Advance Shipping Notice (ASN) is an electronic data interchange (EDI) message that a shipper sends to a receiver before a shipment leaves its origin. Since it is available before the shipment arrives, it allows recipients to make important decisions about their business in anticipation of adding the goods to their inventory, such as increasing staffing or addressing errors.
ASN referred to as an outbound ship notice, an outbound ship manifest, DESADV, or by its technical name, EDI 856.
What information does the ASN include?
The information may vary slightly determine on the trading partner requirements, but it generally includes:
• Order information, including the order number
• Delivery date and time
• Location information
• Pallet codes
• Product details
• Physical characteristics of the delivery, such as the type of packaging
• Carrier information
The ASN process
1. A shipment authorization is made to the supplier, usually in the form of a purchase order, but may also be presented as a planning schedule or shipping schedule.
2. The supplier sends the ASN to the receiving organization when the order is shipped.
3. The ASN then goes through the receiving open interface for verification. In transit and purchasing supplies are updated for successfully validated ASN lines. For each accepted line on the ASN, in transit supply is increased and purchasing supply is reduced. In the event that there is an error or discrepancy that causes the data to be not be accepted, an application advice, containing the most likely cause of the error, goes to the supplier. At that point, the supplier can send a new, corrected ASN.
4. The goods arrive at their destination. The ASN can be used to create receipts.
5. During the receipt transaction process, shipment vs. receipt quantities are compared. If there are any discrepancies, an application advice is sent to the supplier.
How the ASN helps
The ASN document helps buyers answer these questions:
• What order(s) have shipped?
• Which items are being shipped? How many have been shipped?
• When should the order arrive?
• Is the shipment the full order?
• Does the shipment have barcodes for easy receiving?
• What is the tracking number? Who is the delivery company? (This is helpful for dropship orders.)
Benefits
The ASN has many benefits, not just for supplier, but for retailer and distributor side, too.
For supplier:
• Minimize order to payment cycles.
• Track shipments and quickly address damages or missing goods.
• Improve accuracy and reduce stock-outs.
• Move products to their destinations faster.
For retailer and distributor:
• Reduce the costs of receiving goods through efficient scheduling.
• Boost speed and accuracy.
• Minimize safety stock requirements.
• Address problems before arrival.
1. Pick and Pack ASN
>> Structure: Shipment → Order → Pack → Item
>> Used when each order is picked, packed into cartons/pallets, and shipped together.
>> Common in retail and automotive industries.
>> Includes detailed packing hierarchy (cartons, pallets, items).
2. Standard (Shipment-Level) ASN
>> Structure: Shipment → Order → Item
>> Simplest ASN format—no detailed packaging information.
>> Used when packing details are not required.
>> Only item-level information is shared.
3. Pack-Level ASN
>> Structure: Shipment → Pack → Item
>> Focuses on carton/pallet-level packing without order breakdown.
>> Used in scenarios where shipment contains multiple cartons/pallets but order-level details are not critical.
4. Mixed ASN
>> Structure: Shipment → Mixed Packs → Items from Multiple Orders
>> Used when cartons/pallets contain items from multiple purchase orders.
>> Common in consolidation shipments.
5. Pallet ASN
>> Structure: Shipment → Pallet → Item
>> Used for palletized shipments.
>> Often uses License Plate Numbers (LPN/SSCC) for tracking pallets.
6. Drop Ship ASN
>> Structure: Shipment → Customer Direct Delivery → Item
>> Used when the supplier ships directly to the customer on behalf of a retailer or distributor.
7. Cross-Docking ASN
>> Structure: Shipment → Cross-Dock Location → Item
>> Used in cross-docking operations where goods are not stored but transferred immediately.
8. Consolidated ASN
>> Combines multiple shipments into a single ASN for easier processing.
>> Often used in 3PL or hub-and-spoke logistics.
No comments:
Post a Comment