Advance Shipping Notice — Everything You Should Know

Advance Shipping Notice Process 

1. Order Initiation

When the buyer initiates a purchase order, the process starts. The goods are then selected, packaged, and labeled in accordance with the buyer’s criteria and requirements by the seller or supplier in order to get the cargo ready for distribution.

2. ASN Creation

The supplier creates the Advance Shipping Notice (ASN) after the order is ready. A complete description of the shipment is included in this document, together with information on the products, their quantities, their packing, their dates of shipment and expected delivery, their carriers, and any specific instructions for the recipient.

3. ASN Transmission

To the buyer or merchant, the supplier electronically provides the ASN. ASNs can be transmitted by Electronic Data Interchange (EDI), XML, or other electronic messaging platforms, depending on the degree of integration between business partners. ASNs can also be sent by some providers via email or web portals.

4. ASN Validation

The buyer’s or retailer’s system verifies the information after getting the ASN to make sure it is accurate and comprehensive. To ensure that the shipping details match the order, the system compares the ASN with the associated purchase order and other pertinent data.

5. Receipt Acknowledgement

The buyer’s system notifies the supplier that the ASN has been received by sending an acknowledgment back to the provider. Establishing a two-way communication line and making sure both sides are aware that the information has been received require this step.

6. Receiving Preparation

The receiving party (buyer or store) can get ready for the shipment’s arrival once they have the ASN in their possession. They can schedule employees, allot warehouse space, and make plans for unloading and inspection. The ASN data contributes to the receiving process’s simplification, reducing delays and enhancing operational effectiveness.

7. Shipment Arrival

The receiving party checks the contents of the shipment against the ASN data when it reaches its destination. Physically examining the goods, amounts, and packaging to make sure they correspond to the ASN’s information is required.

8. Receipt Confirmation

The receiving party sends a confirmation to the supplier when the verification procedure is finished to show that the shipment has been successfully received and accepted. Any discrepancies about the shipment should be communicated.

Benefitsof Advance Shipping Notice

We defined what an RFx is and provided its process flow. Now it’s time to take a look at its various types. There are many types of RFxs, but here are the three main types used in the procurement process.

1. Inventory Management

With the aid of ASNs, the receiving party may precisely match up inbound shipments with their purchase orders or inventory records. Better inventory management is made possible by this real-time knowledge, lowering the possibility of stockouts or overstock conditions.

2. Order Visibility

All parties involved have immediate access to real-time information regarding the status and location of the items thanks to ASNs, which provide advanced information about upcoming shipments. Through the supply chain, better planning and decision-making are made possible thanks to this increased visibility.

3. Reduced errors

ASNs offer a thorough record of the shipment, lessening the possibility of mistakes and irregularities in the products received. Any differences can be quickly resolved with the provider, minimizing business interruptions.

4. Cost Optimization

The cost of transportation and logistics can be reduced if procurement teams have better visibility into the shipment specifics. Based on the quantity and timing of incoming goods, they can consolidate shipments, select affordable transportation options, and bargain better terms with carriers.

5. Improved communication and collaboration

ASNs help suppliers and buyers collaborate and communicate more effectively. Suppliers can alert buyers in advance of probable delays or other problems, enabling procurement teams to plan and make educated decisions.

Software Tools to ManageAdvance Shipping Notice

1. Odoo Inventory

Odoo is a suite of open-source business apps that cover all your company needs: CRM, eCommerce, accounting, inventory, point of sale, project management, etc.

2. LogiNext Solutions

LogiNext helps automate your operations to help with real-time tracking, route optimization, transportation, and logistics management software. Providing seamless and almost-instant integration with all enterprise resource planning suites across the board such as warehousing, order planning, transport management, payment, mapping, and more.

3. Cleo

Cleo provides an integration platform that automates all API, EDI, & non-EDI transactions and gains end-to-end visibility.