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Why Accurate EDI 856 (ASN) Transactions Are Critical for On-Time Deliveries

Written by admin | Mar 12, 2025

In today’s fast-moving supply chain, efficiency is everything. One of the most critical EDI documents for ensuring timely and accurate shipments is the EDI 856 Advance Ship Notice (ASN). This transaction notifies trading partners about incoming shipments, helping them prepare for receipt. But if ASNs contain incorrect or incomplete data, they can cause major disruptions—including delivery delays, chargebacks, and strained business relationships.

What Is an EDI 856 (ASN) and Why Does It Matter?

The EDI 856 Advance Ship Notice (ASN) is an electronic document that provides detailed information about a shipment before it arrives at its destination. It typically includes:

  • Shipment details: Carrier information, expected delivery date, and tracking numbers.
  • Item details: SKUs, quantities, and packaging specifics.
  • Pallet and carton details: Serial Shipping Container Codes (SSCCs) and hierarchical packing structures.

By sending this information in advance, businesses enable their partners to efficiently receive, process, and distribute inventory.

How Does ASN Accuracy Impact On-Time Deliveries?

1. Reduces Receiving Errors and Speeds Up Processing

Retailers and distribution centers rely on the ASN’s accuracy to prepare for incoming inventory. If an ASN matches the physical shipment exactly, it allows for quick barcode scanning and automated processing. However, mismatched ASNs can cause slowdowns, manual inspections, and shipment rejections.

2. Prevents Chargebacks and Compliance Penalties

Many retailers have strict ASN compliance requirements. Incorrect ASNs can result in chargebacks—fees imposed by retailers when the ASN does not match the actual delivery. These penalties not only add costs but can also damage supplier relationships.

3. Improves Visibility for Shipment Tracking

A well-structured ASN provides crucial tracking information, including carrier details and expected arrival times. This transparency helps both suppliers and retailers proactively manage potential delays and adjust logistics when needed.

4. Enhances Customer Satisfaction

Whether shipping to retail stores, distribution centers, or direct-to-consumer (DTC) customers, delayed shipments impact end customers. Retailers depend on timely deliveries to stock shelves, and eCommerce customers expect their orders to arrive on schedule. An accurate ASN ensures a smooth fulfillment process, reducing late shipments and missed delivery windows.

What Are Common ASN Errors and How Can They Be Avoided?

1. Incorrect Quantities or SKUs

A mismatch between ASN data and actual shipment contents leads to confusion and processing delays. Automating EDI workflows with a trusted EDI provider like eZCom Software ensures inventory data is validated before submission.

2. Missing or Incorrect Serial Shipping Container Codes (SSCCs)

SSCC labels help retailers track and process shipments more efficiently. If the ASN does not include these codes—or includes the wrong ones—retailers may reject the delivery. eZCom’s EDI integration ensures ASNs are properly structured with the correct labeling information.

3. Inaccurate Carrier and Tracking Information

If the ASN does not include valid carrier and tracking details, retailers won’t know when to expect a shipment. Using a centralized EDI system that integrates with shipping providers helps eliminate this issue.

4.  Late ASN Submission: Ensuring Timely Delivery Information

While some retailers mandate ASNs (Advance Ship Notices) be sent before a shipment departs the warehouse, the most critical factor is ensuring your trading partner receives the ASN before the shipment arrives. Late ASNs, regardless of when they are generated, disrupt receiving processes and can lead to significant chargebacks. eZCom’s Lingo EDI software automates ASN generation and transmission, enabling you to meet these crucial deadlines. By prioritizing the delivery of ASNs before your shipment's arrival, you can avoid costly penalties and maintain smooth supply chain operations.

How Can eZCom Software Ensure ASN Accuracy?

At eZCom Software, we provide powerful EDI solutions designed to eliminate errors in ASN transactions. Our Lingo EDI platform helps businesses:

  • Automate ASN creation to ensure all required details are included.
  • Validate shipments before ASNs are sent to retailers and partners.
  • Integrate seamlessly with warehouse management systems (WMS) for real-time shipping updates.
  • Reduce compliance risks by keeping up with retailer EDI requirements.

By using eZCom Software’s EDI automation tools, businesses can ensure on-time document transmissions, maintain strong retail relationships, and avoid costly chargebacks.

Accurate EDI 856 (ASN) transactions are critical to ensuring on-time document transmissions and maintaining strong supplier-retailer relationships. With eZCom Software’s powerful EDI tools, businesses can eliminate errors, reduce costs, and streamline supply chain operations.

Want to improve your ASN accuracy and delivery performance?

Learn more about eZCom Software’s EDI solutions today.

FAQ: EDI 856 (ASN) and On-Time Deliveries

 

1. What happens if an ASN is incorrect?

Incorrect ASNs can lead to shipment rejections, manual processing delays, chargebacks, and poor supplier performance ratings from retailers.

2. How soon should an ASN be sent?

All require the ASN arrive prior to the shipment, while some require the ASN be sent before the shipment leaves the warehouse.

3. Can an ASN be updated after it’s sent?

It depends on the retailer’s requirements. Some retailers allow updates, while others may charge penalties for changes after submission.

4. How does ASN automation improve accuracy?

Automation eliminates manual entry errors, ensures all required fields are included, and validates data against shipment details before submission.

5. How can eZCom Software help with ASN compliance?

eZCom’s Lingo EDI platform automates ASN creation, integrates with warehouse systems, and ensures compliance with retailer-specific EDI requirements.