EDI 945 Warehouse Shipping Advice Transaction Specifications
1. What is an EDI 945 Warehouse Shipping Advice?
EDI 945, also known as a Warehouse Shipping Advice, is an EDI transaction set used to confirm the completion of a shipment. This document is usually sent from a third-party logistics provider (3PL) or remote warehouse, to their client, letting them know that a shipment has taken place.
EDI 945 documents follow the x12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the U.S.
- The EDI 945 includes:
- Shipment identification
- Ship-from and ship-to information
- The date the shipment was sent
- Payment information related to shipping
- Transportation method—ie. Air Freight, Ground, etc.
- The level of shipping service used—ie. Overnight, 2-Day, Standard
- Item and quantity shipped, including any variance from the amount in the original order
2. What Are the Essential Components of EDI 945?
EDI 945 provides the final shipment details, so it is imperative that it include thorough, correct details on what has shipped. Important components of EDI 945 include:
- Product SKUs or identifiers and quantities shipped
- Shipment date and time of departure
- Seller, warehouse, and/or delivery location information
- Carrier details and shipping method
- Shipment payment information
- Shipment tracking information, such as a tracking number or bill of lading number
- Inventory tracking information such a lot/batch numbers and serial numbers
- Carton and pallet level detail where appropriate
3. What makes up the 945 document?
The 945 EDI document type is an electronic version of a paper Warehouse Shipping Advice. Standard EDI formats include X12, ANSI, EDIFACT and its subsets. The 945 EDI document type is used to advise the depositor that a shipment was made, and also contains information that assists in the reconciliation of order quantities with shipment quantities
An EDI 945 – Warehouse Shipping Advice document is organized into segment and data elements. A segment can contain at least one data element. Each data element contains a data field. Data elements could include vendor number, order number, items, and item quantities in the shipment, identical to a paper warehouse shipping advice document. There are an infinite number of possibilities available for a company to include data on a 945 Warehouse Shipping Advice. There are an infinite number of possibilities available for a company to include data on an 945 – Warehouse Shipping Advice.
4. How does a typical EDI 945 structure look like?
5. How Do I Use EDI 945?
When a shipment is needed, a seller sends their 3PL or warehouse a 940 Warehouse Shipping Order, which outlines the goods required and other shipping details and instructions. The warehouse works to complete the order shipment and returns an EDI 945 once the shipment has left the warehouse. EDI 945 conveys the details of the shipment.
EDI 945 contains all the information the seller needs in order to reconcile the shipment against the sales order and send an EDI 856 Advance Ship Notice if required. The seller will confirm their receipt of EDI 945 by sending back an EDI 997 Functional Acknowledgement.
Let’s take a closer look at the process of shipment of goods from a third-party warehouse and analyze what other EDI documents are involved in the logistics process. Of course, keep in mind that the process below may reflect only one of the possible options. Each company can establish its own business process with a third-party warehouse, which depends on the type of the company’s activity, type of product, etc.
In the figure below you can see that usually the process in which EDI 945 is involved consists of at least three participants:
– Customer (it could be a retail outlet)
– Supplier (who is a client of the 3PL warehouse, or a depositor)
– 3PL Warehouse / or 3 PL logistics company.
1. The business flow begins with a Purchase Order – EDI 850 which is sent by the customer to the supplier.
2. The supplier responds to the customer with the EDI 855 PO Acknowledgement
3. The supplier sends the Warehouse Shipping Order (EDI 940) to the 3 PL warehouse
4. 3PL Warehouse process a Shipping Order and sends the goods to the supplier’s customer by the address specified in EDI 940.
5. Immediately after dispatch, the warehouse transfers the EDI 945 to the supplier.
6. Based on EDI 945, the supplier generates an Advance Ship Notice (EDI 856) and transfers it to his client.
7. The supplier sends the customer an EDI invoice 810
So, as you saw from the EDI workflow, 945 Warehouse Shipping Advice – is the main document, which confirms the fact of shipment of goods. It is used by many companies operating in wholesale and retail, including online stores.
6. EDI 945 Warehouse Shipping Advice Workflow
7. Benefits of the EDI 945
- Simplify order fulfillment by eliminating manual processes for both supplier and 3PL or warehouse
- Eliminate manual data entry, errors, discrepancies and delays
- Improve data accuracy of information exchanged between trading partners
- Enhance efficiency and automate fulfillment with real-time visibility
- Reduce costs and labor with automatic transmission of documents
7.1 EDI 945 Warehouse Shipping Advice Benefits
EDI 945 offers plenty of benefits to both the purchaser and the supplier. When implementing electronic warehouse shipping orders, benefits can include:
- Better visibility into shipping details for buyers, sellers, and warehouses
- Reduction in manual entry of data, resulting in ease for buyers, sellers, and warehouses
- Automation of information dissemination streamlines processes and improves efficiency
- Automation of reconciliation procedures reduces order and shipment inaccuracies
For more information on Encompass Solutions’ EDI offerings, read more about our Rapid EDI Implementation.
7.2 Benefits of using an EDI 945 Warehouse Shipping Advice
Both the third-party warehouse (sender) and the supplier (receiver) benefit from implementing the EDI Warehouse Shipping Advice. Many of these benefits are dependent on how automated and integrated the transaction is for both parties.
Some of the benefits of the EDI 945 include:
- Reduce administrative time spent by the warehouse to manually submit shipping advice documents and reduce time for the supplier to process paper-based shipping documents
- Reduce the volume of paperwork and increase operating efficiencies through reduced time requirements to complete transactions by both parties
- Eliminate the need to send/receive warehouse shipment notices in several different formats such as email, fax or CSV
8. EDI X12 945 Warehouse Shipping Advice Sample
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