What is an EDI 894 Delivery/Return Base Record and how does it work?

In the world of EDI (Electronic Data Interchange), efficient communication and seamless coordination between trading partners are crucial. The EDI 894 Delivery/Return Base Record plays a vital role in streamlining the delivery and return processes, particularly in the grocery industry's direct-store-delivery (DSD) shipments. This blog post aims to provide a comprehensive primer on the EDI 894, shedding light on its purpose, key elements, and benefits for grocers, retailers, and their trading partners.

What is the EDI 894 Delivery/Return Base Record?

The EDI 894 serves as a communication tool between a supplier and a buyer in the grocery industry, particularly for direct-store-delivery (DSD) shipments.

The EDI 894 is sent by the supplier to the buyer to provide real-time visibility into the pending DSD shipment. It serves as a notification that the order has been shipped and is en route to the buyer's location or store. The document includes important details such as the items and quantities that have been shipped.

By using the EDI 894, grocery suppliers can efficiently communicate shipment information to their grocers, retailers, and trading partners. This allows the receiving party, such as the buyer and its stores, to anticipate the incoming shipment and prepare accordingly. The advance communication provided by the EDI 894 is similar to the purpose of an EDI 856, which is an Advanced Shipping Notice (ASN) that provides details about a pending shipment.

Key Elements of the EDI 894 Delivery/Return Base Record:

• Shipment Identification: Unique reference numbers or codes associated with the shipment for easy identification and tracking.
• Shipment Status: Indication of the shipment's current status, such as "delivered," "in transit," or "returned,” provides real-time visibility into the shipment progress.
• Shipment Date/Time: Specifies the date and time when the shipment was delivered or returned, aiding in accurate timeline management.
• Shipment Type: Describes whether it is a delivery or return, ensuring proper handling of the shipment.
• Shipment Reference Numbers: Additional reference numbers, such as purchase order numbers or bill of lading numbers, that assist in cross-referencing and tracking.
• Product/Item Information: Detailed descriptions, quantities, and identifiers (e.g., SKU or UPC numbers) of the items shipped, enabling accurate inventory management.
• Location Information: Addresses, including ship-from and ship-to addresses for deliveries or return addresses, facilitating seamless logistics.
• Carrier Information: Details about the carrier responsible for the shipment, including their name, identification number, and service codes.
• Equipment Information: If applicable, information about transportation equipment, such as trailer or container numbers, to ensure smooth handling.
• Financial Information: Payment-related details, freight charges, billing codes, and payment terms, supporting accurate financial management.

Benefits of EDI 894 for Grocers and Retailers:

• Real-Time Visibility: : The EDI 894 provides instant access to shipment information, allowing grocers and retailers to stay informed about the status of their pending DSD shipments.
• Efficient Inventory Management: : By receiving advance information about the items and quantities shipped, grocers can proactively plan their inventory, reducing stock outs or excess stock.
• Streamlined Operations: : With the EDI 894, grocers and retailers can streamline their supply chain operations, ensuring timely product availability and minimizing disruptions.
• Enhanced Collaboration: : Effective communication through the EDI 894 fosters collaboration between trading partners, enabling seamless coordination and improved customer service.
• Reduced Manual Effort: : Automation of the delivery and return processes through the EDI 894 eliminates the need for manual data entry and paperwork, saving time and reducing errors.

How EDI 894 Delivery/Return Base Record Works?

The EDI 894 Delivery/Return Base Record is used to facilitate communication and exchange of information between suppliers and buyers in the context of direct-store-delivery (DSD) shipments, particularly in the grocery industry. Here's a step-by-step overview of how the EDI 894 is typically used:

1. Shipment Preparation:

The supplier prepares the DSD shipment, which involves gathering the products or items to be shipped, packaging them appropriately, and assigning unique identifiers or codes as necessary (e.g., SKU or UPC numbers).

2. Generation of EDI 894:

The supplier's system generates the EDI 894 document, populating it with the relevant information about the shipment. This information includes shipment identification, status, date/time, type, reference numbers, product/item details, location information, carrier information, equipment information (if applicable), and financial information.

3. Transmission to the Buyer:

The supplier electronically transmits the EDI 894 document to the buyer. This transmission can occur through a secure EDI network or a value-added network (VAN), or it can be directly integrated into the buyer's system.

4. Buyer's System Processing:

The buyer's system receives the EDI 894 document and processes it accordingly. The document is parsed and validated to ensure its compliance with the agreed-upon EDI standards and formats.

5. Notification and Real-Time Visibility:

Upon successful processing, the buyer's system uses the information from the EDI 894 to update the status of the pending DSD shipment. This information is made available in the buyer's system, providing real-time visibility for the buyer, their stores, and potentially other stakeholders.

6. Inventory and Supply Chain Management:

With access to the EDI 894 data, the buyer can efficiently manage their inventory and plan for the upcoming shipment. They can anticipate the items and quantities being shipped, allowing them to allocate shelf space, update stock levels, and coordinate logistics and distribution.

7. Shipment Receiving and Returns:

Once the shipment arrives at the buyer's location or store, the buyer can use the information from the EDI 894 to reconcile the received items with the expected quantities. Any discrepancies or returns can be documented and communicated back to the supplier using appropriate EDI transaction sets, such as the EDI 180 Return Merchandise Authorization (RMA) or the EDI 856 Advance Shipping Notice (ASN).

The EDI 894 serves as a reliable and standardized means of communication, providing accurate and timely information about DSD shipments. By using this document, suppliers and buyers can streamline their operations, improve inventory management, enhance collaboration, and ensure efficient delivery and return processes in the grocery industry.

To know more on how we implement EDI and integrate into any of their internal systems, contact our sales department at +1 888-339-0722 or email us at sales@infoconn.com.