EDI 894 - Delivery/Return Base Record

What is the EDI 894? The EDI 894, also called the Delivery/Return Base Record, is used by a supplier to inform a retailer that a shipment is on its way to their store, including details and quantities of items in the shipment. Food and beverage industries prefer a forewarning to ensure they have the correct quantities, pricing information and shipment details for a streamlined transfer of goods.

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The EDI 894 format

The EDI 894 is designed to streamline the process of communicating deliveries and returns, enhancing accuracy, efficiency and compliance in the supply chain. Each component plays a crucial role in ensuring that both parties are well-informed and prepared for the transaction.

The EDI 894 format by SPS Commerce

Here are the main components you can expect to find in an EDI 894 document:

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Header information:

This section includes the document’s start and identifies the type of EDI transaction being performed. It often contains sender and recipient identification, the date and time of the document’s transmission and the standard being used.

Delivery information:

  • – Product item descriptions: Detailed descriptions of each product being delivered, including item identifiers like SKU numbers or UPCs.
  • – Quantities: The number of units for each item being delivered.
  • – Prices: The price for each item, possibly including unit prices and total prices.
  • – Discounts: Any applicable discounts or promotions that apply to the items or the overall order.

Return information:

  • – Reason for return: Specific reasons why items are being returned, such as damage, incorrect shipment or customer return. 
  • – Condition of returned items: Details on the condition of items being returned, whether they are damaged, unused, etc. 
  • – Expected action: What the supplier is expected to do with the returned items, such as issuing a refund, providing a replacement, or offering credit. 

Transaction totals:

This section summarizes the transaction, including the total number of items, the total amount before and after discounts and any other relevant totals.

Terms of delivery:

Information about the delivery terms agreed upon, such as delivery dates, shipping methods and any special instructions.
r

Compliance information:

Ensures the transaction complies with relevant industry standards and regulations. This might include information about packaging, labeling and other requirements.

Trailer information:

Summarizes the transaction and confirms the total number of segments or parts in the EDI 894 document.

How is the EDI 894 used?

The EDI 894 is a critical tool in the supply chain, especially in sectors where the efficient handling of product deliveries and returns is crucial. By providing a structured way to communicate this information, the EDI 894 helps improve the accuracy, efficiency, and speed of supply chain operations.

Here’s a breakdown of its primary purposes:

Delivery information:
This is how a supplier tells a store or distributor about the products they’re sending over. It provides item information, item quantity, item cost and if there are any discounts. This information is helpful for the store or distributor as they prepare for delivery and ensure they have enough room, plenty of employees and the required equipment.
Return information:
If an item needs to be sent back to the supplier or manufacturer, the EDI 894 provides all the details about the item. This includes why it’s being returned, what condition it’s in and what should be done next (e.g., issuing a refund, providing a replacement or offering store credit).
Accuracy and efficiency:
When delivery and return info is shared automatically through the EDI 894, mistakes that can occur with manual data entry are reduced.
Communication speed:
Since this document is digital, everything from sending out products to handling returns can be done quicker than the traditional paper way. Fast communication helps make the process of getting products from one place to another smoother and faster.
Compliance and standardization:
The EDI 894 follows a set pattern known and used worldwide. This ensures that different companies can work together easily. Sticking to this standard also means companies can follow the rules of their industries without running into issues and keep their supply chains moving smoothly.

Benefits of using an EDI 894 Delivery/Return Base Record

Suppliers of food, beverage and consumable products use DSD deliveries to provide timely and superior customer service to their retail customers. The EDI 894 provides receiving details to the retailer and its store in advance, much like an advance ship notice (EDI 856). Buyers or sellers can recognize the following benefits of using the EDI Delivery/Return Base Record:

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Resolve any discrepancies in pricing or promotions and product exchange details.

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Alert the retailer that the delivery is pending. Most retailers using the EDI 894 want it sent four hours prior to delivery.

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Convey the details of the shipment such as its weight, mode of transportation and carrier information in advance.

Common issues regarding EDI 894

Delivery Timing

When will the delivery truck arrive? Will it arrive before my manager’s shift ends? 

Pricing

What is the price of the items delivered? Are any promotions in effect?

Quantities Expected

Are the items we need on today’s truck? What if more items are needed? Are the items delivered in cases or packs? Is there enough space in the backroom?

Automate 894 EDI Return Base Record with Full-Service EDI from SPS Commerce

Managing ongoing EDI tasks, especially in a DSD environment, can be complex and time-consuming. Many retailers require sellers to send the EDI 894 within four hours of a delivery. This can be challenging if using a manual process. Fortunately, full-service EDI providers deliver EDI technology and staff who automate and manage the day-to-day operations of your EDI relationships so you can devote your time to other functions.

As a full-service EDI provider, SPS Commerce has teams of retail experts at the ready to address your needs or any changes from your trading partners. We contact your retailers directly to manage connectivity, setup, compliance, changes and support. SPS is in charge of understanding your retailers’ requirements and making any changes, not you.

SPS Commerce Fulfillment proactively monitors and optimizes your EDI to prevent errors and minimize manual processes.

Sound interesting? Want to learn more?

Learn More About SPS Fulfillment

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