What is Electronic Data Interchange(EDI) 856
The shipping activities happening around the world is so big that there are a lot of errors and misleading information transactions taking place between supplier and the receiver. How can EDI help in this? Is there any particular transaction code for these shipments, moreover advance shipment notices? Yes, EDI can help you with the help of EDI 856 transaction code.
What is an EDI 856?
EDI 856 is a transaction code from EDI Advance shipment notice manual, or EDI ASN. EDI 856 transaction utilizes the electronic system to communicate from the shipment and trading company to other trading companies. The EDI 856 code is used for giving responses on EDI 850, EDI 830, EDI 862. An EDI 856 transaction set is used by retailers, manufacturing and automotive industries. 856 EDI transaction provides you information regarding different levels which include:
- Tracking number
- Carrier information
- Order information’s like purchase order number
- Items and Quantities
- Bar-codes which are printed on each of the cartons.
Most of the EDI experts say that EDI 856 code is one of the complicated document transaction codes. It is because of the fact that if the trading partner wants a particular data, EDI 856 transaction will give you all the other reports included. This can be confusing for the opposite person.
EDI 856 Format
N1*SH*1 EDI SOURCE
N3*31875 SOLON RD
N3*P O BOX 9999999
N1*SF*1 EDI SOURCE
N3*31875 SOLON ROAD
The above code is the standard EDI format used.
EDI 856 Specifications
EDI 856 document specification or any other EDI transaction code is an integral part of X12 Transaction set. As mentioned earlier, the EDI 856 document type is related to the shipment part of EDI, so EDI 856 mapping specification format is well defined as per the Ship Manifest/Notice Transaction Set (EDI 856). This transaction set enables the person who is sending to describe the configuration and contents of the shipment to one or more receivers. The receiver may be any person or organisation, having the interest in the content of shipment or the information about the shipment.
Benefits of using EDI 856
The best benefit of EDI 856 is that both the trading partners are satisfied with its implementation due to its clarity. When it comes to other benefits there are two types of advantages. They are
- Distributor and Retailer Benefits
- Cutting the costs of receiving goods.
- Reduction in the need of safety stock.
- Improvement in accuracy and speed of the receiving goods.
- Equipment scheduling and labor integrity is facilitated better.
- To make other adjustments in late and incomplete shipments.
- Supplier Benefits
- Reduction in order to the cycle of payments
- Getting the product delivery faster
- More easy track shipments
- Improved relationships with suppliers by reducing stock out and errors.
To maintain a proper relationship between suppliers and retailers, the shipment has to be done with extra care and correct details. EDI 856 is that code which will make these two tasks very easy for the both ends. If you are looking for the best EDI Consulting Company then, you can visit our websites and get the best EDI Services.