Sunday, June 15, 2025

EDI End-to-End Flow in Transportation Management

EDI End-to-End Flow in Transportation (Overall Perspective)

At its core, the EDI flow in transportation involves a Shipper (the party sending goods) and a Carrier (the party transporting goods). However, in reality, many other players are involved, such as 3PLs (Third-Party Logistics providers), Freight Forwarders, Customs Authorities, Warehouses, and Consignees (the party receiving goods).

General Steps:

  1. Order Placement/Load Tender: The shipper initiates the process by sending a request for transportation services.
  2. Carrier Response: The carrier responds to the tender, accepting or declining the shipment.
  3. Shipment Execution: The goods are picked up and transported.
  4. Shipment Status Updates: Throughout transit, the carrier provides updates on the shipment's location and status.
  5. Delivery and Proof: The shipment is delivered, and proof of delivery is exchanged.
  6. Invoicing and Payment: The carrier sends an invoice, and the shipper processes the payment.

Detailed EDI Flow with Possible Scenarios and Documents

Let's break down the flow with specific EDI transaction sets (documents) and scenarios:

Participants:

  • Shipper: Manufacturer, Distributor, Retailer.
  • Carrier: Trucking Company, Rail Carrier, Ocean Carrier, Air Cargo Carrier.
  • 3PL (Third-Party Logistics Provider): Manages logistics operations for shippers.
  • Freight Forwarder: Arranges transportation for shippers, often involving multiple carriers and modes.
  • Consignee: The recipient of the goods.
  • Customs Authority: Government body for customs clearance.

Common EDI Standards:

  • ANSI ASC X12: Predominantly used in North America.
  • EDIFACT: Widely used internationally, especially in Europe and for global freight.
  • TRADACOMS: Used for some UK-specific logistics needs.

Scenario 1: Shipper to Carrier (Direct Shipment)

This is the most common and fundamental flow.

Steps & EDI Documents:

  1. Shipper requests transportation (Load Tender):

    • EDI 204 (Motor Carrier Load Tender): Sent by the shipper (or 3PL on behalf of shipper) to a motor carrier to request a pickup of a shipment. It includes details like origin, destination, commodity, weight, dimensions, pickup/delivery dates, and any special instructions.
    • EDI 107 (Request for Motor Carrier Rate Proposal): Shipper might send this to get a rate quote before sending a full tender.
    • EDI 110 (Air Freight Details and Invoice): For air cargo, this might be used for initial details and later for invoicing.

  2. Carrier responds to the tender:

    • EDI 990 (Response to Load Tender): The carrier responds to the EDI 204.
      • Accepted: Carrier confirms they can handle the shipment, often with a proposed pickup time.
      • Declined: Carrier declines, often with a reason (e.g., no availability, wrong equipment).
      • Accepted with Changes: Carrier proposes changes to the original tender (e.g., different pickup time, slight rate adjustment).

  3. Shipper confirms acceptance (optional, sometimes implied by lack of further communication):

    • EDI 997 (Functional Acknowledgement): While often used to acknowledge receipt of any EDI document, it can be specifically used here by the shipper to acknowledge the 990 acceptance.

  4. Shipment Preparation & Pickup:

    • EDI 211 (Motor Carrier Bill of Lading): Sent by the shipper to the carrier, serving as a legal contract and receipt for the goods. It details the contents, quantity, weight, origin, destination, and terms of the shipment.
    • EDI 215 (Motor Carrier Pick-up Manifest): Sent by the shipper to the carrier to transmit a listing of shipments for pickup.

  5. In-Transit Updates (Shipment Tracking):

    • EDI 214 (Transportation Carrier Shipment Status Message): This is crucial for real-time visibility. The carrier sends status updates to the shipper (and/or 3PL/consignee) at various milestones.
      • Common Statuses: Pickup Scheduled, Arrived at Pickup Location, Departed Pickup Location, En Route, Arrived at Delivery Location, Departed Delivery Location, Delivered, Exception (e.g., delay, damage, customs hold).
      • Frequency: Can be event-driven (each milestone) or time-based (e.g., every 4 hours).

  6. Delivery & Proof of Delivery (POD):

    • EDI 214 (Transportation Carrier Shipment Status Message - with POD details): The "Delivered" status within the 214 can include details like who signed for the delivery, date, and time. Sometimes, a separate EDI document or a link to an electronic POD image is provided.
    • EDI 212 (Motor Carrier Delivery Trailer Manifest): Carriers can send this to consignees to notify them of the contents of a trailer, especially for multi-cargo shipments.

  7. Invoicing:

    • EDI 210 (Motor Carrier Freight Details and Invoice): Sent by the carrier to the shipper for payment of freight charges. It includes detailed breakdown of charges, shipment references, and payment terms.

  8. Payment and Remittance:

    • EDI 820 (Payment Order/Remittance Advice): Sent by the shipper to the carrier, detailing the payment being made and which invoices it covers.

  9. Functional Acknowledgement for all messages:

    • EDI 997 (Functional Acknowledgement): Sent by the receiving party for almost every EDI document received (e.g., carrier sending 997 for EDI 204, shipper sending 997 for EDI 214/210). This confirms that the EDI document was received in a valid format.

Scenario 2: Shipper to 3PL to Carrier

In this common scenario, the 3PL acts as an intermediary, managing the logistics for the shipper.

Steps & EDI Documents:

  1. Shipper to 3PL:

    • EDI 940 (Warehouse Shipping Order): Shipper sends this to the 3PL to request goods be picked, packed, and shipped from a warehouse.
    • EDI 850 (Purchase Order): If the 3PL is also managing inventory and procurement, the shipper might send a purchase order.

  2. 3PL to Carrier (similar to Scenario 1):

    • EDI 204 (Motor Carrier Load Tender): 3PL sends this to the carrier.
    • EDI 990 (Response to Load Tender): Carrier sends this back to the 3PL.
    • EDI 211 (Motor Carrier Bill of Lading): 3PL sends this to the carrier.
    • EDI 214 (Transportation Carrier Shipment Status Message): Carrier sends updates to the 3PL.
    • EDI 210 (Motor Carrier Freight Details and Invoice): Carrier sends the invoice to the 3PL.

  3. 3PL to Shipper:

    • EDI 945 (Warehouse Shipping Advice): 3PL sends this to the shipper confirming the shipment details once the order has been picked and shipped from the warehouse.
    • EDI 856 (Advanced Ship Notice - ASN): 3PL sends this to the shipper (and potentially the consignee) providing detailed information about the impending shipment, including carton contents, tracking numbers, and delivery dates. This is critical for the consignee to prepare for receiving.
    • EDI 214 (Transportation Carrier Shipment Status Message): 3PL might forward carrier 214s or consolidate them into a customized status update for the shipper.
    • EDI 810 (Invoice): 3PL sends an invoice for their logistics services to the shipper.
    • EDI 820 (Payment Order/Remittance Advice): Shipper sends payment details to 3PL.

Scenario 3: Cross-Border Shipments (with Customs)

This adds complexity with customs clearance requirements.

Steps & EDI Documents:

  1. Shipper/Freight Forwarder to Customs Broker/Customs Authority:

    • EDI 601 (US Customs Export Shipment Information): For US exports.
    • EDI 300/301/304 (Customs declarations/filings): Various EDIFACT or country-specific customs messages are used to declare goods for import/export.
    • EDI 753 (Request for Customs Ruling): To request a ruling on a specific commodity classification.
    • EDI 754 (Request for Customs Ruling Response): Customs' response to the ruling request.
    • Manifests (e.g., AMS - Automated Manifest System for US imports, ACI for Canadian imports): Carriers or freight forwarders submit these electronically before cargo arrives, often using proprietary systems that connect to customs via EDI or APIs.
    • Importer Security Filing (ISF): For US ocean imports, mandatory data filed by the importer or their agent.

  2. Customs Authority to Shipper/Broker/Carrier:

    • Status Updates/Release Notifications: Customs systems typically send EDI messages back indicating clearance, hold for inspection, or other statuses. (e.g., specific codes within a 214 or dedicated customs messages).
    • EDI 325 (Consolidation of Goods in Container): Can be used for container manifest details relevant for customs.
    • EDI 356 (U.S. Customs Permit to Transfer Request): Used for requesting movement of goods under bond.

Scenario 4: Intermodal and Multimodal Transportation

Involves using multiple modes of transport (e.g., truck to rail to ship).

Steps & EDI Documents:

  • Coordination between Carriers: EDI facilitates the handover of shipments between different carriers (e.g., a motor carrier delivering to a rail yard).
  • EDI 404 (Rail Carrier Load Tender): Used for tendering shipments to rail carriers.
  • EDI 417 (Rail Carrier Waybill Interchange): Electronic version of the waybill for rail.
  • EDI 304 (Shipping Instructions - Ocean): For ocean freight, sent by the shipper/forwarder to the ocean carrier.
  • EDI 310 (Freight Receipt and Invoice - Ocean): Ocean carrier's invoice.
  • EDI 315 (Status Details - Ocean): Ocean carrier shipment status.
  • EDI 715 (Intermodal Group Loading Plan): For planning intermodal loads.
  • EDI 858 (Shipment Information): A general shipment information document that can be used across modes.

Key Aspect: The consistent use of tracking numbers and references across different EDI documents ensures visibility throughout the multimodal journey, even as ownership/responsibility changes between carriers.

Scenario 5: Warehouse Management Integration

Seamless data flow between transportation and warehouse operations.

Steps & EDI Documents:

  • From Transportation to Warehouse:
    • EDI 856 (Advanced Ship Notice - ASN): The carrier or shipper sends the ASN to the warehouse, informing them of incoming shipments. This allows the warehouse to pre-plan receiving, allocate dock space, and prepare staff, significantly reducing receiving time.
    • EDI 214 (Transportation Carrier Shipment Status): Provides real-time updates on inbound shipments to the warehouse.
  • From Warehouse to Transportation (via Shipper/3PL):
    • EDI 940 (Warehouse Shipping Order): Shipper sends to the warehouse to initiate picking/packing.
    • EDI 945 (Warehouse Shipping Advice): Warehouse sends to the shipper after a shipment leaves, confirming what was shipped.
    • EDI 943 (Warehouse Stock Transfer Shipment Advice): Advising a warehouse of a transfer of stock.
    • EDI 944 (Warehouse Stock Transfer Receipt Advice): Acknowledging receipt of transferred stock.

Scenario 6: Claims and Disputes

EDI can also standardize the communication for post-delivery issues.

Steps & EDI Documents:

  • Shipper/Consignee files a claim:
    • EDI 924 (Loss or Damage Claim: Motor Vehicle): Used to submit a claim for lost or damaged goods.
  • Carrier/Insurer responds:
    • EDI 926 (Claim Status Report and Tracer Reply): Provides status on the claim.


Benefits of EDI in Transportation:

  • Increased Efficiency and Automation: Eliminates manual data entry, reducing human errors and speeding up processes.
  • Reduced Costs: Lowers administrative costs associated with paper, printing, postage, and manual labor.
  • Improved Accuracy: Standardized formats and automated validation lead to fewer errors.
  • Enhanced Visibility: Real-time tracking and status updates provide greater transparency throughout the supply chain.
  • Faster Transactions: Expedited processing of orders, shipments, and invoices.
  • Better Planning and Decision-Making: Access to accurate, timely data allows for optimized logistics planning, inventory management, and resource allocation.
  • Stronger Partner Relationships: Streamlined communication fosters better collaboration and trust among trading partners.
  • Compliance: Helps meet regulatory requirements (e.g., customs filings) and trading partner mandates (e.g., major retailers often require EDI compliance).
  • Scalability: EDI systems can handle increasing transaction volumes as businesses grow.


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