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This allows the customer’ s computer to validate what was shipped against the purchase order, so when the actual goods are checked in at the receiving warehouse or store, an automated confirmation of receipt occurs. The electronic reconciliation enables a retailer to greatly reduce costs associated with the manual handling of shipments.
There can be additional EDI transactions in a more complex supply chain where third party warehousing and fulfillment( 3PL) is used. Warehouse Ship Documents( EDI number 940) are used with warehousing and distribution to send a shipping request to a third party logistics partner or fulfillment house. Shipping Advices( EDI number 945) are then returned by the third party logistics provider to notify and confirm that the items that have shipped and invoicing is required.
There is much more beyond these basic EDI transaction numbers to know, but more depth of knowledge at this point is usually left to technical experts. Management, at the very least, should be aware of these six EDI document types reviewed in this chapter.
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