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EDI 945 Warehouse Shipping Advice in Transportation Management, 3 PL Warehouse, and Third-party Logistics.

Many different processes take place in the warehouse every day, whether it’s a regular or 3PL warehouse. All of them must be carried out quickly and accurately. In this article, we will look at the importance of using EDI (Electronic Data Interchange) especially, an electronic document – EDI 945 Warehouse Shipping Advice associated with shipment of goods. Let’s figure out who and when to use EDI 945, what information a Warehouse Shipping Advice contains, 945 EDI specifications, benefits of using this EDI document, and much more.

What is EDI 945 transaction?

The Warehouse Shipping Advice Transaction Set (EDI 945) is an electronic data interchange (EDI) document. EDI 945 is usually used by 3PL warehouse/ remote warehouse or third-party logistics company, to notify its client (depositor) that a shipment has been made. It is used to match order quantities with shipment quantities.

945 EDI document type

EDI X12 945 Warehouse Shipping Advice Transaction Set is a document base on the X12 standard. X12 is a non-profit, ANSI-accredited standards development organization for cross-business transactions that support electronic data interchange in North America.

Each set of EDI transactions is supported by a subcommittee working within the X12 Accredited Standards Committee. EDI 945 falls under X12M – Supply Chain Subcommittee.

How is EDI 945 – Warehouse Shipping Advice used?

When a supplier/depositor (for example, a manufacturer or a wholesaler) needs to ship goods from the warehouse, he sends his 3PL warehouse an EDI document 940 Warehouse Shipping Order. EDI 940 contains all the necessary information regarding the goods required for shipment (description and quantity of goods, delivery date, recipient information, etc.) as well as shipping instructions.

Useful Reading: What is EDI 940 Warehouse Shipping Order?

The warehouse, having received the EDI 940, makes the shipment of the order and returns the EDI 945 immediately after the parcel has left the warehouse.

EDI 945 transfers detailed information about the merchandise shipped and the detail of the delivery.

Based on transaction EDI 945, the supplier can generate EDI 856 Advance Ship Notice as needed to notify its customer of an upcoming delivery.

What is the shipping process in a warehouse?

Shipment is the process of preparing and sending goods to the designated location. The shipping procedure at the warehouse is carried out according to predetermined rules. Each company develops shipping regulations independently, taking into account the characteristics and specifics of the goods and warehouse space.

The procedure for shipping goods from the warehouse/ 3PL warehouse can include many stages:

  • processing of the depositor’s order (for example, entering data into the warehouse system);
  • checking the availability of goods in the warehouse;
  • receiving a picking list;
  • selection of the necessary goods from the storage place;
  • moving to the picking area;
  • packaging and labeling in containers/pallets;
  • loading of transport;
  • Preparation and entry into the warehouse system of the relevant information.
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The main task of the warehouse manager is to organize efficient work, which will ensure fast processing of orders since all shipments must be carried out on time.

Automation of warehouse processes, for example, the use of EDI can significantly improve the quality and speed of shipment of goods.

Workflow to Exchange Warehouse Shipping Advice (EDI 945)

Let’s take a closer look at the process of shipment of goods from a third-party warehouse and analyze what other EDI documents are involved in the logistics process. Of course, keep in mind that the process below may reflect only one of the possible options. Each company can establish its own business process with a third-party warehouse, which depends on the type of the company’s activity, type of product, etc.

In the figure below you can see that usually the process in which EDI 945 is involved consists of at least three participants:

– Customer (it could be a retail outlet)

– Supplier (who is a client of the 3PL warehouse, or a depositor)

– 3PL Warehouse / or 3 PL logistics company.

1. The business flow begins with a Purchase Order – EDI 850 which is sent by the customer to the supplier.

2. The supplier responds to the customer with the EDI 855 PO Acknowledgement

3. The supplier sends the Warehouse Shipping Order (EDI 940) to the 3 PL warehouse

4. 3PL Warehouse process a Shipping Order and sends the goods to the supplier’s customer by the address specified in EDI 940.

5. Immediately after dispatch, the warehouse transfers the EDI 945 to the supplier.

6. Based on EDI 945, the supplier generates an Advance Ship Notice (EDI 856) and transfers it to his client.

7. The supplier sends the customer an EDI invoice 810

So, as you saw from the EDI workflow, 945 Warehouse Shipping Advice – is the main document, which confirms the fact of shipment of goods. It is used by many companies operating in wholesale and retail, including online stores.

Useful Reading: EDI Integration for Transportation and Logistics

What information does EDI 945 contain?

EDI document Warehouse Shipping Advice contains accurate and detailed information about the item shipped from the warehouse. Thus, EDI 945 includes the following information:

  • Information about the depositor, warehouse, and place of delivery (addresses, contacts).
  • Details of the carrier and the method of delivery of the goods.
  • Information about the product – cost, product name, SKUs, etc.
  • The number of goods shipped.
  • Complete order detail of the original order (EDI 940)
  • Date and time of shipment from the warehouse.
  • Transportation method

EDI 945 Warehouse Shipping Advice Structure

Like any other EDI document, EDI 945 transaction set has a precise structure and sequence of elements.

  • ISA – Interchange Control Header
  • GS – Functional Group Header
  • ST – Transaction Set Header
  • W06 – Warehouse Shipment Identification (numbers, dates, and other basic data)
  • 0100 – Loop Name (to identify a party by type of organization, name, and code)
  • N1 – Name
  • N9 – Reference Identification
  • G62 – Date/Time
  • W27 – Carrier Detail
  • W10 – Warehouse Additional Carrier Information
  • 0300 – Loop Assigned Number
  • LX – Assigned Number
  • MAN – Marks and Numbers
  • PAL – Pallet Information
  • 0310 – Loop Warehouse Item Detail
  • W12 – Warehouse Item Detail
  • N9 – Reference Identification
  • W03 – Total Shipment Information
  • SE – Transaction Set Trailer 
  • GE – Functional Group Trailer
  • IEA – Interchange Control Trailer

Benefits of using EDI 945 in Warehouses/ 3PL warehouses and Logistics

The use of EDI 945 in a 3 PL warehouses or 3 PL logistics company, allows you to get significant competitive advantages due to:

  • increasing the speed and accuracy of logistics operations;
  • reducing the cost of manual processing of documents;
  • reducing the risks of losses and information inaccuracies;
  • Increasing the speed of order processing due to receiving timely, fast, and accurate information.

Thus, automation of warehouse processes through the use of EDI document such as EDI 945, significantly improves the quality of 3PL warehouse processes.

Automate Warehouse Shipping Advice with EDI2XML Web Service

We have a ready-made EDI solution for the exchange of electronic documents in the X12 and EDIFACT standards. It is a unique HTTP service running over the internet that is capable of receiving HTTP requests to translate EDI messages to XML, and XML to EDI.

Try all the possibilities of the EDI2XML Web Service for free. We offer a 15 days free trial.

Contact us for a free consultation and find out how within an hour you can start exchanging electronic documents such as EDI 945 and many others with your trading partner.

EDI in transportation and 3PL

You may also be interested in reading about:
– Electronic Data Interchange (EDI) in the Supply Chain
– How EDI can speed the receiving of goods in a warehouse
– EDI for Third-Party Logistics providers (3PL)
– DELFOR, DELJIT, DESADV – key EDI messages in supply chain management for manufacturing

 

EDI Integration for Warehouse

Most distribution companies are faced with delays in delivering and receiving merchandise and the acceptance of shipments. There are many reasons for these delays:
– employee’s efficiency
– an ineffective system of storage of goods within the warehouse
– lack of technology tools.

In this article, we will tell you how to optimize and speed up the warehouse using EDI ( Electronic Data Interchange)

Warehouse Management Issues

How quickly the warehouse starts picking an order received from an ERP– depends on the internal business process in an organization.

There are situations where orders received before 12:00 noon are shipped on the same day, and all other orders – only the next morning.

There are companies whose warehouse business processes are built in such a way that it takes 2-3 days to process and ship one order.

If the company operates in the FMCG market, then the logistics should be very fast. For example, when delivering perishable goods such as fish and seafood, dairy products, fruit, and vegetables.

The time to receive and accept the goods also depends on the form in which the documents and related paperwork are presented.

Acceptance of goods from a large truck can take from one to three hours.

EDI can significantly reduce the processing time for goods acceptance documentation. Companies that have implemented and integrated EDI in their warehouse business processes realized a reduction in processing time of up to 90%.

Moreover, with large volumes of deliveries, there are other advantages of electronic data Interchange.

eBook:  EDI – Key Information You Need to Know  

EDI Transaction Sets for the Supply Chain

In supply chains, the EDI 856 Advanced Ship Notice and EDI 861 Receiving Advice/Acceptance Certificate transaction sets are very commonly used. DESADV – Despatch advice message and RECADV – Receiving Advice Messages perform the same function in the EDIFACT standard.

An EDI 856 document contains information about the shipment and other detailed information:
  • shipment id
  • physical characteristics of the goods
  • recipient and sender identifiers
  • barcodes
  • transportation information.

When receiving an 856 EDI document, the recipient does not need to enter data manually. Product information may automatically flow into the accounting business system. Advanced Ship Notice helps to prepare for acceptance. Even before the arrival of the supplier’s truck, the buyer already has a list of goods shipped, integrated into his own system.
EDI for Warehouse

The response to the EDI 856 document, to confirms the acceptance of the goods, is EDI 861. The Receiving Advice is transmitted from the buyer to the supplier. EDI 861 indicates the list of goods received or not received, accepted or not accepted, as well as other accompanying information.

EDI improves the accuracy of work with deliveries and reduces the number of human errors when processing documents in the warehouse. Since the data comes even before goods delivery, it is possible to arrange a schedule so that unloading begins immediately after the arrival of the goods.

Using SSCC codes, is a companion to the EDI 856 transaction, which makes it possible to mobile scanners to automatically read information on the contents of pallets, regardless of the number of assortments.

EDI Integration for Warehouse and Supply Chain

For suppliers working with retailers and other distributors, it is possible to use both of EDI2XML offerings: EDI web service that allows to send and receive EDI 856 /861, as well as the fully managed EDI solution…

Integration of EDI with accounting /warehouse business system is importantly relevant, when a huge number of transactions is being processed daily; it will help accelerate the work at the warehouse.
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