EDI 856 Advanced Shipping Notice

EDI 856 is a critical document in supply chain management, particularly in industries like retail, manufacturing, and automotive. The primary purpose of this transaction set is to provide the receiver with information that helps them prepare for the arrival of the shipment, streamline the receiving process, and improve inventory management.

What is an EDI 856?

The EDI 856 transaction set is commonly referred to as an Advance Shipping Notice (ASN) or Manifest. It is a standardized electronic document used to communicate shipment details to a receiving party in advance of the shipment's arrival. The ASN allows the receiver to plan for the delivery, allocate resources for unloading, and update inventory systems in advance.

What are the Key Elements of EDI 856?

Here's what an EDI 856 typically includes:

• Shipment Identification: Information that uniquely identifies the shipment, such as a shipment identification number or a bill of lading number.
• Dates and Times: Shipping date, expected delivery date, and times related to the shipment process.
• Carrier Information: Details about the carrier responsible for the shipment, including carrier name and tracking number.
• Item Details: Information about the items being shipped, including item descriptions, quantities, weights, and dimensions.
• Packaging Information: Details about the packaging used for the shipment, such as the number of packages, types of packaging, and package identification numbers.
• Order Information: References to the purchase order or other order documents that relate to the shipment.
• Shipment Method: Information about the method of shipment, such as ground, air, or sea.

How is EDI 856 Advanced Shipping Notice Used?

The EDI 856 Advance Shipping Notice (ASN) is used to provide recipients with detailed information about a pending shipment, allowing them to prepare for its arrival. Suppliers send the ASN to notify the receiver about the shipment's contents, shipping date, expected delivery time, carrier details, and tracking information. It includes item-specific data such as descriptions, quantities, weights, and dimensions, as well as packaging details like the number of packages and their identification numbers.

By referencing related purchase orders, the EDI 856 enables the recipient to efficiently plan for the delivery, allocate necessary resources for unloading, and update their inventory systems in advance. This reduces manual data entry errors, streamlines the receiving process, and improves overall supply chain efficiency and coordination.

Benefits of EDI 856

The EDI 856, or Advance Shipping Notice (ASN), offers several benefits for businesses involved in the supply chain. Here are the key advantages:

• Improved Supply Chain Visibility: Real-time tracking of shipments.
• Enhanced Inventory Management: Accurate forecasts and efficient resource allocation.
• Reduced Manual Data Entry: Automation of shipment information.
• Faster Order Processing: Streamlined receiving and put-away operations.
• Error Reduction: Minimized discrepancies between ordered and received items.

How EDI 856 ASNs & Barcode Labels Work Together

Customers that require ASN’s almost always also require GS1-128 barcode labels (formerly UCC-128). The barcode label works in conjunction with the ASN and contains the supplier's vendor number, ASN number, and carton number.

• The barcode label is placed on each carton/package to be shipped.
• When the carton arrives to its destination, the label is scanned by personnel on the receiving dock.
• The scanner enables the customer to quickly retrieve the ASN to understand exactly what’s in the shipment without opening the package.
• From there, the shipment can be routed efficiently and added to the customer’s inventory without having the manually key information in.

Additional Information on EDI 856

Most suppliers will also want to receive a EDI 997 Functional Acknowledgement back after the buyer receives the 856 Advance Shipping Notice. The buyer sends the 997 Functional Acknowledgement back to the supplier to indicate that they successfully received the Advance Shipping Notice.

EDI 856 Advance Shipping Notice document will contain envelope information. The envelope information specifies which company is sending the document and which company is receiving the document. The sending and receiving companies are called trading partners because they exchange or "trade" the EDI Advance Shipping Notice and Functional Acknowledgements.

Each EDI 856 Advance Shipping Notice document will have data organized into segments and data elements. Each segment contains at least one data element. Each data element is a data field. Examples of data elements on the Advance Shipping Notice include vendor number, item, quantity, price per item, street address, city, state and zip code, just like on a paper Advance Shipping Notice. The standards bodies have allowed for every conceivable possibility for data on the EDI Advance Shipping Notice document. Any one company will use a small subset of the available choices within the ANS X.12 or UN/EDIFACT standards.

EDI 856 Format

The EDI 856 can be seen in two different formats:

Raw Data Format: This is the original, structured format of the EDI 856 document, designed for computers to exchange data efficiently. It uses specific symbols like asterisks (*) and tildes (~) to organize segments and elements.

Some of the common segments include:

ISA: Interchange Control Header - contains control information for the interchange.

GS: Functional Group Header - groups related transaction sets.

ST: Transaction Set Header - indicates the start of the transaction set.

BIG: Beginning Segment for Invoice - provides invoice issue date and invoice number.

N1: Name - identifies parties involved (supplier, buyer).

ITD: Terms of Sale/Deferred Terms of Sale - indicates payment terms.

DTM: Date/Time Reference - specifies dates relevant to the invoice.

IT1: Baseline Item Data - details about individual line items.

TDS: Total Monetary Value Summary - summarizes the total invoice amount.

CAD: Carrier Detail - specifies shipping carrier.

ISS: Invoice Shipment Summary - summarizes shipment quantities.

CTT: Transaction Totals - provides control totals.

SE: Transaction Set Trailer - indicates the end of the transaction set.

GE: Functional Group Trailer - ends the functional group.

IEA: Interchange Control Trailer - ends the interchange.

Example of an EDI 856 Document

Here’s a simplified example of what an EDI 856 document might look like:

ISA*00* *00* *ZZ*SENDERID *ZZ*RECEIVERID *210716*1234*U*00401*000000905*0*P*>

GS*SH*SENDERID*RECEIVERID*20210716*1234*905*X*004010

ST*856*0001

BSN*00*123456789*20210716*1234*0001

HL*1**S

MEA*PD*G*1500*LB

TD1*CTN25*10

TD5*B*2*UPSN*CC*Ground

REF*BM*0987654321

HL*2*1*O

PRF*4500001234*20210716

DTM*011*20210718

HL*3*2*I

LIN**BP*1234567890123*VP*9876543210987

SN1*10*100*EA

PID*F*08*VP*9876543210987*Widget A

HL*4*3*P

MAN*GM*1234567890

CTT*10

SE*30*0001

GE*1*905

IEA*1*000000905

Human-Readable Version: This is a translated format of the EDI 856, made understandable for people. It displays information in a clear and readable way, showing details such as buyer's details, order numbers, item descriptions, quantities, and prices.

EDI 856 Advanced Shipping Notice from the Inofocn Systems Experts

No need to enter your orders manually anymore- use Infocon Systems’ web-portal to automatically trade purchase orders, invoices, shipping information etc. between you and your trading partners.

With 30+ years of experience in designing custom software solutions for its customers in any industry, Infocon Systems is a leading EDI Service Provider offering cloud-based EDI solutions with the right tools, remote training and continuous 24/7 support to trade documents with your trading partners.