There are certain industries in which EDI reigns supreme, and the manufacturing industry is one of them. That’s because, historically speaking, most manufacturers have struggled with inventory management at some point in time. EDI has, in a sense, come to the rescue by providing a quick alternative to traditional document exchange in the manufacturing industry. This has enabled efficient communication between businesses and their suppliers, as well as the added benefits of accurate demand forecasting and cost reduction, to name just a few.
Knowing the benefits of EDI in manufacturing is great and all, but if you’re executing EDI transactions in manufacturing, it’s even more important to familiarize yourself with common references used to describe the EDI document types used on a regular basis. For your convenience, we’ve compiled a list of must-know EDI transactions for the manufacturing industry.
A List of EDI Transactions Commonly Used in Manufacturing
EDI 810 – Invoice Invoice is a much more familiar term than EDI 810 for most. You know the deal—a supplier receives a purchase order, fulfills the request, and sends an invoice in response. An EDI 810 is simply the electronic version of this invoice.
EDI 830 – Planning Schedule with Release This one is extremely important when it comes to EDI transactions in manufacturing. An EDI 830 is the electronic document that a buyer sends to a supplier in order to inform them of anticipated demand in the coming months (usually 3-6). An EDI 830 enables proper demand forecasting and lessens the chance that a supplier will have insufficient inventory to fill incoming orders.
EDI 846 – Inventory Inquiry / Inventory Advice Does a supplier no longer manufacture a certain product? Will a best-seller be out of stock (OOO) for 3 months? An EDI 846 will let you know. It’s the EDI transaction in manufacturing sent by the supplier to inform the buyer of their inventory status. An EDI 846 facilitates realistic planning on both ends, as it sets expectations and provides a reference point for stock-level inquiries.
EDI 850 – Purchase Order Yet another commonly known document that has been assigned a numeric code! An EDI 850 is a good old-fashioned purchase order (PO) in an electronic format. This is EDI transaction document provides the stock keeping unit (SKU), order quantity, price, ship-to location, and more. As opposed to traditional purchase orders, there’s less room for manual-entry errors in an EDI 850, which is high-priority in manufacturing to keep product shortages at a minimum.
EDI 855 – Purchase Order Acknowledgment The name says it all. An EDI 855 is a purchase order acknowledgment. It’s the electronic message that a supplier sends to the buyer to let them know that their order has been received. An EDI 855 also includes other useful information, like if the order has been accepted as is or with changes, and if it has been completely rejected.
EDI 856 – Advance Shipment Notification ASN In other words, your order has shipped! An EDI 856 is the EDI transaction sent by the supplier to the buyer to let them know their order is on its way. The advance shipment notification (ASN) typically includes a tracking number, details on package contents, expected date of arrival, etc.
EDI 860 – Purchase Order Change An EDI 860 is an EDI transaction in manufacturing that can be used in two ways: First, it can be used by the buyer to make changes to a previously submitted EDI 850. Pop quiz! What’s an EDI 850? Correct, it’s a purchase order! Second, an EDI 860 can be used by the buyer to accept a supplier’s changes to their original purchase order.
EDI 862 – Shipping Schedule Mainly used to support just-in-time (JIT) manufacturing, an EDI 862 is used in real time to provide updates on shipment details. As most manufacturers know, supply and demand isn’t always 1:1, nor can it always be predicted. In that sense, an EDI 862 acts as a constant refresher to the EDI 830 (Planning Schedule with Release) to notify all parties of any changes as an order approaches fulfillment.
EDI 940 – Warehouse Shipping Order An EDI 940 is used when a third-party is involved in the shipment, which is often the case when it comes to the manufacturing industry. A supplier sends an EDI 840 in order to authorize a warehouse, or some other third-party logistics provider, to send a shipment to its intended location.
EDI 945 – Warehouse Ship Advice Similar to an advance shipment notice (ASN), an EDI 945 is the warehouse’s way of letting the supplier know that their warehouse shipping order (EDI 940) has been fulfilled. Put simply, an EDI 945 lets the supplier know that their order has shipped and is off to its intended destination.
This post was written by Courtney Yocabet, Global Marketing Specialist based in Breukelen, the Netherlands
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