Common 3PL EDI Transactions

A listing of the most commonly used 3PL (Third Party Logistics Provider) EDI transactions.
ANSI X12 Transaction Transaction Name Transaction Description
940 Warehouse Shipping Order This transaction set can be used to enable the depositor to advise a warehouse to make a shipment, confirm a shipment, or modify or cancel a previously transmitted shipping order.
943 Warehouse Stock Transfer Shipment Advice The transaction set can be used by a depositor or an agent of the depositor to advise the recipient that a transfer shipment has been made. This transaction set provides a receiving location with detail information concerning product being shipped to that location.
944 Warehouse Stock Transfer Receipt Advice The transaction set can be used by a receiving location to advise a depositoror an agent of the depositor that a transfer shipment has been received. This transaction set provides thedepositor or the depositor’s agent with detail information concerning product that has been received.
945 Warehouse Shipping Advice The transaction set can be used by the warehouse to advise the depositor that shipment was made. Itis used to reconcile order quantities with shipment quantities.
946 Delivery Information Message
947 Warehouse Inventory Adjustment Advice The transaction set can be used to inform a warehouse/depositor of aquantity or status change to inventory records. This transaction set provides detail information concerningthe internal adjustments which occur between a warehouse and a depositor.
888 Item Maintenance This transaction set is used to enable a manufacturer, supplier, broker, or agent to provide detailed finished goods product information to a partner in a consumer goods market. This transaction set can be used to provide information about new products or changes in existing product specifications.
885 Retail AccountCharacteristics This transaction set is used to enable a retailer, wholesaler or broker to provide detailed attributes of aretail store such as store number, size of store, class of trade, product category information, customer demographicinformation, or marketing, etc. to a trading partner.

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Definition of EDI

Electronic Data Interchange means for companies to exchange business documents, such as purchase orders, ship notofications, invoices and many other.

EDI eliminates the need for sending paper documents through traditional means — including mail, faxes or e-mail — it is a major contributor to creating a “paperless” office environment.

EDI messages adhere to a set of rules and regulations governing the flow of electronic data, known as “protocols.” The use of standardized data formats allows computers to exchange various business documents without companies needing to customize their hardware or software system.

EDI can be formally defined as ‘The transfer of structured data, by agreed message standards, from one computer system to another without human intervention’.

EDI standards were designed to be independent of communication and software technologies. EDI can be transmitted using any methodology agreed to by the sender and recipient.

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There are four major sets of EDI standards:

Today, EDI is used by a large number of businesses. EDI has a number of benefits. Cost is one of the main benefits. Processing one paper based order usually costs between US$ 50.00 and US$80.00, depending on the complexity of the order, where as processing the same EDI based order will cost less than $2.00.

Another benefit is time. A paper order can take up to 2 weeks from the time it is issued by the purchasing entity, send to the vendor and entered into the vendors system and shipped. The same order can now being processed in less than a day. This in return will allow to keep more efficient stock levels, better use of warehouse space which in return means reduced warehousing cost and improved cash flow.

EDI BENEFITS

► Speed

► Accuracy

► Simplicity

► Security

► Faster sell-buy cycle time

► Improved Cash Flow

► Reduced Order Lead Time

► Reduced Inventories

► Ability to have Just-In-Time (JIT) Production Runs

► Improved Customer – Vendor relationships