EDI 940 Warehouse Shipping Order

EDI 940 is a crucial document in the supply chain, serving as a digital communication channel between sellers and warehouses. In this guide, you'll learn about EDI 940 transaction sets.

What is an EDI 940?

EDI 940, also known as a Warehouse Shipping Order, is an electronic data interchange transaction set commonly sent by sellers or suppliers to third-party logistics providers (3PLs). It acts as a formal request for the shipment of goods from a remote warehouse to a buyer’s location. This transaction set provides detailed shipping instructions, including item descriptions, quantities, and specific delivery requirements, ensuring that the warehouse processes and ships the order accurately and efficiently.

Purpose of EDI 940

Instructs the warehouse to ship products.

• Provides detailed shipping instructions.
• Enables efficient order fulfillment.
• Supports inventory management.

What are the Key Elements of EDI 940?

An EDI 940 typically includes:

• Order Information: Order number, date, and customer details.
• Shipping Instructions: Shipping address, carrier preferences, and shipping method.
• Product Details: Item descriptions, quantities, and packaging requirements.
• Shipping Schedule: Desired shipping date and time.

How is EDI 940 Warehouse Shipping Order used?

EDI 940 is essentially a digital shipping order sent from a seller to a warehouse. It acts as a command to initiate the shipping process.

Key Uses of EDI 940

• Order Fulfillment Trigger: When a seller needs to ship an order, they create an EDI 940 and send it to the warehouse.
• Shipment Instructions: The EDI 940 outlines specific details like shipping address, quantity, product information, and desired shipping date.
• Inventory Management: The warehouse uses the EDI 940 to update inventory records after fulfilling the order.
• Shipment Confirmation: After shipping, the warehouse often sends an EDI 945 (Warehouse Shipping Advice) as a response to the EDI 940.
• Order Modification: EDI 940 can also be used to modify or cancel a previous shipping order.

Example Use Case

Scenario: A retailer needs to ship 100 units of a product from their 3PL warehouse to a store.

• The retailer generates an EDI 940 document with the order details.
• The document is transmitted to the 3PL.
• The 3PL acknowledges receipt with an EDI 997.
• The 3PL prepares the shipment and sends an EDI 945 once the shipment is dispatched.
• The retailer updates their systems and tracks the shipment using the information from the EDI 945.

Benefits of EDI 940

EDI 940 is like a digital shipping order. It replaces paper-based requests, making communication between sellers and warehouses faster and more accurate. By using EDI 940, businesses can:

• Save time: Quickly create shipping orders without manual work.
• Reduce errors: Ensure accurate information is sent to the warehouse.
• Improve security: Protect sensitive order details.
• Boost efficiency: Streamline the entire shipping process.

EDI 940 Format

Here's a detailed example of an EDI 940 Warehouse Shipping Order transaction set.

Example EDI 940 Structure

ST*940*0001

W05*123456*20240801*SHIP1234*DELIVER

N1*ST*Receiver Name*92*5678

N3*123 Delivery St

N4*City*State*PostalCode*Country

LX*1

W01*10*EA*100*VN*1234567890123*UP*123456789012

W76*10*1000*200.00*300.00*400.00*1*P

SE*9*0001

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