The EDI 940 transaction, also known as a Warehouse Shipping Order, is an Electronic Data Interchange (EDI) transaction set commonly sent by sellers or suppliers to third-party logistics providers (3PLs). It acts as a formal request for the shipment of goods from a remote warehouse to a buyer’s location. EDI 940 transaction follows the X12 format set by the American National Standards Institute (ANSI), a not-for-profit organization that regulates EDI formats in the United States.
____________________________________________________________________________________
Essential Components of the Warehouse Shipping Order (940)
____________________________________________________________________________________
A Warehouse Shipping Order (940) must include all relevant order and shipping details. Key components are:
Purchase Order number
Warehouse order details (products, product quantity, units of measure, expected shipping date(s), item identification)
Ship-to address(es)
Receiver contact information
Shipping instructions
Special equipment requirements (e.g., refrigerated freight needs)
____________________________________________________________________________________
How to Use the EDI Warehouse Shipping Order (940)
____________________________________________________________________________________
The EDI 940 transaction is primarily used by manufacturers, suppliers, and other sellers to ship goods from a remote warehouse to a buyer’s location. The document provides all the information a 3PL needs to fulfill an order. Sellers can also send additional EDI 940 transactions to modify or cancel an existing Warehouse Shipping Order (940).
Process Flow:
Seller sends EDI 940 to the 3PL.
Generally the 3PL sends back an EDI Functional Acknowledgement (997)
After processing the shipment, the warehouse sends an EDI Warehouse Shipping Advice (945), detailing the pending shipment and including delivery date/time estimates.
____________________________________________________________________________________
Benefits of the Warehouse Shipping Order (940)
____________________________________________________________________________________
If your organization is integrated with warehouse documents, the EDI 940 can be used to to streamline communications with your remote warehouses and 3PLs. When automation is in place, an EDI 940 can be quickly created and sent as soon as an order is entered in your Enterprise Resourcing Planning (ERP) system for inventory stored at a 3PL. This automation saves time by eliminating the need to manually create individual shipment requests for each order. By pulling data directly from the EDI Purchase Order (850) and other order data in the business system, the EDI 940 helps prevent errors that could lead to inaccurate deliveries, missed shipments, or potentially damage Trading Partner relations.
The Warehouse Shipping Order (940) is also more secure than paper, emailed or faxed shipping orders, making it easier for businesses to protect important and valuable information. Consider the following:
Streamlined Communication - Automates communication between sellers and remote warehouses/3PLs.
Efficiency - The EDI 940 transaction can be generated and sent as soon as an order is entered in your ERP system, saving time and reducing manual work.
Error Reduction - Pulls data directly from the Purchase Order (850) and other order data, helping prevent errors that could lead to inaccurate deliveries, missed shipments, or possibly damage Trading Partner relations.