A Thought Leadership Guide For SMBs EDI Ebook for SMBs | Page 6

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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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