Why Do We Need EDI 204 Transaction Set for Truck Loading Transactions?

Why EDI 204 Transaction Set Works as an Ideal for Motor Carrier Load Tender?

EDI 204, also acknowledged as Motor Carrier Load Tender is created and sent by a shipper when they have goods that are supposed to be transported and also serves as an offer to the carrier that provides details about the load and requesting about picking up the shipment. In this context, a shipper can be a manufacturer, a retailer, a distribution centre, or anybody who wishes to ship goods. EDI 204 transaction set is used effectively for creating a new shipment, updating or replacing or even cancelling a shipment.

Conceptually speaking, EDI 204 provides detailed pick-up and delivery for a load, generally for a single pick-up location and includes all or some of the following information:-

Information about Carrier identification
Information about Scheduling
Requirements of equipment like the length of truck required
Information about Ship-to location
Contact information for the recipient of the shipment
Information about consignees, if relevant
Description of goods, comprising of weight and other units of measure
Instructions about Shipping

The carrier has 204 transactions that will be responded back with a 990 Response to a Load Transfer transaction set, indicating acceptance or rejection of the shipment. In case of getting the shipment, the transporter will be providing EDI 214 Shipment Status Report transactions which will inform the trading partner about pick-up and delivery sequence. EDI 204 transaction set is mainly used only for full-truckload shipments and therefore it cannot be used for providing motor carriers with a less-than-truckload bill of lading information.

Benefits of EDI 204

The biggest benefit of using EDI 204, EDI (Electronic Data Interchange) Motor Carrier Load Tender documents is that they are encrypted to provide security and protect critical details about orders, shipments, payments, and trading partners. It uses data transfer automation that helps in eliminating errors from manual re-typing that can lead to delays, delivery mistakes and charge-backs. Additionally, EDI 204 can help shippers in planning their shipments and also provides reliable shipping details to carriers that can rationalize, organize and simplify interactions between business partners. The carrier benefits from good planning of pick-up and deliveries and related shipment requirements.

EDI 204 Specification

EDI 204 transaction set is principally used to permit shippers to offer (tender) a shipment to a full load (truckload) motor carrier that mainly includes equipment requirements, commodities, scheduling, and shipping instructions that are applicable to a load tender. EDI 204 has an X12 Transaction Set comprising the arrangement and establishes the data substantial of the Motor Carrier Load Tender Transaction Set (204) that can be used within the structure of an Electronic Data Interchange (EDI) environment. EDI 204 accord set cannot be damaged to provide a motor carrier with data linked to a Less-than-Truckload bill of lading, pickup notification, or obvious.

EDI 204 Format

There are two formats of EDI 204 – a human-readable and another a “raw data version”. The format in unprocessed EDI data is interpreted using incorporated EDI software and then sent to the user’s business system (ERP) for use by the EDI manager. EDI 204 transaction set is amalgamated from functional groups that describe the contents of the deal. The format describes the various data elements and segments that can be translated by EDI managers.

If one desires to integrate X12 EDI 204 (Motor Carrier Load Tender) transaction set into their obtainable flow, by translating the X12 document to XML (and vice versa), then they can employ REST HTTP EDI Web Service (API). It provides easy and affordable solutions to companies who have their own technical resources to work with REST API.

Typical workflow of an EDI 204 Document

For an effective understanding of EDI 204, it’s important to understand the typical workflow of the EDI 204 Document. It ought to be distinguished that EDI 204 transactions are associated with extra EDI transactions and they are the EDI 990- Load Tender Acknowledgement, and the EDI 214 -Shipment Status Message.

Shipper sends an EDI 204 to the carrier

Firstly, the shipper sends an EDI 204 transaction set that comprises sensitive shipment information such as identification, load reference identification, pickup, drop destination, commodities and equipment requirements, to the carrier.

As an assenting reply

the shipping provider responds back with an EDI 990 – Load Tender Acknowledgement, which informs and updates about acceptance or rejection of shipment order. For each and every EDI 204 transaction set, a response with EDI 990 to accept or decline the load tender is required. In addition, the response time for EDI 990 sent with the EDI 204 should be specified as “Must Respond By Date” and “Must Respond By Time”. In case, the EDI 990 is not established by the point out time in EDI 204 then the load is re-assigned to one more transporter.

After acceptance of shipment

the carrier sends back EDI 214- a Transportation Carrier Shipment Status Message, to the trading partner. In case of acceptance of the shipment, the carrier sends back EDI 214- a Transportation Carrier Shipment Status Message, an EDI document providing specific shipment information such as shipment codes, pro-number, data and time of shipment/delivery, to the trading partner.

After completion of delivery of the shipment

the carrier submits the EDI 210 transaction set– Motor Carrier Freight Details and Invoice, to the shipper. After successful completion of delivery, an EDI 210 transaction set– Motor Carrier Freight Details and Invoice, providing full information about the cost of services, is provided by the transportation provider to the shipper. This transaction set can be used both as information relating to the freight charges and invoice for a payment request.

After receiving the EDI 210 document

The shipper sends back an EDI 997 Functional Acknowledgement to the carrier, which confirms that the 210 Motor Carrier Freight Details and Invoice transaction was acknowledged and accepted successfully. In the business world, there are many accomplished companies that integrate EDI 210 transactions into their ERP, business or accounting software applications, for better vision and workflows in their organizations. In case you are looking EDI consultant for EDI 204 Transaction Set work you can visit our website for all the assistance required as and when your organization needs it

The shipper sends back an EDI 997 Functional Acknowledgement to the carrier, which confirms that the 210 Motor Carrier Freight Details and Invoice transaction was acknowledged and accepted successfully. In the business world, there are many accomplished companies that integrate EDI 210 transactions into their ERP, business or accounting software applications, for better vision and workflows in their organizations. In case if you are looking for an EDI consultant for EDI 204 Transaction Set work you can visit our website for all the assistance required as and when your organization needs it.