The EDI 947, also known as Warehouse Inventory Adjustment Advice, is an Electronic Data Interchange (EDI) document used primarily by Third-Party Logistics companies (3PLs) or remote warehouses. When a 3PL observes a change in inventory numbers or statuses, they use the EDI 947 transaction to notify clients of these changes. The EDI 947 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.
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Essential Components of the EDI Warehouse Inventory Adjustment Advice (947)
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An EDI 947 transaction must contain specific details related to inventory number and status changes including:
Adjustment number and date
Warehouse identification information
Product identifying information (such as SKU or UPC)
Adjustment details (including quantity change and reason for change)
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How to Use the EDI Warehouse Inventory Adjustment Advice (947)
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The EDI 947 transaction is typically sent to reflect changes noted during physical inventory, cycle counts, or product expiry at the warehouse. The most common inventory quantity changes are due to product damage or expiry. Inventory status may also change, for example, when items are placed on hold for quality assurance.
Recipients of the EDI 947 transaction usually respond with an EDI Functional Acknowledgement (997) to confirm receipt.
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Benefits of the EDI Warehouse Inventory Adjustment Advice (947)
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The EDI 947 transaction offers several advantages including the following:
Improved Inventory Visibility and Accuracy - Notifying Trading Partners about inventory changes ensures all parties have a precise view of inventory across locations, aiding in better planning for sales and shipments.
Automation and Security - The EDI 947 transaction replaces paper-based advice, making communication more secure than email, fax, or PDF. Data is pulled directly from business systems which reduces manual errors.
Efficiency - EDI streamlines communications with Trading Partners, saving time and increasing supply chain efficiency.
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The EDI 947 transaction is a vital document for maintaining accurate and timely inventory records between warehouses and their clients. Its use enhances visibility, security, and operational efficiency throughout the supply chain.