Imagine you are a sunscreen manufacturer and you’ve got an overstock of product in the middle of winter that you’re willing to sell at a discounted rate. You would send an EDI 846 (Inventory Inquiry/Advice) to your buyers/trading partners to notify them of your on-hand inventory, thus giving them the opportunity to make a special buy and help you off-load extra stock. A win-win for both parties.
EDI 846 documents are also commonly used for e-commerce vendors that utilize a drop-ship management model. (Drop shipping is a fulfillment method that entails a store selling a product that is shipped directly from a third party to customers. The store never actually comes in contact with the product.) The third-party suppliers will send an EDI 846 to the store stating what they have on hand and on order.
An Inventory Inquiry could include several pieces of data such as:
New to EDI? Check out our blog post: What is EDI (Electronic Data Interchange)?
The Inventory Inquiry/Advice is an incredibly effective document for use between trading partners to properly regulate their respective stock of a product. By receiving relevant information on overstocked, out-of-stock, and discontinued products, purchasers can optimize ordering for their warehouses and stores. Therefore, purchasers can also quickly notify their customers when in-demand products will be back online or back on store shelves.
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