In this article, learn about:
The basics of EDI
What EDI 945 is and what it is important
Key details included in EDI 945 document
What are the benefits of using EDI 945
The Basics of Electronic Data Interchange (EDI)
Electronic Data Interchange (EDI) is a standardized method of electronically exchanging business documents between organizations. By automating business processes, EDI significantly reduces the need for manual data entry, increasing the speed and accuracy of transactions. EDI documents are formatted using standardized protocols and syntax, ensuring they can be easily read and processed by different computer systems.
EDI is widely used across various industries, including retail, manufacturing, and logistics, to exchange essential business documents such as purchase orders, invoices, and shipping notices. Implementing EDI solutions can be done in-house or outsourced to a third-party provider, and these solutions can be seamlessly integrated with existing business systems and software. This integration helps streamline operations, enhance efficiency, and improve overall business communication.
Related Reading: What Is EDI (Electronic Data Interchange)?
What is EDI 945?
EDI 945, also known as Warehouse Shipping Advice, serves as a shipment confirmation. It is sent from the warehouse to inform a supplier that a shipment has taken place and has been sent out to the end-user.
The EDI 945 is sent out by the warehouse as confirmation that a shipment is out for delivery following the EDI 940 Warehouse Shipping Order, which serves as the original warehouse order requesting for the goods to be shipped. An EDI 940 is different from an EDI 850 Purchase Order, as it goes from the supplier (not the retailer) to the warehouse. Typically, however, the supplier will receive an EDI 850 and then create an EDI 940.
The Importance of EDI 945
The 945 transaction code provides information about quantities shipped against the quantity ordered. Upon receiving a 945, the supplier will reply with an EDI 997 Functional Acknowledgement so that the warehouse has the document reception on record. The EDI 945 is used to trigger the EDI 856 Advance Ship Notice (ASN), which notifies the retailer in advance about the contents of a pending delivery. Then, the EDI 810 Invoice is sent to the retailer on the supplier’s behalf.
Related Reading: EDI 900 Transaction Codes
What is Included in EDI 945?
An EDI 945 Warehouse Shipping Advice includes information such as:
Purchase order information
Supplier information
Shipment identification, including lot codes and tracking number
Time and date of shipment
Ship-to and Ship-from details
Shipment payment type information
Shipping service method
Carrier information
Item details, such as description, UPC codes, and inner packs
Quantities shipped
Some typical segments that can be found in an EDI 945 include:
W06: Warehouse Shipment Information
Purchase order number
Invoice/order number
N1: Party Identification
Ship-To name
Ship-To GLN, DUNS+4, or destination DC code
N3: Party Address
N4: Party Location
W27: Carrier (Warehouse) Details
Transportation method
SCAC code and name
MAN: Marks and Numbers
SSCC label information for pallet and case labeling
W12: Warehouse Item Detail
Quantity ordered, quantity shipped, and unit of measurement
One or more of the UPC item code, GTIN14, SKU, warehouse lot number, retailer item code
Weight, expiration date, allowance codes, unit price
What Are the Benefits of Using an EDI 945 Document?
Using an EDI 945 ensures that all parties understand the state of the goods being shipped while keeping the data safe via encryption. Here are a few other advantages:
Reduces manual data entry.
Buyers, sellers, and warehouses have better visibility on shipping details.
Automating the process improves the efficiency and accuracy of the information and avoids shipping errors.
Related EDI Documents
Several EDI transaction codes work alongside EDI 945 to complete the shipping and order process:
EDI Code | Purpose |
EDI 810: Invoice | Used to replace a paper invoice |
EDI 850: Purchase Order | Used to communicate the specific items a buyer wishes to order |
EDI 855: Purchase Order Acknowledgment | Used to confirm you can meet the requirements in the purchase order |
EDI 856: Advanced Ship Notice | Used to provide trading partners with detailed shipment information before delivery |
EDI 860: Purchase Order Change Request (Buyer Initiated) | Used to request an update on the details of the original purchase order |
EDI 875: Grocery Products Purchase Order | Used to communicate the specific items a grocery retailer or wholesaler wishes to order |
EDI 880: Grocery Products Invoice | Used to replace a paper invoice for grocery retailers or wholesalers |
EDI 940: Warehouse Shipping Order | Used to authorize a shipment of items from a warehouse |
EDI 997: Functional Acknowledgment | Used to confirm receipt of the 856 |
Further Reading about EDI at SupplierWiki
For more free educational content on EDI, download our EDI for Retail Supply Chains cheat sheet. This simple guide offers a clear explanation of key EDI documents for retail suppliers and explains over 200 retail and supply chain EDI codes.
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