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

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:
  1. 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.
  2. Cost Savings: EDI X12 404 can help reduce costs associated with paper-based processes, such as printing, mailing, and storage.
  3. 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.
  4. 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
  1. 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).
  2. 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.
  3. 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).
  4. BNX*A – This line contains the BNX segment which is used to identify and track the progress of the shipment.
  5. 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).
  6. 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)
  7. 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)
  8. 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).
  9. 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)
  10. 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)
  11. 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).
  12. N4* BOSTON*MA – This line contains the N4 segment which provides information about the Geographic location of the consignee (in this case, Boston, Massachusetts).
  13. 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).
  14. N4* BOSTON*MA – This line contains the N4 segment which provides information about the location of the shipper (in this case, Boston, Massachusetts).
  15. 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.
  16. 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).
  17. LX*1 – This line contains the LX segment which identifies an Assigned Number.
  18. 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)
  19. L0*1*******1*CLD – This line contains the L0 segment which provides information about Line Item, Quantity and Weight. CLD – Car Load, Rail.
  20. PI*CT*12345***BNSF*BNC – Price Authority Information. CT – contract, BNSF – the carrier.
  21. 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.
  22. 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:
  1. Union Pacific Railroad Union Pacific Railroad is one of the largest freight railroad networks in North America.
  2. Canadian National Railway Canadian National Railway is a transportation company that operates a comprehensive rail network in Canada and the United States.
  3. Norfolk Southern Corporation Norfolk Southern is a transportation company that operates a rail network in the eastern United States.
  4. BNSF Railway BNSF Railway is a freight transportation company that operates a rail network in North America.
  5. 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.
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EDI 832 Price/Sales Catalog: Understanding its Importance in Supply Chain Management

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.

EDI 832 Price/Sales Catalogs

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.

Contact us today for your free EDI consultation!

 

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How Do Companies Send EDI Files?

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.

EDI automation

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.

EDI-communication

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.

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The Advantages of Business Automation through EDI

Today, there are still decision-makers who are debating whether to invest in EDI integration projects or to hire a few new employees to manually enter and process data from trading partners.

Since EDI is still a difficult topic for non-technical people to understand, hiring data entry administrators may seem like a reasonable choice. It is commonly believed that EDI requires a significant initial investment.

Let’s take a look at what EDI automation is and how companies can find the most cost-effective solution.

What is EDI Automation?

EDI (electronic data interchange) is a technology used by business partners to exchange business electronic documents in standard formats without requiring human intervention.

These exchanged documents are called – EDI Transaction Set. If you want to see the full list of documents that can be exchanged in EDI format check our Complete List of EDI X12 Codes.
What is EDI

How Does EDI Benefit Businesses?

The use of EDI greatly improves the overall state of the business as it has many benefits.

– Reducing costs. Saving time for employees to process documents and enter them into databases. EDI reduces an enterprise’s printing, shipping, and storage costs.

– Speed. Documents can be exchanged instantly with a business partner. You won’t lose documents along the way or among the papers on your desk.

– Automation. EDI significantly improves the business because it automates processes and reduces the time delays associated with manual data entry.

– Accuracy.  Elimination of errors associated with manual data entry.

Useful: Download our free Guide “Introduction to EDI Communication” to learn more about EDI

What Documents are Used in EDI?

As mentioned above, you can exchange almost any type of document using EDI, but the most common ones are:

Purchase Order – EDI 850

Useful Reading: All You Need to Know About EDI ANSI X12 Transaction Set 850 Purchase Order

Invoice – EDI 810

Useful Reading: What is an ANSI ASC X12 EDI 810 Invoice?

Purchase Order Acknowledgment – EDI 855

Useful Reading: What is EDI 855 Purchase Order Acknowledgment?

Inventory Inquiry/Advice – EDI 846

Useful Reading: What is EDI 846 document?

Advanced Ship Notice (ASN)– EDI 856

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

Below is an example of an EDI flow between trading partners.

Types of EDI (Electronic Data Interchange) Solutions

Currently, many EDI providers offer various EDI solutions. There is no one-size-fits-all EDI solution for every company. A company should evaluate which option will be most cost-effective for its business model. Thus, the main offers on the EDI market are:

Our company offers all three named EDI solutions. If you don’t know which solution is right for you, contact our experts for a free consultation.

EDI Document Business Flow

1. One business partner (generally the buyer) generates a document (i.e. Purchase Order) in his internal ERP system (i.e. SAP, Microsoft Dynamics, JD Edwards, etc.). Depending on the company’s business process, the document can be generated automatically or manually.

2. EDI providers can either pick up the generated document directly from the company’s ERP system, or they can transfer it to them.

3. The EDI provider converts the document into an X12 EDI transaction set. After conversion, suppliers receive an EDI X12 document.

What is the Fastest Way to Connect to EDI?

With EDI2XML and its “HTTP EDI Web Service (REST API)” model, companies can connect their EDI partners in less than one hour! EDI web services reduce the cost of EDI integration projects and improve efficiency and accuracy in a short amount of time.

As a result of using the EDI Web Service from EDI2XML, a company can quickly and efficiently exchange business documents with its business partner.

Learn more about EDI2XML Web Service its advantages and how it works.

Request EDI2XML Web Service Price List

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Business Automation: How to Choose the Right EDI Solution

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.
EDI automation

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.  
Cloud Services EDI

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.

Read more about Magic xpi integration platform as the best fit for enterprise data integration

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
EDI-On-Premises solution

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

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 IDNamePurpose:
ST Transaction Set HeaderIndicating the start of a transaction set and assigning a control number
BCD Beginning Credit/Debit AdjustmentProvide the receiver with the identifying date and number for the transaction set and the monetary value of the transaction
N9 Extended Reference InformationTransmit identifying information as specified by the Reference Identification Qualifier
PER Administrative Communications ContactIdentification of the individual or office to whom administrative communications should be addressed
SHD Shipment DetailTo specify shipment details, such as weight, quantity, and routing instructions regarding crediting or debiting returned products
N1 Party IdentificationIdentification of a party based on type of organization, name, and code

EDI 812 Transaction Set Detail:

Segment IDNamePurpose:
CDD Credit/Debit Adjustment DetailProvide information concerning a line item adjustment 
LIN Item IdentificationIdentifying basic information about an item 
PO4 Item Physical DetailsTo describe the physical characteristics, packaging, weights, and dimensions of an item 
N9 Extended Reference InformationTtransmit identifying information as specified by the Reference Identification Qualifier 
SE Transaction Set TrailerTo 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
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The Top 4 EDI Documents for Freight Transportation Companies

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

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

EDI for Transportation and Logistics Management

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

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

Advantages of Using Electronic Data Interchange (EDI) in Transportation

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

The Most Commonly used EDI Documents in the Transportation Industry

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

EDI 204 Transaction Set: Motor Carrier Load Tender

What is a 204 Tender?

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

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

Key Information of EDI 204 Motor Carrier Load Tender

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

Why Use EDI 204 for Load Tender?

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

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

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

EDI 990 Transaction Set: Response to a Load Tender

What is an EDI 990 Response to a Load Tender?

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

What is Important to Know About EDI 990

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

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

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

EDI 214 Transaction Set: Transportation Carrier Shipment Status Message

What is EDI 214 Transportation Carrier Shipment Status Message?

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

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

Who Uses EDI 214?

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

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

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

EDI 210 Transaction Set: Motor Carrier Freight Details and Invoice

What is an EDI 210?

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

What Data Does the EDI X12 210 Transmit?

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

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

Digital Transformation of the Logistics Business with EDI

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

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

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All You Need to Know about EDI for Suppliers

Suppliers can offer a retailer a broad selection of products that can range from 10 to 300 or more different items. Considering that a large retailer (as well as a supplier) can have dozens or even hundreds of different trading partners. Exchanging such a volume of information by fax or e-mail, and manually entering an order, invoice, and other related information into the ERP system becomes completely inefficient.

The need to transfer and enter data manually has been eliminated by EDI technology. EDI saves staff time and greatly improves supply chain management.

NOTE: EDI is the exchange of electronically structured messages in accordance with agreed standards (X12, EDIFACT) between the information systems of trading partners. The message refers to the business documentation which was traditionally exchanged in paper form. Invoice, Purchase Order, Inventory Inquiry/Advice, and so on.

What is a Supplier in Business?

A supplier is a company (manufacturer, vendor, wholesaler, distributor) that provides goods and services to another organization. The supplier is part of the supply chain. Recently, more and more common suppliers are engaged in dropshipping, that is, they deliver goods directly to the buyer’s customers.
EDI for Supplier

Benefits of EDI for Trading Partner

EDI integration has many benefits for both the supplier and the buyer and allows you to automate operations related to external data.

Through the use of EDI, companies can:

– ensure the security of commercial data transmission;

– guarantee fast and timely transfer of information;

– increase productivity through fast transmission and processing of information;

– minimize errors that occur during manual data entry, which often lead to additional costs;

– reduce operational costs;

– significantly increase the trade turnover between business partners, increase the profitability and competitiveness of the company in the market.

EDI Order Processing

EDI serves as a “link” between suppliers and buyers. In the retail industry, the retailer defines the format (X12/EDIFACT) and the list of required EDI documents and sets strict rules for exchanging EDI documents with all of its suppliers. Supplier companies that want to work with retailers are required to follow the established rules.

The scheme of EDI interaction on the example of the EDI order processing between a retailer (buyer) and a product supplier is shown in the figure below.

The buyer creates an order for the goods, which is converted into an electronic data interchange (EDI) format (i.e. X12, EDIFACT), encoded, and sent in encrypted format over an FTP, sFTP, AS2, API, or VPN to the supplier.

At the supplier side, this EDI transaction set is decoded and converted into the supplier application format (XML, CSV, TXT, JSON) and the incoming EDI message could be integrated into the ERP/CRM system of the supplier.
EDI order process

The simplest and most common business process looks like this:

– Buyer: prepare and send the order (EDI X12 850) to the supplier.

– Supplier: sends to the buyer a Purchase Order Acknowledgment (EDI X12 855) to confirm the supplier’s intention to fulfill the order.

– Supplier: Once the products are shipped, the supplier sends an Advanced Ship Notice (EDI X12 856) to the buyer.

– Supplier: send the buyer an invoice (EDI X12 810) to get paid.

The Most Used EDI Documents by Suppliers

Below is a list of the most used EDI documents between a supplier and a buyer.

Documents in X12 Standard (Common in North America)
  • EDI 810 – Invoice
  • EDI 812 – Credit/Debit Adjustment
  • EDI 832 – Price/Sales Catalog
  • EDI 846 – Inventory Inquiry/Advice
  • EDI 850 – Purchase Order
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 856 – Advanced Ship Notice (ASN) /Manifest

Documents in the EDIFACT Standard Used in Europe
  • ORDERS Purchase order (order for delivery of goods or services
  • ORDRSP Purchase Order Response (order confirmation
  • DESADV Despatch advice (notice of shipment)
  • RECADV Receiving advice (delivery notice)
  • INVOIC Invoice
  • PRICAT Price/sales catalog message (product catalog
  • PROINQ Product inquiry (price list request)
  • COACSU Commercial account summary (the act of review of mutual accounts

In addition to those listed above, trading partners can exchange other types of documents that depend on the industry in which the company operates and its business processes.

You can find the full list of EDI documents with their codes at the links below:

EDI 810 Invoice Example

The following example of EDI Transaction Set details X12 810 invoice.

ISA*00*          *00*          *12*5141231234     *12*5034564567     

*181122*1220*U*00501*000000001*0*T*> GS*IN*5141231234*504564567*20181122*122047*1*X*005010

ST*810*0001

BIG*20181122*I-0042537

N1*RI**92*10055500

N1*ST**92*00262

ITD*05*1*****100

DTM*011*20190120

IT1**2*EA*5.45**UP*888077648572

SDQ*EA*92*00682*1*70674*1

IT1**2*EA*5.45**UP*888077650123

SDQ*EA*92*00111*1*11356*1

IT1**3*EA*4.85**UP*888077648954

SDQ*EA*92*00682*1*11356*1*70674*1

IT1**3*EA*5.15**UP*888077649105

SDQ*EA*92*00011*2*00111*1

IT1**1*EA*5.9**UP*888077648867

SDQ*EA*92*00682*1

TDS*5770

CAD*A***FDEG

CTT*5

SE*20*0001

GE*1*1

IEA*1*000000001

Benefits of Using Fully Managed EDI Services for Suppliers

The use of EDI by businesses, in particular by suppliers has many benefits. However, it should be noted that there are many EDI service providers, and they all provide different services at different prices. Therefore, the benefits of using EDI may differ.

We, as  EDI service provider with more than 21 years of experience, offer suppliers to take advantage of our Fully Managed EDI Service, which can bring the following business benefits:
  • Increase productivity and performance of administrative and sales departments.
  • No manual data entry and no lost documents.
  • Reducing administrative costs.
  • Improve the quality of incoming and outgoing business data.
  • Flexible and adaptive pricing plan. Depending on the amount of transmitted information, EDI prices can both increase and decrease monthly. (Request Fully Managed EDI Service Pricing Plans)
  • The ease of use of our EDI service – you don’t need any IT or EDI skills.
  • Support from our EDI and business experts.

USEFUL: If you want to know how to change your EDI provider (or choose a new one), read this article.

EDI Solution for Suppliers

We offer affordable EDI solutions for suppliers.

Web EDI

Fully Managed EDI

On-Premises EDI

These proven EDI solutions improve the efficiency of our customers by making it easy to manage transactions, shipments and improve efficiency across the entire supply chain.

To get more out of EDI, we can integrate your EDI with any ERP, CRM, accounting application, shipping service, eCommerce solution, WMS, and more.

Contact us for an initial free consultation.
Free EDI Consultation
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EDI for Specific Industries

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

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

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

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

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

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

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

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

EDI for Transportation and Logistics Industries

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

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

The Most Used EDI Transactions for Transportation and Logistics

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

EDI for the Supply Chain Industry

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

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

EDI Transactions for Supply Chain

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

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

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

It covers the following questions:

– What is EDI?

– Why use EDI in the supply chain?

– How does EDI work?

– Typical EDI workflow process

– Additional and specific types of EDI messages

– Benefits of EDI for Supply Chain Management

– Effective EDI Solution for Supply Chain

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

EDI for HealthCare and Insurance Industries

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

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

Most common EDI Transaction Sets in HealthCare

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

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

EDI for the Retail Industry

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

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

The Most Used EDI Documents in the Retail

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

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

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

Conclusion: EDI for Specific Industries

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

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

Free EDI Consultation
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How to Become EDI Compliant in Under 60 Minutes (Yes, Really)

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

Being an EDI-compliant company is one of the most effective ways to drive business growth.

There are times when SMEs cannot collaborate with large companies because small companies do not meet their EDI requirements.

In other cases, companies may lose their long-term large business partner because a large company moves to EDI and starts requiring all of its suppliers to exchange documents via EDI.

This can happen to any company.

However, EDI is still the main tool for interacting between business partners and the possibility of cooperation with large companies.

In fact, all major retail companies such as Walmart, Kroger, Home Depot, Costco, Target, and others, actively use EDI to communicate with their suppliers, carrier companies, and 3PL partners.

So what tool can enable you to quickly exchange EDI and become EDI compliant? How to start exchanging EDI documents quickly and cost-effectively, without losing an existing trading partner and be ready to cooperate with new ones?

HTTP EDI Web Service (REST API) – an Easy Way to Exchange Business Documents

EDI connectivity is a pain for many SMEs. Often, they simply do not have the necessary resources for an EDI integration and can’t afford the monthly EDI fees that must be paid to the EDI provider. Moreover, often, it is simply not profitable and very expensive, since small companies often have a small volume of transactions per month.

With over 20 years’ experience as an EDI provider, we have identified this problem that small businesses need to solve every day, and developed a unique, easy-to-use solution for SMEs to become EDI-compatible quickly and easily.

We have built a robust and well-established EDI tool that allows you to connect to EDI in record time and start exchanging EDI documents with your trading partners.

What is EDI Web Service?

The EDI2XML Web Service is a web-based HTTP service that runs over the Internet and is capable of translating EDI messages to XML and XML messages to EDI (based on EDI2XML’s proprietary xml format or schema).

EDI Web services

EDI Web Service is a low-cost alternative solution to on-premises EDI, SaaS EDI, or Managed EDI.

This EDI solution offers almost the same benefits of a traditional EDI, including speeding up business document transformation, eliminating document loss, and reducing administrative contact with trading partners.

Supported EDI Transactions

In our EDI document library here you can find a list of supported EDI X12, EDIFACT, HIPAA / X12 transactions that you can start transformation, and be ready to exchange in less than an hour. However, we can add any additional EDI transaction set at your request, without any fees.

EDI Web Service Fees

Payment for the use of the EDI web service is very simple and consists of two parts:

  1. The monthly payment for using the web service mailbox.
  2. Payment for the volume of processed data. This fee is variable and depends on the volume of data converted (between EDI and XML) during a calendar month.

GOOD TO KNOW: All new users of our API web service can benefit from our 15-days free trial.

3 Easy Steps to Become EDI Compliant

I will give you a specific formula in 3 easy steps you need to follow to quickly become EDI compliant without spending a lot of time and money.

Step #1: Get More Information about EDI Web Service

Learn full information about HTTP EDI Web Service on page: What is EDI2XML Web Service? On this page, you will find information about how the EDI web service works and what its benefits are.

Step #2: Request a Price List to Access the EDI2XML Web Service

Fill out the short contact form on this page to receive a document with a detailed pricing scheme. This document will also contain a section with answers to frequently asked questions. We recommend that you also read it as it contains very valuable information.

Step #3: Getting Started with EDI2XML Web Service in Record Time

After filling out the form and submitting it, we will contact you within [24] hours with the information you need (Token and password) in order to start interacting with the Web Service. Each subscription comes with detailed instructions and documentation regarding our Web Service.

Conclusion: Become EDI compliant in Under 60 Minutes

You may have already spent weeks looking for the right EDI solution, now you can quickly become EDI compliant without wasting another day of your time.

Our EDI web service is fast and stable and brings results to our customers.

If you have any questions, please contact us for a free EDI consultation.

EDI web service
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