Automotive Suppliers face a bewildering array of frequently-changing Customer Requirements, Regulations and Procedures, all intended to place the burden of managing the flow of goods squarely upon their shoulders.  Keeping close watch on Forecasts, Daily Ship Schedules, Advance Ship Notices and Pay on Receipt can strain Supplier staff. While there is a wealth of Automotive Supplier pain points to navigate on a daily basis, we’ll address the most common and cantankerous in the following article, which includes:

  • Keeping track of Accum-Shipped-to-Date per Part
  • Inaccurate Trading Partner data
  • Rapidly-Changing Daily Ship Schedules
  • Advance Shipping Notification (ASN) mistakes
  • Pay on Receipt tracking
  • Regulatory procedures and requirements

Automotive Supplier Pain Points in Detail

In this section, we’ll break down Automotive Supplier Pain Points in more detail. If you’re an automotive supplier facing these constraints and could use some guidance, it might make sense to reach out to Encompass for the best means ensuring they don’t continue to disrupt your business.

Keeping track of Accum Shipped to Date per Part

Discrete PO’s and Change Orders are mostly NOT used, except for emergency or repair parts. So, Trading Partners/Customers express their Release requirements in terms of Accum totals.  This imposes a major burden on the Supplier to ensure both their and their Customer’s totals always agree. Additionally:

    • Suppliers keep track of Accum shipped to Date per Part
    • Customers keep track of Accum received to Date per Part

Reconciliation of differences between Accum Shipped and Accum Received is solely up to Supplier to resolve….at times, changes are hourly…….or worse.

Annual reset to ‘zero’ (or close) means major effort depending on how many Parts are sold to Customers.

Inaccurate Trading Partner Data

This area of issue is characterized by Questionable Forecasts (some Trading Partners are better at Forecasting than others) and Delayed Goods receipt at the Trading Partner/Customer.

Trading Partners can take considerable time to actually ‘receive’ goods and materials into their system. Until this takes place, the reported ‘Accum Received’ values that are sent back to Suppliers on the next Daily Ship Schedule can be out of date and thereby misleading.  Trying to reconcile using outdated Accum data makes the task even harder.

An additional ‘side-effect’ of this ‘delayed receipt’ is the Trading Partner may continue to send the Supplier Requirements to ship that have actually already been shipped….and physically received…just not yet ‘received into the Trading Partner’s business system. This results in an inflated Order book for the Supplier unless extraordinary measures are taken to ‘filter’ these ‘duplicate requirements’ out of the inbound EDI.

Rapidly-Changing Daily Ship Schedules

Sometimes, Ship Schedules can change hourly. Some Trading Partners in Automotive may require all Suppliers to not only process EDI to manage Requirements but also have someone sit at a computer and log into a separate system at the Trading Partner to find what has just changed within the last hour or more recently, and then manually adjust accordingly.

If the order volume is significantly high, this ‘two-system’ method can severely tax a Supplier’s staff and systems.

Advance Shipping Notification (ASN) Mistakes

An ASN mistake can be catastrophic to a Supplier’s Monthly Performance Rating. For some Trading Partners, each such mistake can cost 5 points out of 100 points on that rating.  If a Supplier’s rating dips below 80 points, the Trading Partner may place the Supplier on a ‘Probation’ list, and if the rating is in that state for 3 months in a row, the Trading Partner may have the contractual right to Suspend all business with the Supplier pending a documented Process Improvement document being agreed to by both parties.

Because of this, most Automotive Suppliers’ EDI/IT staff tend to keep longer working hours and be ‘on call’ to immediately find and rectify any mistakes within a very short time (sometime within 30 minutes or less).

Pay on Receipt (aka ‘ERS’ evaluated-receipt-settlement) Tracking

Typical Automotive Trading Partners may refuse to use either EDI- or Paper-based Invoices. They consider them unnecessary.  Instead, they will insist on an agreement with all approved Suppliers wherein the Supplier makes the required Shipments, sends the required ASNs, the goods are physically received at the Trading Partner, and then the shipment is cross-checked with the received ASN. The Trading Partner will then issue payment periodically that accounts for the Received Shipments.

The Supplier is then responsible to ensure that all Shipments have been balanced on the General Ledger’s Accounts Receivable with payments received.

Regulatory Procedures and Requirements

This is a very broad category of pain points. So, for the sake of simplicity, I’ve broken it down into three main areas of focus:

  • Domestic regulations
  • Export and international regulations
  • Future pain points

Domestic Regulations

Typically imposed by specific Automotive Trading Partners, to enable tight controls on product quality. Some Trading Partners will, for instance, insist that a Supplier  completely re-submit Part  Approval paperwork if even the slightest change is made in the manufacturing process.  Example…a machine tool that is wearing out is replaced with a newer model…the PPAP documentation must all be re-done before shipping ANY product created by the new machine tool.

In today’s litigious environment, any manufactured Part that ultimately flies, travels the roads or the rails, or is involved in anything that the Public uses, could possibly be called into question in the unfortunate case if someone gets hurt in any way.  Therefore, EDI gets included in the efforts to literally ‘keep track of everything in perpetuity.’

Export / International Regulations

Dual-Use Goods. If a given manufactured/purchased Part Number could possibly be used in both a civilian as well as a military setting, then just about every country worldwide is going to want some measure of control over shipping that Part to certain other areas of the world.

Export Licensing then becomes the method by which permission is requested and granted for said shipments of that Part. Keeping track of all such Export licenses on all paperwork and EDI becomes a significant task.

Automotive is a worldwide market. All major Automotive companies have operations around the world, or are trying to set those up.  EDI in this environment gains more attention with the wide variety of Governmental agencies, even to the extent of mandating how long all Trading Partners might need to keep archival copies for future legal proceedings.

Future Pain Points

If one uses the time over the last 50-70 years as a guide, then we would fully expect EDI to gain prominence in aiding, documenting and alleviating future difficult circumstances (i.e…’pain’), just like it has ever since being developed back around 1945 by the Automotive companies as a way to streamline the processes and lower everyone’s costs and errors.

Automotive Supplier Pain Points Resolved

These issues don’t have to be the bane of doing business in the automotive market. Encompass is equipped with the tools and staff to ensure you are able to accommodate these activities and deliver on your trading partner expectations.

For more information on Encompass and our EDI services, reach out using the contact us button below.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Suppliers to the automotive industry are faced with a unique environment. To stay competitive, an automotive supplier must react to a complicated and ever-changing set of rules developed by the customer. These rules describe the exact methods that move product and order information through the supply chain. Automakers literally reach out and touch their suppliers at a moment’s notice to broadcast these mandates and changes in demand. Encompass EDI Consultants have deep experience with the unique set of Automotive EDI challenges faced by suppliers, including Regulatory, Logistics and ‘Release Accounting’.

Unique Aspects of Automotive EDI

This concept is captured by the term ‘Release Accounting’ and is what sets the automotive industry apart from any other with respect to EDI.

A supplier’s ability to manage the ‘Release Accounting’ process plays a key role in determining whether they are able to respond to customer changes rapidly and profitably. Those who have automated and integrated the ‘Release Accounting’ methods are well positioned for growth in the supplier community. They also report an increase in supplier ratings.

General Manufacturing rarely faces the same challenges.

Automotive EDI ‘Release Accounting’

Automotive EDI uses a radically different Order model compared to General Manufacturing (aka ‘Release Accounting’). The unique set of EDI transaction documents leveraged by this order model as well as associated activities include:

  • Weekly 830/DELFOR Forecasts
  • Daily 862/DELJIT Daily Ship Schedules
  • No, or Infrequent, 850/Orders Discrete PO’s
    • Order Releases managed using ACCUM-Shipped-to-Date totals
    • ACCUMs reset to zero annually
    • Releases frequently stated using ACCUM numbers, instead of Discrete QTYs
    • Responsibility to maintain and reconcile ACCUMs is on the Supplier
  • EDI 856/DESADV Advance Ship Notices (ASNs) are critical to the Supplier’s Monthly Performance Rating
    • Accuracy mistakes cost several points for each instance
    • Timing … typically the ASN must be sent and received within 20-30 minutes after truck departs. If not, that’s also a mistake that costs points
  • Invoicing
    • No EDI or Paper Invoices
    • Instead, Invoicing is done using Pay-On-Receipt or ERS (Evaluated Receipt Settlement)
  • Use of KanBan / Just-In-Time (JIT) Releases
    • Kanban Numbers need to be received, stored and returned on ASNs
    • Kanban Numbers typically mean more frequent changes to individual Releases
  • Releases
    • (similar to General Manufacturing) FIRM, UNFIRM, Planning Types
    • Use of Authorization Limits for FAB, RAW limits
    • This governs reimbursement level for cancellations

The Role of ERP in Addressing Automotive EDI challenges

Electronic Data Interchange (EDI) and electronic commerce play an integral part in ‘Release Accounting’. Yet translating the EDI document into human-readable form is just the beginning. How the data is used, and understanding how these unique requirements should be processed, is the essence of ‘Release Accounting’.

Every ERP System, which purports to accommodate ‘Release Accounting’ either has an internally-developed module (usually separate from the main system modules), or has developed a relationship with a 3rd-Party.

It is this 3rd-Party relationship where Encompass has a deep experience base and can help customers select the optimum methods, configurations, and integration to best align with a supplier’s business needs.

For more information on Encompass’ EDI services and Entrust EDI solution, reach out using the ‘Contact Us‘ button below.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Entrust EDI is an ERP-agnostic solution that enables the automation of document exchange between a business, its trading partners, and customers. This Entrust EDI Automation Demo shows the manual steps Entrust EDI is able to remove from the document exchange process. This saves time, cuts down on errors, and improves supplier/trading partner relationships.

Implementation of the Entrust EDI solution will depend on your business’ level of preparation prior to engaging with Encompass. You can begin the process of readying your business by completing a simple checklist. We’ve outlined an EDI readiness checklist HERE with the most common information required to move forward with an EDI implementation project.

To expedite the process, you can complete the EDI discovery questionnaire at your convenience. This will help both Encompass and your organization to move through to implementation more swiftly.

For an idea of the costs associated with implementing EDI, you can use our convenient EDI quote calculator tool.

Want to know more about Entrust EDI? Contact our representatives from the Entrust EDI support team at edisupport@encompass-inc.com or get in touch with us for a general inquiry using the Contact Us link at the bottom of this page.

Watch the Entrust EDI Automation Demo Recording

Additional Entrust EDI Resources

Entrust EDI Brochure

 

Entrust EDI Brochure

 

Entrust EDI Functionality Technical Overview

 

esi-managed-services-electronic-data-interchange-edi-flyer

 

Entrust EDI Managed Services Overview

 

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About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


The following form is intended to both educate companies on what information is needed to complete an EDI implementation and to allow prospective Entrust EDI customers to submit their EDI implementation or migration project’s details electronically. If you would like to submit a project RFP using this form, please fill out all fields in as much detail as possible, where applicable. This will ensure projects can be quoted, outlined, and started in a timely manner.

By submitting this EDI implementation questionnaire, you consent to receiving communications from Encompass Solutions in regard our services and your proposed project.

In the meantime, we invite you to review the following Entrust EDI resources:

Thank you for your interest in Encompass Solutions and Entrust EDI.

Entrust EDI Implementation Project Details

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The EDI invoicing process in Epicor is generally done behind the scenes with little to no intervention from the user. However, occasionally some kind of hiccup occurs. This may require a mass reprint of invoices to send out via EDI. For example, your network may have gone down just as your EDI invoices were processing. If those files never made it to your VAN or to the trading partner, you have to send a large number of files back out. Traditionally, we’ve accomplished this by assigning one person to sit in front of their computer, with a list of the impacted invoices, manually printing them one-by-one.

an image of the electronic data interchange principals used to allow Entrust EDI users to mass re-print edi invoices.

Mass Re-Printing Of EDI Invoices

There is a “Mass Print AR invoices” report in Epicor. However, this doesn’t work for EDI. The file generated ends up being one giant file with multiple records in it. Unfortunately, EDI maps cannot process a file like this.

A solution that we’ve recently been using successfully, has been to do a DMT update of the open invoices in question. Complete this at an “off” time for invoicing to maintain the normal flow of invoicing.

The process starts by identifying the outstanding invoices, and pulling them out of Epicor via DMT. The invoices will be opened in Excel for editing.  Once you have a working Excel spreadsheet to work from, it’s then time to start the update process.  Begin by setting the Auto-print BPM in Epicor to trigger off of the “document printed” field (InvcHead.DocumentPrinted) if the field is “true”.  Using DMT, reset all of the values in that field to FALSE and load DMT back in.  Your invoices are all now reset to not print.  Next, change your excel file to set that same document printed flag as TRUE and reload DMT.  This will trigger the BPM to fire and should result in the EDI output being generated.

If you have more than 200 files, it’s best to complete this task in sections. Try not to exceed 200 files per pass. This will minimize and control the load on EDI mapping software.

Finally, validate the invoices have made it through mapping and successfully arrived at the trading partner or at the VAN.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Gold Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


Over the last 40 years, electronic data interchange (EDI) has become known as a business standard format for relaying documents electronically between trading partners in a network. While EDI comes with great benefits, it is not without its challenges. Fortunately, for the vast majority of businesses, the benefits of EDI far outweigh the drawbacks. Modern methods and technology have only served to provide more potent EDI benefits for small and medium businesses.

Financial Benefits Of EDI

Because EDI is a digital means of communicating for businesses, it comes with many advantages over paper-based systems. Not only this, but it saves on costly errors, wait time, and a host of other factors that businesses not utilizing EDI will suffer from.

Take for instance paper and postage, the most obvious difference between EDI and other communication systems. Because all EDI transactions are completed electronically and instantaneously, the expense for paper, postage, envelopes, forms, ink, and transit costs are cut out of the equation. EDI not only saves on waste and materials within a business, but also resources beyond the walls of the business, such as fuel and labor associated with shipping and transit activities. Administrative and maintenance costs are also impacted by EDI, due to storage, filing, and retrieval costs no longer being part of the equation.

an image of the financial benefits of edi

Labor costs are reduced, as well. This is due to the fact that data entry, manual review of documents, and other administrative tasks, like sorting, copying, and filing, are no longer necessary with EDI. The automation provided by EDI frees time to take on and complete constructive tasks for teams while cutting down on costly errors significantly. The work hours involved are reduced significantly and order processing can essentially be put on autopilot, save for the instances and conditions a business has built into their EDI processes.

Operational Benefits of EDI

We touched on the automation EDI provides in the section above, but those improvements go beyond cost-savings and financial benefits of EDI. When your business runs more efficiently, trading partners and customers are more inclined to return to you with their business.

Maintaining accuracy in a paper-based trading network is a full-time job. Even with expert administrators and financial professionals, these tasks are wrought with problematic processes. There are many opportunities for human errors when it comes to re-keying data from orders, processing returns, and carrying out payment processing. EDI is an as-in, as-out technology. This means that the data received is the exact same as the data transmitted from trading partners. There is no need to re-enter data manually. The result is fewer erroneous entries, product returns, and lost orders.

an image of the operational benefits of edi

On the topic of order fulfilment, EDI provides businesses with better visibility into their supply chain and inventory. The lead-time necessary to process an order is reduced and a business can move closer to a Just-in-time (JIT) system.

Order accuracy is maintained at the highest level via digital records. When tied into a business’ ERP system, order, supply chain, and inventory data are ready and accessible for better and more informed decision making. When a business is more able to adapt to market conditions and respond to supply chain issues, they are better positioned to outperform their competitors.

EDI has a tremendous impact on operations, from speed and accuracy to automation and efficiency. However, security is a topic increasingly at the forefront of conversations between trading partners and businesses with their customers. EDI delivers enhanced security protocols that place several layers of protection between transactional data between businesses and their networks, as well as their customers.

Trading Partner and Customer Benefits of EDI

Beyond all the internal business benefits of EDI, there are many external trading partner and customer benefits of EDI.

One example emerges in a businesses ability to respond to changes in market conditions more quickly and effectively. Response time to environmental factors can be shaved down to seconds with EDI, resulting in fewer order disruptions and streamlined processes between sales and trading partner activities. The precision that this facilitates ensures that production planning, order fulfilment, delivery, and response time are much more precise and in alignment with a trading network or customers’ best interests.

an imag eof the tradin partner and customer benefits of edi

The internet has connected the world on a scale never seen before in history. As a result, those we communicate with expect updates to be quick, accurate, and on-demand. EDI facilitates all three of these demands by providing information on process statuses, such as acknowledging receipt of orders, invoices, changes to purchase orders, pending payment status and more.

Delivering on customer expectations is the key to securing their business long-term. EDI ensures that businesses are equipped to do so while also making accurate and timely updates available. In a competitive marketplace, where the buyer has the power, businesses need to leverage every advantage available. A high-level of customer service is essential to thrive and EDI can help provide customer benefits their competitors may lack.

Trading partners and trading networks are often the driving force behind EDI implementation. EDI compliance can open the doors to more fruitful and expansive trading networks for businesses. Once the standards are put into place, EDI trading partner benefits are numerous and serve to grow a business’ trading network.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Gold Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


When it comes to EDI, small businesses are often compelled to implement by their larger trading partners and suppliers. While a business may think it’s too small to warrant such a change, it’s easier to get started with EDI for small businesses than one might think.

EDI For Small Businesses: Burdens And Benefits

There are, as with many transformative technologies, initial barriers to be overcome. However, this is true for entities of every size when implementing EDI. In fact, smaller businesses have an easier time with some of these barriers than their larger counterparts. For many, the biggest barrier is costs associated with infrastructure and staff, for others, it’s the transition from paper-based systems to digital and automated ones. Whatever the hurdle to overcome may be, the benefits of integrated EDI for small businesses far outweigh the benefits that may be holding a business back from making the change.

Satisfaction, Loyalty, And Growth With EDI For Small Businesses

When it comes to the many arguments for a small business to begin leveraging EDI, nothing trumps growth. EDI enables growth in a big way, especially for smaller businesses. Two significant avenues through which EDI facilitates this are customer satisfaction and brand loyalty. When the experience of purchasing goes smoothly, and communication is fluid, customers appreciate the experience. Consistent performance in this regard delivers repeatable experiences that drive customer satisfaction. Positive word-of-mouth and online recommendations increase, which earn more business and retain loyal customers.

an image of a small business owner growing his business with edi for small businesses

Accuracy, Automation, And Accountability

It’s not unusual for small business staff to wear many hats and assume several responsibilities from day to day. Even specialists make mistakes, but staff tasked with multiple duties at a business are provided more opportunities to make simple errors. These errors can have far-reaching consequences. With EDI many of the repetitive and manual tasks associated with purchasing, invoicing and shipping can be automated, accurately enacted, and provide transparent records for superior accountability. The result is fewer botched orders, better follow through on commitments to customers, and another opportunity to prove their loyalty is earned and valued.

An image of a shop floor production improvements thanks to edi for small businesses

Reducing Overhead With An EDI Partner

For many small businesses, envisioning the added burden of managing EDI infrastructure and maintaining knowledgeable staff can sink the idea of before it’s put into action. Fortunately, there are options that don’t place these anxieties squarely on the shoulders of businesses. After the initial set-up of EDI, an EDP partner can maintain the system apart from a business’ day-to-day operation and IT structure. These systems are repeatable and scale with growth and can be easily integrated into existing ERP systems or to those added further down the line as time goes on.

an image of a business owner and edi partner agreeing on an edi for small businesses contract

By passing off the cost of an EDI project to an external partner, small businesses can enjoy the benefits of EDI without the additional staff, software, and hardware to maintain. This leaves in-house talent free to take on value-added activities that drive business growth and focus on customer care.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Gold Partner that offers professional services in EDI,  business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


When it comes to EDI, just like any other transformative technologies, there are factors that may present barriers before implementation can begin. There are many barriers that can present themselves when it comes to working with EDI for the first time and each may be unique a business or industry. In this case, the most common EDI barriers to implementation are:

  • Understanding
  • Change Management, Education, And Effort
  • Time
  • Money
  • Willingness Of Customers Or Suppliers

1. Understanding EDI

Understanding EDI is often one of the first EDI barriers to implementation to overcome, but also the easiest. Once a business has a clear picture of the structure, mechanics, and benefits of EDI, the choice to implement or not becomes obvious. What follows is an evaluation of peripheral factors that make EDI implementation feasible or not for that business.

2. EDI Change Management, Education, And Effort

Second on the list of EDI barriers to implementation generally follows understanding EDI. The internal struggle to get management on board, vital staff trained, and reinforcing a culture of continual process improvement is no small endeavor. For most businesses, change management is one of the most significant barriers to overcome in projects of just about any size and scope. For businesses taking on the responsibility to administer EDI in-house, this challenge is a pivotal one. Managing software and hardware installation, updates, and maintenance is a fulltime job on its own. Many businesses make the mistake of assign one key resource to oversee EDI, as well. The problems that arise when they decide to take time off or fall ill can be major roadblocks. The problems multiply exponentially should they decide to leave their role entirely. For those who bring on a third-party, it’s not as significant. This is because a third-party EDI services provider completes the labor associated with EDI administration, updates, security, and auditing.

3. EDI Implementation And Maintenance Time Requirements

Unlike substantial technological projects, like ERP implementation, EDI Implementation can compete in a relatively fast timeframe. Though, this will depend on the size and scope of a trading network. For businesses with no connection to EDI through their suppliers, it will generally take longer to implement EDI than those whose suppliers and trading partners are already aligned to adopt EDI technology.

Maintenance is an ongoing effort for your in-house team and needs to be met with the same care and attention to detail as any other IT operation to keep things running smoothly. Setting aside time for new mappings, changes required when its time to upgrade, and regular auditing is necessary. Hiring a third-party EDI services provider can allay the pressures associated with maintaining your EDI infrastructure.

4. EDI Implementation And Maintenance Costs

Like most process-improving technologies, EDI costs money to implement and maintain. Early iterations of the technology were rather costly. Over the last several years, efficiencies and advancements in EDI have driven costs down. Now, implementations and maintenance are far more affordable for small and medium-sized businesses. The price of that implementation and maintenance depends on the number of documents being mapped and the size of a customer’s or supplier’s trading network. Costs come down when in-house IT maintains the EDI infrastructure, but the additional workload does not always justify the savings on the front-end.  Many businesses find it is preferable to have a specialized third-party administrate their EDI services, while in-house teams manage day-to-day operations.

5. The willingness Of Customers Or Suppliers

For suppliers, EDI is often already in place or easy to implement when requested by customers. Customers, on the other hand, may not be so keen on adding EDI infrastructure because one trading partner requires it. In this case, the trading relationship can be severed. Suppliers tend to be more open to EDI as a framework for optimizing how transactions and communications take place both in and outside of their organization. Still, suppliers may have particular requirements of an EDI solution that a customer or vendor may not agree with

How The Benefits Of EDI Outweigh The EDI Barriers To Implementation

While there are plenty of potential obstacles to overcome when implementing a transformative technology like EDI, the benefits are well worth the process. Successful implementation yields tremendous benefit for businesses, including:

  1. Reduced administrative/transaction costs
  2. Decreased inventory levels/inventory costs
  3. Improved information accuracy
  4. Improved cash flows
  5. Better customer service
  6. Enhanced competitiveness in the marketplace
  7. Efficient communication
  8. More valuable trading partner relationships
  9. More free time for valuable in-house resources
  10. Improved security

To learn more about EDI and how it can benefit your business, contact the EnTrust EDI experts at Encompass Solutions using the link below.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Gold Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


While supply chains differ from one manufacturing company to the next, data still needs to be exchanged between suppliers, manufacturers, and customers. This is why Electronic Data Interchange (EDI) is such a critical component of modern manufacturing. EDI is a document exchange protocol. It involves a company’s entire digital infrastructure and is by and large considered the standard when it comes to purchase orders, invoices, shipment notices, and other documents frequently exchanged between trading partners. Here are the Top 5 EDI documents for manufacturing and why you should be implementing their use in your trading partner cycle.

First, What Is Electronic Data Interchange (EDI)?

EDI can be summarized as a process by which computer systems exchange business documents quickly and securely in a standard electronic format. Some examples of those electronic formats include those from ANSIEDIFACTTRADACOMS and ebXML. This is a simple definition but the concept of EDI documents for manufacturing extends from communications to design, as well.

an image representing transfer of edi documents for manufacturing

“While EDI is an infrastructure of a supply chain management system for QR (Quick Response) and ECR (Efficient Consumer Response), it is also a technology that supports concepts such as computer-aided design (CAD) and computer-aided acquisition and logistic support (CALS), a higher-level concept of CAD. EDI is based on standardization of electronic data exchange. There are many organizations that make rules for the standardization, such as ANSI (American National Standards Institute), EDIFACT (Electronic Document Interchange For Administration, Commerce and Transportation), CII (Center for the Informatization of Industry), EIAJ (Electronics Industries Association of Japan), and VICS (Voluntary Interindustry Commerce Standards Association). The rules differ depending on the types of applications for each industry that are installed on the infrastructure of EDI.”

Understand Supply Chain Management through 100 words
by Zenjiro Imaoka
Published by KOUGYOUCHOUSAKAI

The Top 5 EDI Documents For Manufacturing

From start to finish, your trading cycle is likely to include these 5 EDI documents 95 percent of the time. However, this is also dependent on your particular manufacturing industry. We’ll go more into that later. For now, here are The Top 5 EDI Documents For Manufacturing:

1. EDI 810 – Invoice

In Electronic Document Interchange (EDI), an EDI 810 is the electronic version of a traditional paper invoice. Used primarily in the manufacturing and retail industries, an EDI 810 Invoice is sent by the vendor or supplier to a retail partner or distributor to request payment for products and/or services.

utilizing the EDI 810 invoice offers several benefits to both the supplier and the purchaser. These benefits will depend on the transaction’s level of automation and integration on either party’s system. These benefits can include:

  • Increased efficiency, reduced time to complete transactions, and decreased volume of paper flow
  • Less time spent in manually submitting invoices on the supplier’s end
  • Less time spent manually entering invoices on the purchaser’s end
  • Increased resources to focus on value-added work for both supplier and purchaser
  • A significant reduction, if not outright elimination, on errors associated with manual entry
  • Reconciliation against orders/shipments to verify correct invoice amounts
  • Better order fulfillment
  • Faster payment

2. EDI 830 – Planning Schedule with Release Capability

An EDI 810 is the electronic version of a traditional paper invoice. Used primarily in the manufacturing and retail industries, an EDI 810 Invoice is sent by the vendor or supplier to a retail partner or distributor to request payment for products and/or services.

EDI 830 offers plenty of benefits to both the purchaser and the supplier. when implementing electronic trading of the inventory advice benefits can include:

  • Better visibility into when a product is out of stock or no longer being made and the ability to advise other actions as a result
  • Better management of e-commerce drop shipping
  • Communicates when items will be available if out of stock
  • Better forecasting when planning warehouse levels and ordering
  • Easier Management of details on eCommerce websites, for instance, when items are out of stock, quantities available, or remove the items from the website
  • Enables ordering of non-stock items and special orders

3. EDI 850 – Purchase Order (PO)

The EDI 850 Purchase Order (PO) is most commonly utilized when placing an order for goods or services. The 850 is most widely used in general merchandise, while its counterpart, the EDI 875 Purchase Order, is reserved for grocery items.

EDI 850 offers plenty of benefits to both the purchaser and the supplier. When implementing the use of electronic purchase orders, benefits can include:

  • Reduced in the volume of paper-based processes
  • Reduced time to complete transactions on both ends of trading partnerships
  • Reduced time invested in manual processes, such as order submissions and PO entry
  • Increase in value-added work as resources are freed by automation of manual processes
  • Fewer data entry errors
  • Optimized fulfillment
  • Reduced on-hand inventory for retailers

4. EDI 855 – Purchase Order (PO) Acknowledgment

An EDI 855 Purchase Order Acknowledgment is essentially an electronic version of a phone call or fax that informs the submitter of a purchase order the supplier will be filling the order as requested.

EDI 855 offers plenty of benefits to both the purchaser and the supplier. When implementing the use of a Purchase Order Acknowledgement, benefits can include:

  • Visibility into a supplier’s commitment to fulfilling an order
  • Quicker routing of acknowledgments and changes with automation
  • Improved organization of order information between suppliers and partners
  • Reduction of issues post-invoicing
  • Easy confirmation of supplier-fulfilled orders direct to end consumers

5. EDI 856 – Advance Shipment Notification (ASN)

An EDI 856 Advance Shipment Notification (ASN) is most commonly utilized as a method of shipment confirmation between a supplier and retailer. The 856 provides visibility for inbound shipments, automation of receiving, and confirmation for direct vendor-to-consumer shipments.

EDI 856 offers plenty of benefits to both the purchaser and the supplier. When implementing the use of ASN, benefits can include:

  • Increased visibility into shipment progress and contents
  • Increased shipment accuracy
  • Increased fulfillment rates
  • Easy cross-referencing between PO and shipment
  • Reduced need for safety stock

Additional EDI documents utilized by some manufacturers include those who operate Third-Party Logistics (3PL or TPL). These manufacturers often find EDI document 940 – Warehouse Shipping Order and EDI document 945 – Warehouse Shipping Advice particularly useful. In the case of Aviation and Aerospace Manufacturing industries, an EDI document 862 – Shipping Schedule is always used, while an EDI document 850 – Purchase Order (PO) is not.

Why You Should Care About EDI Documents For Manufacturing

While EDI revolves around document routing it does a whole lot more for your organization than simply sending documents electronically. The efficiency and security of electronic document interchange increase your productivity, minimize waste, and ensure the integrity of your trading cycle. Not only this, but you can add the fact that you are automating tasks that are generally non-revenue generating, which leaves more time for value-added activity in the organization. The result is more valuable partnerships, increased supplier satisfaction, and higher reliability rates of internal processes. Here are just a few of the incredible benefits of EDI:

  • Audit trails
  • Contingency planning
  • Use of acknowledgments
  • Electronic document management
  • Activities of supporting networks
  • User access controls to systems and networks
  • Cryptographic techniques for authentication and confidentiality

In short, If you plan to run an organized and efficient manufacturing business, you cannot afford to overlook the utility of implementing EDI documents for manufacturing. Fortunately, Encompass Solutions, Inc. can help you with that. For more information on Encompass Solutions’ EnTrust EDI solution, read about our Rapid EDI Implementation.

About Encompass Solutions

Encompass Solutions, Inc. is an ERP consulting firm, NetSuite Solution Provider and Epicor Platinum Partner that offers professional services in business consulting, project management, and software implementation. Whether undertaking full-scale implementation, integration, and renovation of existing systems or addressing the emerging challenges in corporate and operational growth, Encompass provides a specialized approach to every client’s needs. As experts in identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.


EDI 944 Warehouse Stock Transfer Receipt Advice

In Electronic Document Interchange (EDI), an EDI 944 Warehouse Stock Transfer Receipt Advice is a supply chain EDI transaction most often utilized by third-party logistics providers to inform manufacturers that a shipment transfer has taken place successfully. It follows an EDI 943 Warehouse Stock Transfer Shipment Advice. This indicates that an on-site official has received the shipment and inspected the contents for accuracy and damage against the EDI 943’s details.

EDI 944 Warehouse Stock Transfer Receipt Advice Format

ST*944*001211532
W17*F*20170830*SVR083411
N1*WH*Judge Warehousing, LLC*54*PL
N9*BM*2007858419*1042652
N9*PO*1042652
W08*T***RBTW*239
W07*4*RL**SN*N47H23172L
N9*DO*100015646
W20*1*4*RL*192.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*192.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*196*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172M
N9*DO*100015646
W20*1*4*RL*194.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*194.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*198*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172N
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172P
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23172Q
N9*DO*100015646
W20*1*4*RL*193.0*G*K
W20*1*4*LF*991*M
W20*1*4*BW*757*K*K
W20*1*4*NW*193.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*198*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173M
N9*DO*100015646
W20*1*4*RL*196.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*196.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173N
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*200*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173P
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*200*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23173Q
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*994*M
W20*1*4*BW*757*K*K
W20*1*4*NW*195.0*N*K
W20*1*4*W*25.4*W*CM
W20*1*4*DI*121.9*CM
W20*1*4*DT*199*K
W20*1*4*GC*FPL
W07*4*RL**SN*N47H23192M
N9*DO*100015646
W20*1*4*RL*195.0*G*K
W20*1*4*LF*990*M

EDI 944 Warehouse Stock Transfer Receipt Advice Key Data

EDI 944 Warehouse Stock Transfer Receipt Advice documents are a mix of data elements and fields. Most commonly the EDI 944 Warehouse Stock Transfer Receipt Advice will include:

  • Supplier information
  • When the shipment was received
  • Item numbers, descriptions and quantities
  • Warehouse receiving location
  • Shipper information

Once received, a destination official will inspect the shipment for accuracy and any damage. Once verified and accepted, the recipient will respond to the supplier with a 944 Warehouse Stock Transfer Receipt Advice.

EDI 944 Warehouse Stock Transfer Receipt Advice Benefits

EDI 944 Warehouse Stock Transfer Receipt Advice serves a specific function within the supply chain. That is, acknowledgment from a third-party warehouse location that a shipment has been received and is as described on the shipment’s pack slip. The EDI 944 communicates a shipment is progressing along its prescribed journey as it should and maintains accuracy after it has left the facility of origin.

About Encompass Solutions

Encompass Solutions is a business and software consulting firm that specializes in ERP systems, EDI, and Managed Services support for Manufacturers and Distributors. Serving small and medium-sized businesses since 2001, Encompass modernizes operations and automates processes for hundreds of customers across the globe. Whether undertaking full-scale implementation, integration, and renovation of existing systems, Encompass provides a specialized approach to every client’s needs. By identifying customer requirements and addressing them with the right solutions, we ensure our clients are equipped to match the pace of Industry.