EDI 862 - Shipping Schedule

What is the EDI 862? The EDI 862 transaction, also known as the Shipping Schedule, is used by buyers to communicate their precise shipping requirements to suppliers, including detailed information about what products will be shipped, in what quantities and by when. The EDI 862 is particularly useful in just-in-time (JIT) manufacturing environments where timing and accuracy of deliveries are critical. It differs from a purchase order (EDI 850) by providing more immediate, detailed shipping instructions based on current needs rather than a longer-term forecast.

EDI Documents

The EDI 862 format

The EDI 862 format is designed to convey detailed and dynamic shipping instructions from the buyer to the supplier, enabling efficient and timely order fulfillment.

The EDI 862 format by SPS Commerce

A typical EDI 862 document might include several key segments:

BSS: Beginning segment for shipping schedule

Specifies the start of the shipping schedule details, including schedule type, date and reference numbers.

DTM: Date/time reference

Provides specific dates and times related to the shipping schedule, such as requested ship and delivery dates.

N1: Name

Identifies parties involved in the transaction (e.g., ship-to, ship-from, bill-to) and can include address and contact information.

LIN: Item identification

Identifies the items being shipped, including product/service identifiers and descriptions.

SCH: Line item schedule

Details the quantity to be shipped, schedule dates for shipping and related information for each item.

TD5: Carrier details

Specifies transportation details, including carrier name, transportation method and routing information.
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REF: Reference information

Provides additional reference information that may be required for processing the shipping schedule.

How is the EDI 862 used?

Detailed shipping instructions:
The primary use of the EDI 862 is to communicate precise shipping instructions from the buyer to the supplier. This includes details about what items are needed, in what quantities and when they should be shipped.
Just-in-time (JIT) manufacturing support:
In JIT manufacturing environments, where minimizing inventory and reducing lead times are critical, the EDI 862 provides the detailed scheduling necessary to align deliveries closely with production schedules.
Order adjustment:
The EDI 862 allows buyers to adjust their shipping schedules based on changing needs or conditions, ensuring suppliers receive the most current instructions.
Integration with production planning:
Suppliers can integrate the shipping schedules received via the EDI 862 directly into their production planning and scheduling systems, aligning manufacturing output closely with customer demand.

Benefits of using an EDI 862 Shipping Schedule

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Increased Efficiency:

Automates transmission of shipping schedules, reducing manual processes and minimizing errors and delays.

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Improved Responsiveness:

Enables rapid adjustments to shipping schedules, helping businesses adapt quickly to changing demand needs.

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Reduced Inventory Costs:

Supports effective JIT inventory strategies, lowering inventory carrying costs by reducing the need for large stock holdings.

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Enhanced Collaboration:

Facilitates clear, timely communication between buyers and suppliers, fostering better collaboration with up-to-date shipping information.

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Better Customer Satisfaction:

Leads to more reliable order fulfillment, significantly enhancing customer satisfaction and loyalty.

Common issues regarding EDI 862

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Data Accuracy and Timeliness:

Inaccuracies or delays in EDI 862 data transmission can disrupt JIT manufacturing schedules, leading to production delays, excess inventory, or stock shortages.

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Integration Challenges:

Properly integrating EDI 862 data into both supplier and buyer systems can be complex, and misalignment can lead to inefficiencies.

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Compliance and Scalability:

Ensuring compliance with diverse trading partner specifications and scaling EDI systems to handle increased transaction volumes without compromising performance can be resource-intensive.

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Resource and Security Requirements:

Managing EDI 862 transactions demands specific expertise and robust security measures to protect sensitive business information from data breaches.

Automate EDI 862 Shipping Schedule with Full-Service EDI from SPS Commerce

Managing ongoing EDI tasks can be complex and time-consuming. Full-service EDI providers like SPS Commerce deliver EDI technology and associated staffing resources responsible for customizing, optimizing and operating your EDI solution.

A full-service provider, like SPS Commerce, has an expert team that handles ongoing management of your EDI solution. The SPS team actively manages 9,000 changes from retailers each year.

SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. SPS also takes ownership of understanding your trading partner requirements and making map changes.

SPS Fulfillment proactively monitors and optimizes your solution to prevent errors and minimize data entry.

Interested in learning more about our EDI solution?

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