Guide

EDI 940 and EDI 945 – Warehouse Shipping Transaction Sets for 3PL

On June 13, 2023 by Shivam Rawat

3PL operations are so demanding that even a minor miscommunication can break the supply chain. To ensure an order reaches the end customer as expected and on time every time, there is a need for highly accurate data exchange between all trading parties involved in the order process. EDI 940 (Warehouse Shipping Order) and EDI 945 (Warehouse Shipping Advice) are two EDI transaction sets that assist 3PLs with automating order processing. 

In this article, we will look at how EDI 940 and 945 support 3PL to enable seamless supply chain management. 

EDI 940 and EDI 945 in a 3PL Process

As a 3PL, you are responsible for several operations, such as stocking, inventory management, assembling, shipping, receiving, and purchasing. These operations determine the configuration for all EDIs, including EDI 940 and EDI 945. Hence, you must truly understand what information you require to run them. Let’s look at a typical 3PL process to understand where EDI 940 and 945 fit in. 

Whenever a seller (a 3PL customer) receives an order from a buyer (an individual, retailer, or distributor), it informs the nearest 3PL warehouse to arrange a shipment to the buyer’s address. The seller also instructs shipment requirements that are agreed upon between them and the buyer, such as: 

• Shipment type – Whether it is a direct shipment to a distribution center, store, or drop shipping. It also defines the carrier type to be used.
• Transportation type – Depends on how the seller wants to arrange it, who is the end customer, and the shipment size. For example, buyer ‘Amazon’ may arrange its own transport to the warehouse.  
• Packaging – Packaging has rules, such as one package should contain ten tennis balls or one package should contain only one microwave oven. 
• Delivery location – The buyer may also dictate the delivery location type – Warehouse, Store, Distribution center, etc. 

In order to communicate such operations, the seller uses EDI 940, and 3PL responds with EDI 945. Both EDI 940 and 945 have formats specified by the X12 EDI standard. A shipment is considered complete when you receive an accurate EDI 945 for every EDI 940 you send. Let’s learn about these two EDI documents in detail. 

EDI 940 

EDI 940 is called a Warehouse Shipping Order. It contains the buyer’s information and order instructions. A seller sends EDI 940 to a 3PL warehouse when they receive a Purchase Order EDI 850 from a buyer. Receiving EDI 940 initiates the shipment process in the warehouse. 

Data Points

1. Purchase Order Number

2. Purchase Order Date

3. Transaction Date

4. Purchase Order Type

5. Carrier Details

6. Requested Ship Date

7. Requested or Scheduled Delivery Date (Optional)

8. Transportation Method

9. Shipping, Billing Address

10. Item Number (example: Vendor Item Number)

11. Quantity Ordered (Quantity that needs to be Shipped)

12. Quantity Unit of Measure (example: Each, Case)

13. Item Description

14. Item Assigned Line Number

EDI 945 

EDI 945 is called Warehouse Shipping Advice. It contains the order’s shipping information and status. When a 3PL or warehouse ships an order,  it sends back EDI 945 as a response to update the seller with the shipment information. Apart from the order details, EDI 945 also sends tracking and order identification information requested by the buyer. 

Data Points

1. Purchase Order Number

2. Shipped Date

3. Expected Delivery Date (Optional)

4. Shipment Number

5. Billing, Shipping Address (Sometimes Ship-from Address)

6. Bill of Lading Number

7. Carrier Code Details

8. Transportation Method

9. Tracking Number

10. SSCC-18 Digit Serial Shipping Container Code (Optional for Small or Drop Shipments)

11. Item Number (example: Vendor Item Number)

12. Quantity Shipped

13. Quantity Shipped Unit of Measure

14. Item Description

15. Item Assigned Line Number

Conclusion 

EDI 940 and 945 are the communicators that can drive order processing operations between 3PL, Seller, and the Buyer. They accurately deliver order & shipment information to all trading partners involved, freeing the warehouse staff to focus only on physical duties such as packing and moving trucks. 

Zenbridge has pre-built connectors for EDI 940 and 945 for all popular WMS systems. To schedule a demo, click here.