Unlock seamless data exchange for retail with edi2xml.com. Streamline orders, inventory, and supply chain operations for greater efficiency and growth.

Tag Archive for: EDI for retail

How to Get EDI-Compliant Quickly For A Large Retailer

For more than 25 years, EDI2XML has been helping businesses of all sizes connect to retailers, distributors, and logistics partners. Over that time, we’ve seen the same situation repeat itself: a company secures a major partnership opportunity and suddenly receives an email requiring them to become EDI compliant — often within a tight deadline.

This guide shares our practical, experience-based approach. Our goal is simple: explain what really matters, help you avoid common mistakes, and show realistic paths to compliance – whether you choose a fully managed EDI service, a web portal, or your internal IT team.

When a Retailer Requests EDI Compliance

When a large retailer such as Walmart, Home Depot, or Target asks for EDI compliance, the first reaction is usually stress. The implementation guide is long, requirements are technical, and internal resources are often limited.

But with the right approach, it’s entirely manageable. Below is a clear breakdown of what to expect and how to navigate the process efficiently.

Key Takeaways

  • Retailers usually require EDI 850, 810, and 856 to begin shipping.
  • You don’t need deep technical knowledge – you need the right EDI provider.
  • The fastest path is a EDI Web Services (REST API).
  • Businesses without ERP systems can use a EDI web portal.
  • EDI2XML brings 25+ years of experience as an EDI provider.

What Exactly Is the Retailer Asking For?

Before you do anything technical, you need to understand what documents the retailer expects. Most retailers require a few standard EDI transaction sets, such as:

The Challenge: These documents follow strict, archaic standards like ANSI X12. For a modern developer used to JSON or REST APIs, it can feel like reading Morse code. Misinterpreting a single field can lead to failed testing and costly delays.

How can you simplify this step?

Most businesses choose to work with an EDI service provider who can translate the retailer’s documents into a format their internal team actually understands.

Which Connection Path Is Right for You?

Choosing how to connect to a retailer’s EDI system depends on your company’s resources, technical skills, and how much control you want. Based on our 25+ years of experience at EDI2XML, there are three main approaches – plus an in-house option – each with its own advantages and realities.

EDI Guide

What Is the Fastest Way to Connect? (EDI2XML REST API)

If your company has an experienced internal IT or development team, the EDI2XML REST API is the quickest way to connect. It allows your systems to communicate directly with the retailer’s EDI infrastructure, converting X12/EDIFACT messages into modern formats like XML or JSON.

Pros:

  • Fastest technical connection
  • Full control over integration
  • Immediate access to data for internal systems

Cons:

  • Requires technical resources and development expertise
  • Support for communication with the retailer usually falls on your team

This path is ideal for businesses that want maximum speed and control and have the technical capability to manage testing and integration themselves.

Learn More About HTTP EDI Web Service (REST API)

API

How Can an EDI Web Portal Help?

Not every business has SAP or NetSuite – or needs it. Many smaller suppliers use QuickBooks, Excel, or another lightweight tool instead of ERP or CRM systems.

The EDI Web Portal is a turnkey solution for companies that don’t have an ERP system or don’t want to integrate EDI into their existing systems.

For these companies, the easiest option is an EDI Web Portal, where:

  • EDI2XML handles all the setup and testing with your trading partners
  • You log into a simple web portal to view POs, create invoices, and manage ASNs
  • No complex internal integration is required

No complicated software. No learning curves. No IT requirements.

Pros:

  • No ERP needed
  • Full oversight of transactions via a user-friendly portal
  • Stress-free for internal teams

Cons:

  • Connection and testing with the retailer still take time (usually several weeks)
  • Less direct control over the technical integration than an API

This is perfect for small and mid-size companies that want a fully managed, end-to-end solution without complex ERP integration.

Learn More About EDI Web Portal for Small & Mid‑Size Businesses

What Does a Fully Managed EDI Service Offer?

A Fully Managed Service is a true “project under turnkey” solution. EDI2XML handles everything from start to finish:

  • Mapping and system integration
  • All communication with the retailer’s EDI team
  • Testing cycles and validation
  • Ongoing support after go-live

Pros:

  • Stress-free, everything handled by experts
  • Ideal for companies with multiple systems or limited IT resources
  • Ensures full compliance and minimizes errors

Cons:

  • Onboarding typically takes several weeks because each retailer requires multiple test cycles and approvals

This is the best choice for companies that want complete hands-off management and trust EDI2XML to handle all technical and administrative tasks.

Learn More About Fully Managed EDI Service

Systems Integration

Can My Team Do It In-House? (DIY Integration)

Some companies prefer to manage EDI internally. This path offers the most control, but it comes with challenges:

  • Requires technical expertise in EDI mapping and testing
  • Longer implementation times, especially for first-time onboarding
  • Risk of delays if issues arise during retailer testing

The DIY approach works for experienced teams with flexible timelines, but for most businesses, a managed option is safer and more reliable.

Frequently Asked Questions (FAQ): How to Quickly Connect to a Large Retailer’s EDI Requirements

How long does it usually take to become EDI compliant?

It depends on the solution:

Fastest (EDI Web Service): Be ready in under an hour with our REST API and a technical team.

Easiest (Fully Managed): Get fully compliant in a few weeks with our hands-off service, depending on document complexity and partner collaboration.

What if my team has no EDI experience?

That’s totally fine – most companies don’t. A fully managed EDI service removes all technical complexity.

Do I need an ERP system to work with EDI?

No. Many small and mid-size suppliers successfully use an EDI web portal connected to QuickBooks or Excel.

Can you help us understand retailer requirements?

Yes. We provide complete guidance through all requirements, testing, and onboarding. We also offer a free EDI consultation to get you started.

Becoming EDI Compliant Doesn’t Have to Be Stressful

Getting an EDI request from a major retailer is a sign that your business is growing. It shouldn’t feel like a barrier.

With the right approach – and the right EDI service provider – you can meet requirements quickly and confidently.

EDI2XML has been helping businesses automate, integrate, and grow through EDI for over 25 years. Whether you want full control, a simple portal, or a fully managed service, we’ll guide you through every step.

Want to get compliant fast?

Reach out for a free consultation – no pressure, no obligation.

Synchronizing Accounts in Salesforce with Customers in NetSuite using Magic xpi

/0 Comments

How to Improve Collaboration in the Retail Supply Chain with EDI 852 Document

In the business world, especially in the retail industry, an EDI 852 transaction set plays a crucial role in transmitting product activity data between trading partners. In this article, we will explore the details of X12 EDI 852 document, providing you with a comprehensive understanding of its definition, document structure, data elements, and more.

What is the EDI 852 Document?

The EDI 852 document, also known as Product Activity Data, is an electronic transaction set used in supply chain management and retail operations for exchanging product-related information between trading partners.

It contains detailed data on the activity of products, such as sales, inventory levels, pricing, and promotions. The EDI 852 document provides valuable insights into product performance and helps in the decision-making process.

Understanding the EDI 852 Document

The EDI 852 document follows the X12 standard format and consists of various segments and data elements that convey specific information. Each segment within the document serves a distinct purpose, such as identifying the product, sales quantities, pricing, and dates.

Typically, retailers provide their suppliers with EDI 852 every week. When automating the EDI 852, the problem is that each retailer may use slightly different formats, data descriptions, and code identifiers.

That is why it is essential to adhere to the EDI 852 specification so that trading partners can ensure uninterrupted data exchange.

What are the Key Components of the EDI 852 Document?

The EDI 852 transaction set comprises essential data elements that provide valuable insights into product activity.

The essential components of an EDI 852 document include:

Header: Contains general information about the document, such as sender, receiver, document number, and date.

Line Items: Each line item represents a specific product and includes details like UPC/EAN codes, quantity sold/available, unit prices, dates of sales and promotions, store locations, and much more.

Summary: Provides aggregate information, such as total sales, units shipped, and average prices, at the end of the document.

These elements collectively form a comprehensive dataset that enables accurate analysis and decision-making.

How is an EDI 852 Product Activity Used?

The EDI 852 document serves multiple purposes, including:

Sales Analysis: Retailers can analyze sales patterns by geographical location, identify top-selling products, and measure the effectiveness of promotions.

Inventory Management: Suppliers can track product availability, monitor stock levels, and plan replenishments efficiently.

Demand Forecasting: By analyzing historical sales data, businesses can make accurate forecasts and adjust production and inventory strategies accordingly.

Pricing and Promotions: The EDI 852 document helps assess the impact of pricing changes and promotional activities on product performance.

Thus, by leveraging the rich insights derived from EDI 852, organizations can make data-driven decisions and adapt their strategies to achieve business growth.

How is an EDI X12 852 – Product Activity Data Processed?

The EDI X12 852 business flow between trading partners, such as a retailer and a supplier typically follows a standardized process. Here is a general overview of the EDI 852 business flow:

Purchase Order: The retailer generates a purchase order (EDI 850) to communicate their product requirements and submit it to the supplier.

Purchase Order Acknowledgment: The supplier receives the purchase order and responds with an EDI 855 Purchase Order Acknowledgment. This document confirms the receipt and acceptance of the purchase order.

Shipment: When the supplier ships the products, they generate an EDI 856 Advance Ship Notice (ASN) to notify the buyer of the coming shipment. The ASN contains information about the products, packaging, quantities, and carrier details.

Receipt of Goods: The retailer receives the shipment and records the receipt of goods in their internal systems like ERP or CRM.

Invoice Generation: After the retailer receives the shipment and records the receipt of goods, the supplier generates the Invoice (EDI 810) document. The invoice contains the billing details, including itemized charges, payment terms, etc.

Sales and Product Activity: The retailer captures sales and product activity data within their systems. This data includes information such as quantities sold, pricing, promotions, and inventory levels.

EDI 852 Generation: Based on the captured sales and product activity data, the retailer generates the EDI 852 document (Product Activity Data) and sends it to the supplier.

EDI 852 Transmission: Most often, a retailer will transmit an EDI 852 document to a supplier using the services of an EDI provider, such as a fully managed EDI service or an EDI web service.

Supplier Processing: Upon receiving the EDI 852, the supplier verifies and processes the data. They utilize this information for various purposes, such as sales analysis, inventory management, and demand forecasting.

The retailer and the supplier can integrate the EDI 852 data into their respective internal systems, such as Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), or inventory management systems. This integration ensures seamless data flow, eliminates manual data entry, and enables real-time visibility into product activity.

It’s important to note that the generation of the EDI 852 document typically falls within the retailer’s responsibility. As they capture and analyze the sales and product activity data, they generate the EDI 852 to share that information with the supplier. The supplier then processes this data and utilizes it for their own business purposes.

Which Industries Typically use the EDI 852 Document?

The EDI 852 document is widely utilized in industries such as retail, consumer goods, manufacturing, and distribution. Retailers and suppliers, including e-commerce platforms, department stores, and wholesalers, rely on the EDI 852 to streamline their supply chain processes and optimize inventory management.

What is EDI 852 Message Format and Specification?

The EDI 852 message follows a specific format and specification based on the ANSI X12 standard.

The EDI 852 specification defines the structure, data elements, and guidelines for implementing the document. It outlines the mandatory and optional segments, their formats, and the specific usage requirements. The specification provides a common language for trading partners to exchange product activity data accurately.

The EDI transaction set contains various segments that organize the data into specific categories. Each segment serves a specific purpose and carries relevant data related to product activity.

Here are the key segments typically found in an EDI 852 transaction:

  • ST Transaction Set Header
  • XQ Reporting Data/Action
  • XPO Preassigned Purchase Order Numbers
  • N9 Reference Identification
  • PER Administrative Communications Contact
  • N1 Name
  • N2 Additional Name Information
  • N3 Address Information
  • N4 Geographic Location
  • FOB F.O.B. Related Instructions
  • TD5 Carrier Details (Routing Sequence/Transit Time)
  • DTM Date/Time Reference
  • LIN Item Identification
  • CTP Pricing Information
  • SAC Service, Promotion, Allowance, or Charge Information
  • PO4 Item Physical Details
  • AMT Monetary Amount
  • PAL Pallet Information
  • ZA Product Activity Reporting
  • QTY Quantity
  • CTP Pricing Information
  • SDQ Destination Quantity
  • G95 Performance Requirements
  • CTT Transaction Totals
  • SE Transaction Set Trailer

These are some of the common segments found in an EDI 852 transaction set. The specific segments and their usage may vary depending on the implementation and business requirements of the trading partners.

What is the Difference Between EDI 852 and EDI 867?

While both EDI 852 and EDI 867 documents are used for product activity data, they serve different purposes. The EDI 852 focuses on providing detailed information on sales, inventory, and pricing, while the EDI 867 – Product Transfer and Resale Report, is used for transmitting information related to inventory transfers and adjustments between locations or trading partners.

Thus, EDI 867 provides broader visibility into inter-store transfers and resale activities.

By combining the data from both transaction sets, organizations can gain a holistic view of their supply chain, optimize inventory management, and enhance demand planning.

What are the Benefits of EDI 852?

Implementing the EDI 852 document offers several advantages:

Enhanced Data Accuracy. Manual data entry errors are minimized, ensuring reliable and error-free information exchange.

Improved Efficiency. Automation of product-related processes saves time, reduces costs, and enables faster decision-making.

Better Inventory Management. Real-time visibility into product activity helps optimize stock levels, minimize out-of-stock situations, and avoid excess inventory.

Streamlined Collaboration. EDI 852 facilitates seamless communication and collaboration between retailers and suppliers, improving overall supply chain performance.

Thus, implementing EDI 852 streamlines the exchange of product-related information, reduces manual data entry, improves data accuracy, and enhances collaboration between suppliers and retailers.

What Other EDI Transaction Sets Related to EDI 852?

In addition to the EDI 852 transaction set, there are several other EDI documents commonly used in conjunction with or related to EDI 852. Let’s explore some of these transaction sets:

  • EDI 846 – Inventory Inquiry/Advice, is used to exchange inventory-related information between trading partners.
  • EDI 832 – Price/Sales Catalog, facilitates the exchange of pricing and product catalog information between trading partners.
  • EDI 810 – Invoice, is used for transmitting invoice information from suppliers to retailers.
  • EDI 850 – Purchase Order, is used to demand of delivery of goods and/or services.
  • EDI 855 – Purchase Order Acknowledgment, is used to confirm the receipt and acceptance of purchase orders.
  • EDI 867 – Product Transfer and Resale Report.

These are just a few examples of transaction sets related to EDI 852. Depending on specific business requirements and industry practices, there may be other transaction sets that are relevant and commonly used in conjunction with EDI 852 for seamless data interchange and comprehensive supply chain management.

Conclusion: EDI 852 Document for Supply Chain Management

EDI 852 Product Activity Data plays a key role in efficient supply chain management and collaboration between suppliers and retailers. Using EDI 852, organizations can simplify the exchange of product information, improve inventory management, and streamline decision-making. If you have any questions about EDI 852 or EDI in general, please contact our experts for a free consultation.

/0 Comments

EDI for Specific Industries

How Does EDI Facilitate Business Document Exchange?

EDI – Electronic Data Interchange is a well-established protocol of business data exchange, which has become more and more widespread in recent years among businesses of all sizes and various industries.

Through EDI, companies can exchange business documents that were traditionally communicated on paper or by e-mail.

By replacing the exchange of paper or e-mail documents with EDI, companies save time and eliminate manual data processing, which often leads to errors and costly delays in all business processes.

Companies today use EDI to send all kinds of documents, from orders and invoices to motor carrier load tenders, customs manifests, and more.

The exchange of EDI takes place between business partners who exchange goods or services.

All EDI transactions comply with standards developed and maintained by several organizations, including UN/CEFACT, X12, ODETTE, GS1, Peppol, and others.

However, despite uniform standards, each industry can use a certain set of specific EDI transactions. Below, we provide some examples of EDI documents for specific industries.

USEFUL: A complete list of documents that can be exchanged via EDI

EDI for Transportation and Logistics Industries

The Transportation industry actively uses EDI and, in addition to standard transactions, this industry use sets of specific EDI documents.

The transport industry includes a huge variety of different types of transportation. It includes marine, air, rail, and motor freight. Accordingly, the EDI transactions used for example, in rail transportation will differ from those used by motor freight.

The Most Used EDI Transactions for Transportation and Logistics

USEFUL: You can find a complete list of EDI transportation codes in our article “EDI Integration for Transportation and Logistics”

EDI for the Supply Chain Industry

The supply chain industry includes many processes such as distribution, inventory, purchasing, production planning, sales, supply chain planning, interaction with trading partners and warehouses.

The use of EDI in the supply chain allows the company to quickly exchange documents electronically with all suppliers, exchange prices and catalogs, track information on shipments and acceptance of goods. EDI allows to make the supply chain as transparent and efficient as possible, receiving up-to-date data on the movement of goods and funds in real-time.

USEFUL: EDI for Third-Party Logistics providers (3PL)

EDI Transactions for Supply Chain

Here are some of the most common EDI documents in the supply chain:

  • EDI 810 – Invoice
  • EDI 846 – Inventory Status
  • EDI 850 – Purchase Order
  • EDI 856 – Ship Notice/Manifest
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 753 – Request For Routing Instructions
  • EDI 754 – Routing Instructions
  • EDI 816 – Organizational Relationships
  • EDI 830 – Planning Schedule With Release Capability

To learn more about the use of EDI in the supply chain, read our article: Electronic Data Interchange (EDI) in the Supply Chain It covers the following questions:

– What is EDI?

– Why use EDI in the supply chain?

– How does EDI work?

– Typical EDI workflow process

– Additional and specific types of EDI messages

– Benefits of EDI for Supply Chain Management

– Effective EDI Solution for Supply Chain

EDI for HealthCare and Insurance Industries

EDI is of great value to healthcare organizations because it provides a secure way to electronically exchange sensitive information.

The healthcare industry includes health insurance activities, which are carried out by both commercial and public health organizations.

Most Common EDI Transaction Sets in HealthCare

  • HIPAA / X12 270 – Eligibility, Coverage, or Benefit Inquiry
  • HIPAA / X12 271 – Eligibility, Coverage, or Benefit Response
  • HIPAA / X12 276 – Healthcare Claim Status Request
  • HIPAA / X12 277 – Health Care Claim Status Response
  • HIPAA / X12 837 – Health Care Claim (Professional, Institutional, and Dental)
  • HIPAA / X12 999 – Implementation Acknowledgment
  • EDI 273 – Insurance/Annuity Application Status
  • EDI 274 – Healthcare Provider Information
  • EDI 275 – Patient Information
  • EDI 834 – Benefit Enrollment And Maintenance
  • EDI 835 – Health Care Claim Payment/Advice
  • EDI 852 – Product Activity Data (to exchange information between Manufacturers and Pharmacies)
  • EDI 999 – Implementation Acknowledgment (for Health Care Insurance)

To learn more about EDI in healthcare, please read this article: All you need to know about HIPAA EDI compliance in Healthcare

EDI for the Retail Industry

The Retail Industry is a pioneer in the implementation of EDI. Large retailers are actively automating business processes and introducing new information technology solutions to reduce costs and increase sales.

Thus, the use of EDI in retail is a must. Since large retail companies have a huge number of suppliers, they have to exchange thousands of documents every month. It is simply impossible to go through so much documentation manually.

The Most Used EDI Documents in the Retail

  • EDI 810 – Invoice
  • EDI 820 – Payment Order/Remittance Advice
  • EDI 832 – Price/Sales Catalog
  • EDI 846 – Inventory Inquiry/ Advice
  • EDI 850 – Purchase Order
  • EDI 852 – Product Activity Data
  • EDI 855 – Purchase Order Acknowledgment
  • EDI 856 – Ship Notice/Manifest
  • EDI 861 – Receiving Advice/Acceptance Certificate

The use of EDI in retail offers many benefits, ranging from savings in paperwork and avoiding manual data entry errors, to reducing transport and logistics costs and increasing company profits.

If you want to learn more about the use of EDI in retail, please read this article: The Top 6 EDI Documents for Retail Suppliers

Conclusion: EDI for Specific Industries

In this article, we explored the use of electronic data interchange in some industries, however, if you have any questions regarding EDI, you can always contact us for a free initial consultation.

Our more than 21 years of experience in the implementation of EDI for various industries allows us to offer our customers the most profitable and effective EDI solutions.

Free EDI Consultation
/0 Comments

The Top 6 EDI Documents for Retail Suppliers

In this post, I’ll give a brief overview of the top 6 EDI transactions used in the Retail industry, the main differences between documents exchange via EDI and email, and how you can quickly satisfy the request of a large retailer (such as Walmart, Target, Costco) about EDI compatibility and start exchanging EDI documents fairly quickly.

What is Electronic Data Interchange (EDI)?

EDI is a protocol to exchange business information between two organizations electronically based on a predefined standard. EDI has replaced the use of paper documents or the exchange of business information by email.

EDI in the Retail Industry

Electronic Data Interchange (EDI) has been widely adopted in the retail industry to facilitate efficient and accurate communication between trading partners. EDI is the electronic exchange of business documents between two or more organizations in a standardized format.

The retail industry has been using EDI for over 30 years. Can you imagine the volume of business documents flow at large retailers? They have thousands of transactions every month with hundreds of suppliers and tens of thousands of products.

For such large trading companies, it is simply impossible to do business without exchanging EDI. That is why they force their suppliers to exchange documents through EDI.

What is a Retail Supplier?

Supplier is any legal entity (organization, enterprise) or individual that provides goods to another entity. Retail suppliers are business-to-business (or B2B); they sell products to other companies, and not directly to the consumer.

Suppliers can be manufacturers, as well as various resellers (including wholesalers).

The supplier carries out business activities by the terms of the concluded supply agreement.

Giant retailers such as Best Buy, Wal-Mart, Costco, and Target have supply agreements with many different suppliers from whom they buy goods in bulk and then sell them to the final consumer in their stores or online stores.

What is the Difference Between EDI and Email?

email and EDI

Let us make a comparison between sending a purchase order from a Retailer to a supplier by email and another one by EDI. Here are some major differences:

1. Transfer or exchange of business information

Both methods have secure communication channels, however, EDI communication channels use higher security standards.

2. Standards and structure

The content of the email is not structured at all. There is no standardization when placing a purchase order via email. Thus, the supplier needs to check many elements such as subject, message body, attachments, because the information about the purchase order can be either in the body or in one or multiple attachments.

The content of an EDI Purchase Order (EDI 850) is very well structured, and it conforms to a specific standard (i.e. X12, EDIFACT, …). Each element and loop have a pre-defined purpose.

3. The ability to integrate with business systems (ERP/CRM)

Extracting the data “automatically” from an order coming by email is very difficult (not to say extremely difficult), while extracting the purchase order information from an EDI X12 850 for example, or a UN/EDIFACT ORDER is much more standard.

As a conclusion: exchanging business documents complying with EDI standards, enables companies and business partners in the retail to automatically integrate data into their internal business systems, efficiently and with great accuracy without human intervention.

Commonly used EDI Documents in Retail

e-commerce Integration

Large retailers using EDI can standardize the process with their trading partners, thereby improving all business processes, increasing profits and customer satisfaction. For all size suppliers, the use of EDI gives access to large retailers and therefore a stable volume of orders. Let us look at the main EDI transactions used in B2B trading between retailers and suppliers.

1 – EDI 846 – Inventory Inquiry/ Advice | EDIFACT INVRPT

EDI 846 (EDIFACT/INVRPT – Inventory Report) is a notification that the supplier usually sends to the retailer, which contains information about the availability of goods. This EDI transaction is used to inform your trading partners (retailers) about stock levels but does not oblige them to make a purchase. Usually, EDI 846 also includes pricing information.

For more information about EDI 846 read our article: What is EDI 846 document?

2 – EDI 850 – Purchase Order | EDIFACT ORDERS

EDI 850 (EDIFACT/ORDERS) is an electronic document that is used to place an order for goods.

EDI 850 is usually sent by retailers to their supplier of goods. This document indicates the quantity of the required goods as well as all the details regarding the order (Item description, price, and quantities, shipping details, requested delivery date, and location(s) of delivery).

If you want to know more about EDI 850 read the article: All you need to know about EDI ANSI X12 Transaction Set 850 Purchase Order

3 – EDI 855 – Purchase Order Acknowledgement | EDIFACT ORDRSP

The EDI 855 (EDIFACT/ORDRSP – purchase Order Response) is a reply to the message (EDI 850). It is sent by the supplier after receiving the order from the retailer.

By returning the 855 messages, a supplier agrees to fulfill the order or proposes to amend. In other words, using EDI 855, the supplier either notifies the full, partial, or refusal to fulfill the order. This message helps the retailer avoid supply disruptions.

You will find detailed information about EDI 855 in this article: What is EDI 855 Purchase Order Acknowledgment?

4 – EDI 856 – Advance Shipment Notice | EDIFACT DESADV

EDI 856 (EDIFACT/DESADV – Despatch Advice)  is a notification sent by the supplier immediately after the shipment of the goods leaves its warehouse.

The idea behind this message is that the retailer may know in advance about the fact that the products have been loaded, its quantity, and the expected delivery date. This way, he can efficiently plan the receipt and scanning of the goods at his warehouse.

You will find detailed information about EDI 856 in this article: What is Advanced Ship Notice (ASN) 856 transaction set?

5 – EDI 861 -Receiving Advice/Acceptance Certificate | EDIFACT RECADV

The EDI 861 (EDIFACT RECADV – Receiving Advice) acts as a response message to EDI 856 which confirms the acceptance of the goods.

Acceptance is communicated from the retailer to the supplier. It indicates there is a discrepancy between what was sent by the supplier and what was received by the retailer and details the list of goods received.

Besides, the retailer can provide additional information such as information about damaged items during transportation, etc.

Complete List of EDI Transactions, Sets & Codes for ANSI ASC X12 Standard

6 – EDI 810 – Invoice | EDIFACT INVOIC

EDI 810 (EDIFACT INVOIC – Invoice) is an electronic document provided by the supplier to the retailer to bill for the goods delivered. EDI 810 contains a list and description of goods, their quantity, and price, as well as information about the sender and recipient.

For complete information on EDI 810 read this article: What is an ANSI ASC X12 EDI 810 invoice?

These are some of the most commonly used EDI documents in the retail industry, facilitating efficient communication and transaction processing between trading partners.

EDI flow in the retail industry

Let us look at a typical EDI flow between trading partners (where the retailer acts as a buyer) in which the top 6 EDI transactions described above are involved.

1. The supplier sends or feeds the retailer his inventory status, to inform about the availability of goods – Inventory Inquiry/ Advice (EDI 846).

2. The retailer sends the Purchase Order to the supplier (EDI 850).

3. The supplier checks the availability of the goods in the warehouse and sends the Purchase Order Acknowledgment (EDI 855), in response to the Purchase Order.

4. The supplier immediately after shipment of the goods, generates and sends to the retailer an Advanced Ship Notice (EDI 856).

5. The retailer, after acceptance of the ASN received from the previous step, generates and sends the supplier a Receiving Advice/Acceptance Certificate (EDI 861).

6. The supplier, based on the above acceptance notifications, generates an Invoice (EDI 810).

This EDI flow is considered for the case when the trade agreement between the retailer and the supplier has already been concluded, and the retailer has a list of goods from each supplier in its business system.

Benefits of using EDI

EDI has long been an integral part of B2B especially in the retail vertical. Using EDI to exchange business information provides many business benefits to both large and small businesses. Here is a short list of those benefits:

Speeds up workflows

You can send any document in seconds.

Prompt exchange of documents speeds up the process of ordering and delivery of goods. The main benefit for the retailer is the uninterrupted replenishment of goods. For the supplier, a quick payment for the delivered goods.

Saving resources and time

No need to use operators for manual processing of business documents, duplicate on paper, store, send by mail, or courier.

One standard for everyone

EDI makes it easy to start selling to large retailers. Exchange EDI documents without worrying about format differences and compliance with business systems (ERP /CRM) of your trading partner.

Accelerate the acceptance of goods

When EDI is integrated into the retailer’s business system, data from suppliers goes directly to the accounting system. Thanks to automatic item matching, goods are accepted very quickly. The process of accepting the goods is quick and easy.

Reduces risks

EDI eliminates errors associated with manual data input, as well as the loss of documents.

Secured data transmission

EDI documents are transmitted over secured channels in encrypted form, or through private value added network, no concern about data breach.

About EDI2XML services

EDI2XML offers a wide range of EDI services to automate the exchange of documents between all parties in the retail and transportation industry, whoever they are: retailers, suppliers, shippers, consignees, and transport companies.

We help your company get started on exchanging EDI with your partners in a fairly and relatively short period of time, and on budget. Whether adopting our Fully EDI managed EDI Service or our EDI2XML self-service Web service, we can empower your company with the ability to send and receive any type of electronic documents such as Purchase Order (EDI 850) PO Acknowledgment (EDI 855), Invoices (EDI 810), ASN (EDI 856) and many more.

Useful Reading: Fully managed EDI service VS HTTP Web Service: Which is Better for Your Business ?

Contact us for more information and a free consultation.

Free EDI consultation