Today's highly globalized supply chain ecosystem has made it critical for trading partners to maintain advanced levels of communication throughout the product lifecycle. Seamless information flow from suppliers to distributors and retailers is essential to optimize supply chain visibility and manage inventory levels efficiently without compromising customer satisfaction.
Effective communication in the supply chain requires suppliers and buyers to exchange several documents, often via EDI. However, none is as essential as the advance shipping notice.
This post discusses the purpose, usage, benefits, and common issues of using EDI 856 advance ship notice in logistics.
An advance shipping notice (ASN) is a document sent from the supplier to the customer that provides details about an upcoming shipment. For example, the notice describes the shipped items, the carrier handling the order, the shipping date, and in some cases, the estimated time of arrival. The receiver can plan for incoming shipments and automate receiving workflows with this information.
Many major distributors and retailers require suppliers to send ASNs before the shipment arrives at their premises. Sellers can also utilize ASNs for drop-shipping programs to give their eCommerce partners timely information on when customers will receive the products.
As the most prevalent mode of exchanging data and documents in logistics, EDI (Electronic Data Interchange) is the top choice for conveying ASNs. The EDI transaction for ASN is EDI 856, which follows the x12 format defined by the American National Standards Institute (ANSI). Enterprises using the EDIFACT standard utilize the DESADV (Dispatch Advice Message), an EDI 856 equivalent.
All trading partners benefit from implementing EDI 856 Advance Ship Notice. By using ASNs to inform buyers of their incoming consignment, suppliers help accelerate product delivery, resulting in shorter order-to-cash cycles.
Meanwhile, retailers and distributors benefit from increased visibility into the goods delivery process. As a result, they can optimize resources in advance and reduce receiving costs.
Below are some of the most compelling EDI 856 benefits to the stakeholders involved.
ASN 856 contains all the information needed by the buyer to prepare for the arrival of goods.
ASNs typically include general data, such as the supplier's name and address, receiver's name and address, shipping and delivery dates, purchase order number, and specific information on the shipped products, such as SKU numbers, descriptions, quantities, and units of measure.
An ASN may also have additional information such as freight terms, tracking numbers, service levels, and other identifiers specific to the consignment.
Besides general data, ASN 856 also carries data specific to the fulfillment model utilized: cross-dock, direct-to-store, or drop-shipping.
In the cross-dock fulfillment model, the ASN 856 contains the end-point locations for shipments to a distribution center. Barcode labels are typically utilized to assist with product flows through the distribution center, eliminating the need for manual picking and put-away operations.
The specific data elements for distribution center ASN are:
The direct-to-store ASN provides retailers with a reliable means for automating their warehouse receiving processes. The primary data elements for this ASN include:
Drop-shipping operations can leverage EDI 856 ASN to facilitate the confirmation of items shipped to the end customer. The ASN provides visibility to the order's shipping status and tracking information, enabling the merchant to manage customer expectations proactively.
The data elements specific to drop-ship ASN include:
Implementing ASN can help your business improve efficiencies and optimize the supply chain in unprecedented ways. However, EDI 856 also comes with several potential hurdles, which you must address effectively to ensure a smooth process.
Some of these issues include:
As one of the most crucial EDI transactions, EDI 856 ASN plays a critical role in streamlining supply chain operations. So, as a business, it is essential to have the systems required to send and receive ASN documents. A modern EDI solution can automate EDI 856 ASN document processing, dramatically improving speed, efficiency, and accuracy.
Remedi has been at the forefront of the EDI services market for years, providing advanced solutions that enable businesses to automate B2B transactions and improve end-to-end visibility. We work with top EDI systems providers, including Cleo, IBM, and Microsoft, to deploy solutions that streamline the creation, sending, and receiving of ASNs for optimum visibility and integration.
Contact a Remedi expert today, and let's help you automate ASN with modernized EDI.