Advance Shipment Notice (ASN) The Key to Efficient Business Operations

Imagine knowing exactly what is arriving at your warehouse before it even hits the dock—no more surprises, or delays.

That is the power of an Advance Shipment Notice.

What is ASN?

The Advance Shipment Notice (ASN) informs customers that materials have been dispatched and when to expect delivery. It contains information about the materials and their quantities. The ASN is also known as EDI 856.

• Advance Shipment Notice (856) is an X12 EDI transaction set.
• In UN/EDIFACT, we call it EDIFACT DESADV (DESpatch ADVice) also.

How Does ASN Work?

After receiving an order (850/ORDER), sending an ASN is a crucial step in supply chain management. In this way, you can inform recipients about the imminent delivery of goods, which ensures a smooth logistical operation.

ASNs are provided to the customer before the product is delivered. It can be used in a variety of ways based on their business processes, such as delivering a goods receipt when the shipment is received.

Types of ASN

1. Standard: If you only ship one type of item or SKU, a Standard ASN would work for you! This type of ASN tells the buyer that they will be receiving PURE cartons (a carton that only contains one type of item).

• Hierarchical Structure of SOIP: Standard – Order – Item – Pack.
• Example:

This example shows an 856 Standard pack structure where each pallet is labelled with an ucc-128 or GS1-128 label on every carton.  Pack level carton barcodes are sent on the 856 reporting to the tare level ucc-128 making them unique to the parent shipment. This ASN contains a tare level. The hierarchical structure is SOITP. 

• Hierarchical Structure of SOITP – Shipment-Order-Item-Tare-Pack 

• Example:

2. Pick & Pack: If you are shipping a mix of items, then use Pick and Pack ASN. Pick and Pack ASN can include either PURE cartons OR MIXED cartons.

• Hierarchical Structure of SOPI: Standard – Order – Pack – Item.

• Example:

What information does ASN contain?

An ASN contains the following information:

• Shipment-Level Information: These include Shipment Number, Shipment Date, Expected Delivery Date, Tracking Details (BOL Number, PRO Number, Tracking Number), Carrier Information, and Ship From/To Addresses.
• Order-Level Information: For example, purchase order numbers.
• Item-Level Information: It would include Item Details, SKUs, Quantity, Item Tracking Details (lot or serial numbers) and Expiration Dates for perishable items.
• Pack-Level Information: These include barcodes on cartons, RFID tags, items in cartons, and cartons on pallets.
• Tare-Level Information: For example, GS1-128 barcodes or SSCC numbers (Serial Shipping Container Code) on cartons.

EDI 856 X12 Example File:

Mandatory segments in EDI 856 X12:

1. BSN05: Define the structure of the transaction set as follows:

         0001 – Shipment, Order, Packaging, Item (SOPI)

         0002 – Shipment, Order, Item, Packaging (SOIP)

2. TD1xx & TD5xx: Carrier details like quantity, weight, routing information.

3. REF: Contains Bill of lading number, PRO number, and Carrier reference number.

4. N1: Contains Ship from, Ship to, Bill to, and Remit to information.

5. PRF: Contains Purchase order number.

6. MAN: Contains Marks and Numbers for shipping containers. The twenty-digit carton label license number must include the Supplier UCC manufacturer ID and a unique carton number. The carton number must always be unique – it may not be duplicated.

7. LIN: Contains Line number, Product ID, and Description.

8. SN1: Contains the Number of Units shipped.

Example File For EDIFACT DESADV:

Mandatory segments in EDIFACT DESPADV:

1. BGM: Message beginning like Dispatch Advice

2. DTM: Contains dates like Document date, Shipping date, and Estimated delivery date.

3. REF: Contains Delivery document and sales Order number.

4. NAD: Trading parties’ details like Buyer party, Supplier party, and Delivery party.

5. CPS: Consignment packing sequence or Packaging level.

6. PAC: Package information like type & number of packages.

7. PCI: Packaging Identification like loading method

8. GIN: Goods Identification

9. LIN: Line Information

10. QTY: Quantity like the Number of items in a pack or Number of packs.

Benefits of using ASN:

The following benefits are available to customers and suppliers when they use ASN:

1. Shipment information is received instantly into a customer’s ERP system.
2. Direct computer-to-computer communication reduces manual errors.
3. Detailed delivery information is known in advance so that the customer can prepare to receive and oversee the specifics of delivery.
4. Complicated pallet and packaging details can be described in an easy-to-understand manner.
5. Reduced administrative costs by increasing the accuracy of forecasting orders.

Conclusion

Advanced Shipping Notices (ASNs) provide detailed information about a shipment to a recipient before delivery. As a result, accuracy is improved, efficiency and visibility are enhanced, business relationships are strengthened, and forecasting is improved.

EDI Advanced Shipping Notices, which are transmitted electronically using the EDI system, offer the added benefits of automation and digital transmission. As a result, you will be able to communicate more effectively, improve security, reduce costs, and integrate seamlessly with your back-office systems.