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All You Need to Know About EDI 943 – Warehouse Stock Transfer Shipment Advice

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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.

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.

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.

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.

October 11, 2023/0 Comments

EDI Integration for Efficient Transportation Management

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Electronic Data Interchange (EDI) in logistics refers to the electronic exchange of business documents, such as purchase orders, invoices, shipping notifications, and other data, between different organizations in the supply chain.

EDI plays a crucial role in improving the efficiency, accuracy, and speed of information exchange in the logistics and supply chain management process.

EDI Standards

EDI relies on standardized formats and protocols for data exchange. Common EDI standards include ANSI X12 and UN/EDIFACT. These standards ensure that business partners can understand and process the data exchanged.

Dive into the world of EDI (Electronic Data Interchange) with our insightful video explanation. Explore the video now

Benefits of EDI Integration in Logistics

EDI Integration continues to revolutionize the transportation and logistics industry and offers a multitude of benefits for transportation and logistics operations. Let’s explore some key advantages:

1. Enhanced Communication

EDI fosters real-time communication and data exchange between various stakeholders, including shippers, carriers, and 3PL providers. This instantaneous information flow ensures that everyone involved is on the same page, reducing errors and delays.

2. Paperless Transactions

In a world still grappling with paper-based systems, EDI brings the advantage of digitization. Gone are the days of manually inputting information into ERP or CRM systems. With EDI, all transactions are automated, eliminating inaccuracies and time-consuming data entry.

3. Streamlined Documentation

One of EDI’s primary roles is the exchange of essential shipping documents like bills of lading, packing lists, and customs declarations. This simplifies the documentation process, minimizes errors, and accelerates the entire shipping workflow.

4. Improved Cost Efficiency

By automating data exchange, EDI reduces the need for manual labor and minimizes the risk of errors and disputes. Consequently, this translates into significant cost savings in the long run.

5. Capacity Optimization

EDI empowers carriers and shippers with information about available capacity, shipment volumes, and transportation rates. This data helps in efficient capacity planning and decision-making, ensuring that resources are optimally utilized.

EDI in Different Modes of Transportation

EDI is widely used in various types of transportation to automate communication and enhance efficiency across the supply chain.

In North America, truck transportation is one of the most common and versatile methods, due to the extensive road network and the region’s reliance on just-in-time inventory practices.

Rail transportation is also significant, particularly for bulk goods and long-distance transport. Maritime transportation is vital for international trade through major ports on the coast.

The choice of transportation mode depends on factors like the type of cargo, distance, cost considerations, time sensitivity, and environmental impact. Many shipments involve a combination of transportation modes to optimize efficiency and cost-effectiveness.

Here’s how EDI is utilized in different modes of transportation:

EDI for Truck Transportation

Load Tendering: Shippers can send EDI 204 Motor Carrier Load Tender messages to carriers to request the pickup of shipments.

Shipment Status Updates: Carriers can send EDI 214 Transportation Carrier Shipment Status Message to provide real-time status updates to shippers, including estimated time of arrival (ETA) and delivery confirmations.

Invoicing: Carriers can send EDI 210 Motor Carrier Freight Details and Invoice messages to shippers for billing purposes.

TAKEAWAY:

In Truckload (TL) shipping, entire truck trailers are dedicated to a single shipment. This is common for larger shipments that require the entire capacity of a truck.

Less-Than-Truckload (LTL): LTL shipping combines multiple smaller shipments from different customers into a single truck. This is cost-effective for smaller cargo volumes.

Here are some common EDI transaction codes related to motor transportation:

EDI 106 Motor Carrier Rate Proposal
EDI 107 Request for Motor Carrier Rate Proposal
EDI 108 Response to a Motor Carrier Rate Proposal
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 Pick-up Manifest
EDI 216 Motor Carrier Shipment Pick-up Notification
EDI 217 Motor Carrier Loading and Route Guide
EDI 218 Motor Carrier Tariff Information
EDI 240 Motor Carrier Package Status
EDI 250 Purchase Order Shipment Management Document
EDI 601 U.S. Customs Export Shipment Information
EDI 602 Transportation Services Tender
EDI 715 Intermodal Group Loading Plan
EDI 920 Loss or Damage Claim – General Commodities
EDI 990 Response To A Load Tender

EDI for Rail Transportation

Equipment Scheduling: Rail carriers use EDI to exchange information about rail car scheduling and availability.

Shipping Instructions: Shippers can send EDI 404 Rail Carrier Shipment Information messages to rail carriers to provide shipping instructions and details.

TAKEAWAY:

Freight Trains: Rail transport is ideal for heavy, bulk, and long-distance cargo. It’s commonly used for transporting raw materials, coal, grain, and containers over land.

Here is the list of EDI transactions related to rail transportation:

EDI 161 Train Sheet
EDI 404 Rail Carrier Shipment Information
EDI 410 Rail Carrier Freight Details and Invoice
EDI 411 Rail Carrier Freight Details and Invoice Summary
EDI 412 Trailer or Container Repair Billing
EDI 414 Rail Car hire 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 Shipper’s Car Order
EDI 423 Rail Industrial Switch List
EDI 424 Rail Carrier Services Settlement
EDI 425 Rail Waybill Request
EDI 429 Railroad Retirement Activity
EDI 431 Railroad Station Master File
EDI 432 Rail Deprescription
EDI 433 Railroad Reciprocal Switch File
EDI 434 Railroad Mark Register Update Activity
EDI 435 Standard Transportation Commodity Code (STCC) 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 for Maritime Transportation

EDI integration for Maritime Transportation

Booking and Scheduling: Maritime companies use EDI to book cargo space, exchange booking confirmations, and share vessel schedules with shippers.

Cargo Tracking: EDI messages are used for tracking cargo containers, including EDI 315 Status Details (Ocean) messages for status updates.

Customs Declarations: EDI is essential for transmitting customs-related documents for international shipments.

TAKEAWAY:

Container Shipping: Maritime transportation involves shipping cargo via containers on large ocean vessels. It’s used for a wide range of goods, including electronics, apparel, and manufactured goods.

Bulk Shipping: Bulk carriers transport commodities like crude oil, coal, iron ore, and grains in large quantities.

Here is a list of common Electronic Data Interchange (EDI) transactions that are frequently used in maritime transportation:

EDI 109 Vessel Content Details
EDI 300 Reservation (Booking Request) (Ocean)
EDI 301 Confirmation (Ocean)
EDI 303 Booking Cancellation (Ocean)
EDI 304 Shipping Instructions
EDI 309 U.S. Customs Manifest
EDI 310 Freight Receipt and Invoice (Ocean)
EDI 311 Canadian 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 U.S. Customs Status Information
EDI 352 U.S. Customs Carrier General Order Status
EDI 353 U.S. Customs Events Advisory Details
EDI 354 U.S. Customs Automated Manifest Archive Status
EDI 355 U.S. Customs Acceptance/Rejection
EDI 356 U.S. Customs Permit to Transfer Request
EDI 357 U.S. Customs In-Bond Information
EDI 358 U.S. Customs Consist Information
EDI 361 Carrier Interchange Agreement (Ocean)

EDI for Air Transportation

Airway Bill: Airlines use EDI to generate airway bills (e-AWB) and share them with forwarders and shippers.

Shipment Documentation: EDI is used to transmit documents such as shipping instructions, manifests, and customs declarations.

Cargo Tracking: Shippers and consignees receive EDI messages containing real-time shipment tracking information.

TAKEAWAY:

Air Freight: Air transportation is the fastest mode and is often used for high-value, time-sensitive, or perishable goods like electronics, pharmaceuticals, and fresh produce.

EDI 104 Air Shipment Information
EDI 110 Air Freight Details and Invoice
EDI 601 U.S. Customs Export Shipment Information

Intermodal Transportation

Intermodal Booking: EDI facilitates the booking of intermodal shipments involving multiple modes of transportation. It helps coordinate the movement of cargo seamlessly.

Status Updates: Shippers and carriers receive EDI messages to track the progress of intermodal shipments across different modes.

TAKEAWAY:

Intermodal Shipping: This approach involves combining multiple modes of transportation (e.g., truck, rail, and sea) within a single journey. It’s often used to optimize routes and costs.

In all these transportation modes, EDI plays a crucial role for ensuring efficient and accurate logistics operations across various sectors of the transportation industry.

EDI integration with transportation management systems (TMS) and enterprise resource planning (ERP) systems further improves supply chain visibility and control.

Steps to Implement EDI for Transportation Management

Step 1: Assess Your Needs

Begin by assessing your transportation management requirements. Identify the specific areas where EDI can add value, such as order processing, shipment tracking, or invoicing.

Step 2: Choose the Right EDI Solution

Select an EDI solution that aligns with your needs. Whether you’re a large player in the industry or a mid-sized company, there’s an EDI solution tailored to your needs. Consider these options from EDI2XML:

Fully Managed EDI Service: Ideal for companies initiating EDI integration, this comprehensive service takes care of everything from project planning to file format development. It’s suitable for high-volume businesses.
EDI Web Service (REST API): Designed for companies involved in the EDI process, this solution is cost-effective, low-commitment, and quick to implement. It’s a great choice if you have in-house technical resources.

Step 3: Partner with EDI Experts

Collaborate with an experienced EDI provider who can guide you through the integration process. They’ll help with project planning, file format development, testing, and certification.

Step 4: Integrate EDI with Business Systems

Work with your EDI provider to tailor workflows to your transportation management processes. Ensure seamless integration with your existing systems such as TMS, ERP, CRM or other business systems and applications.

Step 5: Training and Onboarding

Train your team on a new EDI process. Ensure that everyone involved understands the benefits and procedures.

Conclusion

Implementing EDI for seamless transportation management is a strategic move that can elevate your logistics operations. By following these steps, you can harness the power of EDI to optimize processes, reduce costs, and enhance overall efficiency in your transportation business.

If you’re considering implementing EDI for transportation management, our team of experts is here to assist you at every stage of the process. Contact us today for a free consultation and start your journey towards seamless transportation management with EDI.

October 6, 2023/2 Comments

Leveraging Advanced EDI Strategies for Manufacturing Excellence

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Electronic Data Interchange (EDI) has revolutionized manufacturing processes by enhancing efficiency, reducing costs, and improving communication across the supply chain. In this article, we explore advanced EDI strategies that can help manufacturing companies become even better, based on what we discussed in our previous article about EDI for Manufacturing Companies.

EDI for Predictive Inventory Management

EDI can play a pivotal role in transforming inventory management from reactive to predictive. By integrating EDI with advanced BI analytics, manufacturers can analyze historical data and forecast demand accurately.

In the context of Predictive Inventory Management, specific EDI transactions that can be used in manufacturing include:

EDI 846 – Inventory Inquiry/Advice: Manufacturers can use this transaction to inquire about current inventory levels with their suppliers or distributors. This helps in obtaining real-time inventory data for accurate demand forecasting.

EDI 852 – Product Activity Data: This transaction provides detailed information about product movement, such as sales, shipments, and returns. Manufacturers can analyze this data to identify trends and patterns for predictive inventory management.

EDI 855 – Purchase Order Acknowledgment: When a manufacturer places an order for raw materials or components, the supplier’s acknowledgment of the purchase order can contain estimated delivery dates and quantities. This information is crucial for predicting when inventory will be replenished.

EDI 856 – Advance Shipment Notice (ASN): Suppliers can send ASNs to manufacturers with detailed information about upcoming shipments, including contents, quantities, and expected delivery dates. This data aids in predicting when new inventory will arrive.

EDI 830 – Planning Schedule/Material Release: Manufacturers can use this transaction to communicate their production schedules and material requirements to suppliers. Suppliers can align their production and delivery schedules based on this information, enabling better inventory prediction.

EDI 861 – Receiving Advice/Acceptance Certificate: Manufacturers can send this transaction to suppliers to confirm the receipt of goods. The data from this transaction can be used to update inventory records and enhance predictive models.

EDI 869 – Order Status Inquiry and EDI 870 – Order Status Report: These transactions facilitate communication between manufacturers and suppliers about the status of open orders. Manufacturers can use this information to anticipate order fulfillment and adjust inventory predictions accordingly.

By leveraging these EDI transactions for predictive inventory management, manufacturing companies can optimize their stock levels, minimize excess inventory costs, and ensure that they have the right materials at the right time to meet customer demand.

Dive into the world of EDI (Electronic Data Interchange) with our insightful video explanation.

Explore the video now

Use EDI for Collaborative Demand Forecasting

Collaborative demand forecasting takes traditional EDI-based supply chain collaboration a step further. By sharing demand forecasts with key suppliers and distributors, manufacturers can foster closer partnerships, optimize production schedules, and align inventory levels throughout the supply chain. This results in reduced lead times, improved customer satisfaction, and efficient resource allocation.

Real-time Production Monitoring

Extend the benefits of EDI with IoT (Internet of Things) devices on the shop floor. Real-time production monitoring provides insights into machinery performance, production rates, and quality control. Manufacturers can proactively identify bottlenecks, optimize workflows, and ensure consistent product quality.

Useful: FACTORYEYE FOR INDUSTRY 4.0

Importance of EDI for Manufacturing

Cost Savings: EDI implementation can lead to cost savings of up to 35% in order processing, document handling, and administrative tasks for manufacturing companies.

Industry Adoption: The manufacturing sector is one of the leading adopters of EDI, most manufacturers are already utilizing EDI for supply chain management and B2B communications.

Error Reduction: EDI can reduce data entry errors by up to 90%, leading to higher accuracy in order processing and inventory management.

Supplier Integration: many surveys show, most manufacturers consider EDI integration with suppliers as a critical factor in achieving supply chain visibility and resilience.

EDI Standards: ANSI X12 is the most widely used EDI standard in the manufacturing vertical, with a range of transaction sets designed specifically for industry needs.

Global Reach: EDI enables manufacturers to seamlessly communicate and trade with partners worldwide, bridging geographical gaps and facilitating international business.

Eco-Friendly Impact: EDI adoption has a positive environmental impact, as it reduces paper usage and the need for physical document transportation, contributing to sustainability efforts.

SME Adoption: Small and medium-sized manufacturing enterprises (SMEs) are increasingly adopting EDI to stay competitive and to streamline operations.

Compliance Requirements: Many manufacturing industries, such as automotive and pharmaceuticals, have strict regulatory compliance requirements, making EDI an essential tool for meeting these standards.

Integrated Systems: Manufacturers are integrating EDI with their ERP, CRM, and warehouse management systems, creating a unified ecosystem for seamless data exchange and operational efficiency.

EDI in Just-in-Time (JIT) Manufacturing: EDI plays a crucial role in JIT manufacturing by enabling timely communication of production schedules, material requirements, and demand fluctuations.

These statistics and facts highlight the significant impact of EDI on the manufacturing sector, showcasing its role in driving operational efficiency, cost savings, and improved collaboration across the industry.

Fully Managed EDI Services for Manufacturing

Our company offers a complete solution for manufacturing companies – fully managed EDI services. With our proven experience, we take care of every step of the EDI integration project, from careful planning to testing with trading partners.

Our process flow is as effortless as it is effective. No on-site installations or complex software are required on your end. We handle the entire spectrum of EDI integration steps, ensuring that your EDI project remains on schedule and within budget.

Our Fully Managed EDI Solution is packed with a range of dynamic monthly service packages, catering to diverse data volumes and transaction frequencies. EDI2XML operates securely on our private Cloud, ensuring the highest standards of data protection.

Unlock the true potential of EDI with EDI2XML’s Fully Managed EDI Services. Elevate your manufacturing processes, streamline your supply chain, and drive unparalleled operational excellence.

Conclusion: EDI for Manufacturing Excellence

EDI continues to be a cornerstone of manufacturing digital transformation, driving operational efficiency and supply chain optimization. By embracing advanced EDI strategies such as predictive inventory management, real-time production monitoring, and collaborative demand forecasting, manufacturing companies can achieve unprecedented levels of excellence.

These strategies not only enhance internal processes but also strengthen relationships with suppliers, distributors, and customers, positioning manufacturers at the forefront of innovation and competitiveness.

August 11, 2023/2 Comments

How to Improve Collaboration in the Retail Supply Chain with EDI 852 Document

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In the business world, especially in the retail industry, an EDI 852 transaction set plays a crucial role in transmitting product activity data between trading partners. In this article, we will explore the details of X12 EDI 852 document, providing you with a comprehensive understanding of its definition, document structure, data elements, and more.

What is EDI 852 Document?

The EDI 852 document, also known as Product Activity Data, is an electronic transaction set used in supply chain management and retail operations for exchanging product-related information between trading partners.

It contains detailed data on the activity of products, such as sales, inventory levels, pricing, and promotions. The EDI 852 document provides valuable insights into product performance and helps in the decision-making process.

Understanding the EDI 852 Document

The EDI 852 document follows the X12 standard format and consists of various segments and data elements that convey specific information. Each segment within the document serves a distinct purpose, such as identifying the product, sales quantities, pricing, and dates.

Typically, retailers provide their suppliers with EDI 852 every week. When automating the EDI 852, the problem is that each retailer may use slightly different formats, data descriptions, and code identifiers.

That is why it is essential to adhere to the EDI 852 specification so that trading partners can ensure uninterrupted data exchange.

What are the Key Components of EDI 852 Document?

The EDI 852 transaction set comprises essential data elements that provide valuable insights into product activity.

The essential components of an EDI 852 document include:

Header: Contains general information about the document, such as sender, receiver, document number, and date.

Line Items: Each line item represents a specific product and includes details like UPC/EAN codes, quantity sold/available, unit prices, dates of sales and promotions, store locations, and much more.

Summary: Provides aggregate information, such as total sales, units shipped, and average prices, at the end of the document.

These elements collectively form a comprehensive dataset that enables accurate analysis and decision-making.

How is an EDI 852 Product Activity Used?

The EDI 852 document serves multiple purposes, including:

Sales Analysis: Retailers can analyze sales patterns by geographical location, identify top-selling products, and measure the effectiveness of promotions.

Inventory Management: Suppliers can track product availability, monitor stock levels, and plan replenishments efficiently.

Demand Forecasting: By analyzing historical sales data, businesses can make accurate forecasts and adjust production and inventory strategies accordingly.

Pricing and Promotions: The EDI 852 document helps assess the impact of pricing changes and promotional activities on product performance.

Thus, by leveraging the rich insights derived from EDI 852, organizations can make data-driven decisions and adapt their strategies to achieve business growth.

How is an EDI X12 852 – Product Activity Data Processed?

The EDI X12 852 business flow between trading partners, such as a retailer and a supplier typically follows a standardized process. Here is a general overview of the EDI 852 business flow:

Purchase Order: The retailer generates a purchase order (EDI 850) to communicate their product requirements and submit it to the supplier.

Purchase Order Acknowledgment: The supplier receives the purchase order and responds with an EDI 855 Purchase Order Acknowledgment. This document confirms the receipt and acceptance of the purchase order.

Shipment: When the supplier ships the products, they generate an EDI 856 Advance Ship Notice (ASN) to notify the buyer of the coming shipment. The ASN contains information about the products, packaging, quantities, and carrier details.

Receipt of Goods: The retailer receives the shipment and records the receipt of goods in their internal systems like ERP or CRM.

Invoice Generation: After the retailer receives the shipment and records the receipt of goods, the supplier generates the Invoice (EDI 810) document. The invoice contains the billing details, including itemized charges, payment terms, etc.

Sales and Product Activity: The retailer captures sales and product activity data within their systems. This data includes information such as quantities sold, pricing, promotions, and inventory levels.

EDI 852 Generation: Based on the captured sales and product activity data, the retailer generates the EDI 852 document (Product Activity Data) and sends it to the supplier.

EDI 852 Transmission: Most often, a retailer will transmit an EDI 852 document to a supplier using the services of an EDI provider, such as a fully managed EDI service or an EDI web service.

Supplier Processing: Upon receiving the EDI 852, the supplier verifies, and processes the data. They utilize this information for various purposes, such as sales analysis, inventory management, and demand forecasting.

The retailer and the supplier can integrate the EDI 852 data into their respective internal systems, such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), or inventory management systems. This integration ensures seamless data flow, eliminates manual data entry, and enables real-time visibility into product activity.

It’s important to note that the generation of the EDI 852 document typically falls within the retailer’s responsibility. As they capture and analyze the sales and product activity data, they generate the EDI 852 to share that information with the supplier. The supplier then processes this data and utilizes it for their own business purposes.

Which Industries Typically use the EDI 852 Document?

The EDI 852 document is widely utilized in industries such as retail, consumer goods, manufacturing, and distribution. Retailers and suppliers, including e-commerce platforms, department stores, and wholesalers, rely on the EDI 852 to streamline their supply chain processes and optimize inventory management.

What is EDI 852 Message Format and Specification?

The EDI 852 message follows a specific format and specification based on the ANSI X12 standard.

The EDI 852 specification defines the structure, data elements, and guidelines for implementing the document. It outlines the mandatory and optional segments, their formats, and the specific usage requirements. The specification provides a common language for trading partners to exchange product activity data accurately.

The EDI transaction set contains various segments that organize the data into specific categories. Each segment serves a specific purpose and carries relevant data related to product activity.

Here are the key segments typically found in an EDI 852 transaction:

ST Transaction Set Header
XQ Reporting Data/Action
XPO Preassigned Purchase Order Numbers
N9 Reference Identification
PER Administrative Communications Contact
N1 Name
N2 Additional Name Information
N3 Address Information
N4 Geographic Location
FOB F.O.B. Related Instructions
TD5 Carrier Details (Routing Sequence/Transit Time)
DTM Date/Time Reference
LIN Item Identification
CTP Pricing Information
SAC Service, Promotion, Allowance, or Charge Information
PO4 Item Physical Details
AMT Monetary Amount
PAL Pallet Information
ZA Product Activity Reporting
QTY Quantity
CTP Pricing Information
SDQ Destination Quantity
G95 Performance Requirements
CTT Transaction Totals
SE Transaction Set Trailer

These are some of the common segments found in an EDI 852 transaction set. The specific segments and their usage may vary depending on the implementation and business requirements of the trading partners.

What is the Difference Between EDI 852 and EDI 867?

While both EDI 852 and EDI 867 documents are used for product activity data, they serve different purposes. The EDI 852 focuses on providing detailed information on sales, inventory, and pricing, while the EDI 867 – Product Transfer and Resale Report, is used for transmitting information related to inventory transfers and adjustments between locations or trading partners.

Thus, EDI 867 provides broader visibility into inter-store transfers and resale activities.

By combining the data from both transaction sets, organizations can gain a holistic view of their supply chain, optimize inventory management, and enhance demand planning.

What are the Benefits of EDI 852?

Implementing the EDI 852 document offers several advantages:

Enhanced Data Accuracy. Manual data entry errors are minimized, ensuring reliable and error-free information exchange.

Improved Efficiency. Automation of product-related processes saves time, reduces costs, and enables faster decision-making.

Better Inventory Management. Real-time visibility into product activity helps optimize stock levels, minimize out-of-stock situations, and avoid excess inventory.

Streamlined Collaboration. EDI 852 facilitates seamless communication and collaboration between retailers and suppliers, improving overall supply chain performance.

Thus, implementing EDI 852 streamlines the exchange of product-related information, reduces manual data entry, improves data accuracy, and enhances collaboration between suppliers and retailers.

In addition to the EDI 852 transaction set, there are several other EDI documents commonly used in conjunction with or related to EDI 852. Let’s explore some of these transaction sets:

EDI 846 – Inventory Inquiry/Advice, is used to exchange inventory-related information between trading partners.
EDI 832 – Price/Sales Catalog, facilitates the exchange of pricing and product catalog information between trading partners.
EDI 810 – Invoice, is used for transmitting invoice information from suppliers to retailers.
EDI 850 – Purchase Order, is used to demand of delivery of goods and/or services.
EDI 855 – Purchase Order Acknowledgment, is used to confirm the receipt and acceptance of purchase orders.
EDI 867 – Product Transfer and Resale Report.

These are just a few examples of transaction sets related to EDI 852. Depending on specific business requirements and industry practices, there may be other transaction sets that are relevant and commonly used in conjunction with EDI 852 for seamless data interchange and comprehensive supply chain management.

Conclusion: EDI 852 Document for Supply Chain Management

EDI 852 Product Activity Data plays a key role in efficient supply chain management and collaboration between suppliers and retailers. Using EDI 852, organizations can simplify the exchange of product information, improve inventory management, and streamline decision-making. If you have any questions about EDI 852 or EDI in general, please contact our experts for a free consultation.

June 28, 2023/0 Comments

The Importance of EDI 862 Shipping Schedule in Streamlining Supply Chain Management

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Introduction: What is EDI X12 862 Shipping Schedule?

In today’s digital world, efficient communication and streamlined processes are paramount for successful supply chain management. One of the key tools that facilitate this seamless exchange of information is Electronic Data Interchange (EDI).

Among the various EDI transaction sets, the EDI 862 transaction, also known as the Shipping Schedule, plays a crucial role in coordinating shipments and ensuring timely delivery.

The Shipping Schedule (EDI 862) provides essential data related to the delivery of goods, allowing suppliers and customers to efficiently plan and manage their inventory and logistics operations.

Let’s explore the definition, structure, standards, processing, and benefits of the EDI 862 Shipping Schedule.

EDI 862 Shipping Schedule – Definition

The EDI 862 Shipping Schedule is a standardized electronic document sent from a supplier to a buyer; it contains specific details regarding the shipping requirements for a particular order or set of orders. It typically includes information such as:

shipment dates,
quantities,
packaging instructions,
carrier details, and other relevant logistics data.

EDI X12 862 (EDIFACT DELJIT) – Structure & Standards

The structure of an EDI 862 document follows the ANSI ASC X12 standard. In the UN/EDIFACT standards, the DELJIT (Delivery Just-In-Time) message performs a similar function. It consists of data segments, elements, and sub-elements arranged in a hierarchical format.

The structure defines the order and format in which the information is transmitted, ensuring compatibility and interoperability between different systems.

ANSI ASC X12 standard is prevalent in North America, while UN/EDIFACT is widely adopted globally.

These standards provide a common language for data exchange, ensuring consistency and compatibility between trading partners.

EDI 862 Shipping Schedule – Processing

The processing of the EDI 862 Shipping Schedule involves the exchange of structured electronic data between the sender and the receiver. Here’s a general overview of the processing steps:

Data Preparation: The shipping schedule data is collected and formatted according to the specific EDI standard, such as ANSI ASC X12 or UN/EDIFACT.

Translation: Data is translated into the appropriate EDI format, usually companies use the services of an EDI Provider. This can be either a Fully Managed EDI Service or an EDI Web Service.

This step ensures that the information is correctly encoded and compliant with the selected standard.

Learn more about how to choose the right EDI solution for you in this article: Business Automation: How to Choose the Right EDI Solution

Transmission: The translated EDI document is transmitted securely by the EDI Provider to the trading partner using a communication protocol such as AS2, FTP, or VAN (Value Added Network).

Receipt and Validation: The recipient’s system receives the EDI 862 document and performs validation checks to ensure the data integrity and compliance with the standard.

Processing and Integration: The received shipping schedule information is processed and integrated into the recipient’s internal systems, such as enterprise resource planning (ERP) or warehouse management systems (WMS).

Acknowledgment: A functional acknowledgment (e.g., EDI 997) is generated and sent back to the sender to confirm the successful receipt and processing of the EDI 862 document.

Sample EDI 862 Data for the Shipping Schedule Transaction Set

The EDI 862 document represents a Shipping Schedule, which provides information about scheduled shipments.

ISA*00* *00* *12*Sender *ZZ*Receiver *210429*0402*U*00401*000000003*0*P*>

GS*SS*Sender*Receiver*20210429*04024783*1*X*004010

ST*862*0001

BSS*00*2019-12-17 13:15:19*20191217*DL*20210429*20210429****P302289

N1*BT*JOHN BLUEINDUSTRIES INC.*92*59940

N3*ATTN: ACCOUNTS PAYABLE DEPARTMENT*PO BOX 47200

N4*HAMEL*MN*55340*US

N1*ST*JOHN BLUEINDUSTRIES INC.*92*WXY5L559

N3*ATTN: RECEIVING*989 Q AVE.

N4*MILFORD*IA*12345*US

N1*SU**92*744551A

LIN*1*BP*MISC

UIT*EA

REF*RE*0**YN>5>ZY>PSS001

PER*EX*Company’s Help Team*EM*email@lcopany.com*TE*1-800-123-123

FST*2*C*D*20210429****RE*0

DTM*017*20200108*0500*CS

DTM*150**1600*CS

DTM*151**1700*CS

DTM*118*20210429

DTM*011*20200107

SHP*38*2*112*20210429

TD3***SHIP DIRECT******1783662

TD5**US*734870*P*17836671780792**59*766736

SE*23*0001

GE*1*1

IEA*1*000000003

Let’s break down the segments and elements within the provided EDI 862 file:

ISA: Interchange Control Header segment. It contains information about the sender and receiver of the interchange, along with control information such as the date and version of the EDI standards used.

GS: Functional Group Header segment. It provides information about the sender and receiver. The segment also includes a group control number and the version of the EDI standards used.

ST: Transaction Set Header segment. It indicates the start of a specific transaction set, in this case, the Shipping Schedule (862).

BSS: Beginning Segment for Shipment Schedule. It contains general information about the shipment, such as the scheduled shipment date, the delivery date, and other relevant details.

N1: Name segment. It provides information about the entities involved in the transaction.

LIN: Item Identification segment. It identifies a specific line item or product being shipped, including details like the item number and item type.

UIT: Unit Detail segment. It provides information about the unit of measure for the item being shipped.

REF: Reference Identification segment. It includes additional references related to the shipment.

PER: Administrative Communications Contact segment. It specifies the contact person or department responsible for communication-related to the transaction, including their name, email, and phone number.

FST: Forecast Schedule segment. It contains forecast information related to the shipment.

DTM: Date/Time Reference segment. It provides date and time information associated with the shipment, such as order dates, delivery dates, and ship dates.

SHP: Shipped/Received Information segment. It includes details about the shipment, such as the number of units shipped, the packaging code, and the shipment date.

TD3: Carrier Details (Equipment) segment. It provides information about the transportation equipment used for the shipment, including any special handling requirements.

TD5: Carrier Details (Routing Sequence/Transit Time) segment. It specifies details about the carrier, such as the carrier code, routing information, and transit time.

SE: Transaction Set Trailer segment. It marks the end of the transaction set (Shipping Schedule in this case) and includes a control number and the number of segments in the set.

GE: Functional Group Trailer segment. It marks the end of the functional group and includes a control number and the number of transaction sets within the group.

IEA: Interchange Control Trailer segment. It marks the end of the interchange and includes a control number and the number of functional groups within the interchange.

Each segment is composed of elements separated by asterisks (*). The elements

What is the Difference Between EDI 830 and EDI 862? (EDI 862 vs EDI 830)

The EDI 830 and EDI 862 are both important EDI documents used in supply chain management, but they serve different purposes and convey different types of information. Here’s a breakdown of the differences between the two:

EDI 830 – Planning Schedule with Release Capability

The EDI 830, also known as the Planning Schedule with Release Capability, is used by the customer (buyer) to communicate their long-term production to the supplier. It provides a forecast of the customer’s anticipated demand for goods over a specific period, typically weeks or months in advance. The EDI 830 includes information such as item quantities, delivery schedules, and any changes or updates to the forecasted demand.

The main purpose of the EDI 830 is to help suppliers plan their production schedules, capacity requirements, and raw material procurement based on the anticipated demand from the customer. It allows suppliers to align their resources and inventory levels to meet the customer’s needs efficiently.

EDI 862 – Shipping Schedule Transactions

On the other hand, the EDI 862, also known as the Shipping Schedule, is used to communicate detailed shipping information to the supplier. It provides specific instructions regarding the shipment of goods. Thus, the purpose of the EDI 862 Shipping Schedule is to convey specific shipping instructions (delivery date, carrier info, destination facility…). It’s important to note that the 862 does not replace the 830; rather, it complements it.

The primary purpose of EDI 862 is to inform the supplier about the planned shipping activities and enable the customer to efficiently plan their inventory and logistics operations. It helps the customer prepare for the receipt of goods, allocate warehouse space, and coordinate their internal processes accordingly.

In summary, the key differences between the EDI 830 and EDI 862 are:

Content: The EDI 830 focuses on providing forecasted demand and long-term production requirements, while the EDI 862 provides detailed shipping information and instructions.

It is important to note that the specific roles and responsibilities for sending and receiving EDI 862 can vary depending on the business relationship and agreement between trading partners. It is ultimately determined by the specific arrangement and practices between the buyer and supplier.

Planning vs. Execution: The EDI 830 is more related to production planning and demand forecasting, whereas the EDI 862 is more focused on the execution and coordination of shipments and deliveries.

Both documents play crucial roles in supply chain management, helping trading partners effectively plan, communicate, and coordinate their production and logistics activities.

EDI 862 Shipping Schedule Benefits

The EDI 862 Shipping Schedule offers several benefits to trading partners in the supply chain:

Improved Efficiency

By automating the exchange of shipping information, the EDI 862 reduces manual data entry and paperwork, resulting in faster and more accurate processing of shipping schedules.

Enhanced Visibility

The shipping schedule provides real-time visibility into upcoming deliveries, enabling better planning and coordination of resources.

Reduced Errors

With standardized data formats and automated validation, the EDI 862 helps eliminate errors and discrepancies that can occur during manual data entry or paper-based processes.

Streamlined Logistics

The timely and accurate transmission of shipping information allows suppliers and customers to optimize their logistics operations, reducing lead times and improving order fulfillment.

Inventory Optimization

By having access to precise shipping schedules, organizations can manage their inventory levels more effectively, minimizing stockouts and excess inventory.

Stronger Trading Partner Relationships

EDI 862 promotes collaboration and trust between trading partners by enabling seamless information exchange, leading to improved business relationships.

Overall, the EDI 862 Shipping Schedule plays a vital role in supply chain management by facilitating efficient communication of shipping requirements, reducing errors, and enhancing operational effectiveness for businesses involved in the movement of goods.

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June 7, 2023/0 Comments

All You Need to Know About EDI X12 404 Rail Carrier Shipment Information

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Electronic Data Interchange (EDI) has revolutionized the way businesses exchange information and collaborate with their business partners. EDI 404 (X12) – Rail Carrier Shipment Information is a transaction set that enables rail carriers to exchange shipment information with their trading partners.

In this article, we will explore EDI X12 404 Rail Carrier Shipment Information in detail, including its purpose, format, segments, and benefits.

What is an EDI X12 404 Rail Carrier Shipment Information?

The Rail Carrier Shipment Information EDI 404 is an electronic document or transaction set that allows rail carriers and their trading partners to exchange shipment information. This transaction set is part of the Electronic Data Interchange (EDI) X12 standard.

EDI 404 is a transaction set that is specifically designed for rail transportation companies. It is not used in other modes of transportation, such as trucking or air transportation.

Purpose of EDI 404 (X12) Rail Carrier Shipment Information

The primary purpose of EDI 404 is to facilitate the exchange of rail carrier shipment information between trading partners. EDI 404 provide detailed information about a shipment that is being transported by rail, including its origin, destination, routing, and other related details.

According to X12, chartered by the American National Standards Institute the EDI 404 transaction set can be used to transmit rail carrier bill of lading information to the railroad.

This is the initial shipment order between the shipper and the rail carrier and can be used as an equipment release notice and/or legal bill of lading.

The EDI 404 document is particularly useful for companies that need to track and manage their shipments efficiently.

By receiving shipment information electronically in a standardized format, companies can automate many of their business processes and reduce manual data entry errors. This can help to improve efficiency, reduce costs, and increase overall productivity.

EDI 404 (X12) Segments and Data Elements

The EDI X12 404 Rail Carrier Shipment Information transaction set transmits various data elements related to a rail shipment. The transaction set follows a standard format that includes segments, data elements, and composite data structures. The segments are the building blocks of the transaction set and contain specific information about the shipment.

The data elements provide additional details within each segment, while the composite data structures combine multiple data elements into a single data element for easier processing.

Here are some examples of the data that can be transmitted through the EDI X12 404 transaction set according to BNSF 404 Implementation Guideline.

Segments and Data Elements:

ISA Interchange Control Header
GS Beginning Segment.
ST Transaction Set Header
ZC1 Beginning Segment for Data Correction or Change
BX General Shipment Information
BNX Rail Shipment Information
M3 Release Information
N9 Reference Number
CM Cargo Manifest.
M1 Insurance Details.
DTM Date/Time Reference
N7 Equipment Details (N7 Loop)
EM Equipment Characteristics
VC Motor Vehicle Control (N7/VC Loop)
N1 Name (N7/VC/N1 Loop)
N3 Address Information.
N4 Geographic Information.
H3 Special Handling Instructions
M7 Seal Numbers
N5 Car Ordered
IC Intermodal Chassis Equipment
IM Intermodal Information
M12 In-Bond Identifying Information
EI Empty Car Disposition – Pended Destination Consignee (E1 Loop)
E4 Empty Car Disposition – Pended Destination City
E5 Empty Car Disposition – Pending Destination Route
PI Price Authority Identification
GA Canadian Grain Information
REF Reference Identification (REF Loop)
N10 Quantity and Description
N1 Name
N3 Address Information
N4 Geographical Information
NA Cross Reference Equipment
F9 Origin Station
D9 Destination Station
N1 Name (N1 Loop)
N2 Additional Name Information.
N3 Address Information
N4 Geographic Information
REF Reference Identification
PER Administrative Communications Contact
BL Billing Information
S1 Stop Off Name (S1 Loop)
S2 Stop Off Address
S9 Stop Off Station
N1 Name (S1/N1 Loop)
N2 Additional Name Information
N3 Address Information
N4 Geographic Location
PER Administrative Communications Contact
R2 Route Information
R9 Route Code
E1 Empty Car Disposition Pended Destination Consignee (E1 Loop)
E4 Empty Pended Destination Pended Destination City
E5 Empty Car Disposition Pended Destination Route
PI Price Authority Information
H3 Special Handling Instructions
PS Protective Service Instructions
LX Assigned Number (LX Loop)
L5 Descriptions, Marks,and Numbers
L0 Line Item, Quantity, and Weight (L0 Loop)
MEA Measurements
L1 Rate and Charges
PI Price Authority Information
X1 Export License
T1 Transit Inbound Origin (T1 Loop)
T2 Transit Inbound Lading
T3 Transit Inbound Route
T6 Transit Inbound Rates
T8 Free Form Transit Data
L3 Total Weight and Charges
LS Loop Header
LH1 Hazardous ID Information (LH1 Loop)
LH2 Hazardous Classification
LH3 Proper Shipping Name
LFH Free Form Haz Mat Information
LEP EPA Required Data
LH4 Canadian Hazardous Requirements
LHT Transborder Hazardous Requirements
LHR Haz Mat ID Reference Numbers
PER Administrative Communications Contact
LE Loop Trailer
PER Admin. Communication Contact (Haz Mat Shipments Only)
LH2 Hazardous Classification Information
LHR Haz Mat ID Reference Numbers (Haz Mat Shipments Only)
LH6 Hazardous Certification
XH Pro Forma B13 Information
X7 Customs Information
SE Transaction Set Trailer
GE Functional Group Trailer
IEA Interchange Control Trailer

It’s important to note that each rail carrier may have slightly different requirements for their EDI 404 transaction set. Therefore, it’s essential to use the implementation guideline provided by the specific rail carrier that you are working with to ensure that your data is properly formatted and transmitted.

Implementation Guideline will provide you with the specific data elements, segments, and codes that rail carriers require for the EDI 404 transaction set.

It can also provide guidance on the technical aspects of transmitting the data, such as the file format, transmission protocols, and testing procedures.

EDI 404 Rail Carrier Shipment Information Document Exchange Workflow

In order to use EDI X12 404, both the shipper and the carrier must have the necessary technology and systems in place to support the transaction set.

Here’s a possible workflow for the exchange of an EDI 404 Rail Carrier Shipment Information Document:

EDI 404 Preparation

The shipper (sender) prepares the shipment and creates an EDI 404 document with the relevant information, such as the shipper and consignee names and addresses, the description of the goods, the weight and dimensions, the origin and destination locations, and the carrier information. The document is formatted according to the EDI X12 standard and the specific requirements of the carrier using sender’s internal system or a third-party EDI services.

EDI 404 Transmission

There are several methods to transfer an EDI document to a business partner. Here are some of the most common methods:

Value-Added Network (VAN): This is a third-party network that acts as a middleman between trading partners to transmit EDI documents securely. The VAN providers charge a fee for their services.
AS2 (Applicability Statement 2): This is a popular protocol for transmitting EDI documents over the internet using encryption and digital certificates. AS2 is a secure and reliable method for EDI document exchange.
FTP (File Transfer Protocol): FTP is a standard protocol used to transfer files over the internet. EDI documents can be transmitted using FTP by configuring a server and client for file exchange.
Web-based EDI: (REST API) Some EDI providers offer web-based solutions that allow companies to exchange EDI documents through a web interface. This method allows you to quickly start exchanging EDI documents with your business partners.
Direct connection: EDI documents can be transmitted directly between two systems using a point-to-point connection. This method requires setting up a dedicated connection between the two systems.

EDI 404 Receive, Validation, and Acknowledgment

The carrier receives the EDI 404 document validates its syntax, structure, and processes it through their EDI system.

Once the receiver has successfully received and validated the EDI 404 document, they should send back an acknowledgment message (EDI 997 document) to the sender to confirm the receipt and acceptance of the EDI 404 document.

The acknowledgment may include a unique transaction ID, the date and time of receipt, and any relevant status codes or error messages. The sender may use this information to track the progress of the shipment and to resolve any issues that may arise.

EDI 404 Processing

The carrier processes the shipment based on the information provided in the EDI 404 document, such as scheduling the pickup, assigning a rail car, routing the shipment, and generating the necessary documents and labels.

The carrier may also update its internal systems and communicate with other parties involved in the shipment, such as the consignee, the customs authorities, or other carriers in case of intermodal transportation.

Specific EDI Documents for the Rail Industry

In addition to the EDI 404 discussed in this article, here are some of the most commonly used EDI X12 transaction sets in the railroad industry:

410 Rail Carrier Freight Details and Invoice: This transaction set is used to transmit billing and payment information related to rail transportation services.

417 Rail Carrier Waybill Interchange: This transaction set is used to exchange waybill information between rail carriers, including origin and destination locations, equipment requirements, and shipment details.

418 Rail Advance Interchange Consist: This transaction set is used to provide advance notice of railcar movements between rail carriers.

419 Advance Car Disposition: This transaction set is used to provide advance notice of railcar movements to car owners, lessees, or shippers.

422 Shipper’s Car Order: This transaction set is used by shippers to order railcars from the rail carrier.

423 Rail Industrial Switch List: This transaction set is used to provide information about railcar movements within an industrial facility.

424 Rail Carrier Services Settlement: This transaction set is used to provide settlement information for rail transportation services.

Note that this list is not exhaustive, and there may be other EDI X12 transaction sets used in the rail industry depending on the specific needs of the trading partners involved.

While the EDI transactions listed above are unique to rail transportation, there are other EDI transaction sets that are used in the transportation industry more broadly, such as EDI 204 (Motor Carrier Load Tender), EDI 210 (Motor Carrier Freight Details and Invoice), and EDI 214 (Transportation Carrier Shipment Status Message).

You can find out more information about EDI documents for transportation or other industries in the article EDI for Specific Industries.

Benefits of EDI/X12 404

EDI X12 404 offers several benefits to rail carriers and their trading partners. Some of the key benefits include:

Improved Efficiency: By automating the exchange of shipment information, rail carriers can improve their operational efficiency and reduce errors and delays in the shipment process.
Cost Savings: EDI X12 404 can help reduce costs associated with paper-based processes, such as printing, mailing, and storage.
Enhanced Visibility: With EDI X12 404, rail carriers and their trading partners can gain real-time visibility into shipment status updates, equipment and routing details, and transportation charges.
Faster Payments: EDI X12 404 can help accelerate the invoicing and payment process by providing accurate and timely information about transportation charges.

EDI X12 404 Sample File

This is an example of an EDI file from BNSF 404 Implementation Guideline “USING ASC X12 TRANSACTION SET 404 VERSION 004010 10/01/98”

Sample EDI/X12 404

Minimal data requirements for a carload bill of lading

GS*SR*CUSTOMERX*BNSF*20230101*1520*2315*X*004010
ST*404*4567
BX*00*R*PP**BNSF*L*B*N
BNX*A
M3*B*20230101*1520*CT
N9*RP*AWI233**20230101*1520*CT
N9*BM*HGP2684**20230101*1520*CT
N7*ATSF*111598*195320*N*******RR
F9** CHICAGO *IL
D9**BOSTON*MA
N1*CN*CUSTOMER X
N4*BOSTON*MA
N1*SH*ABC CUSTOMER
N4* BOSTON*MA
PER*NT*JEAN DUPONT*TE*098-765-4321
R2*BNSF*S****R
LX*1
L5*1* WALLBOARD *1301210*T
L0*1*******1*CLD
PI*CT*12345***BNSF*BNC
SE*21*2315
GE*1*2315

GS*SR*CUSTOMERX*BNSF*20230101*1520*1315*X*004010 – This line contains the GS segment which is a functional group header. It identifies the sender (CUSTOMERX) and the receiver (BNSF), as well as the date and time (20230101 15:20) and the version of the EDI standard used (004010).
ST*404*4567 – This line contains the ST segment which is a transaction set header. It identifies the type of document (404) and a unique control number (4567) assigned by the sender.
BX*00*R*PP**BNSF*L*B*N -This line contains the BX segment which indicates the beginning of a transaction set. It specifies the version of the EDI standard used (00) and General Shipment Information, including the type of transaction (R for railroad) and the carrier (BNSF).
BNX*A – This line contains the BNX segment which is used to identify and track the progress of the shipment.
M3*B*20230101*1520*CT – This line contains the M3 segment which provides information about the shipment, including the date and time it was shipped (20230101 15:20) (CT for central time).
N9*RP*AWI233**20230101*1520*CT – This line contains the N9 segment which identifies a reference number (AWI233) for the shipment and provides the date and time it was shipped (20230101 15:20)
N9*BM*HGR2088**20230101*1520*CT – This line contains the N9 segment which identifies a reference number (HGR2088) BM – bill of lading number and provides the date and time it was shipped (20230101 15:20)
N7*ATSF*111598*195320*N*******RR – This line contains the N7 segment which provides information about the equipment used to transport the shipment, including the the equipment number (111598), and the type of equipment (RR – for a railcar).
F9**CHICAGO*IL – This line contains the F9 segment which provides information about the origin of the shipment, including the city and state (Chicago, Illinois)
D9**BOSTON*MA – This line contains the D9 segment which provides information about the destination of the shipment, including the city and state (Boston, Massachusetts)
N1*CN*CUSTOMER X– This line contains the N1 segment which identifies a party involved in the shipment (in this case, the consignee) and provides their name (CUSTOMER X).
N4* BOSTON*MA – This line contains the N4 segment which provides information about the Geographic location of the consignee (in this case, Boston, Massachusetts).
N1*SH*ABC CUSTOMER – This line contains the N1 segment which identifies a party involved in the shipment (in this case, the shipper – SH) and provides their name (ABC CUSTOMER).
N4* BOSTON*MA – This line contains the N4 segment which provides information about the location of the shipper (in this case, Boston, Massachusetts).
PER*NT*JEAN DUPONT*TE*098-765-4321– This line contains the PER segment which provides contact information for a person or department involved in the shipment. In this case, it is Jean Dupont, and its phone number (TE) is 098-765-4321.
R2*BNSF*S****R – This line contains the R2 segment which provides Route Information and the equipment used to transport the shipment, including the carrier (BNSF) and the type of equipment (R for a railcar).
LX*1 – This line contains the LX segment which identifies an Assigned Number.
L5*1*WALLBOARD*1301210*T – This line contains the L5 segment which provides information about the product being shipped (descriptions, marks, and Numbers) in this case, WALLBOARD. T = Standard Transportation Commodity Code (STCC)
L0*1*******1*CLD – This line contains the L0 segment which provides information about Line Item, Quantity and Weight. CLD – Car Load, Rail.
PI*CT*12345***BNSF*BNC – Price Authority Information. CT – contract, BNSF – the carrier.
SE*21*2315 – This line contains the SE segment which is a transaction set trailer. It specifies the number of segments in the transaction set (21) and a unique control number (2315) assigned by the sender.
GE*1*2315 – This line contains the GE segment which is a functional group trailer. It specifies the number of transaction sets in the functional group (1) and a unique control number (2315) assigned by the sender.

EDI 404 Document for Rail Carrier Companies

Many companies in the transportation industry use EDI X12 404 Rail Carrier Shipment Information to automate the exchange of shipment information with their trading partners. Here are a few examples of companies that use this transaction set:

Union Pacific Railroad Union Pacific Railroad is one of the largest freight railroad networks in North America.
Canadian National Railway Canadian National Railway is a transportation company that operates a comprehensive rail network in Canada and the United States.
Norfolk Southern Corporation Norfolk Southern is a transportation company that operates a rail network in the eastern United States.
BNSF Railway BNSF Railway is a freight transportation company that operates a rail network in North America.
CSX Transportation CSX Transportation is a transportation company that operates a rail network in the eastern United States.

These are just a few examples of companies that use EDI X12 404 Rail Carrier Shipment Information. Many other transportation companies also use this transaction set to automate the exchange of critical shipment data with their trading partners.

Conclusion: EDI X12 404 Rail Carrier Shipment Information

In conclusion, understanding EDI X12 404 Rail Carrier Shipment Information is crucial for businesses operating in the logistics industry. As we have seen, it streamlines communication between rail carriers and shippers, making the transportation of goods more efficient and cost-effective.

At our company, we have many years of experience in EDI integration and can provide free EDI consultation to businesses looking to implement EDI X12 404 or any other EDI document. We understand the importance of staying up-to-date with industry developments and are committed to helping our clients achieve success in their logistics operations.

So if you’re looking to streamline your logistics processes and improve communication with your rail carriers, don’t hesitate to reach out to us for a consultation. We look forward to working with you and helping your business thrive in the ever-evolving world of logistics.

March 29, 2023/0 Comments

EDI 832 Price/Sales Catalog: Understanding its Importance in Supply Chain Management

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This article will cover one of the critical EDI documents in Supply Chain Management, the EDI 832 Price/Sales Catalog.

What is EDI 832 Price/Sales Catalog?

The EDI 832 formally known as EDI X12 832 Price/Sales Catalog Transaction Set is a critical document that is used to provide product information and pricing data; it is sent from suppliers to buyers. It contains detailed information about the products, including product description, pricing, and other relevant details.

The EDI 832 document is used in various industries, including retail, wholesale, and manufacturing. The document is particularly useful for suppliers who sell a large number of products and need to provide customers with up-to-date information about their products and pricing.

EDI 832 Price/Sales Catalog Business Flow

The EDI 832 Price/Sales Catalog document flow typically involves the following steps:

Creation. The supplier creates the EDI 832 Price/Sales Catalog document, which contains information about their products, pricing, and other relevant details.
Transmission. The EDI 832 Price/Sales Catalog document is transmitted electronically from the supplier to the buyer.
Processing. The buyer receives the EDI 832 and processes the information to update their internal business systems, such as their ERP, or inventory management system.
Update. The supplier updates the EDI 832 every pre-defined period with any changes to product information or pricing, and transmits the updated document to the customer.
Usage. The buyer uses the information in the EDI 832 Price/Sales Catalog document to make purchasing decisions and manage their supply chain operations.

This document flow ensures that both the supplier and customer have access to the most up-to-date information, which helps to improve the accuracy and efficiency of supply chain operations.

EDI 832: Related EDI Transactions Process Workflow

The EDI 832 Price/Sales Catalog process workflow typically involves several related EDI transactions, including the following:

Price/Sales Catalog (EDI 832): The document includes product description, pricing information, and other relevant details.

Purchase Order (EDI 850). The EDI 850 transaction is used to place an order with a supplier. Typical purchase orders include information about the products, quantities, and delivery dates.

Advance Ship Notice (EDI 856). The EDI 856 transaction is used to provide advance notice of a shipment, including information about the items being shipped, the shipping method, and the expected delivery date.

Invoice (EDI 810). The invoice typically includes information about the products being invoiced, the quantities being invoiced, and the total amount due.

These transactions work together to support the complete order-to-payment process, allowing companies to exchange business transactions electronically and streamline their operations.

Key Data Elements in EDI 832

The key data elements in EDI 832 Price/Sales Catalog document include:

Product Identification: This includes information such as the product code, product name, and product description.

Pricing Information: This includes information such as the unit price, discount information, and any applicable taxes or fees.

Availability Information: This includes information about the availability of the product, including the expected delivery date, lead time, and minimum order quantity.

Product Characteristics: This includes information such as the product dimensions, weight, and any relevant specifications.

Product Classification: This includes information about the product’s classification, such as its category, subcategory, and any relevant product codes.

These key data elements provide the customer with the information they need to make informed purchasing decisions and manage their supply chain operations effectively.

Moreover, since the information is transmitted in a standardized format, it can be easily processed and understood by both suppliers and customers, reducing the likelihood of misunderstandings or errors.

USEFUL READING: Business Automation: How to Choose the Right EDI Solution

EDI 832 Price/Sales Catalog –Standards

The EDI 832 price/sales catalog uses the EDI ANSI X12 standard. The ANSI X12 standard is widely used for EDI transactions in the US and North America.

The analog of the X12 EDI 832 Price/Sales Catalog transaction set in the EDIFACT PRICAT (Price Catalog) message. EDIFACT Standard is an international standard that is used for Electronic Data Interchange (EDI) transactions worldwide but is particularly popular in Europe.

Both the EDIFACT PRICAT message and the X12 EDI 832 document are used to exchange product and pricing information between suppliers and customers. Both standards ensure that the information is transmitted in a standardized format.

EDI 832 Price/Sales Catalog – Structure

The structure of the EDI 832 Price/Sales Catalog document typically includes the following elements:

Header: The header contains information about the sender and receiver of the document, as well as the date and time it was transmitted.

Product Information: This section contains detailed information about the products, including product descriptions, pricing, and other relevant details.

Footer: The footer contains a summary of the information in the EDI 832 Price/Sales Catalog document, as well as any relevant checksums or error codes.

As stated above, the EDI 832 Price/Sales Catalog document adheres to EDI standards, which ensures that the information is transmitted in a standardized format that can be easily processed and understood by both suppliers and buyers. This helps to reduce the likelihood of misunderstandings or errors and ensures that the information is transmitted accurately and efficiently.

IMPORTANT NOTE: The EDI X12 standard does not have the capability to transmit images. The EDI X12 832 Price/Sales Catalog is used to exchange product catalog data, including product descriptions, pricing information, and item specifications. It is a text-based format that is used to transmit data in a standardized format, but it does not have the capability to transmit images or other binary data.

EDI 832 Example

ISA*00* *00* *12*4506813009 *ZZ*RECEIVER *220417*1132*U*00401*700005483*0*P*>~

GS*SC*9372915040*RECEIVER*20220417*113200*700005483*X*004010~

ST*832*1013327~

BCT*RC*126462263313********02~

REF*IA*009824~

DTM*007*20210423~

CUR*SE*CAD~

LIN**VA*D70GBTD06 MAG0D030*EN*8051730951638*CM*410*VN*D70GBTD06 MAG0D030*SM*1~

REF*PG~

REF*DP~

PID*F*08***JACKET****EN~

PID*F*PG***F21~

PID*F*SC****ME~

PID*F*SIZ***S~

CTP**RES*1495*1*EA~

CTP**WHL*598~

LIN**VA*D70GBTD06 MAG0D030*EN*8051730951645*CM*410*VN*D70GBTD06 MAG0D030*SM*1~

REF*PG~

REF*DP~

PID*F*08***JACKET****EN~

PID*F*PG***F21~

PID*F*SC****ME~

PID*F*SIZ***M~

CTP**RES*1495*1*EA~

CTP**WHL*598~

LIN**VA*D70GBTD06 MAG0D030*EN*8051730951652*CM*410*VN*D70GBTD06 MAG0D030*SM*1~

REF*PG~

REF*DP~

PID*F*08***JACKET****EN~

PID*F*PG***F21~

PID*F*SC****ME~

PID*F*SIZ***L~

CTP**RES*1495*1*EA~

CTP**WHL*598~

LIN**VA*D70GBTD06 MAG0D030*EN*8051730951669*CM*410*VN*D70GBTD06 MAG0D030*SM*1~

REF*PG~

REF*DP~

PID*F*08***JACKET****EN~

PID*F*PG***F21~

PID*F*SC****ME~

PID*F*SIZ***XL~

CTP**RES*1495*1*EA~

CTP**WHL*598~

LIN**VA*D70GBTD06 MAG0D030*EN*8051730951676*CM*410*VN*D70GBTD06 MAG0D030*SM*1~

REF*PG~

REF*DP~

PID*F*08***JACKET****EN~

PID*F*PG***F21~

PID*F*SC****ME~

PID*F*SIZ***XXL~

CTP**RES*1495*1*EA~

CTP**WHL*598~

CTT*5~

SE*52*1013327~

GE*1*700005483~

IEA*1*700005483~

How Supply Chain Management Benefits From EDI 832 Price/Sales Catalogs

The EDI 832 document helps buyers to manage their supply chain operations more effectively by providing them with accurate and up-to-date information about the products they purchase. This information can be used to update internal ERP system, such as NetSuite, SAP, Dynamics 365, Salesforce, or other which helps to improve the efficiency of supply chain operations.

Furthermore, both trading partners benefit from the following:

Reduce time, effort, and errors

By using the EDI 832 Price/Sales Catalog, companies save time and effort when processing orders and making changes to product information. Using the EDI 832 eliminates the need for manual data entry, which can be time-consuming and error-prone.

Additionally, since the information is in a standardized format, (ex. X12 or EDIFACT) it can be easily integrated into internal business systems such as ERP, reducing the chance of misunderstandings or errors.

Accuracy and efficiency of supply chain

Another important benefit of EDI 832 Price/Sales Catalog is that it helps to improve the accuracy and efficiency of supply chain operations. By providing real-time information about product availability, pricing, and other relevant details, it helps to ensure that orders are processed quickly and accurately, reducing the risk of delays or mistakes. Moreover, since the information is updated regularly, it ensures that suppliers and customers always have access to the most up-to-date information, which helps to improve the overall efficiency of supply chain operations.

What is the Best Way to Exchange EDI 832?

If you’re looking to start exchanging EDI 832 Price/Sales Catalogs with your trading partners, consider working with a fully managed EDI services provider. With a managed EDI solution, you can streamline your EDI operations and minimize the time and resources required to manage your EDI transactions.

A fully managed EDI solution can handle all aspects of EDI processing, including data mapping, EDI translation, error resolution, and communication with your trading partners. You can focus on your core business while the EDI service provider takes care of the technical details of EDI.

By working with an EDI provider such as EDI2XML, you can enjoy the benefits of EDI 832 without having to invest in software or IT infrastructure. Plus, with experienced EDI professionals handling your EDI operations, you can be confident that your EDI transactions are accurate, timely, and secure.

In conclusion, starting to exchange EDI 832 with a fully managed EDI services provider is a smart way to streamline your EDI operations and ensure that your EDI transactions are handled efficiently and effectively.

February 27, 2023/0 Comments

How Do Companies Send EDI Files?

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Introduction: What is EDI?

The Electronic Data Interchange (EDI) standard was developed by the American National Standards Institute (ANSI). It allows companies to exchange information about products, services, orders, and payments electronically in a standardized format.

Therefore, EDI is a technology that replaces the exchange of paper/file information between business partners with an automated exchange between their computer systems.

EDI is used by many different types of organizations, including banks, insurance companies, healthcare providers, manufacturers, and retailers.

Benefits of EDI for B2B Communication

EDI (Electronic Data Interchange) implementation is a great way for automating business-to-business (B2B) processes. EDI allows companies to exchange business documents such as purchase orders, invoices, etc. in a standardized electronic format, eliminating the need for manual data entry and reducing the risk of errors.

By automating these processes, EDI can help companies to improve efficiency, reduce costs, and increase accuracy in their B2B operations. Furthermore, implementing EDI can help companies to streamline their supply chain, and improve communication with business partners.

Here are some key advantages:

Efficiency and Speed:

Faster Transactions: EDI enables the exchange of business documents in a standardized electronic format, reducing the time required for processing orders, invoices, and other documents.

Real-Time Processing: EDI facilitates real-time data exchange, minimizing delays associated with traditional paper-based methods.

Accuracy and Error Reduction:

Automated Data Entry: With EDI, data is entered automatically into the recipient’s system, reducing the likelihood of manual errors associated with manual data entry.

Data Validation: The EDI 997 (or EDI Functional Acknowledgement), ensures that data is accurate and ensuring the integrity and reliability of EDI transactions.

Cost Savings:

Reduced Paper and Printing Costs: By eliminating the need for paper documents, printing, and manual handling, EDI helps businesses save on material and operational costs.

Lower Administrative Costs: Automation of document processing reduces the need for manual intervention, leading to cost savings in terms of labor and resources.

Enhanced Visibility and Tracking:

Transaction Visibility: Businesses can track the status of transactions in real-time, providing better visibility into the supply chain and allowing for proactive management of processes.

Audit Trails: EDI systems often maintain detailed audit trails, which can be valuable for compliance purposes and resolving disputes.

Improved Customer Relationships:

Faster Response Times: Quicker order processing and communication lead to faster response times, enhancing overall customer satisfaction.

Reduced Errors: Fewer errors in order fulfillment and invoicing contribute to positive customer experiences.

Compliance with Industry Standards:

Regulatory Compliance: EDI often adheres to industry-specific standards and regulations, ensuring that businesses comply with relevant requirements in their sector.

Environmental Impact:

Reduced Environmental Footprint: The move from paper-based to electronic transactions contributes to environmental sustainability by reducing paper usage and waste.

In summary, EDI in B2B communication offers a range of benefits, including increased efficiency, accuracy, cost savings, security, and improved relationships with trading partners. It has become an integral part of modern supply chain management and business operations.

B2B Automation Via EDI Implementation

If your company decides to implement EDI in order to exchange EDI files with your business partners, there are several important parameters to help in this decision:

1. What EDI Standard Will You Use?

The EDI standard prescribes mandatory and optional information that must be contained in each document, as well as established rules for the structure of the document.

In most cases, an EDI standard is selected based on the location of the company or its industry. It is more common in North America to use the X12 standard. European Union companies mostly use EDIFACT. HL7 is a standard used for processing medical data. RosettaNet is used in the electronics and semiconductor industry.

These articles can help you learn more about standards:

2. What Kind of EDI Documents Will You Exchange with Your Business Partner?

Typically, large companies dictate which EDI documents they require. Thus, if your business partner requires the exchange of documents in electronic format, most likely he already has a specific list of documents. An EDI document typically contains the same information as a paper document.

The following are some of the main documents that are exchanged electronically:

However, EDI is not limited to business data related to trade but covers all areas such as medicine (for example, laboratory test results), transportation (container information), insurance, etc.

Take a look at the full list of EDI documents that you can exchange with your business partners. List of EDI documents in X12 standard and EDIFACT.

3.Which Communication Protocol Will You Use?

Unlike an EDI standard or a list of EDI documents that your trading partner may require you to comply with, you will most likely be able to choose which EDI communication protocol you will use.

One of the most critical aspects of exchanging EDI documents is the way information is transferred. Thus, you need to decide how you will send and receive EDI files.

There are several different methods for sending EDI files. Here we will take a closer look at the most frequently used EDI protocols: FTP and SFTP, AS2 and VAN.

What is EDI Communication Protocol?

EDI communication protocols are the methods and technologies used to send and receive electronic data interchange messages. They are used to transfer data between businesses.

EDI Direct Connection (Point-to-Point Connection)

Direct connection allows you to transfer your EDI data directly from your computer to the computer of your business partner. A direct EDI connection can be made via VPN (Virtual Private Network), FTP (File Transfer Protocol), SFTP (Secure File Transfer Protocol), and AS2, which encrypts data before it is sent over the Internet.

FTP and SFTP to Exchange EDI files

FTP/SFTP – File Transfer Protocol/Secure File Transfer Protocol. In order to exchange EDI documents, businesses use these file transfer protocols to connect with their partners over the Internet.

There are a lot of benefits to using SFTP for transferring encrypted files since it is an easy-to-use protocol. Encryption calculations and public/private keys protect data transferred between the SFTP server and the client. The combination of these two elements provides robust protection known as public-key authentication. It is also possible for users to authenticate transmissions using an SSH key or a password.

AS2 (Applicability Statement 2) for EDI Communication

By encrypting EDI data and using digital certificates, AS2 provides a secure method of exchanging documents over the Internet.

The AS2 protocol has become widely adopted and implemented because of the internet’s popularity and HTTP’s leveraging.

AS2 uses a secure HTTPS connection and encrypts messages. The AS2 protocol allows enterprises to exchange EDI data in real-time and directly between their systems.

Walmart was one of the first companies to adopt AS2 for EDI communications. All of its suppliers were required to use the same protocol.

VAN (Value Added Network)

VANs (value-added networks) are private, hosted services that are designed to provide companies with a secure way to exchange EDI information with their business partners.

VAN can be compared to a “post office” where business partners can collect and sort incoming EDI documents.

It is estimated that only a small number of businesses currently use VANs. It is because of the low cost of the Internet and the level of security that can be achieved using Internet communication protocols. Point-to-point communications have become the norm for most of the “big players” in retail.

Conclusion: How Do Companies Send EDI Files?

Does your partner require an EDI document exchange?

If you do not know where to start, don’t hesitate to get in touch with us. Our EDI experts will be happy to help you make the right decision and answer all your questions.

December 5, 2022

Business Automation: How to Choose the Right EDI Solution

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Business Automation through EDI Solution

Most entrepreneurs who have never experienced EDI before, feel overwhelmed when it comes to selecting an EDI provider or solution, to start exchanging business documents with their trading partner.

There are multiple EDI solutions from different big and small EDI Providers. At first blush, each EDI solution looks better than the other, but how do you choose the best EDI solution for your business?

The Electronic Data Interchange (EDI) is the exchange of business documents electronically between business partners.

In this article, I will review the main EDI solutions on the market, using the solutions from EDI2XML as an example, additionally, I will give you useful tips on how to choose an EDI provider without losing sight of key points that will affect the long-term success of EDI.

Why You Should Be Careful When Choosing an EDI Solution?

For many organizations, EDI is a mission-critical application whose failure can lead to a complete stoppage of activity, therefore, the choice of an EDI solution, as well as EDI provider, must be approached carefully.

EDI is responsible for supporting a wide variety of business processes – inventory management, orders, purchasing, logistics, tenders, etc.

Perhaps there is no such field of activity where you can run, without the exchange of documents at all, which means that EDI solutions can be needed everywhere.

Choosing the Right EDI Solution to Automate Your Business

EDI is used for B2B communication in all industries by both large corporations and the smallest companies. That is why there are different EDI solutions designed for different markets and companies.

EDI allows businesses to exchange documents quickly since it eliminates the need to prepare and process mail or to make phone calls, faxes, or paperwork when ordering or selling.

By choosing the right EDI solution, you will make it easier to communicate with your business partners and bring value to your business.

For example, if you are a small company that has only one trading partner that requires EDI exchange, you need a simple EDI solution that does not require a large initial investment, which will allow you to quickly start exchanging EDI documents with your business partner.

Continuing on the topic of EDI solutions, let’s take a look at the different options of EDI solutions on the market, using the example of EDI2XML as EDI service provider.

It should be remembered that the details of EDI solutions from different EDI providers always differ. However, the description below will give you a general idea of the existing EDI solutions.

Fully Managed EDI Services

EDI fully managed service refers to a service where the EDI provider takes full responsibility for managing EDI operations and integrating them on behalf of the client.

With Fully Managed EDI Service, there is no need for the customers to install any software or hardware on their computers. The EDI provider will take care of the implementation and configuration of the process flows. He will be in charge of handling the data routing and will be responsible for the data format conversion and integration.

Through the fully managed EDI service, an EDI provider will take on a wide range of responsibilities that are usually handled by an internal IT department. With a fully managed EDI solution, EDI2XML delivers a turnkey project to connect your business partners.

Which Companies Can Benefit From a Fully Managed EDI Service?

Companies that need to use EDI but don’t want to spend the time and effort on the EDI implementation themselves, or who don’t have the necessary EDI skills and specialists who can do it, need an EDI service provider to handle all the configuration and integration of EDI. In this case, a fully managed EDI service is the ideal solution.

Find out more about Fully Managed EDI Services its process flow, features, technical details and pricing.

EDI Web Service

The EDI Web Service is an HTTP service from EDI2XML that works over the internet on the private platform. This HTTP EDI Web Service (REST API) can receive HTTP requests to convert EDI messages to XML and XML messages to EDI (based on EDI2XML’s proprietary format).

There are many reasons why EDI2XML Web Service is the right choice:

1. Solution based on self-service

2. An affordable price

3. Our free trial period lasts for 15 days without any obligation, so you have nothing to lose.

4. Getting started will take you less than an hour

5. There is no contract with us, and no commitment.

6. We charge on a month-to-month basis; you can cancel at any time with 30 days’ notice.

7. There is a very simple and dynamic pricing scheme that is easy to understand and use

8. The availability and reliability of the service

9. Using proven technologies that are backed by a wealth of experience

10. Support from a highly skilled technical team is outstanding

It is very simple and quick to get started with the EDI2XML Web Service. Within less than an hour, you can make the first Call to the Web Service and see the response.

We offer a well-documented HTTP EDI Web service, and each subscription includes instructions.

Who is the EDI Web Service For?

The EDI web service is intended for developers and enterprises who want to create their own EDI (Electronic Data Interchange) integrations.

Typically, these users can interact with external APIs and web services to convert EDI to XML and XML to EDI. Additionally, they have the expertise and resources to work with web services and HTTP requests.

EDI2XML Web Service is a reliable service for IT professionals who need to perform such integration projects.

We suggest EDI Web Service to companies that have their own technical resources to work with REST APIs (calls and consumptions of HTTP Rest Web services).

Request EDI2XML Web Service Price List

On-Premises EDI Solution

On-premises EDI refers to the implementation of EDI software that is installed and operated through the customer’s own server and computing infrastructure.

On-premises EDI deployment from EDI2XML involves two components that will be deployed on-premises:

1. EDI2XML translation and transformation engine to convert X12/EDIFACT messages to XML and vice versa.

2. A license of Magic xpi a third-party integration and automation platform.

Features of the EDI2XML service “on premises”

1. The application is deployed on the customer’s server

2. Service that is based on a subscription

3. There is a standard XML format for incoming EDI messages

4. Standard XML format for Outgoing X12

5. XML schemas (.xsd) are also provided

6. SMTP/FTP/sFTP protocols are included in the package

When On-Premises EDI is is Right for You?

On-premises EDI is suitable for companies that have strict IT management rules and procedures that they can only deploy software solutions on their own premises.

You should also consider how much EDI data you want to exchange with your business partner. If you expect a very large volume of data, you might consider an on-premises EDI solution. A company’s IT architecture and its team play a vital role in implementing EDI on-premises. Make sure the company has the proper hardware infrastructure, and that the IT department is ready to tackle this project.

Request EDI On-Premises Pricing Plans

Choosing an EDI Provider: What to Look For

Now that we’ve discussed the main types of EDI solutions, let’s talk about what to look for in an EDI provider. There are several different kinds of EDI service providers available.

In developed markets, as a rule, a large service provider gets almost everything – the vast majority of customers start using its product because they do not bother with in-depth analysis of technologies and services, but use the same thing that other companies or business partners utilize.

It is for this reason that demonstrations of a large number of customers are one of the most popular marketing techniques. Of course, a large customer base may indicate the reliability of the EDI provider (which does not always correlate with the quality of the EDI solution, price flexibility, service, and technical support) that you can get from smaller EDI providers.

The following are some basic recommendations about what you should look for when choosing an EDI provider for your company.

– Exclude sales and market share statistics from your list of EDI provider criteria.

– Rely on relatively new projects that are comparable in scope to your organization as references.

– It is critical to pay attention to how quickly the company responds to your requests when you contact them.

– A provider of EDI services should be able to connect you with technical experts for a personalized consultation.

– If you need a customized quote, how quickly will they be able to provide it to you?

– How does an EDI provider support its customers? When it comes to technical issues, how quickly can they resolve them?

– Check if the prices of the company can be adjusted based on your needs.

Remember that a big EDI provider doesn’t always mean the best.

Conclusion: How to Choose the Right EDI Solution

The use of EDI has become a necessity for most companies today. Meanwhile, the choice of an EDI solution has become very difficult for companies. This is because the market for EDI solutions is currently quite large, in addition, EDI solutions in terms of technical characteristics and functionality have become quite similar to each other.

Therefore, factors such as the reliability, experience, and flexibility of the EDI provider often become the last argument when choosing an EDI solution.

If you are not completely satisfied with your EDI provider, then read this helpful article How to Change Your EDI Service Provider

Are you looking for ways to improve your business processes? Then look no further! Our EDI services are here to help! Our EDI experts are available to give you a free consultation if you are still unsure which EDI solution is right for you.

July 12, 2022/0 Comments

All You Need to Know About EDI 812 Credit/Debit Adjustment

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Modern businesses are constantly striving to improve and automate their business processes, especially when it comes to supply chains. However, even the best-run supply chains can face situations where adjustments need to be made. If a problem arises with a purchase order, the trading partner uses EDI 812.

What is an EDI 812?

EDI 812, formally known as an EDI X12 812 Credit/Debit Adjustment Transaction Set, is an EDI document used by trading partners (buyer and seller) in B2B communication to indicate that adjustments have been made to a specific payment or to demand an adjustment or bill-back.

Using EDI 812 transaction, trading partners can reconcile payments with invoices and eliminate the need for paper credit or debit memos.

Who Uses The EDI 812 Debit/Credit Adjustment?

EDI 812 is used to automate B2B communications in all industries. This EDI document can be used by various companies such as:

Retailers/ grocers
suppliers of goods and services
manufacturers of goods
wholesalers
warehouses
3 PL Logistics
transport companies (providing road, rail, sea (river) and air transportation) and many others.

When is The EDI 812 Document Used?

Trading partners use EDI 812 Credit/Debit Adjustment in various cases, the most common examples are:

The products that were ordered were not delivered.
There was a mistake in sending the products.
A defective, damaged, or spoiled item was received.
The manufacturer’s discount or retailer’s markup needs to be adjusted.
In the original purchase order or invoice, there was an error in the pricing.
There is an inconsistency in the quantity of goods delivered. For instance, when more or less goods are delivered than ordered.
Consumers are returning the goods to the retailer

What Information is Included in EDI 812 Debit/Credit Adjustment?

Generally, an EDI 812 document refers to a specific Purchase Order or Invoice and contains detailed information such as:

The number of the original PO or Invoice.
The total amount of the adjustment.
The items that are being adjusted.
Identification of the items.
Quantity of the items.
Credit, debit, or adjustment justification.
Debit/Credit Memo

EDI X12 812 Transaction Set Specification

EDI X12 812 Credit/Debit Adjustment Transaction Set is an electronic document used in the context of EDI where:

EDI – Electronic Data Interchange is a technology used to exchange commercial data between companies in a structured digital form based on regulated message formats and standards.

X12 – is a cross-industry standard for electronic exchange of business documents between business partners. In the United States, it is the most commonly used EDI standard.

812 – is a unique three-digit number to identify an EDI transaction. A three-digit code is assigned to each type of EDI document that is used in the X12 standard.

Transaction Set – is an electronic document that is the equivalent of a paper document.

The following is an example of the specification for the EDI 812 Transaction Set. The 812 contains mandatory and optional data, as with any other EDI document. Depending on the field of activity and the requirements of the trading partner, additional data may be required.

A typical structure for this document would be as follows:

EDI 812 Transaction Set Heading:


Segment ID	Name	Purpose:
ST	Transaction Set Header	Indicating the start of a transaction set and assigning a control number
BCD	Beginning Credit/Debit Adjustment	Provide the receiver with the identifying date and number for the transaction set and the monetary value of the transaction
N9	Extended Reference Information	Transmit identifying information as specified by the Reference Identification Qualifier
PER	Administrative Communications Contact	Identification of the individual or office to whom administrative communications should be addressed
SHD	Shipment Detail	To specify shipment details, such as weight, quantity, and routing instructions regarding crediting or debiting returned products
N1	Party Identification	Identification of a party based on type of organization, name, and code

EDI 812 Transaction Set Detail:


Segment ID	Name	Purpose:
CDD	Credit/Debit Adjustment Detail	Provide information concerning a line item adjustment
LIN	Item Identification	Identifying basic information about an item
PO4	Item Physical Details	To describe the physical characteristics, packaging, weights, and dimensions of an item
N9	Extended Reference Information	Ttransmit identifying information as specified by the Reference Identification Qualifier
SE	Transaction Set Trailer	To specify the end of a transaction set and report the number of segments transferred (including beginning (ST) and ending (SE) segments). SE represents the final segment of a transaction set.

What Communication Protocol is Used to Send and Receive EDI 812?

At present, most companies that use EDI to communicate with their business partners do so over the Internet using FTP, sFTP, or AS2 communication protocols. For a variety of reasons, some companies may opt to use VAN, which is a more expensive solution.

Learn more about EDI communication protocols in the free EDI guide: Introduction to EDI Communication

EDI B2B Automation Through 812 Translation

The information transmitted by EDI 812 needs to be translated into a functional format for further processing or for integration into the company’s business system. Many companies use the Fully Managed EDI Services from EDI2XML. Through this service, EDI 812 information can be synchronized with an internal system, such as an ERP/CRM or accounting system, eliminating the need for manual data entry. In this way, the data received from trading partners via EDI is immediately pushed into the business system and can be processed quickly.

Learn more about the Fully Managed EDI Service

As an alternative to fully managed EDI, to transmit and translate an EDI 812 or any other EDI document, company can use low-cost and flexible EDI solution from EDI2XML – the HTTP EDI Web Service (REST API).

EDI2XML Web service is a web-based HTTP service that runs over the Internet and converts EDI messages into XML and XML messages into EDI (based on EDI2XML’s proprietary XML schema).

Learn more about this EDI service in the article: How to Become EDI Compliant in Under 60 Minutes (Yes, Really)

Benefits of Using the EDI 812 Credit /Debit Adjustment

Both the seller and the buyer benefit from EDI 812 credit/debit adjustment by automating the transaction process. Below are some of the advantages that can be realized by both trading partners:

Sending and receiving credits/debits can be done more quickly and with less effort
Gain operational efficiencies by reducing paperwork
Automated data entry reduces errors
Maintains documentation for deductions and credits

Conclusion: All You Need to Know About EDI 812 Credit/Debit Adjustment

For more information on how to implement EDI 812 in your company, contact us for a free consultation with one of our EDI experts.

You can also gain a lot of useful knowledge about business and e-commerce automation and integration of EDI, ERP, and CRM by exploring our Blog

June 13, 2022/0 Comments