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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.
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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

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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

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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.

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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.
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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.

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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 Warehouse

Most distribution companies are faced with delays in delivering and receiving merchandise and the acceptance of shipments. There are many reasons for these delays:
– employee’s efficiency
– an ineffective system of storage of goods within the warehouse
– lack of technology tools.

In this article, we will tell you how to optimize and speed up the warehouse using EDI ( Electronic Data Interchange)

Warehouse Management Issues

How quickly the warehouse starts picking an order received from an ERP– depends on the internal business process in an organization.

There are situations where orders received before 12:00 noon are shipped on the same day, and all other orders – only the next morning.

There are companies whose warehouse business processes are built in such a way that it takes 2-3 days to process and ship one order.

If the company operates in the FMCG market, then the logistics should be very fast. For example, when delivering perishable goods such as fish and seafood, dairy products, fruit, and vegetables.

The time to receive and accept the goods also depends on the form in which the documents and related paperwork are presented.

Acceptance of goods from a large truck can take from one to three hours.

EDI can significantly reduce the processing time for goods acceptance documentation. Companies that have implemented and integrated EDI in their warehouse business processes realized a reduction in processing time of up to 90%.

Moreover, with large volumes of deliveries, there are other advantages of electronic data Interchange.

eBook:  EDI – Key Information You Need to Know  

EDI Transaction Sets for the Supply Chain

In supply chains, the EDI 856 Advanced Ship Notice and EDI 861 Receiving Advice/Acceptance Certificate transaction sets are very commonly used. DESADV – Despatch advice message and RECADV – Receiving Advice Messages perform the same function in the EDIFACT standard.

An EDI 856 document contains information about the shipment and other detailed information:
  • shipment id
  • physical characteristics of the goods
  • recipient and sender identifiers
  • barcodes
  • transportation information.

When receiving an 856 EDI document, the recipient does not need to enter data manually. Product information may automatically flow into the accounting business system. Advanced Ship Notice helps to prepare for acceptance. Even before the arrival of the supplier’s truck, the buyer already has a list of goods shipped, integrated into his own system.
EDI for Warehouse

The response to the EDI 856 document, to confirms the acceptance of the goods, is EDI 861. The Receiving Advice is transmitted from the buyer to the supplier. EDI 861 indicates the list of goods received or not received, accepted or not accepted, as well as other accompanying information.

EDI improves the accuracy of work with deliveries and reduces the number of human errors when processing documents in the warehouse. Since the data comes even before goods delivery, it is possible to arrange a schedule so that unloading begins immediately after the arrival of the goods.

Using SSCC codes, is a companion to the EDI 856 transaction, which makes it possible to mobile scanners to automatically read information on the contents of pallets, regardless of the number of assortments.

EDI Integration for Warehouse and Supply Chain

For suppliers working with retailers and other distributors, it is possible to use both of EDI2XML offerings: EDI web service that allows to send and receive EDI 856 /861, as well as the fully managed EDI solution…

Integration of EDI with accounting /warehouse business system is importantly relevant, when a huge number of transactions is being processed daily; it will help accelerate the work at the warehouse.
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