Electronic Data Interchange (EDI)
What exactly is Electronic Data Interchange (EDI)?
It’s how companies communicate and share documents with each other in the modern world (business-to-business). EDI automates communication and business workflows- resulting in streamlined processes for your company.
Electronic Data Interchange allows for processing bulk amounts of transactions very quickly. In the digital age, nearly every company in any industry needs a reliable EDI platform.
Ideally, Electronic Data Interchange
- saves companies man-hours and money
- practically eliminates the time it takes to share information, and
- results in fewer errors overall.
EDI codes for Warehouse Management
As our global economy continues to grow, warehousing business is skyrocketing. According to Business Wire, “The global warehouse management system market is expected to grow from $2.39 billion…to $2.74 billion…at a compound annual growth rate (CAGR) of 14.77%.”
The demand for Warehouse Management Systems (WMS) is booming. Luckily, the advancement of EDI makes it possible for WMSs to seamlessly integrate their data with trading partners instantly. While EDI benefits every industry, it is absolutely indispensable in the supply chain industry.
7 of the most common Electric Data Interchange transaction codes for Warehouse Management are:
- 1. EDI 861- Receiving Advice/Acceptance Certificate
- 2. EDI 940- Warehouse Shipping Order
- 3. EDI 943- Warehouse Stock Transfer Shipment Advice
- 4. EDI 944- Warehouse Stock Transfer Receipt Advice
- 5. EDI 945- Warehouse Shipping Advice
- 6. EDI 946- Delivery Information Message
- 7. EDI 947- Warehouse Inventory Adjustment Advice
- Bonus Code!
(Note: for a complete list of transaction codes, visit https://www.edistaffing.com/resources/edi-transaction-glossary/#supplychain)
1. EDI 861- Receiving Advice/Acceptance Certificate
EDI 861 is a transaction used by a warehouse after receiving a delivery that 1) confirms receipt of the shipment and 2) reports on any and all issues with the shipment.
The EDI 861 transaction covers basic information such as Purchase Order number and date/time of delivery, as well as more specific details like any deviations between the expected order and the actual shipment or whether any items were damaged during shipping.
As a result of EDI 861’s fully digitized paper trail, companies can expect fewer reporting errors and more accurate shipment data and insights. Additionally, details from this transaction code over time can be used to reveal trends on late shipments, damaged goods, and cost-effective trading practices.
2. EDI 940- Warehouse Shipping Order
EDI 940 is a transaction set sent by sellers to Third-Party Logistics providers (3PLs), requesting a shipment from a warehouse to a buyer.
The EDI 940 transaction shares general information such as Purchase Order number, the ship-to address, and the receiver’s contact information. Also included are details specific to the order, namely order details and specialized shipping instructions (if needed).
With automated real-time data exchange between 3PLs and warehouses, EDI 940 transactions can be created almost as soon as an order is placed in the system. Warehouses save immeasurable time and effort compared to creating individual shipping orders manually. And there is no possibility for human error! Additionally, because these shipping orders are encrypted, EDI documents like this are actually more secure than hard-copy or emailed shipping orders.
3. EDI 943- Warehouse Stock Transfer Shipment Advice
EDI 943 is an EDI document that manufacturers and distributors use to communicate with 3PLs and warehouses. It is generally a notification that products are being shipped to their location.
The EDI 943 transaction communicates the date of shipment with an estimated delivery date, manufacturer information, the receiving warehouse information, and general shipment information (product SKUs/UPCs, quantity, weight, things of that nature).
By integrating their collective systems through EDI, suppliers can instantly alert their warehouse partners of impending deliveries. With data being exchanged in real-time, warehouses can automate scheduling and receiving workflows. And of course, with EDI there are fewer errors and optimized shipment reconciliation.
4. EDI 944- Warehouse Stock Transfer Receipt Advice
EDI 944 is a document used by remote warehouses and 3PLs to confirm the receipt of a delivery.
The EDI 944 transaction provides basic shipment information, including shipment number, vendor number, and carrier information. In addition to this data, EDI 944 details product types and quantities, tracking details (lot/serial numbers), date/time shipment was received, and records of missing and damaged cargo.
As a consequence of automating inventory accounting across warehouses, manufacturers and suppliers can spot trends in their relationships with their trading partners and reconcile their inventory with lightning speed. This data can lend itself to decision-making for future shipments, re-stocking inventory, and other cost-saving measures.
5. EDI 945- Warehouse Shipping Advice
EDI 945 is a transaction set that confirms a shipment is completed. Generally, a 3PL provider or warehouse will send this EDI document to their client to alert them that a shipment has taken place and is completed.
The EDI 945 document outlines the completed shipment details, and is a critical part of the shipment process. Some of the most vital components of these transactions are product identifiers and quantities, both the shipment and departure time/date, warehouse/carrier/delivery details, payment information, tracking information…and possibly even more details than that!
By automating this shipping advice, warehouses and 3PL providers save time and money while also reducing errors (benefits included in most EDI transactions!). EDI 945 specifically boosts warehouse efficiency by creating simpler workflows for 3PL providers. It makes it possible to ship products quicker and more accurately than putting in manual shipping advice, allows for automated inventory and shipment tracking, and communicates pertinent data with customers.
6. EDI 946- Delivery Information Message
EDI 946 is a transaction set used by a receiving location to notify a depositor that a transfer shipment has been received.
The EDI 946 transaction includes the received shipment with information such as the date and time of receipt and extremely detailed product information.
Automated transactions like EDI 946 provide advantages for both parties (the receiving location and the depositor) with real-time shipment updates and reconciliation. Communicating across systems smoothly is a key benefit of EDI.
7. EDI 947- Warehouse Inventory Adjustment Advice
EDI 947 is a document sent by warehouses or 3PL providers to their clients, as a notification of any changes in inventory numbers or inventory status.
The EDI 947 transaction lists detailed information, such as inventory adjustment number and date, the warehouse’s identification information, the product’s identification information, and any insights on why the inventory was adjusted.
While inventory adjustments may not be the ideal, they are a normal part of supply chain industry life! Having automated workflows in place, such as EDI 947, increases visibility for all parties and provides insights that are useful in planning upcoming sales or shipments.
8. Bonus Code!
If you didn’t see the transaction type your company needs, there is still hope!
It is possible for you to work with an integration platform to customize your own transaction type specific to your system, needs, and trading partners.
CINTAP CLOUD AND EDI
An Integration Solution for Warehouse Management
CINTAP Cloud users don’t have to be limited to a rigid set of EDI transaction types.
No matter your industry, CINTAP is dedicated to walking each customer through solutions to every problem. And naturally, this includes creating customized transaction types for you, so you can get back the time and resources your company needs!
As an integration platform, CINTAP streamlines EDI and business workflows. As an integration platform, CINTAP streamlines EDI and business workflows. With CINTAP Cloud you can:
- accelerate your integration projects
- eliminate any redundancies
- simplify complex processes
- and provide real-time insights so you have better tracking and visibility.
All this while also offering huge savings compared to other providers in the iPaaS industry!
Start optimizing today:
Get CINTAP Cloud as your solution for Warehouse Management!
Author – Carissa Getscher