How it Works
During the supply chain process, a digital electronic data interface (EDI) is transmitted, letting the customer or receiver know in one detailed transaction what is contained in a shipment. The ASN alerts the end receiver that shipping has taken place and lists the contents of a shipment, along with pertinent information such as order data, appearance of container, type of packaging, mode of transportation, shipment placement within the transporter, etc. so the customer can be prepared to receive the delivery.
The ASN drives important supply chain benefits. One is that it reduces receiving costs, both in expediting and in holding. Second, it provides clarity, closing out any discrepancy between expectations and what actually shipped (allowing the receiver to plan accordingly – such as changing production scheduling) and improving accuracy at receipt. Third, it can reallocate goods shipped to stores based on actual fill rates against the purchase order, allowing managers to plan for immediate use, putaway, or future shipments. Fourth, with ASN comes improved ability to cross dock, when freight is unloaded and placed immediately onto other transport. Receiving operations obtain this pertinent information prior to delivery, lowering costs, improving accuracy and providing flexibility.
Best Practices for Shipping:
- ASNs must be sent immediately
- Check receiver requirements are filled
- Ensure barcode quality and placement standards
- Double check that required data segments are populated
Best Practices for Receiving:
- Establish written policies at the warehouse level
- Assign receiving capabilities only to authorized inventory receivers (separate from merchandising team)
- Ensure appointments are made for delivery and confirm times
- Create a specified delivery area
- Scan items to match the ASN and apply internal pick levels
- Unload trailer
- Put away freight within policy timeframe
- If all items on a purchase order are not delivered, report the loss
- Appointment is closed
With this applied thought leadership, ASNs refine not only the supply chain process, but greatly boost both the manufacturer’s and receiver’s bottom-lines. This technology combined with ERP system automation allows logistics to be tracked with pinpoint accuracy.
OneSCM is able to interact with an ERP system through a series of inbound and outbound messages. These messages can be purchase orders, PO acknowledgements, advanced shipment notifications, invoices, credit memos, sales orders or any other type of document traded within the supply chain that are communicated through HTTP/S, FTP, or our integration framework. Our system supports the standard formats traded in the supply chain such as SAP IDOC, OAGI, cXML, EDI X12, and PIDX. Contact us to dive deeper.