Real-time Inventory Management
EDI 846 enables businesses to access up-to-date inventory data, preventing stockouts and overstock situations.
EDI 846 – Definition and Overview
EDI 846 Inventory Inquiry/Advice is a transaction set within the ANSI X12 EDI standard, primarily used by suppliers to provide real-time inventory data to their trading partners. This document is essential for sharing accurate information about stock levels, product availability, and storage locations, allowing trading partners to make timely decisions related to inventory management, replenishment, and forecasting.
The EDI 846 is widely adopted by U.S. and Canadian businesses and is structured to convey key details such as:
- Available inventory quantities
- Allocated stock or reserved quantities
- Storage locations (warehouses, distribution centers)
- Product identifiers like SKUs, UPCs, and vendor-specific codes
By offering a clear and standardized way to exchange inventory data, the EDI 846 streamlines supply chain operations, helping companies to better manage their stock and reduce the risk of both overstock and stockouts.
Key Functions of EDI 846
- Inventory Status Reports: The EDI 846 allows suppliers to provide real-time updates on inventory levels, including quantities available for sale, quantities allocated for orders, and items that are on hold. This ensures that trading partners have accurate visibility into current stock levels.
- Replenishment Alerts: The EDI 846 can be configured to notify trading partners when stock levels reach predefined reorder points, triggering replenishment processes and avoiding potential stockouts.
- Warehouse and Product Location Information: Suppliers can specify where products are stored, including warehouse and distribution center locations. This helps trading partners optimize logistics and plan efficient distribution of goods.
- Product Identification: Detailed product information, such as SKUs (Stock Keeping Units), UPCs (Universal Product Codes), and supplier-specific part numbers, is shared to ensure precise identification and avoid errors in inventory tracking or replenishment.
How Does the EDI 846 Process Work?
- Supplier Sends Inventory Status: The supplier initiates the process by sending an EDI 846 document to trading partners, providing current inventory levels, product availability, and locations.
- Trading Partner Receives Data: The buyer or trading partner integrates the EDI 846 into their systems (ERP, WMS, etc.) to adjust stock levels, plan orders, or trigger automated replenishment processes.
- Regular Updates: Depending on the frequency agreed upon between partners, the EDI 846 can be sent periodically or whenever there is a significant change in inventory levels.
- Data Integration: The trading partner’s systems automatically update stock levels and can initiate purchasing or distribution activities based on the inventory data received.
Which Companies Use EDI 846 and Why?
- Retailers: Use EDI 846 to track supplier inventory and streamline stock replenishment across stores and warehouses.
- Distributors: Use it to monitor inventory levels in distribution centers and coordinate stock transfers between locations.
- Manufacturers: Rely on EDI 846 to communicate with suppliers and partners about raw material availability or finished goods stock.
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Sample EDI 846 Inventory Inquiry/Advice
This example illustrates a standard EDI 846 document, used to communicate inventory levels between trading partners. The structure of the document includes sender and receiver identification, transaction date and time, as well as detailed product information. The item codes, quantities, and units of measurement are provided in the LIN and QTY segments, enabling trading partners to receive real-time updates on product availability in stock.
ISA*00* *00* *12*1234567890 *ZZ*RECEIVER123 *231018*1132*U*00401*000000001*0*P*>~
GS*IB*1234567890*RECEIVER123*20231018*113200*000000001*X*004010~
ST*846*000000001~
BIA*00*DD*INV20231018*20231018~
LIN*1*VP*ITEM12345*MG*ITEM12345~
QTY*17*100*EA~
LIN*2*VP*ITEM67890*MG*ITEM67890~
QTY*17*200*EA~
SE*8*000000001~
GE*1*000000001~
IEA*1*000000001~
EDI 846 Transaction Set – Segments
These segments are commonly used in EDI 846 transactions and provide essential information for inventory management. Depending on the specific needs of a business and the requirements of their trading partners, other segments may also be included to tailor the document to their operations.
LIN (Item Identification)
This segment specifies the product code information, including SKU, UPC, and vendor-specific part numbers. This segment is essential for accurately identifying products within inventory, as it allows trading partners to match the inventory data with their internal systems.
QTY (Quantity Information)
Communicates the quantity of each item in stock, available for sale, or allocated for specific purposes. This segment is critical for ensuring that trading partners have a clear understanding of the available inventory, which helps prevent stockouts and overstock situations.
DTM (Date/Time Reference)
Provides the relevant dates for inventory status, such as when the stock count was taken or the next expected restock. This information is vital for planning and managing supply chain activities effectively, ensuring that partners are aware of the timing of inventory updates.
MEA (Measurements)
Offers additional measurement details, such as weight or dimensions of the products. This segment is important for logistics, particularly when planning shipments and transportation.
N1 (Name and Identification)
Identifies the parties involved in the transaction, typically the supplier and buyer. This segment is crucial for linking inventory information to specific partners, ensuring accurate communication and record-keeping.
Benefits of EDI 846 Integration
EDI 846 Integration Solutions
To fully benefit from the EDI 846 document, companies need to integrate it seamlessly into their existing inventory management systems. At Edi2Xml, we offer two integration options:
Fully Managed EDI Services
Our Fully Managed EDI Service takes care of the entire EDI process, from mapping and setup to ongoing support. We handle all communication with trading partners, translating EDI documents into XML or other formats, ensuring smooth and reliable data exchange without requiring any on-site software installation.
Key features include:
- Secure cloud-based EDI transactions
- Automatic translation of EDI 846 to XML or other formats
- Ongoing technical support and maintenance
Learn more about our Managed EDI Services.
EDI Web Services
For businesses that prefer greater control over their EDI processes, our EDI Web Services allow for quick integration through a REST API. This service converts EDI messages into XML and vice versa, enabling easy data exchange between trading partners without the need for in-depth EDI knowledge.
Key features include:
- Fast setup with a functional Java client
- Pay-as-you-go pricing model
- Comprehensive documentation and schema support
Learn more about our EDI Web Services.
Get Started with EDI 846
Integrating EDI 846 into your supply chain processes provides real-time visibility and more efficient inventory management. Whether you need a fully managed solution or prefer a flexible web service API, Edi2Xml has the tools and expertise to help you succeed. Contact us today to start optimizing your inventory management with EDI 846.
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