EDI & Barcodes: Automating Purchase Orders with ASN

EDI & Barcodes: Automating Purchase Orders with ASN

Electronic Data Interchange (EDI) and barcodes work together to automate the physical and digital sides of supply chain transactions. The barcode on a shipping label links to an EDI Advanced Shipping Notice (ASN), creating a seamless flow from purchase order to receipt.

The EDI-Barcode Connection

The supply chain flow:

1. Buyer sends EDI 850 (Purchase Order) with GTINs, quantities, and delivery instructions
2. Seller picks, packs, and labels each case/pallet with GS1-128 barcodes (GS1 identifier for pallets and shipping containers." data-category="GS1 Standards & Identifiers">SSCC)
3. Seller sends EDI 856 (ASN) listing every SSCC and its contents
4. Buyer receives shipment, scans SSCCs, and matches against the ASN
5. Buyer sends EDI 810 (Invoice) or EDI 861 (Receiving Advice)

The SSCC barcode is the physical bridge between the boxes on the dock and the electronic documents in the ERP system.

EDI Transaction Sets

ASN (856) Structure

An ASN organizes shipment data hierarchically:

Shipment level (BSN segment)
  └─ Order level (HL segment, level O)
      └─ Tare level (HL segment, level T) ─── SSCC
          └─ Pack level (HL segment, level P)
              └─ Item level (HL segment, level I) ─── GTIN, qty

Each tare level includes the SSCC that appears on the physical barcode label.

Scan-to-Receive Workflow

Without barcodes and ASN: - Receiving team opens each case - Manually counts items and compares to the packing slip - Keys data into the WMS - Time: 30-60 minutes per shipment

With barcodes and ASN: - Operator scans the SSCC on each pallet/case - WMS matches SSCC to ASN contents - Receipt is automatic for matched items - Time: 2-5 minutes per shipment

Compliance Requirements

Major retailers (Walmart, Target, Costco) require suppliers to:

• Apply GS1-128 labels with SSCCs to all shipments
• Transmit ASN (856) before shipment arrival
• Meet barcode quality standards (minimum grade C)
• Include specific AIs on labels (SSCC, GTIN, quantity, dates)

Non-compliance typically results in chargebacks ($50-500 per violation).

Implementation Steps

1. Obtain GS1 Company Prefix for SSCCs
2. Set up EDI capability (direct connection, VAN, or web EDI)
3. Configure WMS to generate SSCCs and GS1-128 labels
4. Map ASN data to EDI 856 format
5. Test with trading partners using pilot shipments
6. Monitor chargeback reports and resolve compliance issues

Common Pitfalls

• Mismatched SSCCs between physical labels and EDI documents
• Incorrect AI formatting in GS1-128 barcodes
• Missing FNC1 separators between variable-length fields
• ASN transmitted after shipment arrives (defeats the purpose)