Benefits of Trading the Advance Ship Notice (856) via EDI

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Overall
Purpose:
The primary purpose of the Advance Shipping Notice (EDI856) is to provide tracking and packing information. The 856 will contain the contents that have been shipped.

The key data elements included in an Advance Shipping Notice are:
  • Purchase Order number
  • Ship Notice number
  • Location where the product is be shipped to
  • Ship from/Supplier
  • Ship and/or delivery date
  • Product/service identifiers such as UPC/EAN/GTIN with their respective quantities
Additional data that may also be included in the ASN are:
  • Carrier reference/tracking numbers and service levels
  • Vendor Number
  • Freight Terms
  • Additional item identifiers such as Buyer Item Number and Vendor Part Number
  • Item Description
Benefits
There are benefits to both the purchaser and the supplier of implementing electronic trading of the ASN. Many of these are dependent on how automated and integrated the transaction is for both parties. To optimize benefits the document should be sent at the time of the physical shipment. Some of the benefits that can be realized include:
  • Provides visibility to when an order has been shipped what was actually on the shipment
  • Increased accuracy of shipments
  • Allows cross referencing for purchase orders against shipments
  • Increases the speed of fulfillment and allows the retailer to have lower safety stock needs

Cross Dock
Purpose:
In the Cross Dock fulfillment model the 856 will contain the end/mark for locations for the orders being shipped to a Distribution Center. The Cross Dock model commonly utilizes Bar Code Labels to assist with receiving reconciliation and allows for product to flow through, removing the put-away and picking operations.

Key Data Elements for Cross Dock:
  • Packaging Structure (i.e. SOTPI/SOTI/SOPI)
  • GS1-128 numbers to correspond to physical Bar Code Labels
  • Mark For locations
Additional Benefits:
  • Provides visibility for planning warehouse resources (labor, equipment and space)
  • Facilitates the movement of product through the warehouse through the use of the ASN data and GS1-128

Direct Store/Warehouse Delivery
Purpose:
The direct to store/warehouse allows retailers to better manage and automate their store/warehouse receiving processes. With the use of the ASN data along with GS1-128 Labels it assists with product reconciliation and facilitates automated receiving.

Key Data Elements for Direct Store/Warehouse:
  • Packaging Structure (i.e. SOTPI/SOTI/SOPI)
  • GS1-128 serialized shipping container codes  to correspond to physical Bar Code Labels
Additional Benefits:
  • Provides visibility for planning warehouse resources (labor, equipment and space) when shipping to the retailer location (MOVE TO DC/CROSSOCK)
  • Validation of how the cartons were packed
  • Prepare for future automated receiving at the Stores and DC
  • Improve product flow-through to the store floor
  • Enables automatic capture of the GTIN and Batch /Lot Numbers of each case for track and trace (also used to support FDA Food Safety Modernization Act, Drug Supply Chain Security Act)
  • Allows for advance order allocation  (DC/Warehouse shipments)
  • Allows for faster recognition of item(s) not shipped to allow for quicker reorder

Drop Ship
Purpose:
The Drop Ship model is used to confirm items shipped to the end consumer. Without the ASN the retailer has no visibility to the shipping status and tracking information of the customer order.  Labels are commonly excluded here as the end consumer does not need a GS1 label; however the Packing Slip is a standard requirement to provide consumers a list of products shipped and the carrier carton label is also sometimes utilized.  Both the packing slip and carrier carton label are also sometimes branded.

Key Data Elements for Drop Ship:
  • Customer Order Number
  • Small package carrier tracking number
Additional Benefits:
  • Creates the “Goods Received” in ERP system
  • Facilitates the communication to the end customer that the product has been shipped
  • Receipt of the ship notice data can trigger collection of payment from the retailer’s customer

Benefits Overview
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Posted 3 years ago

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