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EDI Integration for Efficient Transportation Management

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

Truck-Transportation EDI

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

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

EDI Integration in 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

EDI and 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.

EDI- Price

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.

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

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.

Automate 862 Shipping Schedule with EDI Services from EDI2XML

We have been offering EDI services for more than 22 years, making us highly experienced in implementing EDI projects. Our services cover a wide range of options, including fully managed EDI, EDI web service, and EDI on-premises solutions.

Whether you need comprehensive support or specific EDI services, we have the expertise to meet your requirements.

Contact us today for a free initial consultation to discuss how our EDI solutions can streamline your operations.

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The Top 4 EDI Documents for Freight Transportation Companies

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

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

EDI for Transportation and Logistics Management

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

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

Advantages of Using Electronic Data Interchange (EDI) in Transportation

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

The Most Commonly used EDI Documents in the Transportation Industry

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

EDI 204 Transaction Set: Motor Carrier Load Tender

What is a 204 Tender?

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

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

Key Information of EDI 204 Motor Carrier Load Tender

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

Why Use EDI 204 for Load Tender?

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

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

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

EDI 990 Transaction Set: Response to a Load Tender

What is an EDI 990 Response to a Load Tender?

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

What is Important to Know About EDI 990

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

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

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

EDI 214 Transaction Set: Transportation Carrier Shipment Status Message

What is EDI 214 Transportation Carrier Shipment Status Message?

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

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

Who Uses EDI 214?

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

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

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

EDI 210 Transaction Set: Motor Carrier Freight Details and Invoice

What is an EDI 210?

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

What Data Does the EDI X12 210 Transmit?

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

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

Digital Transformation of the Logistics Business with EDI

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

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

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EDI Integration for Transportation and Logistics

Electronic Data Interchange (EDI) Integration for Transportation and Logistics

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

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

– EDIFACT – mainly used in Europe and international transportation.

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

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

How is EDI used in transportation?

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

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

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

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

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

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

What are the most important EDI documents used in transportation?

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

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

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

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

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

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

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

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

Complete list of EDI transportation codes

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

The Benefit of Using EDI in Transportation

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

EDI for transportation

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

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

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

Companies implementing EDI can be divided into two groups:

– EDI Initiator company

– Companies involved in the EDI process

Fully Managed EDI Service for EDI Initiator Company

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

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

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

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

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

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

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

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

EDI Web Service for Companies involved in the EDI process

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

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

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

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

Choose the best EDI provider for the logistics and transportation industry

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

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

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

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EDI for Transportation – EDI 214 Transportation Carrier Shipment Status Message

Transportation and logistics companies rely heavily on EDI to exchange information with their trading partners, including shippers, carriers, and freight forwarders. EDI provides a standardized, automated method of exchanging documents, reducing the need for manual processing and improving the speed and accuracy of information exchange.

By adopting EDI, transportation companies have been able to streamline their processes and significantly reduce the time and costs associated with manual tasks. In this article, we will take a closer look at EDI 214 – Transportation Carrier Shipment Status Message and its importance in the transportation industry.

What is EDI 214?

EDI 214 is an electronic document used in the context of EDI (Electronic Data Interchange) to provide detailed shipment status information. The formal name of this EDI document is ANSI X12 214 Transportation Carrier Shipment Status Message Transaction Set.

EDI 214 Definition

EDI 214 is a delivery status message sent from the transportation company to the shipper, as well as the consignee and their agents, as an update on the status of delivery. The document provides real-time updates on the status of a shipment, from pickup to delivery, and includes details such as the carrier name, equipment type, pickup and delivery dates and times, and any exceptions or delays that may have occurred during transit.

Where Is EDI 214 Transportation Carrier Shipment Status Message Used?

EDI 214 is used in transportation, logistics, supply chain, and international trade. As mentioned above, transport companies use EDI 214 to inform shippers and consignees about the status of their cargo.

Here are some examples of the largest transportation companies in the world using EDI. It can be based on either the X12 or EDIFACT standard (which is typical for European companies).

Some examples of the biggest Less-Than-Truckload (LTL) Carriers in North America using EDI 214 document:

Why is EDI 214 Important In The Transportation Industry?

In the transportation industry, timely and accurate information about the status of a shipment is crucial. EDI 214 allows carriers and their trading partners to exchange information quickly and efficiently, enabling them to make informed decisions about the shipment and take appropriate action if necessary.

What Does EDI 214 Include?

EDI 214 transaction set may include various information related to shipments made by transport service providers. Thus, as a status document, EDI 214 provides information about the physical location of cargo at any given time and can contain information on more than twenty “events”.

However, depending on the business model of the company or its specifics, business partners determine the exact list of necessary information to be transmitted in an EDI 214 document. Typically, the Transportation Carrier Shipment Status Message contains the following information:
  • Sent from – name and address
  • Place of delivery – address or coordinates
  • Shippers Purchase Order Number
  • Estimated Time of Arrival
  • Route Information
  • Delivery confirmation – location, signature
  • Information about the status of the shipment
  • Description of shipment – weight, packaging, and quantity.

Depending on the requirements of the company, EDI 214 can be produced 4 to 6 times per day up to a once per week; all depends on the business use case.

How Does EDI 214 Work?

EDI 214 works by using a standard format for exchanging information between trading partners. The document is transmitted electronically between the carrier and their trading partner, using a secure and reliable EDI network.

The information contained in the EDI 214 document is structured using a set of data elements and segments, which are defined by the ANSI X12 standard. The data elements and segments provide a standardized way to communicate information about the shipment, ensuring that all parties understand the information being shared.

EDI 214 Business Workflow

Usually, the EDI 214 Transportation Carrier Shipment Status Message can be partnered with additional EDI transactions, such as EDI 204 Load Tender and EDI 990 – Response to a Load Tender.

Below is one of the possible workflows involving EDI 214.

To accept the EDI 204 Load Tender transportation company must send to shipper EDI 990 – Response to a Load Tender. Then, the carrier starts feeding the shipper with EDI 214 Transportation Carrier Shipment Status Message.

EDI 214 contains information about pickup and delivery times. Moreover, EDI 214 transaction set can be sent multiple times. First EDI 214 to indicate loading time; next 214 transaction set, can be sent to indicate delivered time.

Benefits of Using EDI 214

For retailers, EDI 214 transaction serves as an important source of information when scheduling and/or adjusting the schedule of goods receipt, as well as for the efficient allocation of resources and personnel.

Besides, by receiving status updates via EDI 214 messages from carriers, retailers do not need to make verification calls to clarify delivery times.

Some of the key benefits of using EDI 214 in the transportation industry include:

Improved visibility: EDI 214 provides real-time updates on the status of a shipment, enabling carriers and their trading partners to track the shipment’s progress from pickup to delivery. This visibility allows them to proactively identify and resolve any issues that may arise during transit.

Increased efficiency: By automating the process of sharing shipment status information, EDI 214 eliminates the need for manual data entry and reduces the risk of errors. This leads to increased efficiency and reduces the time and costs associated with manual tasks.

Better collaboration: EDI 214 enables carriers and their trading partners to collaborate more effectively by sharing information in real-time. This collaboration improves communication and helps to ensure that all parties are on the same page when it comes to the shipment.

Many shippers and consignees use the Transportation Carrier Shipment Status Message as a tool to control the carrier’s transit time. To determine if the carrier has met the time schedules for transportation, they note the date and time of shipment and receipt of the goods.

EDI 214 Status Code List

The EDI 214 Transportation Carrier Shipment Status Message uses a standardized set of status codes to indicate the status of a shipment. Here are some commonly used status codes:

AF: ACTUAL PICKUP. The shipment has been picked up

AG: ESTIMATED DELIVERY. An estimated delivery date is calculated at the time the shipment is picked up.

AB: APPOINTMENT DATE. A delivery appointment has been set up.

AI: RECONSIGNED. The consignee has changed.

A3: RETURNED TO SHIPPER. The final status for this type of shipment.

AJ: TENDERED FOR DELIVERY. The tendered date for the shipment.

CA: CANCELED. The shipment has been canceled/voided for one of numerous reasons.

D1: DELIVERED.

A7: REFUSED BY CONSIGNEE.

K1: PROCESSING THROUGH CUSTOMS.

R1: RECEIVED FROM PRIOR CARRIER.

X9: DELIVERY APPOINTMENT REQUESTED

Note that this is not an exhaustive list and some EDI trading partners may use additional status codes or custom codes. It’s important to verify the specific status codes used by your trading partners to ensure accurate communication and avoid any delays or errors in your transportation operations.

EDI For The Transportation Services Sector and Logistics

Nowadays, almost every company, whether it is a shipper, consignee or carrier, exchange information through EDI.

Below is a list of the most popular EDI transactions in the transportation industry.
  • 204 Motor Carrier Load Tender
  • 990 Response to a Load Tender
  • 210 Motor Carrier Freight Details and Invoice
  • 211 Motor Carrier Bill of Lading
  • 212 Motor Carrier Delivery Trailer Manifest
  • 214 Transportation Carrier Shipment Status Message
  • 215 Motor Carrier Pickup Manifest
  • 216 Motor Carrier Shipment Pickup Notification
  • 820 Payment Order/Remittance Advice
  • 997 Functional Acknowledgment

Find the Perfect EDI Service For Your Business

Do you need to use the EDI 214 transaction with your business partner? Therefore, you are looking for an efficient fully managed, EDI service. You are at the right place. We can help you.

We offer our clients fully managed EDI Services including various communication protocols such as:
  • VAN
  • AS2
  • FTP, or sFTP.

Connect EDI With Your ERP, CRM, TMS, or e-Commerce

To ensure complete automation of your logistic processes, we integrate your EDI process with almost any business system in the market such as:
  • Microsoft Dynamics
  • Salesforce
  • Sage
  • Oracle NetSuite
  • JD Edwards
  • SAP

We also integrate EDI with e-commerce.

Start Exchanging EDI In An Hour or Less Using our EDI Web Service

EDI web service is the easiest and fastest way to get started with EDI.

To connect to our EDI REST web service and be able to exchange EDI documents, all you need to do is have access to the Internet and know your API Token and password for access.

In less than an hour, you can start exchanging EDI messages. EDI2XML REST web service provides great benefits for your business. You do not need to have experience with EDI. There is no need to sign a contract, pay as you go by very simple and dynamic pricing.

Useful: Request EDI2XML Web Service Price List

Regardless of whether you are a large freight forwarding company with numerous trading partners or a small transport company, you can exchange EDI 214 or any other EDI messages using our EDI REST service.

You can rely on our over 20 years of experience with EDI and integration projects, whether it is consulting, technical support, or project planning: we provide your company with everything you need.

Contact us for more information and a free consultation.

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Electronic Data Interchange (EDI) in the Supply Chain

This post was updated to reflect current trends and information.


What is EDI?

EDI or Electronic data interchange is a technology for exchanging information in real-time between business partners, based on standard and structured electronic messages.

EDI has particularly gained popularity in logistics and retail. This is a recognized standard in business because this protocol helps accelerate the entire supply chain – from procurement to payment.

With a large volume of transactions, large stocks, and numerous suppliers, retailers have a high return on investment when adopting EDI for business documents exchange.

Complete List of EDI Codes

Why use EDI in the supply chain?

Disadvantages of paper workflow faxing or email:
  • Considerable labor cos for working with orders and shipments.
  • The slowness of the processes.
  • Frequently occurring human errors.
  • Difficulties in relations with large buyers-clients.
  • Delays and disruptions of supplies.
  • Discrepancies between order and delivery.
  • Repeated manual entry of all data into various systems (accounting, CRM, ERP, etc.)

EDI avoids problems by providing complete control over supplies and accelerating the flow of funds.

Thanks to EDI, trading partners can send and receive messages instantly. Each party (retailer, supplier, logistics company) onboarded on EDI once, will immediately get the opportunity to exchange information with their business partners without thinking about the features and capabilities of partner accounting systems, their workflow, or the required document format.

How does EDI work?
EDI for logistics

EDI exchange protocol is based on standards (i.e. X12, EDIFACT…) that govern the formats of messages transmitted between business partners electronically.
The necessary data from one company is extracted, formatted, checked, and sent to the necessary business partners, either directly or via EDI service providers…

During the transfer, the EDI service provider translates and maps the information into the required EDI standard, preserving its content.

The receiving party immediately receives the message in a convenient and understandable format. It can be X12, EDIFACT, Json, XML, etc.

Without an EDI service provider, electronic data exchange is very difficult to manage internally with the company’s workforce. It will take many IT professionals who have experience in EDI, the company will need to deploy a large-scale infrastructure to ensure the smooth operation of the EDI service. In addition, many business partners can have a huge variety of IT systems and formats, so you must be able to adapt to each of partner requirements individually. Such financial, labor, and time costs are irrational. That is why, more companies are outsourcing their Integration especially EDI mapping and integration, to outside service providers, to reduce the burden from their internal staff.

Do you need the right advice on how to choose the right EDI service provider or you are thinking about changing the current EDI provider?

Read this article: How to change your EDI Service Provider

Typical EDI workflow process

Purchase Order – ORDERS (EDI 850 Document)

The buyer company sends the supplier a message with the list of goods that she plans to purchase. PO contains date and time of delivery, address, reference to the contract, prices, quantity of goods, and other necessary information.

Useful reading: All you need to know about EDI ANSI X12 Transaction Set 850 Purchase Order

Purchase Order Response – ORDRSP (EDI 855 Purchase Order Acknowledgement)

The supplier sends the buyer a response to his order, noting his consent to the transaction and indicating how accurately the order can be executed. It may also indicate the change in prices for the product selected by the buyer. The buyer receives advance confirmation of prices and quantity of goods from the supplier, can plan the state of their inventory. The supplier at this time reserves goods in his warehouse for delivery.

Despatch advice – DESADV (EDI 856 Advanced Ship Notice in the X12 standard).

At the same time as shipment, the supplier sends a notice to the buyer. It helps simplify and speed up the process of goods acceptance, as EDI 856 (DESADV) contains detailed information about the cargo. For example, container numbers, the hierarchy of packages indicating their types, barcodes, and contents, as well as the physical characteristics of the goods, etc. The purchasing company can use RFID scanners and the Serial Shipping Container Code (SSCC) when receiving. This helps speed up the receipt and get rid of mistakes.

Receiving advice RECADV (EDI 861 – Receiving Advice/Acceptance Certificate)

When the buyer accepts the goods from the supplier, he sends him a RECADV message on the actually received and delivered goods. Thus, the Receiving advice is a report from the buyer to the shipper to indicate that the order arrived intact at its final destination. Moreover, rapid notification of the supplier allows him to generate invoices quickly.

Additional and specific types of EDI messages

UN/EDIFACT Price/sales catalog message (PRICAT)

PRICAT is also known as EDI 832 Price/Sales Catalog in ANSI X12 standard. Companies use the Price/sales catalog message to transmit commercial information to business partners about products, especially about current prices.

EDIFACT RETANN – Announcement for returns message | EDI 180 – Return Merchandise Authorization and Notification

RETANN or EDI 180 in X12 standard sent by the buyer when returning the goods to the supplier for any reason. The message contains the characteristics of the goods planned for return, as well as the terms and reasons – defective, non-standard, expiration, re-grading, etc.

EDIFACT COACSU Commercial Account Summary

Exchange EDI messages between the accounting departments of the supplier and the buyer, which contain the calculations of companies for a certain period.

EDIFACT INVRPT Inventory Report Message | EDI 846 Inventory Inquiry/Advice

INVRPT or EDI 846 transaction set reports the quantity of goods available. Often used to report on the availability and movement of goods.

Useful reading:
What is UN/EDIFACT INVRPT Inventory report message?

What is EDI 846 document?

How EDI can speed the receiving of goods in a warehouse

Benefits of EDI for Supply Chain Management

EDI has the following advantages:

– Reducing Cost: Automation of processes that were previously performed by employees manually using paper documents and / or email, will certainly reduce costs.

– Improving efficiency and productivity: Processing more business documents in less time.

– Reducing errors: The standardization of EDI ensures that the transmitted data is formed into a standard document before it is transmitted.

– Optimization of tracking and reporting: EDI can be integrated with a variety of business systems (ERP, CRM, Warehouse Management, accounting, etc.) This allows enterprises to improve business processes and provide data collection and analysis.

– Building loyalty with business partners: EDI provides the instant transfer of necessary documents, which makes the delivery of goods faster and more reliable.

Effective EDI Solution for Supply Chain

For over 21 years, EDI2XML has been helping companies solve complex integration issues and providing complete EDI communication between business partners.

Improve your business process and maximize your supply chain performance with our EDI solutions. Contact us for a free consultation.

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EDI for Third-Party Logistics providers (3PL)


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

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

What is Third-Party Logistics?

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

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

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

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

Why EDI Is Important For 3PL Companies?

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

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

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

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

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

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

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

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

Third-Party Logistics EDI Documents

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

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

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

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

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

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

Inventory update: EDI 846 / INVRPT

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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EDI integration for 3PL

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