Supply chains now span the globe, making precise shipping data is vital to supply chain efficiency. The EDI 856 ASN (Advanced Ship Notice) helps firms track what moves between them by sharing key facts about each load’s items and when they’ll arrive.
What is an Advanced Ship Notice (ASN aka 856)
An Advanced Ship Notice (ASN), also known as an advance shipping notice, serves important functions for both senders and receivers in the supply chain:
For the Sender:
The ASN acts as a digital packing list, allowing them to provide detailed information about an upcoming shipment. It helps them document exactly what they’re shipping, when it’s leaving, and the expected arrival time. This creates a clear record of what was sent and helps protect them if questions arise about the shipment contents or timing. Due to the downstream automation benefits to your customer, it speeds the order to cash cycle by creating receiving transactions in their system of record, reducing errors, thereby reducing invoice/receiving mismatches. Many retail trading partners measure your accuracy and apply results to supplier scorecards, which can help or hinder your ability to negotiate.
For the Receiver:
The ASN is especially valuable for the receiving party as it enables them to:
- Plan labor and dock space by knowing exactly when shipments will arrive
- Prepare storage space based on the detailed contents list
- Cross-reference received goods against what was supposed to be shipped
- Speed up the receiving process since they can prepare for specific items
- Reduce manual data entry since the shipping details are received electronically
- Quickly identify any discrepancies between what was shipped and what arrives
When properly implemented, the ASN creates efficiency for both parties by providing accurate, advance information about shipments and enabling better planning and tracking throughout the shipping process. It’s particularly valuable in modern warehouse management systems where it can automatically update inventory and trigger related processes.
Let’s look at ways to make ASNs work best for different pack types.
Pack Types Explained
Pick and Pack Setups:
SOPI (Shipment, Order, Pack, Item) brings four parts together: the whole load, split into orders, then into packs, with items listed last. This fits when you ship many orders with mixed goods in each pack. It lets the receiving party plan right down to each item.
SOTI (Shipment, Order, Tare, Item) the addition of Tare ads focus on pack materials (bins and wraps, pallets, crates, boxes, containers, wire baskets, etc.), plus the goods inside. This works great when you need to track pack materials that must be returned.
SOTPI (Shipment, Order, Tare, Pack, Item) gives the most complete view by mixing both ways above. It tracks wraps, packs, and items all at once. This helps when you must know every detail about what moves and how it’s held.
Basic Pack Types:
SOIP (Shipment, Order, Item, Pack) works when boxes hold many of the same thing. By listing items right under each order, then noting packs, it makes things clear when loads are simple.
SOTP (Shipment, Order, Tare, Pack) skips item details but tracks orders, wraps, and packs. This fits when you just need to know about packing materials, not each thing inside.
Plain Item Lists:
SOI (Shipment, Order, Item) just shows what’s in each order. It works for simple moves where pack details don’t matter much.
Common ASN Snags
Bad Data:
Entering the wrong item numbers or codes can mess up the process. Having good systems that validate field level data (like Surpass) can help avoid costly mistakes.
Timing Issues:
If ASNs are too late, receiving parties can’t recognize the shipment on arrival. This can trigger costly chargebacks, as the receiver must manually enter the received goods. Too soon, things might change, like a different shipper or tracking number. Best move: wait till trucks have the load, then send the ASN.
Storytime: A supplier had a 3PL that was across the street from a retail distribution center. The supplier received a 945 transaction from their 3PL and automatically created the ASN 856 and sent it to the retailer. But they were still getting chargebacks. Turns out, the truck driver would take the load immediately across the street and was beating the ASN by a few minutes.
Missing Data:
Each ASN must have all mandatory fields that a re required by your trading partner. Skipped fields cause downstream errors, resulting in chargebacks, unpaid invoices and dinged scorecards. Using an EDI provider like Surpass Solutions helps avoid this due to cloud-level validation of mandatory fields before sending the erroneous transaction to your trading partner.
No Receipts:
Sending the ASN 856 is not enough, you have to make sure your receiving party has received and accepted the data. With Surpass, you can easily see this in the Transaction Manager Portal, through the API, or set up more advanced notifications.
Steps to Win:
- Match pack type and process to trading partner mandates
- Use technology to help get facts right. Using data from orders (850) can eliminate the need (and risk) of manual data entry for requisite fields
- Time ASNs just right – not too soon or late. Take note of transit times
- Check all fields are full or use a provider that configures proper validation
- Keep tabs on each note sent. Check your functional acknowledgments (997) to ensure your trading partner has received the ASN. Proactively address these by retransmitting them or determine if they failed validation
Making It Work:
Using the best available technology from innovative providers like Surpass helps with these steps. Beyond mere tools, a managed provider like Surpass ensures your implementation and operations are using best practices. Teaching staff the how and why along each step in the process counts.
Best practices evolve, EDI tools that were once state of the art can be as out of date as the best practices of yesteryear. Although EDI has been around for more than 50 years, there are still new technologies, techniques and processes that add efficiency and reduce errors. Working with leading providers can give your business a unique advantage during periods of growth and change.
