EDIFACT Messages Every EDI Professional Should Know

Here are some of the most important EDIFACT messages

ORDERS – Purchase Order

Purpose:

Used by buyer to place an order with supplier.

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ORDRSP – Purchase Order Response

Purpose:

Supplier responds to purchase order.

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DESADV – Despatch Advice / ASN

Purpose:

Advance shipment notification with package details

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INVOIC – Invoice

Purpose:

Electronic invoice transmission for payment

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RECADV – Receiving Advice

Purpose:

Buyer confirms receipt of goods.

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CONTRL – Syntax Acknowledgement

Purpose:

Confirms whether EDI syntax is valid.

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APERAK – Application Error and Acknowledgement

Purpose:

Business-level acknowledgement/error.

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PRICAT – Price/Sales Catalog

Purpose:

Share product catalog and pricing.

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DELFOR – Delivery Forecast

Purpose:

Forecast future demand.

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DELJIT – Just-In-Time Delivery

Purpose:

Precise delivery scheduling.

Understanding about PEPPOL (Pan-European Public Procurement On-Line)

Peppol (Pan-European Public Procurement On-Line) is an international network that standardizes how businesses exchange electronic documents—especially e-invoices—with each other and with governments.

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Peppol Capabilities

• E-invoicing: Send and receive invoices in a structured, machine-readable format
• E-procurement: Exchange documents like purchase orders, catalogs, and shipping notices

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How it works

1. A company connects to Peppol through a certified provider (called an Access Point).
2. The sender creates an electronic document in a Peppol standard format.
3. The document is sent through the Peppol network.
4. The recipient’s system automatically receives and processes it.

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Key features

• Standardized formats → fewer errors and no manual retyping
• Interoperability → works between different software systems
• Security & reliability → trusted network with certified participants
• Government compliance → required or encouraged in many countries

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Where it’s used

Originally developed in Europe, Peppol is now used globally, including:

• EU countries (widely adopted for public sector invoicing)
• UK, Norway, Sweden, Netherlands
• Australia & New Zealand
• Singapore and other parts of Asia

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Why businesses use it

• Faster payments (less processing delay)
• Lower administrative costs
• Reduced errors and fraud risk
• Easier compliance with e-invoicing laws

Understanding about Warehouse Management System (WMS)

 

A Warehouse Management System (WMS) is software that helps companies manage, track, and control warehouse operations — from receiving goods to shipping them out.

WMS ensures the right product is in the right place at the right time.

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Importance of WMS

Without a WMS:

• Inventory errors are common
• Orders get delayed
• Wrong items are shipped

With a WMS:

• Real-time inventory tracking
• Faster order fulfillment
• Accurate picking and packing
• Reduced operational costs

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Key Functions of a WMS

1) Receiving: Goods arrive from suppliers and Items are scanned & recorded

2) Put-away: System decides where to store items

3) Inventory Management: Tracks stock levels in real time

4) Picking: Identifies items for customer orders and guides workers for faster picking

5) Packing: Packs items into cartons or pallets and prepares shipment details

6) Shipping: Dispatches goods and generates shipping & tracking information

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How WMS Works with EDI

WMS plays a critical role in EDI workflows, especially for retail and 3PL operations. WMS provides the actual shipment data used in EDI.

Typical Flow:

1-Retailer sends Purchase Order (EDI 850)
2-ERP processes the order
3-WMS receives fulfillment request (EDI 940)
4-WMS performs picking & packing
5-WMS generates data for ASN (EDI 856)
6-Goods are shipped

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Common Challenges Without WMS

• Wrong inventory levels
• Manual errors in picking
• Delayed shipments
• High EDI chargebacks (especially ASN errors)

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Real-World Example

A retailer orders 1,00 Medical devices,

Without WMS:

• Items picked manually
• Quantity mismatch
• Wrong shipment

With WMS:

• System guides picking
• Tracks cartons accurately
• Sends correct ASN

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Key Benefits of WMS

• Real-time inventory visibility
• Faster order processing
• Improved accuracy
• Reduced costs and penalties

RosettaNet - Standard business process exchange

RosettaNet is a global standard for electronic business communication used mainly in high-tech and electronics industries.

It allows companies to automatically exchange supply chain information such as orders, inventory, shipping, and forecasts.

RosettaNet is a structured way for technology companies to communicate business transactions automatically.

3PL (Third-Party Logistics) in EDI

3PL (Third-Party Logistics) in EDI: 

3PL stands for Third-Party Logistics.

In EDI, a 3PL company manages logistics operations (warehouse, shipping, delivery) on behalf of another company and exchanges EDI documents with suppliers, retailers, and carriers.

A 3PL handles storage and shipping, while EDI allows them to exchange logistics data electronically.

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A 3PL typically manages:

• Warehousing

• Inventory management

• Order fulfillment

• Shipping & transportation

• Returns processing

Many large companies outsource logistics to providers such as DHL Supply Chain, FedEx Supply Chain, or UPS Supply Chain Solutions.

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Common EDI Documents Used with 3PL:

EDI Document and Purpose

• 940: Warehouse Shipping Order
• 945: Warehouse Shipping Advice
• 943: Warehouse Stock Transfer
• 944: Warehouse Stock Transfer Receipt
• 856: Advance Ship Notice
• 846: Inventory Inquiry / Advice

These documents help track inventory, shipments, and warehouse activities.

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Example Scenario:

Imagine a company selling medical devices:

1- Customer orders from retailer
2- Retailer sends order to supplier
3- Supplier sends EDI 940 to 3PL warehouse
4- 3PL picks and packs items
5- 3PL sends EDI 945 / 856 confirming shipment
6- Goods shipped to customer

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Benefits of using 3PL with EDI:

Benefits include:

• Faster order fulfillment

• Real-time inventory visibility

• Reduced manual work

• Better supply chain tracking

cXML - Modern internet-based procurement language

What is cXML? (Commerce eXtensible Markup Language)

cXML stands for Commerce eXtensible Markup Language.

It is an XML-based standard used for electronic business transactions, mainly for procurement (buying and selling goods/services) between companies.

cXML is a digital language that allows companies to send purchase orders, invoices, and other procurement documents over the internet.

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Why cXML is Used

Companies use cXML to automate procurement processes between buyers and suppliers.

Key benefits:

• Faster transactions

• Automated ordering

• Reduced manual errors

• Easy integration with procurement systems

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Where cXML is Commonly Used

cXML is widely used in e-procurement platforms, especially with:

• SAP Ariba

• Coupa

• Oracle Procurement Cloud

These platforms connect buyers and suppliers digitally.

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Document and Purpose

PunchOut Setup Request: Connect buyer system to supplier catalog

OrderRequest: Purchase order sent to supplier

OrderResponse: Supplier confirms order

ShipNoticeRequest: Shipment notification

InvoiceDetailRequest: Invoice sent to buyer

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Simple cXML Order Flow

1 Buyer creates purchase order in procurement system
2 System generates cXML OrderRequest
3 Supplier receives order automatically
4 Supplier sends OrderResponse
5 Supplier ships goods and sends invoice

Different Types of Orders (Business + EDI Perspective)

Purchase Order (PO) – Standard Order

• A formal request to buy goods at an agreed price and quantity.
• It is Used in Retail, Manufacturing, FMCG etc.
• EDI Message Type: X12 - 850, EDIFACT - ORDERS
• Example: Walmart orders 1,000 mugs @ ₹120 each

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Blanket Order / Contract Order

• A long-term agreement with releases over time.
• It is Used in Retail chains, large distributors etc.
• Example: Annual agreement for 50,000 items, shipped monthly

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Release Order / Call-Off Order

• An instruction to release part of a contract order.
• It is Used in Retail, Automotive suppliers etc.
• Example: Ship 5,000 units this week from the annual contract

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Forecast Order 

• A planning signal, not a confirmed order.
• It is Used in Automotive, Electronics and High-volume manufacturing
• EDI Message Type: EDIFACT - DELFOR 
• Example: Next 3 months we may need 10,000 units

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Delivery Schedule / JIT Order

• A time-specific delivery instruction.
• It is Used in Automotive, Just-In-Time (JIT) supply chains etc.
• EDI Message Type: EDIFACT - DELJIT
• Example: Deliver 120 parts at 10:30 AM today

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Rush / Expedite Order

• An urgent order requiring faster delivery.
• It is Used in Retail during peak season, Emergency manufacturing etc.
• Example: Ship today instead of next week

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Drop-Ship Order

• Supplier ships directly to end customer, not retailer.
• It is Used in E-commerce, Marketplaces etc.
• Example: Amazon orders → Supplier ships to customer address