Advanced Shipping Notice (ASN) in Retail: All You Need to Know

Amazon ships approximately 1.6 million packages per day, which translates to more than 66,000 orders per hour and over 18 orders every second. While speed and scale are impressive, the more critical challenge is ensuring order accuracy and transparency across the supply chain.

This is where the Advanced Shipping Notice, or ASN, becomes a vital component of retail logistics.

An ASN helps retailers prepare for incoming shipments with accurate information about what to expect, enabling smooth receiving, inventory updates, and ultimately better fulfillment performance.

What Is an Advanced Shipping Notice (ASN)?

An Advanced Shipping Notice (ASN) is an EDI 856 document sent from a supplier to a retailer before a shipment arrives. It details everything from item SKUs to packaging types, giving retailers a heads-up to prepare their inventory systems and receiving teams.

It’s not just a formality. For retailers like Walmart and Amazon, ASN compliance is mission-critical.

Key Information Provided in an ASN

A properly structured ASN contains the following critical data points:

• Detailed shipment list: Includes product descriptions, quantities, SKUs, or UPCs.
  
  
• Packaging information: Covers carton numbers, pallet IDs, and hierarchical packaging structure.
  
  
• Estimated arrival: Specifies the expected delivery date and time.
  
  
• Carrier and tracking information: Identifies the transportation provider, including tracking or PRO/BOL numbers.
  
  
• Compliance data: Contains retailer-specific codes and regulatory data, such as Global Location Numbers (GLNs) or expiration dates.
  
  
• Pre-receipt inventory data: Enables real-time updates to inventory before physical goods arrive.

The Importance of ASN Accuracy and Compliance

ASNs are more than just pre-shipment alerts. They play a vital role in maintaining supply chain efficiency and inventory accuracy.

Retailers set stringent standards for ASN submissions, and failure to comply often results in chargebacks delayed receiving, or operational disruptions.

Consequences of ASN Errors and Non-compliance

• Preparation delays: Late or missing ASNs prevent warehouse teams from planning resources and space, leading to delayed processing.
  
  
• Inventory discrepancies: Mismatches between ASN data and physical shipments cause manual intervention and delays.
  
  
• Chargebacks: Retailers penalize suppliers for inaccurate or untimely ASNs, often resulting in costly deduction claims.
  
  
• Vendor scorecard impact: Chronic ASN errors can damage a supplier's scorecard and even jeopardize preferred vendor status.

Best Practices for ASN Submission

To meet retailer expectations and avoid financial penalties, suppliers should follow these best practices:

• Submit ASNs on time: Ensure ASNs are transmitted and acknowledged before the shipment arrives at the retailer's distribution center.
  
  
• Validate accuracy: Cross-verify the ASN against the physical shipment. Include accurate item counts, packaging details, and carrier data.
  
  
• Follow retailer guidelines: Each retailer may have specific ASN formatting or data requirements. Always align your submission with those rules.
  
  
• Integrate EDI with ERP: Automating ASN generation through ERP and EDI integration minimizes manual errors and improves speed.
  
  
• Test and monitor: Routinely test EDI mappings and monitor acknowledgment responses like EDI 997 or 824 to detect and resolve errors early.

ASN Process Workflows at Walmart and Amazon

Both Walmart and Amazon have highly structured ASN protocols to ensure inbound shipment accuracy. Here is how their systems work:

Walmart ASN workflow:

Walmart’s ASN process revolves around three core EDI transactions:

1. EDI 856 (Advance shipment notice): Suppliers send this file to Walmart containing the shipment hierarchy and product details.
   
   
2. EDI 997 (Functional acknowledgment): Upon receiving the EDI 856, Walmart responds with an EDI 997, which either:
   
   
   • Confirms successful acceptance of the data.
     
     
   • Indicates rejection if there are issues with the document structure or content.
     
     
3. EDI 824 (application advice): Even after a successful EDI 997, suppliers must monitor for an EDI 824 transmission. This document provides more detailed feedback:
   
    An ASN with "ERROR" or "WARN" text indicates issues such as missing or invalid UPCs (Universal Product Codes) or GLNs (Global Location Numbers).
   
   
   • Warn: Indicates minor issues that do not prevent data usage but should be corrected.
     
     
   • Error: Indicates critical issues leading to complete rejection. Errors should be corrected and resent before 

Walmart has provided over 100 deduction reasons for chargeback.  Check out our detailed guide on Walmart deduction codes.

Recent developments:  As of May 2024, Walmart has tightened its ASN standards. The ASN Dashboard in Retail Link now provides enhanced visibility, allowing suppliers to proactively identify and fix recurring ASN submission errors.

Amazon ASN workflow:

Amazon's ASN expectations are similarly demanding:

1. Timely submission: ASNs must be sent before goods arrive at Amazon’s Fulfillment Center.
   
   
2. Unit accuracy: The quantity listed on the ASN must match the physical contents precisely.
   
   
3. Valid ARN (Amazon reference number): Amazon requires a valid Amazon Reference Number for all shipments.
   
   
4. Correct PRO/BOL details: Prepaid shipments must have the correct Bill of Lading or PRO number.
   
   
5. Expiration Dates: Perishable or regulated items must include accurate shelf-life data.
   

Common Amazon ASN failure modes:

• Late ASN submissions or batching delays
• Incorrect or missing ARN, PRO, or BOL numbers
• Mismatched quantities between ASN and shipment
• Receiving errors at Amazon Fulfillment Centers, occasionally leading to invalid deductions

Common ASN Challenges for Suppliers

Vendors often encounter difficulties in managing ASNs consistently across multiple retailers. The most frequent challenges include:

• Data inaccuracies: From incorrect UPCs and quantities to invalid location codes or missing packaging hierarchies, any mismatch can lead to rejection.
  
  
• Late submissions: Human errors, EDI integration issues, or ERP processing delays can result in ASNs not being transmitted on time.
  
  
• Technical mapping errors: Misaligned EDI mappings or outdated schema can cause structural errors in ASN documents.
  
  
• Retailer-specific rules: Each retailer has unique ASN compliance standards. Managing these variations manually is time-consuming and error-prone.
  
  
• Chargebacks and revenue loss: Deductions due to ASN errors can quickly add up. Vendors also spend significant internal resources disputing these penalties.

The Visible vs. Hidden Costs of ASN Errors

How iNymbus Helps Automate ASN-Related Deduction Management

iNymbus provides an automated deduction management platform tailored for high-volume suppliers dealing with retail chargebacks, including ASN-related claims. Our solution is powered by Robotic Process Automation (RPA) and supports over 25 major retailers.

What Makes iNymbus Different

• End-to-end claim automation: From downloading chargebacks to uploading disputes and documentation, iNymbus automates the entire process.
  
  
• Document retrieval: Automatically collects and organizes ASN records, proof of delivery, carrier data, and EDI acknowledgments.
  
  
• Retailer-specific rules engine: Our platform understands and applies retailer-specific ASN dispute logic to improve recovery rates.
  
  
• Root cause analytics: Visual dashboards and trend reports highlight the most frequent ASN errors and help prevent future chargebacks.
  
  
• Custom workflow configuration: Adaptable setup allows for company-specific processes and approval hierarchies.
  

Frequently Asked Questions (FAQ)

What happens if I submit an ASN late to Walmart or Amazon?

Late ASNs typically lead to chargebacks or rejected shipments. Both retailers expect the ASN to be received and acknowledged before the goods arrive at their facilities.

What are the common causes of ASN errors?

Discrepancies between listed and actual item quantities, missing UPCs, invalid GLNs, and incorrect packaging structures are among the most common.

Can ASN errors be disputed?

Yes, but the process is manual and time-consuming. Many suppliers use automation platforms like iNymbus to streamline disputes and gather supporting documents.

Does every retailer require an ASN?

Not all retailers require ASNs, but most major ones like Walmart, Amazon, Target, and Costco do. The format and requirements vary by retailer.

How can I reduce ASN-related chargebacks?

Implement automated EDI integration, perform regular audits, monitor retailer acknowledgments, and use analytics to track ASN error trends.

Ready to Eliminate ASN-Related Chargebacks?

iNymbus helps suppliers eliminate costly ASN errors and recover lost revenue by automating the entire deduction dispute process. Whether your claims come through Retail Link, Vendor Central, or email, we are built to scale with your business.

Contact us today to schedule a demo or learn how our automated deduction management solution can reduce your ASN chargeback exposure.