finished good to the end-consumer.

It SCM includes the phases of planning, executing, monitoring, and optimizing of all processes involved in transforming a product from being a raw material until it becomes a finished good, and delivered to the end-user.

The goal of SCM is to enhance the efficiency, reduce costs, improve quality, and deliver products faster.

SCM requires a major collaboration between suppliers, manufacturers, warehouses, transportation services, and retailers, ensuring that each step in the chain is executed on-time in a very optimal manner.

Useful: Download the Guide – EDI for Transportation and Logistics

Key Components of Supply Chain Management

For a successful supply chain management cycle, there are important key components that should be considered, planned and implemented.

  1. Planning: This is the strategic phase where companies do their research on how to meet the demand for their products or services.
  2. Sourcing: Sourcing involves selecting one or multiple suppliers who will provide the raw materials, components, or services necessary for production, for a certain product or service.
  3. Manufacturing: In this phase, raw materials are transformed into finished products.
  4. Logistics and Distribution: Once products are manufactured, they must be stored and distributed to consumers. This involves all logistical processes such as warehousing, inventory management, and transportation.
  5. Returns Management: Also known as reverse logistics, this component deals with the return of defective or excess products from consumers. Managing returns efficiently is important to minimize losses and maintaining customer satisfaction.
  6. Information Flow: Throughout the supply chain, there must be a seamless flow of information to ensure that all parties are aware of demand, inventory levels, production schedules, and shipping timelines. This helps to coordinate efforts across the supply chain, reducing delays and errors.

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Importance of Supply Chain Management

Supply chain management (SCM) is very important in today’s business landscape, to be able to deliver on-time, low-cost products and services and at a reduced risk. Here are some of the important elements:

  • Reduce Cost: SCM helps reduce costs by improving efficiencies in procurement, minimizing waste, and optimizing transportation.
  • Increase of Customer Satisfaction: Supply chain can enhance customer experience and promote loyalty. Being able to deliver to customers on time and in good condition, will improve customer loyalty.
  • Increase Company’s Agility: SCM helps companies respond to changes in demand or disruptions in the market quickly.
  • Improve of Collaboration: Better communication means better collaboration across suppliers, manufacturers, and distributors all working towards the same objective.
  • Disruption: Disruption of a Supply chain is a risk that is substantial. Such disruption can be due to different reasons (i.e. natural disasters, political instability, or other factors). Such disruptions can significantly impact a business. SCM helps mitigate risks by allowing companies to create and execute contingency plans based on maintaining relationships with multiple suppliers and monitoring global trends.

How EDI Works in the Supply Chain

As described in the above paragraph, Supply chain management (SCM), relies on several parameters to be as efficient as expected, and deliver as per business expectations. EDI has a role to play in every key component of a successful SCM.

a) Planning: during the planning phase, companies part of the SCM exchange their forecast and based on customer demands and historical sales data via EDI; as an example a distribution company will share via an EDI transaction 830 (Productions forecast and scheduling) its production planning.

b) Sourcing and manufacturing: during the sourcing and manufacturing phase within a SCM, companies will exchange via EDI all kinds of transactions to complete these cycles:

    1. Inventory feeds (EDI 846): Ral-time inventory feeds and updates, are sent periodically by suppliers and manufacturers, to their own customers, via EDI 846 transaction. This allows to update them with accurate inventory levels track stock movements.
    2. Orders (EDI 850): When a customer places an order it goes via EDI 850 transaction to the supplier, this process, would eliminate the need for manual order entry and speeds up the order processing time.
    3. Shipping and Receiving: this process in SCM uses a substantial number of EDI transactions, from EDI transactions that concerns the logistics and transportation companies (i.e. EDI 204, EDI 210, EDI 214…) to the actual shipping and receiving transaction (i.e. ASN 856).
    4. Invoicing: After the goods are delivered, the supplier sends an electronic invoice EDI 810 to the customer. The customer can then process the invoice and make the payment electronically, streamlining the entire billing and payment process.

c) Logistics, distribution and returns: again, EDI is present in all of these components in the supply chain:

  1. Logistics and distribution: lots of EDI transactions come to play, when it comes to logistics, and return, EDI 204, 210, 214…
  2. Returns: EDI 180, EDI 894 and EDI 895 are typical EDI transaction for merchandise return.

 

How EDI Works in the Supply Chain

Useful Reading: EDI for Third-Party Logistics providers (3PL)

How EDI Streamlines Supply Chain Management

Following are some EDI attributes, that have an impact on the Supply Chain management SCM:

Faster Communication

When exchanging EDI documents, companies part of the same SCM, are opting for a full automation which means, a real-time exchange of business documents, along with automated flows to process those documents.

Eliminating bottlenecks and human errors. Orders, confirmations, and invoices flow automatically between systems, reducing lead times and allowing businesses to respond faster to changes in demand, inventory levels, or production schedules.

Reduce human errors

Manual data entry is equivalent to human errors. Errors in purchase orders, inventory levels, or shipment details can lead to costly mistakes such as overstocking, missed shipments, or payment delays. Using EDI minimizes these risks by automating data transfers.

Improve data quality and integrity

Standardized formats of data, ensure that information is accurately communicated, which will certainly improve data integrity and quality. No more human errors.

Improve Efficiency

Automating supply chain transactions with EDI leads to significant cost savings, where the most important expense is labor. Typically, the labor cost of manually entering data and correcting errors is substantial.

Exchanging EDI reduces these costs by allowing businesses to process large volumes of transactions automatically.

Improve Inventory Management

Companies exchanging EDI transactions will have a much better inventory visibility to their supplier’s inventory. It will eventually enable JIT (Just-in-time) inventory strategies and control of costs.

Improve Data Security

By exchanging EDI transactions, based on standardized protocols and encrypting the data using EDI communication protocols such as AS2, sFTP, AS3 and other protocols, business partners enhance their compliance and security footprints, ensuring secured data exchange.

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EDI 944 – Warehouse Stock Transfer Receipt Advice

EDI 944: Introduction

Welcome to the next part of our series on EDI (Electronic Data Interchange) for logistics. With over two decades of EDI integration experience, we are excited to share our knowledge and insights with you.

In this article, we will look at EDI 944 – Warehouse Stock Transfer Receipt Advice. Our goal is to clarify the complexity and terms associated with EDI in logistics so that it is easier for companies to understand.

Whether you’re new to EDI or looking to brush up on your knowledge, we’re here to help you navigate the complex landscape of EDI documents.

What is an EDI 944 Warehouse Stock Transfer Receipt Advice?

An EDI 944 Warehouse Stock Transfer Receipt Advice transaction set is an EDI document used in stock transfer. This is a kind of electronic receipt that indicates when and where the goods were transported. For example, from a factory to another location, usually a warehouse, DC, or to a logistics provider such as a 3PL (third-party logistics).

Specifically, EDI 944 is used by the receiving location to confirm the receipt of goods.

3PL (Third-Party Logistics): A 3PL is a company that provides logistics and supply chain management services on behalf of other businesses. These services can include warehousing, transportation, order fulfillment, and other aspects of the supply chain. Companies often use 3PLs to outsource certain parts of their logistics operations to experts in the field.

DC (Distribution Center): A DC, also known as a distribution center or a warehouse, is a facility where goods and products are stored before they are distributed to their final destination. Distribution centers play a crucial role in the supply chain by serving as hubs for receiving, storing, and sorting products, which are then shipped to retailers, wholesalers, or directly to consumers. They help in optimizing the distribution process and ensuring that products reach their intended recipients efficiently.

A ‘stock transfer’ is when goods move from a factory or another location to a far-off warehouse or a third-party logistics provider (3PL). Manufacturers often send their products to 3PLs, who then help distribute them to distribution centers (DCs) or, sometimes, directly to retailers.

Exploring the Content of EDI 944 Documents

The EDI 944 typically includes key information such as:

Shipment details: Information about the goods being transferred.

Sender and receiver details: Identifying who’s sending and who’s receiving the goods.

Dates: When the shipment was received.

Quantity: How many items were shipped and how many were received.

Reference numbers: Unique codes to track the shipment.

Notes: Any additional comments or special instructions.

This information helps in tracking and managing the transfer of goods effectively.

Explore the depths of Electronic Data Interchange (EDI) with our detailed video explanation. Start delving into the video now

How Do Businesses Use EDI 944?

Companies use EDI 944 to streamline their inventory and logistics processes. Here’s how:

Inventory Tracking: EDI 944 helps businesses keep tabs on their stock as it moves from one place to another. It ensures that the right products reach the intended location.

Efficient Communication: By using EDI 944, companies can communicate electronically with their warehouses or 3PLs, reducing the need for manual paperwork and phone calls.

Accuracy and Speed: It minimizes errors and speeds up the transfer process because information is transmitted electronically in a standardized format.

Visibility: EDI 944 provides real-time updates on shipment status, enabling companies to make informed decisions about their inventory and distribution.

Compliance: Many trading partners and retailers require the use of EDI 944, so using it helps companies remain compliant with industry standards.

In essence, EDI 944 helps companies manage their inventory and logistics operations more efficiently and effectively.
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How to Send Warehouse Stock Transfer Receipt Advice (EDI 944)?

The workflow of EDI 944 typically follows these steps:

Data Preparation: The sender compiles the necessary information in its internal ERP or other business system, including details about the shipment, quantities, dates, and other relevant data. This information is then organized in a predefined format (i.e. CSV, TXT, XML, JSON).

Transmission: The sender transmits the EDI 944 document electronically to the receiver, often via its EDI provider.

Data Translation: The EDI provider’s system translates the incoming document into X12 format and then sends it to the receiver via FTP, sFTP, or VAN.

USEFUL READING: How Do Companies Send EDI Files?

Validation: The receiver’s system validates the received data to ensure it is complete and accurate. This step helps prevent errors and discrepancies in the supply chain.

Processing: Once the data is validated, the receiver’s system processes it to update their inventory records and track the incoming shipment.

Inventory Update: The receiving company updates its inventory and logistics records based on the information provided in the EDI 944 document. This includes confirming the receipt of goods and making necessary adjustments.

Further Action: Depending on the specific logistics and business processes, the receiving company may take further actions, such as distributing the goods to distribution centers or retailers, or using the information for planning and decision-making.

This workflow ensures that information about stock transfer is accurately and efficiently communicated between trading partners, helping them manage their inventory and logistics operations seamlessly.

EDI 944 Comparison with Similar EDI Documents: Common Questions Answered

We often encounter a situation where companies try to understand the differences between EDI 944 and other EDI documents with functions that are similar at first glance. However, each EDI transaction has its own specific purposes and differences. Let’s look at the most frequently asked questions regarding the differences between these EDI Transactions.

What is the Relationship between EDI 943 and EDI 944 Documents?

The EDI 943 and EDI 944 documents are closely related within the context of EDI exchange in logistics and inventory management. Here’s how they are connected:

EDI 943 – Warehouse Stock Transfer Shipment Advice: This document is used to initiate the transfer of goods from one location, often a distribution center or warehouse, to another location, such as another warehouse or a retail store. It serves as an instruction from the sender to the receiver, specifying what products are to be transferred, quantities, and other relevant information.

EDI 944 – Warehouse Stock Transfer Receipt Advice: In contrast, the EDI 944 document is used to confirm and acknowledge the receipt of the goods at the receiving location. It verifies that the transfer has taken place as instructed in the EDI 943. The EDI 944 provides details about what was received, in what quantities, and when it was received.

So, in summary, the relationship between the EDI 943 and EDI 944 is a sequential one. The EDI 943 initiates the stock transfer, while the EDI 944 confirms that the transfer has been completed as specified. Together, they ensure a seamless and well-documented movement of inventory within the supply chain.
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What is the Difference between EDI 945 and 944?

The main difference between EDI 944 and EDI 945 lies in their purpose and content:

EDI 945 – Warehouse Shipping Advice:

Purpose: The EDI 945 document is used as an acknowledgment of the shipment (the same like an EDI 856 -Advance Ship Notice). It is typically sent by the warehouse or shipping location to the sender, confirming that the goods have been shipped as instructed.

Content: The EDI 945 provides information about the shipment, including details about the contents, packaging, carrier information, and other data related to the shipment.

EDI 944 – Warehouse Stock Transfer Receipt Advice:

The EDI 944 document is used to acknowledge the receipt of goods at a specific location. It confirms that the transfer of goods, has been completed.

In summary, the EDI 944 focuses on the receipt of goods at the receiving location, ensuring that the transfer is acknowledged and documented accurately. The EDI 945 serves as a confirmation of the shipment itself, providing details about the items being shipped, and other information essential for the sender to track the progress of the goods.

Both documents play crucial roles in inventory and logistics management within the supply chain.

What is the Difference between EDI 944 and EDI 861 Receiving Advice/Acceptance Certificate?

The main difference between EDI 944 (Warehouse Stock Transfer Receipt Advice) and EDI 861 (Receiving Advice/Acceptance Certificate) lies in their specific purposes and use cases:

EDI 944 – Warehouse Stock Transfer Receipt Advice:

Purpose: EDI 944 is primarily used to confirm the receipt of goods when products are transferred from one location to another within the same company or between trading partners. It acknowledges the successful receipt of items after they have been shipped.

Typical Use: It is commonly used in scenarios where goods are moved between warehouses, distribution centers, or third-party logistics providers.

EDI 861 – Receiving Advice/Acceptance Certificate:

Purpose: EDI 861 serves a different purpose, focusing on the acceptance of goods by the buyer or recipient. It indicates that the goods have been received, inspected, and accepted by the recipient, often in the context of a purchase order.

Typical Use: EDI 861 is used in purchase order scenarios, where a buyer confirms the acceptance of products received from a supplier, and it often includes information about the condition of the goods and any discrepancies.

In summary, while both documents involve the acknowledgment of goods, EDI 944 is typically used for internal transfers and stock movements, while EDI 861 is more focused on confirming the receipt and acceptance of products in a buyer-seller relationship, often linked to purchase orders. The choice between using EDI 944 or EDI 861 depends on the specific needs of the business process and the nature of the goods being exchanged.

What is EDI 944 Specification?

The specifications (specs) for an EDI X12 944 transaction set outline the technical details and requirements for its structure and content. These specifications are necessary to ensure consistency and compatibility when exchanging EDI 944 documents electronically between trading partners. Here are some common specifications for an EDI 944 document:

Document Format: The document is typically formatted according to standard EDI guidelines, often using ASC X12 or UN/EDIFACT standards.

Transaction Set Header: The header contains information such as the sender and receiver identification, document type (e.g., EDI 944), date and time of transmission, and a unique control number for tracking.

Repeating Segments and Data Elements: These define the structure of the document, including segments and elements for key information like item descriptions, quantities received, reference numbers, and additional details related to the receipt.

Implementation Guidelines: These guidelines detail how specific industries or trading partners should use the EDI 944 document. They may include additional data requirements or business rules.

Data Elements: Definitions for each data element within the document, describing their purpose and format.

Message Trailer: Similar to the header, the trailer segment contains control information, including a unique control number for verification.

These specifications are essential to guarantee that EDI 944 documents are created and exchanged correctly, ensuring a consistent and accurate flow of information in the supply chain. It’s important to consult the specific standards and implementation guidelines provided by your trading partners to adhere to the required specifications.
EDI Guide

Role of EDI Service Providers in Facilitating the Exchange of EDI

EDI service providers play a crucial role in simplifying the exchange of EDI 944 and other EDI transactions for businesses. They offer a range of services designed to streamline the process and ensure efficient communication between trading partners. At EDI2XML, we offer a range of EDI services to meet all EDI needs.

Our EDI Fully Managed Service provides end-to-end support, including document mapping, translation, and data validation. We handle the entire EDI process, from sending and receiving documents to ensuring compliance with industry standards. This service allows businesses to focus on their core operations while leaving the complexities of EDI to experts.

Our EDI Web Service is designed for companies that prefer a self-service approach.

This service allows businesses to quickly begin exchanging EDI transactions (connecting to our service takes no more than an hour) and easily manage their EDI transactions, including EDI 944, with no-contract and on a pay-as-you-go basis.

USEFUL READING: How to Become EDI Compliant in Under 60 Minutes (Yes, Really)

Both services are designed to enhance efficiency, accuracy, and compliance in EDI transactions, making it easier for companies to manage their supply chain and inventory processes.

With the support of EDI service providers, businesses can achieve seamless and error-free communication with their trading partners, ultimately contributing to smoother and more productive operations.

If you’re ready to explore the benefits of our EDI services, whether through our Fully Managed solution or our user-friendly EDI Web Service, we’re here to help.

Contact us today for a free consultation to discuss your specific needs and how we can tailor our solutions to streamline your EDI processes.
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All You Need to Know About EDI 943 – Warehouse Stock Transfer Shipment Advice

EDI 943 – Warehouse Stock Transfer Shipment Advice

EDI 943: Introduction

This article has been created by the expert team at EDI2XML, a trusted EDI provider with 20+ years of experience. Its purpose is to help companies understand the EDI 943 Warehouse Stock Transfer Shipment Advice better. Our goal is simple: we want to give businesses accurate information and show them how to exchange this important EDI document and improve their supply chain and inventory management.

What is EDI 943?

The EDI 943 Warehouse Stock Transfer Shipment Advice is an electronic data interchange (EDI) transaction set used in supply chain, logistics, and 3PL to transmit information about the shipment of goods from one warehouse or location to another.

What is EDI X12 943 Format?

The EDI 943 format refers to the structured layout or template used for creating and exchanging the EDI 943 Warehouse Stock Transfer Shipment Advice document electronically. It defines the specific arrangement of data elements and segments within the document.

The format typically follows a standardized EDI format, such as those established by ANSI (American National Standards Institute) and ASC X12 (Accredited Standards Committee X12). These formats outline the exact sequence and structure of data fields, including sender and receiver information, item description, quantities, shipping instructions, and other relevant information.

What is EDI X12 943 Specification?

Specifications for the EDI 943 outline the specific data elements, segments, and syntax rules that must be followed when creating and exchanging an EDI 943 document.

Here are some key components typically covered in an EDI X12 943 specification:

Message Structure: It defines the overall structure of the EDI 943 message

Segment Definitions: The specification lists all the segments used in the EDI 943

Data Element Definitions: For each data element within the segments, the specification provides information about the data type, length, and usage requirements (mandatory or optional).

Code Sets: It includes code lists and values for specific data elements.

Syntax Rules: The specification outlines syntax rules for delimiters, segment terminators, and other technical aspects of the X12 format to ensure proper parsing and interpretation of the message.

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Data Elements in an EDI 943 Warehouse Stock Transfer Shipping Advice

In an EDI Warehouse Stock Transfer Shipping Advice (EDI 943) document, several key data elements are essential for accurately conveying information about the shipment of goods between warehouses or locations within the supply chain. These data elements help trading partners understand and process the shipment effectively. Here are the key data elements typically included in an EDI 943:

Transaction Set Header (ST)

  • Transaction Set Control Number: A unique identifier for the transaction set.
  • Transaction Set Identifier Code: Indicates that it is an EDI 943.

Warehouse Information (W06)

  • Warehouse ID: A unique identifier for the warehouse or location sending the shipment.
  • Shipment Identification: A reference number or code for the shipment.
  • Shipment Date: The date when the shipment is prepared.

Name Segments (N1)

  • Ship To (ST): Information about the receiving warehouse or location.
  • Ship From (SF): Information about the sending warehouse or location.

Reference Numbers (N9)

  • Customer Order Number (CO): The customer’s order reference.
  • Location (LU): Internal location or facility code.

Date Segment (G62)

  • Requested Ship Date: The date when the shipment is requested or expected to be shipped.

Carrier Information (W27)

  • Carrier Code: Code representing the carrier or transportation mode

Item Detail (W04)

  • Quantity Shipped: The quantity of items being shipped.
  • Unit of Measure (UIT): The unit of measure for the quantity (e.g., “EA” for each).
  • Item Identification: Product identifier (e.g., UPC or SKU).
  • Product Description: Description of the item being shipped.
  • Vendor Item Number: The supplier’s item number.
  • UPC/EAN/GTIN: Global Trade Item Number or barcode.
  • Product Condition: Indication of item condition (e.g., new or used).

Return Management (N9)

  • Return Instructions (RM): Any specific instructions or information regarding returns.

Item Warehouse (W03)

  • Additional item or shipment details specific to the warehouse.

Transaction Set Trailer (SE)

  • Number of Included Segments: Total number of segments in the transaction set.
  • Transaction Set Control Number: Repeats the control number from the ST segment.

Functional Group Trailer (GE)

  • Number of Transaction Sets Included: Total number of transaction sets within the functional group.
  • Group Control Number: Repeats the control number from the GS segment.

Interchange Control Trailer (IEA)

  • Interchange Control Number: Repeats the control number from the ISA segment.
  • Number of Included Functional Groups: Total number of functional groups in the interchange.

These data elements collectively provide comprehensive information about the warehouse stock transfer shipment, including sender and receiver details, item specifics, shipment dates, and any relevant references or instructions. Trading partners rely on these elements to process, track, and manage inventory transfers efficiently within the supply chain.

EDI 943 Example Transaction

  • ISA*00**00**ZZ*SENDER ID *12*RECEIVER ID*230330*1549*|*00401*100000008*0*P*}~
  • GS*AR*SENDER ID*RECEIVER ID*20230330*1549*1008*X*004010~
  • ST*943*1080~
  • W06*1*123456789012*20220316*RA-100179**Test-12345~
  • N1*ST*Warehouse – GXO*91*MPD001~
  • N1*SF*Supplier Inc.~
  • N9*CO*US300008521~
  • N9*LU*MPD001~
  • G62*04*20220409~
  • W27*A*FED~
  • W04*1*EA*123456789***ABCD12345*******UP*689122008877~
  • N9*QA*QA Hold~
  • W03*1~
  • SE*12*1080~
  • GE*1*1008~
  • IEA*1*100000008~

Please note that this example contains generic placeholders and serves as a simplified illustration of an EDI document’s structure. In a real-world scenario, the data content would be specific to the business transaction.

Practical Applications of the EDI 943 Warehouse Stock Transfer Shipment Advice

The EDI 943 Warehouse Stock Transfer Shipment Advice is used to facilitate and streamline the transfer of stock or inventory items between different warehouses or locations within a business’s supply chain. Here’s how it is typically used:

Initiating a Stock Transfer

The process usually begins when one warehouse or distribution center (the sender) decides to transfer a specific quantity of goods to another location within the same company or to a different company (the receiver). This transfer may be due to various reasons, such as optimizing inventory levels or redistributing stock to meet demand in different regions.

Generating the EDI 943

Once the decision to transfer stock is made, the sender’s internal systems (ERP/CRM) or EDI software generate the EDI 943 Warehouse Stock Transfer Shipment Advice document. This document contains all the necessary information about the planned stock transfer, including item details, quantities, shipping instructions, and relevant dates.

Transmission to the Receiver

The sender electronically transmits the EDI 943 document to the receiver using a secure and standardized EDI communication method, such as AS2, FTP, or VAN (Value Added Network). Important: Both the sender and receiver must have compatible EDI systems in place to send and receive EDI transactions.

Plunge into the intricacies of Electronic Data Interchange (EDI) with our informative video explanation. Begin your exploration with the video

Receiver Acknowledgment

Upon receiving the EDI 943, the receiver’s system acknowledges the document, confirming its receipt with EDI 997 Functional Acknowledgment. This acknowledgment helps ensure data integrity and that both parties are aware of the upcoming stock transfer.

Preparing for Shipment

After acknowledging the EDI 943, the receiver (warehouse) prepares to receive the stock. This may involve making space, arranging for the shipment’s arrival, and ensuring that the information in the document matches their own records.

Stock Shipment

The sender ships the specified inventory items according to the details provided in the EDI 943, including the shipping method and carrier information.

Receiving and Confirmation

Once the goods arrive at the receiving location, the receiver checks the incoming inventory against the information in the EDI 943 document then, send an EDI 944 Receipt Advice as confirmation. This document includes shipment details, discrepancies, and notes about damaged or defective products.

Inventory Updates

After the successful receipt of the stock transfer, both the sender and receiver update their inventory records to reflect the changes. This ensures accurate inventory management and visibility throughout the supply chain.

Keep in mind, that the EDI 943 is not limited to a specific type of business entity and can be used by various parties within the supply chain, including manufacturers of goods when a manufacturer needs to transfer goods from its production facility to a warehouse for storage, distribution, or order fulfillment.

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What is The Difference Between EDI 943 and EDI 944?

The primary difference between EDI 943 (Warehouse Stock Transfer Shipment Advice) and EDI 944 (Warehouse Stock Transfer Receipt Advice) lies in their purpose and the direction of information flow:

EDI 943 (Warehouse Stock Transfer Shipment Advice)

Purpose: As we discussed early, the EDI 943 is used to notify a receiving warehouse or location about the impending shipment of goods from a sending warehouse or location within the supply chain.

Direction: Information flows from the sender (the warehouse or location shipping the goods) to the receiver (the warehouse or location receiving the goods). It serves as a notice of what is being sent and provides shipment details.

EDI 944 (Warehouse Stock Transfer Receipt Advice):

Purpose: The EDI 944 is used to confirm the receipt of goods at the receiving warehouse or location, acknowledge the receipt of the shipment, and provide additional information such as any discrepancies or the condition of the received goods (e.g., if there are damaged or defective products).

Direction: Information flows from the receiver (the warehouse or location receiving the goods) back to the sender (the warehouse or location that shipped the goods). It serves as a confirmation and acknowledgment of the receipt of the goods and may include quality and condition-related information.

In summary, EDI 943 is about informing the receiving warehouse of an upcoming shipment, (similar to EDI 856 ASN), while EDI 944 is about confirming the receipt of the goods and providing feedback on their condition.

Both documents are crucial for effective inventory management and supply chain operations, ensuring that all parties involved have accurate information about stock transfers.

What are the Benefits of EDI 943?

Implementing EDI 943 (Warehouse Stock Transfer Shipment Advice) offers several benefits for businesses involved in supply chain and inventory management. Some of the key advantages include:

Efficient Inventory Management: EDI 943 allows for real-time or near-real-time communication between trading partners, enabling better control over inventory levels. This leads to reduced overstocking or understocking of products, resulting in cost savings.

Improved Accuracy: Automating the exchange of stock transfer information through EDI reduces the risk of manual errors, such as data entry mistakes and misinterpretations.

Enhanced Visibility: EDI 943 provides visibility into upcoming stock transfers. Warehouses can plan and allocate resources efficiently, ensuring that they are prepared to receive and process incoming shipments.

Streamlined Processes: Automation of stock transfer notifications streamlines workflows and reduces paperwork. This leads to faster order processing, reduced administrative costs, and improved overall operational efficiency.

Cost Savings: The automation and efficiency gained through EDI 943 can lead to cost savings in terms of labor, paper handling, and reduced errors.

Environmental Benefits: EDI reduces the need for paper-based documentation, contributing to environmental sustainability by minimizing paper waste and reducing the carbon footprint associated with document printing and transportation.

Thus, EDI 943 brings operational improvements, cost savings, and better supply chain management.

EDI 943

Automate EDI 943 with EDI2XML

At EDI2XML, we offer a comprehensive EDI services designed to simplify your business processes. Our fully managed EDI service is designed to be your end-to-end solution, handling every aspect of your electronic data interchange needs.

With over two decades of experience, we take care of document translation, mapping, data transformation, and seamless integration with your existing ERP/CRM systems.

Our dedicated team ensures that your EDI 943 Warehouse Stock Transfer Shipment Advice transactions are accurate, compliant, and delivered on time, allowing you to focus on your core business operations

With our EDI Web Service, you can easily access and exchange EDI documents securely over the web, ensuring efficient communication with your trading partners.

Our On-Premises EDI solution give you full control over your EDI processes. Our recommended hardware specs ensure optimal performance, and we support various EDI document standards.

Count on our experience to streamline your EDI 943 transactions and boost the efficiency of your supply chain and inventory management.

We’re dedicated to providing you with affordable solutions that elevate your business’s operational efficiency and help you stay competitive.

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The Top 4 EDI Documents for Freight Transportation Companies

We recently published a blog post on EDI (Electronic Data Interchange) for Specific Industries where we took a quick look at various industries and their use of EDI.

In this article, we will take a closer look at the use of EDI in transport logistics and especially in motor carrier freight transportation companies. In this article, we will review a list of the most used EDI documents in the transportation industry. We will examine what each EDI document is used for and what benefits EDI provides to transportation and shipping companies and their clients.

EDI for Transportation and Logistics Management

Transport logistics is accompanied by a constant “paperwork” associated with the movement of goods. Many participants are involved in this process such as manufacturers of goods, warehouses, carriers, retailers, etc.

For efficient logistics, it is necessary to automate communication between all participants of the logistics process: carriers, shippers, consignees, freight customers, and a freight broker.  The use of EDI for automatic data exchange is the most effective technological solution to overcome such a challenge.

Advantages of Using Electronic Data Interchange (EDI) in Transportation

EDI has changed the way business partners interact and optimized the business processes of the supply chain. Using EDI, companies can effectively manage document flow at all stages of working with business partners: from ordering and receiving at the warehouse to reconciliation and returns. You can send orders, invoices, and other documents without paperwork and efforts duplication.
EDI for transportation Industry
  • Transport optimization. EDI helps to optimize and consolidate shipments from different customers.
  • Prompt document exchange. EDI allows you to instantly exchange important shipping documents with your business partners, saving both parties time and resources.
  • Labor Cost optimization. EDI allows you to automate daily routine operations related to entering data into ERP, CRM, TMS, WMS, or accounting systems, processing, sending, and archiving documents. Thus, by automating the processing of documents using EDI, there is no need to manually verify documents, enter data, and perform other repetitive actions that take a lot of time.
  • Seamless integration of EDI with other business systems within a company.
  • Synchronization of data exchange between EDI and business systems improves all stages of the supply chain in a transport company and eliminates the inefficient use of resources.

The Most Commonly used EDI Documents in the Transportation Industry

Let’s look at the most used EDI document in more detail.

EDI 204 Transaction Set: Motor Carrier Load Tender

What is a 204 Tender?

The EDI X12 204 Motor Carrier Load Tender, is an electronic document sent by the shipper (a manufacturer, a retailer, or a distribution center or wholesalers) to the freight carrier company to present an offer for an FTL shipment.

The term FTL Full Truck Load describes a mode of transportation that consists of at least one complete cargo trailer or does not allow other loads to be transported simultaneously.

Key Information of EDI 204 Motor Carrier Load Tender

EDI 204 Motor Carrier Load Tender contains important shipment information including:
  • Product description, including weight, size, and quantity.
  • The size of the required trailer as well as other requirements for equipment if necessary to arrange transportation.
  • delivery schedule
  • pickup and drop destination,
  • Information about consignees (delivery address and contact details)
EDI for transportation and Logistics

Why Use EDI 204 for Load Tender?

Load tendering is a bidding process where customers offer equal opportunity to transportation companies and carriers to submit their pricing and bid on the transportation of goods, based on pre-defined criteria and parameters. The carriers can accept or reject the shipper’s offer.

Using EDI 204 to tender among transport companies is a common practice. It helps ensure contract compliance and automates payments to carriers. In addition, the use of EDI provides detailed information throughout the entire delivery process from loading to delivering the goods to its final destination.

If you want to know more about EDI X12 204 read this article: EDI X12 204 Motor Carrier Load Tender – overview

EDI 990 Transaction Set: Response to a Load Tender

What is an EDI 990 Response to a Load Tender?

EDI 990 is a response to an EDI 204 Motor Carrier Load Tender sent by transportation companies to a shipper. EDI 990 can be used to accept, accepted with conditions, or reject a load tender (EDI 204).

What is Important to Know About EDI 990

Typically, an EDI 990 is required for each incoming EDI 204 to accept or reject a load request. Therefore, most often these two EDI documents are implemented in the transport company at once.

When working with documents such as the 204 and 990, time is critical. The business partners usually agree on how long after receipt of the EDI 204, the transport company must respond with an EDI 990 before the contract is transferred to another carrier.

Useful reading: EDI for Third-Party Logistics providers (3PL)

EDI 214 Transaction Set: Transportation Carrier Shipment Status Message

What is EDI 214 Transportation Carrier Shipment Status Message?

The transportation company sends an EDI 214 to the shipper to provide information on the delivery status. Typically, an EDI 214 contains information about the status of the shipment, place of delivery, estimated time of arrival, route Information, description of shipment – weight, packaging, and quantity.

Depending on the preliminary agreements of business partners, as well as the specifics of the business, EDI 214 can be generated and transferred to the shipper from once a week to 6 times a day.

Who Uses EDI 214?

Document EDI 214 is widely used in transport logistics and especially in international deliveries.

The largest transport companies, such as FedEx Freight, Old Dominion Freight Line, DHL Supply Chain & Global Forwarding, and much more use the Transportation Carrier Shipment Status Message (EDI 214) to convey the delivery status to the shipper.

To find out more useful information about EDI 214 and learn how to start exchanging EDI 214  in an hour or less, please read this article: EDI for transportation – EDI 214 Transportation Carrier Shipment Status Message

EDI 210 Transaction Set: Motor Carrier Freight Details and Invoice

What is an EDI 210?

EDI 210 is an electronic document sent by the carrier to the shipper to provide detailed information related to the cost of transportation services. This EDI document can be used as an invoice to request payment for motor freight transportation or to provide information about the transportation fees.

What Data Does the EDI X12 210 Transmit?

The EDI 210 contains standard invoice information such as the number and date of the invoice, address of the consignee and the shipper, information about the product (name, quantity, weight, and size), billing information, as well as motor carrier expense details, delivery methods, and route information.

Useful reading: All You Need to Know about EDI 210 – Motor Carrier Freight Details and Invoice

Digital Transformation of the Logistics Business with EDI

Our company helps logistics companies in their digital transformation. Our advanced EDI solutions drive business growth by improving business processes and reducing labor costs for document and data management.

Contact us for a free consultation with one of our EDI experts.

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EDI for Specific Industries

EDI – Electronic Data Interchange is a well-established protocol of business data exchange, which has become more and more widespread in recent years among businesses of all sizes and various industries.

Through EDI, companies can exchange business documents that were traditionally communicated on paper or by e-mail.

By replacing the exchange of paper or e-mail documents with EDI, companies save time and eliminate manual data processing, which often leads to errors and costly delays in all business processes.

Companies today use EDI to send all kinds of documents, from orders, and invoices to motor carrier load tender, customs manifest, and more.

The exchange of EDI takes place between business partners who exchange goods or services.

All EDI transactions comply with standards developed and maintained by several organizations including UN/CEFACT, X12, ODETTE, GS1, Peppol, and others.

However, despite uniform standards, each industry can use a certain set of specific EDI transactions. Below we provide some examples of EDI documents for specific industries.

USEFUL: A complete list of documents that can be exchanged via EDI

EDI for Transportation and Logistics Industries

The Transportation industry actively uses EDI and, in addition to standard transactions, this industry use sets of specific EDI documents.

The transport industry includes a huge variety of different types of transportation. It includes marine, air, rail, and motor freight. Accordingly, the EDI transactions used for example in rail transportation will differ from those used by motor freight.

The Most Used EDI Transactions for Transportation and Logistics

USEFUL: You can find a complete list of EDI transportation codes in our article “EDI Integration for Transportation and Logistics”

EDI for the Supply Chain Industry

The supply chain industry includes many processes such as distribution, inventory, purchasing, production planning, sales, supply chain planning, interaction with trading partners and warehouses.

The use of EDI in the supply chain allows the company to quickly exchange documents electronically with all suppliers, exchange prices and catalogs, track information on shipments and acceptance of goods. EDI allows to make the supply chain as transparent and efficient as possible, receiving up-to-date data on the movement of goods and funds in real-time.

EDI Transactions for Supply Chain

Here are some of the most common EDI documents in the supply chain:

  • EDI 810 – Invoice
  • EDI 846 – Inventory Status
  • EDI 850 – Purchase Order
  • EDI 856 – Ship Notice/Manifest
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 753 – Request For Routing Instructions
  • EDI 754 – Routing Instructions
  • EDI 816 – Organizational Relationships
  • EDI 830 – Planning Schedule With Release Capability

To learn more about the use of EDI in the supply chain, read our article: Electronic Data Interchange (EDI) in the Supply Chain

It covers the following questions:

– What is EDI?

– Why use EDI in the supply chain?

– How does EDI work?

– Typical EDI workflow process

– Additional and specific types of EDI messages

– Benefits of EDI for Supply Chain Management

– Effective EDI Solution for Supply Chain

USEFUL: EDI for Third-Party Logistics providers (3PL)

EDI for HealthCare and Insurance Industries

EDI is of great value to healthcare organizations because it provides a secure way to electronically exchange sensitive information.

The healthcare industry includes health insurance activities, which are carried out by both commercial and public health organizations.

Most common EDI Transaction Sets in HealthCare

  • HIPAA / X12 270 – Eligibility, Coverage, or Benefit Inquiry
  • HIPAA / X12 271 – Eligibility, Coverage, or Benefit Response
  • HIPAA / X12 276 – Healthcare Claim Status Request
  • HIPAA / X12 277 – Health Care Claim Status Response
  • HIPAA / X12 837 – Health Care Claim (Professional, Institutional, and Dental)
  • HIPAA / X12 999 – Implementation Acknowledgment
  • EDI 273 – Insurance/Annuity Application Status
  • EDI 274 – Healthcare Provider Information
  • EDI 275 – Patient Information
  • EDI 834 – Benefit Enrollment And Maintenance
  • EDI 835 – Health Care Claim Payment/Advice
  • EDI 852 – Product Activity Data (to exchange information between Manufacturers and Pharmacies)
  • EDI 999 – Implementation Acknowledgment (for Health Care Insurance)

To learn more about EDI in healthcare, please read this article: All you need to know about HIPAA EDI compliance in Healthcare

EDI for the Retail Industry

The Retail Industry is a pioneer in the implementation of EDI. Large retailers are actively automating business processes and introducing new information technology solutions to reduce costs and increase sales.

Thus, the use of EDI in retail is a must. Since large retail companies have a huge number of suppliers, they have to exchange thousands of documents every month. It is simply impossible to go through so much documentation manually.

The Most Used EDI Documents in the Retail

  • EDI 810 – Invoice
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 832 – Price/Sales Catalog
  • EDI 846 – Inventory Inquiry/ Advice
  • EDI 850 – Purchase Order
  • EDI 852 – Product Activity Data
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 856 – Ship Notice/Manifest
  • EDI 861 – Receiving Advice/Acceptance Certificate

The use of EDI in retail offers many benefits, ranging from savings in paperwork and avoiding manual data entry errors, to reducing transport and logistics costs and increasing company profits.

If you want to learn more about the use of EDI in retail, please read this article: The Top 6 EDI Documents for Retail Suppliers

Conclusion: EDI for Specific Industries

In this article, we explored the use of electronic data interchange in some industries, however, if you have any questions regarding EDI, you can always contact us for a free initial consultation.

Our more than 21 years of experience in the implementation of EDI for various industries allows us to offer our customers the most profitable and effective EDI solutions.

Free EDI Consultation
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EDI 945 Warehouse Shipping Advice in Transportation Management, 3 PL Warehouse, and Third-party Logistics.

Many different processes take place in the warehouse every day, whether it’s a regular or 3PL warehouse. All of them must be carried out quickly and accurately. In this article, we will look at the importance of using EDI (Electronic Data Interchange) especially, an electronic document – EDI 945 Warehouse Shipping Advice associated with shipment of goods. Let’s figure out who and when to use EDI 945, what information a Warehouse Shipping Advice contains, 945 EDI specifications, benefits of using this EDI document, and much more.

What is EDI 945 transaction?

The Warehouse Shipping Advice Transaction Set (EDI 945) is an electronic data interchange (EDI) document. EDI 945 is usually used by 3PL warehouse/ remote warehouse or third-party logistics company, to notify its client (depositor) that a shipment has been made. It is used to match order quantities with shipment quantities.

945 EDI document type

EDI X12 945 Warehouse Shipping Advice Transaction Set is a document base on the X12 standard. X12 is a non-profit, ANSI-accredited standards development organization for cross-business transactions that support electronic data interchange in North America.

Each set of EDI transactions is supported by a subcommittee working within the X12 Accredited Standards Committee. EDI 945 falls under X12M – Supply Chain Subcommittee.

How is EDI 945 – Warehouse Shipping Advice used?

When a supplier/depositor (for example, a manufacturer or a wholesaler) needs to ship goods from the warehouse, he sends his 3PL warehouse an EDI document 940 Warehouse Shipping Order. EDI 940 contains all the necessary information regarding the goods required for shipment (description and quantity of goods, delivery date, recipient information, etc.) as well as shipping instructions.

Useful Reading: What is EDI 940 Warehouse Shipping Order?

The warehouse, having received the EDI 940, makes the shipment of the order and returns the EDI 945 immediately after the parcel has left the warehouse.

EDI 945 transfers detailed information about the merchandise shipped and the detail of the delivery.

Based on transaction EDI 945, the supplier can generate EDI 856 Advance Ship Notice as needed to notify its customer of an upcoming delivery.

What is the shipping process in a warehouse?

Shipment is the process of preparing and sending goods to the designated location. The shipping procedure at the warehouse is carried out according to predetermined rules. Each company develops shipping regulations independently, taking into account the characteristics and specifics of the goods and warehouse space.

The procedure for shipping goods from the warehouse/ 3PL warehouse can include many stages:

  • processing of the depositor’s order (for example, entering data into the warehouse system);
  • checking the availability of goods in the warehouse;
  • receiving a picking list;
  • selection of the necessary goods from the storage place;
  • moving to the picking area;
  • packaging and labeling in containers/pallets;
  • loading of transport;
  • Preparation and entry into the warehouse system of the relevant information.
EDI- Price

The main task of the warehouse manager is to organize efficient work, which will ensure fast processing of orders since all shipments must be carried out on time.

Automation of warehouse processes, for example, the use of EDI can significantly improve the quality and speed of shipment of goods.

Workflow to Exchange Warehouse Shipping Advice (EDI 945)

Let’s take a closer look at the process of shipment of goods from a third-party warehouse and analyze what other EDI documents are involved in the logistics process. Of course, keep in mind that the process below may reflect only one of the possible options. Each company can establish its own business process with a third-party warehouse, which depends on the type of the company’s activity, type of product, etc.

In the figure below you can see that usually the process in which EDI 945 is involved consists of at least three participants:

– Customer (it could be a retail outlet)

– Supplier (who is a client of the 3PL warehouse, or a depositor)

– 3PL Warehouse / or 3 PL logistics company.

1. The business flow begins with a Purchase Order – EDI 850 which is sent by the customer to the supplier.

2. The supplier responds to the customer with the EDI 855 PO Acknowledgement

3. The supplier sends the Warehouse Shipping Order (EDI 940) to the 3 PL warehouse

4. 3PL Warehouse process a Shipping Order and sends the goods to the supplier’s customer by the address specified in EDI 940.

5. Immediately after dispatch, the warehouse transfers the EDI 945 to the supplier.

6. Based on EDI 945, the supplier generates an Advance Ship Notice (EDI 856) and transfers it to his client.

7. The supplier sends the customer an EDI invoice 810

So, as you saw from the EDI workflow, 945 Warehouse Shipping Advice – is the main document, which confirms the fact of shipment of goods. It is used by many companies operating in wholesale and retail, including online stores.

Useful Reading: EDI Integration for Transportation and Logistics

What information does EDI 945 contain?

EDI document Warehouse Shipping Advice contains accurate and detailed information about the item shipped from the warehouse. Thus, EDI 945 includes the following information:

  • Information about the depositor, warehouse, and place of delivery (addresses, contacts).
  • Details of the carrier and the method of delivery of the goods.
  • Information about the product – cost, product name, SKUs, etc.
  • The number of goods shipped.
  • Complete order detail of the original order (EDI 940)
  • Date and time of shipment from the warehouse.
  • Transportation method

EDI 945 Warehouse Shipping Advice Structure

Like any other EDI document, EDI 945 transaction set has a precise structure and sequence of elements.

  • ISA – Interchange Control Header
  • GS – Functional Group Header
  • ST – Transaction Set Header
  • W06 – Warehouse Shipment Identification (numbers, dates, and other basic data)
  • 0100 – Loop Name (to identify a party by type of organization, name, and code)
  • N1 – Name
  • N9 – Reference Identification
  • G62 – Date/Time
  • W27 – Carrier Detail
  • W10 – Warehouse Additional Carrier Information
  • 0300 – Loop Assigned Number
  • LX – Assigned Number
  • MAN – Marks and Numbers
  • PAL – Pallet Information
  • 0310 – Loop Warehouse Item Detail
  • W12 – Warehouse Item Detail
  • N9 – Reference Identification
  • W03 – Total Shipment Information
  • SE – Transaction Set Trailer 
  • GE – Functional Group Trailer
  • IEA – Interchange Control Trailer

Benefits of using EDI 945 in Warehouses/ 3PL warehouses and Logistics

The use of EDI 945 in a 3 PL warehouses or 3 PL logistics company, allows you to get significant competitive advantages due to:

  • increasing the speed and accuracy of logistics operations;
  • reducing the cost of manual processing of documents;
  • reducing the risks of losses and information inaccuracies;
  • Increasing the speed of order processing due to receiving timely, fast, and accurate information.

Thus, automation of warehouse processes through the use of EDI document such as EDI 945, significantly improves the quality of 3PL warehouse processes.

Automate Warehouse Shipping Advice with EDI2XML Web Service

We have a ready-made EDI solution for the exchange of electronic documents in the X12 and EDIFACT standards. It is a unique HTTP service running over the internet that is capable of receiving HTTP requests to translate EDI messages to XML, and XML to EDI.

Try all the possibilities of the EDI2XML Web Service for free. We offer a 15 days free trial.

Contact us for a free consultation and find out how within an hour you can start exchanging electronic documents such as EDI 945 and many others with your trading partner.

EDI in transportation and 3PL

You may also be interested in reading about:
– Electronic Data Interchange (EDI) in the Supply Chain
– How EDI can speed the receiving of goods in a warehouse
– EDI for Third-Party Logistics providers (3PL)
– DELFOR, DELJIT, DESADV – key EDI messages in supply chain management for manufacturing

 

EDI Integration for Transportation and Logistics

Electronic Data Interchange (EDI) Integration for Transportation and Logistics

Electronic data interchange (EDI) is the exchange of commercial and financial electronic documents between business partners. There are several EDI standards used in transportation and logistics:

– EDI X12 standard used in the United States and Canada.

– EDIFACT – mainly used in Europe and international transportation.

Useful Reading: What Are the Differences Between ANSI X12 and UN/EDIFACT

The exchange of EDI documents between business partners simplifies and speeds up business processes. That is why, in logistics, regardless of the mode of transportation, motor, marine, or rail transportation EDI is used as a fast, economical, and safe method of transferring important business information related to the transportation of goods.

How is EDI used in transportation?

Electronic Data Interchange (EDI) is widely used in transportation and logistics to automate communication and data exchange between different parties involved in the transportation process, such as shippers, carriers, and third-party logistics providers (3PLs).

In transportation, EDI is used for various tasks such as:

Shipment tracking and status updates: EDI messages can be used to provide real-time information about the status of shipments, such as pickup and delivery times, estimated time of arrival (ETA), and any delays or issues.

Shipping documentation: EDI can be used to exchange shipping documents such as bills of lading, packing lists, and customs declarations, which helps to reduce errors and streamline the shipping process.

Freight invoicing and payment: EDI messages can be used to exchange billing and payment information between shippers, carriers, and 3PLs, reducing the need for manual data entry and minimizing the risk of errors and disputes.

Capacity planning and optimization: EDI can be used to exchange information about available capacity, shipment volumes, and transportation rates, enabling carriers and shippers to plan their operations more efficiently and make more informed decisions.

What are the most important EDI documents used in transportation?

In addition to common EDI transactions such as orders or invoices, each industry uses its specific EDI documents. Electronic Data Interchange in logistics ensures the operational interaction between business partners (buyers, suppliers, 3PL warehouses, forwarders, etc.) at all stages of the delivery, and improves the management of complex business processes. Thus, in transportation, the following types of EDI documents are most commonly used:

EDI 204 – Motor Carrier Load Tender: This EDI document is typically sent from the shipper (retailer, manufacturer, or a distribution center) to the transportation provider to request pickup of the shipment.

EDI 990 – Response to the Load Tender: used by the transportation provider to inform acceptance or rejection of the shipment order.

EDI 214 Transportation Carrier Shipment Status Message: delivery status message sent by the transportation company to the shipper (retailer, manufacturer, or a distribution center) to give an update on the status of delivery.

EDI 210 Motor Carrier Freight Details and Invoice: Submits by transportation provider to the shipper after delivery. This EDI transaction contains full information about the cost of services provided by the transportation provider and is used as an invoice for a payment request.

EDI 212 Motor Carrier Delivery Trailer Manifest – send by a transportation company to consignees to inform about the contents of a trailer containing multiple loads.

EDI 856 Advanced Ship Notice (ASN): sent by transportation provider or warehouse / supplier to the consignee immediately upon closing the truck, to inform about all pertinent data relative to the shipment.

EDI 997 – Functional Acknowledgement: used by both parties t to confirm they received the transaction set.

Complete list of EDI transportation codes

Below is a complete list of EDI X12 transactions sets used in the transportation industry. The EDI transactions listed below are maintained by the X12I subcommittee under the X12 Accredited Standards Committee.
  • EDI 104 Air Shipment Information
  • EDI 106 Motor Carrier Rate Proposal
  • EDI 107 Request for Motor Carrier Rate Proposal
  • EDI 108 Response to a Motor Carrier Rate Proposal
  • EDI 109 Vessel Content Details
  • EDI 110 Air Freight Details and Invoice
  • EDI 120 Vehicle Shipping Order
  • EDI 121 Vehicle Service
  • EDI 125 Multilevel Railcar Load Details
  • EDI 126 Vehicle Application Advice
  • EDI 127 Vehicle Baying Order
  • EDI 128 Dealer Information
  • EDI 129 Vehicle Carrier Rate Update
  • EDI 160 Transportation Automatic Equipment Identification
  • EDI 161 Train Sheet
  • EDI 163 Transportation Appointment Schedule Information
  • EDI 204 Motor Carrier Load Tender
  • EDI 210 Motor Carrier Freight Details and Invoice
  • EDI 211 Motor Carrier Bill of Lading
  • EDI 212 Motor Carrier Delivery Trailer Manifest
  • EDI 213 Motor Carrier Shipment Status Inquiry
  • EDI 214 Transportation Carrier Shipment Status Message
  • EDI 215 Motor Carrier Pickup Manifest
  • EDI 216 Motor Carrier Shipment Pickup Notification
  • EDI 217 Motor Carrier Loading and Route Guide
  • EDI 219 Logistics Service Request
  • EDI 220 Logistics Service Response
  • EDI 222 Cartage Work Assignment
  • EDI 223 Consolidators Freight Bill and Invoice
  • EDI 224 Motor Carrier Summary Freight Bill Manifest
  • EDI 225 Response to a Cartage Work Assignment
  • EDI 227 Trailer Usage Report
  • EDI 228 Equipment Inspection Report
  • EDI 240 Motor Carrier Package Status
  • EDI 250 Purchase Order Shipment Management Document
  • EDI 284 Commercial Vehicle Safety Reports
  • EDI 285 Commercial Vehicle Safety and Credentials Information Exchange
  • EDI 286 Commercial Vehicle Credentials
  • EDI 300 Reservation (Booking Request) (Ocean)
  • EDI 301 Confirmation (Ocean)
  • EDI 303 Booking Cancellation (Ocean)
  • EDI 304 Shipping Instructions
  • EDI 309 Customs Manifest
  • EDI 310 Freight Receipt and Invoice (Ocean)
  • EDI 311 Canada Customs Information
  • EDI 312 Arrival Notice (Ocean)
  • EDI 313 Shipment Status Inquiry (Ocean)
  • EDI 315 Status Details (Ocean)
  • EDI 317 Delivery/Pickup Order
  • EDI 319 Terminal Information
  • EDI 322 Terminal Operations and Intermodal Ramp Activity
  • EDI 323 Vessel Schedule and Itinerary (Ocean)
  • EDI 324 Vessel Stow Plan (Ocean)
  • EDI 325 Consolidation of Goods In Container
  • EDI 326 Consignment Summary List
  • EDI 350 Customs Status Information
  • EDI 352 Customs Carrier General Order Status
  • EDI 353 Customs Events Advisory Details
  • EDI 354 Customs Automated Manifest Archive Status
  • EDI 355 Customs Acceptance/Rejection
  • EDI 356 Customs Permit to Transfer Request
  • EDI 357 Customs In-Bond Information
  • EDI 358 Customs Consist Information
  • EDI 359 Customs Customer Profile Management
  • EDI 361 Carrier Interchange Agreement (Ocean)
  • EDI 404 Rail Carrier Shipment Information
  • EDI 410 Rail Carrier Freight Details and Invoice
  • EDI 412 Trailer or Container Repair Billing
  • EDI 414 Rail Carhire Settlements
  • EDI 417 Rail Carrier Waybill Interchange
  • EDI 418 Rail Advance Interchange Consist
  • EDI 419 Advance Car Disposition
  • EDI 420 Car Handling Information
  • EDI 421 Estimated Time of Arrival and Car Scheduling
  • EDI 422 Equipment Order
  • EDI 423 Rail Industrial Switch List
  • EDI 424 Rail Carrier Services Settlement
  • EDI 425 Rail Waybill Request
  • EDI 426 Rail Revenue Waybill
  • EDI 429 Railroad Retirement Activity
  • EDI 431 Railroad Station Master File
  • EDI 432 Rail Car Hire Rate Negotiation
  • EDI 433 Railroad Reciprocal Switch File
  • EDI 434 Railroad Mark Register Update Activity
  • EDI 435 Standard Transportation Commodity Code Master
  • EDI 436 Locomotive Information
  • EDI 437 Railroad Junctions and Interchanges Activity
  • EDI 440 Shipment Weights
  • EDI 451 Railroad Event Report
  • EDI 452 Railroad Problem Log Inquiry or Advice
  • EDI 453 Railroad Service Commitment Advice
  • EDI 455 Railroad Parameter Trace Registration
  • EDI 456 Railroad Equipment Inquiry or Advice
  • EDI 460 Railroad Price Distribution Request or Response
  • EDI 463 Rail Rate Reply
  • EDI 466 Rate Request
  • EDI 468 Rate Docket Journal Log
  • EDI 470 Railroad Clearance
  • EDI 475 Rail Route File Maintenance
  • EDI 485 Ratemaking Action
  • EDI 486 Rate Docket Expiration
  • EDI 490 Rate Group Definition
  • EDI 492 Miscellaneous Rates
  • EDI 494 Rail Scale Rates
  • EDI 601 Customs Export Shipment Information
  • EDI 603 Transportation Equipment Registration
  • EDI 715 Intermodal Group Loading Plan
  • EDI 854 Shipment Delivery Discrepancy Information
  • EDI 858 Shipment Information
  • EDI 859 Freight Invoice
  • EDI 920 Loss or Damage Claim – General Commodities
  • EDI 924 Loss or Damage Claim – Motor Vehicle
  • EDI 925 Claim Tracer
  • EDI 926 Claim Status Report and Tracer Reply
  • EDI 928 Automotive Inspection Detail
  • EDI 980 Functional Group Totals
  • EDI 990 Response to a Load Tender
  • EDI 998 Set Cancellation

The Benefit of Using EDI in Transportation

The exchange of information between business partners (orders, invoices, etc.) on paper or by e-mail requires manual input of information into the ERP, CRM, accounting, or other corporate back-office application of the company. The use of EDI allows companies to avoid manual input – all transactions are performed automatically, without delays or inaccuracies.

EDI for transportation

The use of EDI in transportation allows:
  • to optimize the entire supply chain, namely the processes of management, planning, and control of transportation;
  • to increase the speed and efficiency of data processing and improve accuracy;
  • the manufacturer to promptly respond to the buyer’s requests;
  • transport companies to make delivery on time;
  • wholesale suppliers to improve the efficiency of logistics and procurement and optimally manage their inventory;
  • to reduce transportation costs;
  • improve accuracy and avoid manual input of information.

Thus, the use of EDI increases the speed and accuracy of data and allows companies to concentrate on important business tasks, and not on routine issues of processing and sending documents.

EDI integration in Logistics: Fully Managed EDI Service vs EDI Web Service (API)

Companies implementing EDI can be divided into two groups:

– EDI Initiator company

– Companies involved in the EDI process

Fully Managed EDI Service for EDI Initiator Company

Initiator – a company that realized the great potential of using EDI and decided to implement EDI in operations with its business partners. These are usually large market players who have been using EDI for many years.

Usually, these companies have many business partners and a huge monthly document turnover. That is why they often choose a Fully Managed EDI Service.

However the situation has changed in recent years, more and more mid-sized companies operating in the transportation industry are realizing the benefits of using EDI and are actively integrating Electronic Data Interchange to exchange critical important documents with their business partners.

This is why, we, at EDI2XML offer a Fully Managed EDI service that can fit any size company.

Our EDI2XML integration platform, deployed in our private cloud, runs 24/7/365 and handles all EDI file conversion and transformation between business partners, so customers do not need to install software or hardware onsite.
Fully managed EDI Service

We, as an integration and EDI provider, are responsible for all stages of the integration: from project planning to the development of the file format requested by the client (Json, XML, TXT, CSV), as well as testing and certification with your business partner.

Our “fully managed” EDI service solution has a dynamic monthly price that increases or decreases depending on the volume of data transferred.

This allows us to meet the needs of even small companies with a small volume of transferred documents.

EDI Web Service for Companies involved in the EDI process

Involved companies– organizations that are forced to implement EDI at the request of the initiating company to start a partnership and conclude a contract or when a business partner specifies the use of EDI as a pre-requisite or condition for further business collaboration.

In involved companies, the decision to implement EDI is made at the initiative of a third-party company. However, this requirement does not necessarily imply a large investment for EDI integration.

For companies that find themselves in a situation where a business partner requires a quick connection to EDI, we offer our unique solution EDI Web Service.

EDI2XML web service is our REST API to convert and transform X12 to XML and vice versa. The API web service is very low-cost relative to the Fully managed EDI Service and designed for companies who got their own technical resources to work with REST API (call and consume HTTP Rest Web services). Definitive benefits of EDI Web Service is a low cost per KC, no contract, no commitment, and especially quick entry: you can be up and running in less than an hour, and it is proven; we provide everything to your developers to get started, a java client with its source code and instructions on how to work with.

Choose the best EDI provider for the logistics and transportation industry

In modern logistics, the requirements for carriers are very high and the use of EDI helps them keep the bar high.

We, as a successful EDI provider, have been helping our customers for 21 years quickly, reliably connect to EDI and integrate it into business systems.

Contact us for a free consultation and we will help you choose the most suitable EDI solution for your business.

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EDI for Third-Party Logistics providers (3PL)


Almost every manufacturing and distribution company today, work with third-party logistics providers (3PL) to organize and manage their transportation of goods. This allows companies to save on their cost of warehouse management, easily track the movement of their goods, inventory, preparation of documentation, cargo handling, and delivery to the buyer.

In this article, let us talk about 3PL and EDI (Electronic Data Interchange) since this is the key technology in logistics.

What is Third-Party Logistics?

A third-party logistics company or 3PL provider is a company that provides full logistics services: transportation, forwarding, warehousing, customs clearance, and other logistics-related activities. 3PL stands for Third Party Logistics. In other words, the term 3PL is synonymous with logistics outsourcing, which means the transfer of part or all the logistics functions, to a logistics service provider.

The Third-Party Logistics Study shows that shippers and their 3PL providers are increasingly looking to work together. Both parties confirm that the use of technology helps them to progress. According to the study, many 3PLs are already making significant investments in technology. Most of the shippers indicate that IT capabilities are a necessary element of 3PL expertise.

The table below shows the answers of the shipper and 3PL to the question: “What information technologies, systems or tools should 3PL have to successfully serve customers?”
3PL IT study

You can see from the table above, EDI transactions such as order, shipment, inventory, advanced shipment notices, invoicing, etc. are very important in the logistics. Thus, this once again underlines the importance of EDI for 3PLs.

Why EDI Is Important For 3PL Companies?

EDI provides the best results in exchanging data with 3PL providers. This is the most reliable, secure, and economical way to share business information.

A 3PL provider for example, needs detailed information about the location of the delivery points, the date of shipment, the quantity of the goods, information on the packaging, its size, etc.

The supplier of goods needs to monitor the state of inventory, track the movement, and write-off of the goods, as well as receive information about shipments to certain outlets for a specific range.

Lack of reliable information can lead to a shortage of goods in the store, lost profits, as well as monetary and temporary losses due to erroneous deliveries, long approvals, and frequent account adjustments.

On average, every day large logistics companies must send from several hundred to thousands of documents. To process such a volume of data manually using traditional paper documents, couriers, faxes, e-mail, or telephone, is rather a difficult and costly task.

Therefore, 3PL providers and their clients use EDI to exchange all necessary information about orders, deliveries, shipments, balances, reports, etc. electronically.

To automate the process of data exchange, 3PL providers and product suppliers usually integrate EDI into their business systems. This allows business partners to eliminate intermediate steps in which they must manually enter data into the accounting or business system. EDI messages are transmitted instantly, and they exclude errors related to the human factor.

Useful reading: A must-have guide for a successful systems integration with EDI

Third-Party Logistics EDI Documents

Third-Party Logistics (3PL) providers use a variety of Electronic Data Interchange (EDI) documents to exchange information with their customers, suppliers, carriers, and other partners. Some of the commonly used EDI documents in 3PL include:
  1. 850 Purchase Order: This document is used to transmit a purchase order from a customer to a 3PL provider. It includes information such as item description, quantity, and price.
  2. 855 Purchase Order Acknowledgement: This document is used by the 3PL provider to acknowledge the receipt of a purchase order from the customer.
  3. 856 Advance Shipment Notice: This document is used to inform the customer of the expected delivery date and time of the shipment.
  4. 940 Warehouse Shipping Order: This document is used by the 3PL provider to notify the warehouse of an impending shipment.
  5. 945 Warehouse Shipping Advice: This document is used by the warehouse to notify the 3PL provider that the shipment has been shipped.
  6. 944 Warehouse Stock Transfer Receipt Advice: This document is used by the warehouse to notify the 3PL provider that a stock transfer has been received.
  7. 997 Functional Acknowledgment: This document is used to acknowledge the receipt of an EDI document by the recipient.
  8. 810 Invoice: This EDI document is used to provide the customer with an electronic invoice for services rendered, including information such as the billing period, charges, and payment due date.

These EDI documents help 3PL providers to automate their processes and improve their efficiency in handling orders, inventory, and shipments. They also help to reduce errors and improve communication between the 3PL provider and their partners.

Let us look for the most used EDI documents by 3 PL providers. These messages could be used in ANSI X12 standard (if the company is in North America), or in UN/EDIFACT standard (which is more common in Europe). However, messages in both standards perform a similar function.

Sales Report and Sales Forecast: EDI 852 / EDIFACT –  SLSRPT and EDI 830 / EDIFACT-  SLSFCT

Inventory data can be used in conjunction with actual sales data transmitted in SLSRPT – Sales Data Report message (EDI 852 Product Activity Data) and SLSFCT – Sales Forecast (EDI 830 Planning Schedule)

Accurate data on inventory and sales forecasting allows manufacturers to better control their production needs, and distributors to maintain the necessary stock of goods, considering the market situation.

Inventory update: EDI 846 / INVRPT

One of the most used documents for Inventory management calls EDI 846 Inventory Inquiry/Advice in ANSI X12 Standard or INVRPT – Inventory Report in EDIFACT.

Inventory report allows suppliers to control their inventory of materials and products.

The message contains information about the quantity in stock, as well as data on the receipt and withdrawal of goods for a certain period. Information about the quantity of the product and packaging can be detailed in different groups: by lot, location, expiration date, etc.

Companies use this type of messages to reduce the costs and errors associated with manual processing. INVRPT or EDI 846 is also used to inform trading partners about the availability of goods, without obliging them to make a purchase. Besides, the buyer or trading partner can request information to obtain up-to-date data on product balances.

Typical EDI Workflow with 3PL
Advanced Ship Notice (ASN) 856 transaction set?

The direct interaction between the supplier and its 3PL provider is based on a standard set of EDI messages widely used in retail.

First, the supplier transfers its nomenclature (master data) to the logistics company using the PRODAT message. The message contains basic data that rarely changes – to identify and describe products. This long-term information includes a technical and functional description of the product, but not commercial terms.

Next, goods are shipped to the warehouse, accompanied by the DESADV – Despatch advice message (or EDI 856 Advanced Ship Notice (ASN) in case partners use the ANSI X12 standard).

This message does not physically accompany the delivery but utilized to inform in advance the recipient of the contents of the shipment.

Due to Advanced Ship Notice, the logistics company will know in advance that the goods are on the way. For acceleration and convenience of reception, SSCC codes and scanners are used: the goods can be taken in pallets.

At the next stage, the warehouse sends the supplier the RECADV message – Receiving Advice (EDI 861 – Receiving Advice/Acceptance Certificate) informing about the delivered and received goods.

When the supplier company receives a request for the supply of goods from its customers, it sends an ORDERS message – Purchase (EDI 850 Purchase Order) to the 3PL operator’s warehouse.

If the EDI was fully integrated with the business system, the information immediately goes to the accounting system of 3 PL providers, bypassing outdated communications, for example, e-mail, where information may be missed or may not reach the destination.

A 3PL company forms a shipment and sends it to the right address, notifying the other side using DESADV (EDI 856).

Of course, it should be noted that different logistic projects may use other, more specialized EDI messages.

How EDI Contributes To The Success of Third-Party Logistics Providers (3PL)

Even by introducing a minimum number of EDI messages for working with orders, deliveries, and reports, the parties achieve the following benefits:
  • Reducing manual entry and saving time for operators, managers, accountants, warehouse workers, drivers.
  • Ability to optimize/reduce staff.
  • Reduction in operating expenses.
  • Fast transfer of data and documents.
  • Elimination of losses and reduction of errors during data transmission.
  • Reducing conflict situations and increasing the loyalty of partners.
  • Security of data transmission.
  • Acceleration of payments due to prompt receipt of documents by customers.

3PL-companies can generate significant additional profit by optimizing business processes and increasing work efficiency.

New Opportunity For 3PL Companies with EDI2XML

EDI2XML is a Cloud based B2B integration service provider, focused on EDI and eCommerce integration, since year 2000.

Our EDI integration service offerings help solve business problems associated with electronic document management – in logistics, retail, healthcare, and other industries.

Contact us today for a free consultation.
EDI integration for 3PL

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