EDI 846 Inventory Inquiry/Advice
The EDI 846 is a proactive tool for improving supply chain efficiency by providing suppliers with advanced notice of demand. In this guide, you'll learn about EDI 846 transaction sets.
What is an EDI 846?
An EDI 846 Inventory Inquiry/Advice is an electronic document that allows suppliers to inform their trading partner(s) the inventory information of their product. The 846 Inventory Inquiry/Advice has several useful functions for many suppliers. Firstly, it allows them to give their trading partner information about their product without obligating that partner to make a purchase. Also, the purchaser, or trading partner, may request an EDI 846 Inventory from the supplier to obtain such inventory information.
What are the Key Elements of EDI 846?
The EDI 846 Inventory Inquiry/Advice, typically includes the following essential components.
- Product Information: Item numbers, descriptions, and quantities.
- Inventory Status: On-hand quantities, available quantities, committed quantities, etc.
- Location Information: Inventory location (warehouse, store, etc.).
- Price Information: Optional, but can include pricing details.
How is EDI 846 Inventory Inquiry/Advice used?
EDI 846, or the "Inventory Inquiry/Advice," functions by exchanging detailed information about inventory levels between trading partners. The seller or warehouse collects data on current inventory levels, including quantities available, quantities on hand, and inventory locations. This data may include updates on stock levels, changes in availability, and other relevant inventory information. The seller creates an EDI 846 document that includes this inventory information. The document is structured with specific segments that provide details such as item identifiers, quantities, and location information. The EDI 846 document is transmitted electronically to the buyer or other trading partners. This transmission is typically done through an EDI network or VAN (Value-Added Network), ensuring secure and reliable delivery.
The buyer receives the EDI 846 document and processes the inventory information using their EDI system. This system interprets the data and integrates it into their inventory management system or ERP (Enterprise Resource Planning) software. The buyer uses the updated inventory information to make informed decisions about ordering, stock levels, and replenishment. This helps in managing inventory more efficiently, avoiding stockouts, and reducing overstock situations.
The exchange of EDI 846 documents helps maintain up-to-date inventory visibility, allowing for better coordination between buyers and sellers. It supports smooth supply chain operations by keeping all parties informed about inventory status and changes.
Benefits of EDI 846
The EDI 846, or Inventory Inquiry/Advice, provides several key benefits in inventory management and supply chain operations. By facilitating the electronic exchange of real-time inventory data between buyers and sellers, it enhances visibility into stock levels and availability. This improved visibility helps prevent stockouts and overstock situations, leading to more accurate demand forecasting and better inventory control.
The automation of inventory updates reduces the need for manual data entry and minimizes errors, streamlining operations and improving efficiency. Additionally, EDI 846 supports better coordination between trading partners, enabling timely responses to inventory changes and ensuring that supply chain processes run smoothly. Overall, it contributes to more effective inventory management, reduced operational costs, and improved service levels.
EDI 846 Format
This is a simplified example to illustrate the basic structure of an EDI 846. Actual EDI 846 documents can be much more complex, containing additional segments and data elements based on specific requirements and industry standards.
Example EDI 846 Document
ST*846*0001*000001
BGN*846*PO12345*20230405
DTM*003*20230405
REF*ZZ*INQUIRY123
LIN*1*ITEM001*100*EA*20230501
QTY*001*ONH*50
QTY*002*AVL*40
SE*1*000000001
Explanation of the Segments:
ST: Start of transaction set
BGN: Beginning of message
DTM: Date/time reference
REF: Reference identification
LIN: Item information
QTY: Quantity information
SE: End of transaction set
Key Information:
Inquiry date: 2023-04-05
Item: ITEM001
On-hand quantity: 50
Available quantity: 40
Additional Notes:
The EDI 846 can include additional segments to provide more detailed information about the inventory, such as product descriptions, unit measures, and inventory locations.
The document can also include information about committed quantities, backorders, and lead times.
This example provides a basic overview of the EDI 846 structure. Real-world EDI 846 documents can be much more complex and contain additional data elements to meet specific business requirements.
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