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If you’ve ever used ASNs or EDI, then you know how helpful they can be to your business. The amount of time and effort saved by using these technologies makes them a must-have when transferring documents to another company. Here’s what you need to know about EDI and ASNs.
What is EDI?
EDI stands for Electronic Data Interchange. This refers to the electronic interchange of documents between companies. Electronic interchange of documents is far more efficient and less expensive than exchanging paper documents, as EDI costs less than a dollar. Paper documents can also take up to 10 days to transfer, whereas EDI transfers take less than a day. Through EDI, less errors occur (computers are more efficient than doing the transfer by hand), transactions are made more quickly, and less time for labor is required. Improved freight costs, reduced inventory levels, and more efficient use of warehouse space are all results of using EDI.
What Makes You EDI Compliant?
By meeting all of the requirements of the company you are completing EDI with, in translation and usable format by those who will be receiving your documentation, this can be considered EDI compliance. EDI implementation can be completed through the use of partnering kits and other instructional documentation. Each industry will typically have its own EDI requirements.
How Exactly Does EDI Work?
First, an order in a processing system is approved. From there, the EDI order is translated into an 850 purchase order.
Then, the 850 purchase order is transferred to the supplier by the internet or a VAN, or Value Added Network. The buyer VAN is interconnected with the supplier VAN. A VAN is used to ensure that EDI transactions are secure, and that the order is received.
The computer system of the supplier then processes the order, using internet access and email.
What is ASN?
ASN is another form of electronic document transfer, and stands for Advanced Shipping Notification. ASN is used in conjunction with EDI to disseminate information across a company and beyond. The details of the information transferred can help to supply the recipient with details regarding the physical makeup of the shipment, and the timeline for delivery. Physical features can include the items going out for shipment, the weight, number of boxes, and details about packaging. ASNs are typically sent in an EDI format, and are somewhat similar to a packing list.
How Does ASN Work?
With an ASN, barcoded ID numbers can be provided on shipping labels, as well as compile a list of all barcoded ID numbers, and the contents inside each package. Accuracy is also a benefit of the ASN, as the recipient of the shipment will obtain a list of what has and hasn’t shipped when the ASN is received—this also allows for allocation or re-allocation of goods in following shipments. An ASN can also provide direct payment for goods received.
Between ASN and EDI, the supply chain can become leaner and more efficient. Evans is proud to utilize these technologies in the implementation of best logistics practices.