Advanced Shipping Notice
Encyclopedia
An advance ship notice or advance shipping notice (ASN) is a notification of pending deliveries, similar to a packing list. It is usually sent in an electronic format and is a common EDI
document. In the EDI X12 system, it is known as the EDI 856 document and the EDIFACT
equivalent is the DESADV (Despatch Advice) message. The ASN can be used to list the contents of a shipment of goods as well as additional information relating to the shipment, such as order information, product description, physical characteristics, type of packaging, markings, carrier information, and configuration of goods within the transportation equipment. The ASN enables the sender to describe the contents and configuration of a shipment in various levels of detail and provides an ordered flexibility to convey information .
The ASN is noteworthy in that it is a new concept in logistics, enabled by the advance of modern communication methods. Although it provides information similar to the Bill of Lading
, its function is very different. While the Bill of Lading
is meant to accompany a load on its path, the goal of the ASN is to provide information to the destination's receiving operations well in advance of delivery. This tends to impact the logistics stream in three areas: cost, accuracy, and flexibility.
Cost. Modern receiving operations rarely have time to break down a shipping unit (carton or pallet) and identify its components, depending instead on quick scans of barcodes on shipping labels. An ASN can provide a list of all of the barcoded ID numbers of the shipping units and the contents of each. Receiving costs are thought to be reduced by about 40% .
Accuracy. Upon receipt of the ASN, the receiver is immediately informed of any difference between what was expected, and what has actually been shipped.
Flexibility. Knowing the actual fill rates of the orders gives the retailer the opportunity to re-allocate goods in subsequent shipments.
ASN and finance
The ASN (advanced shipping notification) can be used to pay suppliers directly for goods received. This can be accomplished by receiving the ASN into the company computer system (MRP), printing company labels for each container received, affixing the labels on the containers, and then transmitting any discrepancies to the supplier via EDI.
Electronic Data Interchange
Electronic data interchange is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e...
document. In the EDI X12 system, it is known as the EDI 856 document and the EDIFACT
EDIFACT
United Nations/Electronic Data Interchange For Administration, Commerce and Transport is the international EDI standard developed under the United Nations...
equivalent is the DESADV (Despatch Advice) message. The ASN can be used to list the contents of a shipment of goods as well as additional information relating to the shipment, such as order information, product description, physical characteristics, type of packaging, markings, carrier information, and configuration of goods within the transportation equipment. The ASN enables the sender to describe the contents and configuration of a shipment in various levels of detail and provides an ordered flexibility to convey information .
The ASN is noteworthy in that it is a new concept in logistics, enabled by the advance of modern communication methods. Although it provides information similar to the Bill of Lading
Bill of lading
A bill of lading is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified...
, its function is very different. While the Bill of Lading
Bill of lading
A bill of lading is a document issued by a carrier to a shipper, acknowledging that specified goods have been received on board as cargo for conveyance to a named place for delivery to the consignee who is usually identified...
is meant to accompany a load on its path, the goal of the ASN is to provide information to the destination's receiving operations well in advance of delivery. This tends to impact the logistics stream in three areas: cost, accuracy, and flexibility.
Cost. Modern receiving operations rarely have time to break down a shipping unit (carton or pallet) and identify its components, depending instead on quick scans of barcodes on shipping labels. An ASN can provide a list of all of the barcoded ID numbers of the shipping units and the contents of each. Receiving costs are thought to be reduced by about 40% .
Accuracy. Upon receipt of the ASN, the receiver is immediately informed of any difference between what was expected, and what has actually been shipped.
Flexibility. Knowing the actual fill rates of the orders gives the retailer the opportunity to re-allocate goods in subsequent shipments.
ASN and finance
The ASN (advanced shipping notification) can be used to pay suppliers directly for goods received. This can be accomplished by receiving the ASN into the company computer system (MRP), printing company labels for each container received, affixing the labels on the containers, and then transmitting any discrepancies to the supplier via EDI.