Key EDI Transactions in Warehousing

Electronic Data Interchange (EDI) is widely used in warehousing and distribution to streamline inventory management, shipment tracking, and order fulfillment. 

It enables seamless communication between warehouses, suppliers, logistics providers, and retailers, ensuring accuracy, speed, and efficiency in warehouse operations.

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Key EDI Transactions in Warehousing

EDI Document	X12 Standard	EDIFACT Equivalent	Purpose
Warehouse Shipping Order	940	RECADV	Instructs a warehouse to ship goods.
Warehouse Stock Transfer Shipment Advice	943	INVRPT	Confirms inventory transfer from warehouse.
Warehouse Stock Transfer Receipt Advice	944	RECADV	Confirms receipt of transferred goods.
Warehouse Inventory Adjustment Advice	947	INVRPT	Notifies inventory level changes (damaged, missing items, etc.).
Shipment Status Update	214	IFTSTA	Provides updates on shipment movement.
Advanced Shipping Notice (ASN)	856	DESADV	Provides shipment details before delivery.
Receiving Advice	861	RECADV	Confirms receipt of goods in the warehouse.
Functional Acknowledgment	997	CONTRL	Confirms receipt of an EDI document.

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Benefits of EDI in Warehousing

✔ Faster Order Processing – Automates warehouse operations, reducing manual work.
✔ Accurate Inventory Management – Provides real-time stock updates.
✔ Efficient Shipping & Tracking – Enables seamless shipment tracking.
✔ Cost Reduction – Minimizes paperwork and human errors.
✔ Improved Compliance – Ensures adherence to industry standards.
✔ Better Communication – Enhances collaboration between warehouse, supplier, and retailer.

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Real-World Example of EDI in Warehousing

Scenario: A Retail Warehouse Processing Orders

Walmart’s warehouse manages inventory for Nike products.
Walmart sends 940 (Warehouse Shipping Order) to the warehouse.
Warehouse picks, packs, and ships items, then sends 856 (ASN).
Carrier provides 214 (Shipment Status Update) during delivery.
Walmart confirms receipt with 861 (Receiving Advice).
Warehouse updates inventory levels with 947 (Inventory Adjustment Advice).