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

Amazon ships 1.6 million packages each day—over 66 thousand orders per hour, and around 18.5 orders every second. But the real challenge isn't just speed; it's making sure every order is accurate. This is where the Advanced Shipping Notice (ASN) in retail comes into play. 

ASNs bridge the gap between suppliers and retailers by providing details of upcoming shipments and help recipients to prepare for the arrival of goods with precise knowledge of what to expect. 

What is Advanced Shipping Notice (ASN) In Retail?

Advanced Shipping Notice (ASN) is an electronic data interchange (EDI) document, specifically EDI 856, that suppliers send to retailers or recipients. It provides detailed information about an upcoming shipment, including item descriptions, quantities, and packaging details. This advance notice allows retailers to plan more effectively by giving them insights into shipment details ahead of time.

Key Information Provided by an ASN

1. Detailed Shipment List: Includes item descriptions, product codes, and quantities.
   
   
2. Packaging Information: Details about carton or pallet numbers and packaging types.
   
   
3. Estimated Arrival: Expected delivery date and time.
   
   
4. Carrier and Tracking Information: Details of the shipping carrier and tracking numbers for monitoring the shipment.
   
   
5. Compliance Data: Information on regulatory and retailer-specific requirements.
   Pre-Receipt Inventory Updates: Enables updates to inventory systems before goods arrive.
   
   

ASN Standards: Importance of Accuracy and Compliance

Retailers enforce strict ASN standards to maintain accurate inventory, efficient supply chains, and high customer satisfaction. Meeting these standards is essential because even a small mistake can lead to significant disruptions that impact both retailer efficiency and the customer experience.

What Happens Without Accuracy and Compliance:

• Delays in Preparation: If ASNs don’t arrive before the shipment, retailers can’t prepare for upcoming deliveries in advance, leading to delays and disruptions in inventory management because of a lack of real-time updates.
  
  
• Errors and Discrepancies: Inaccurate ASN details can cause mismatches between expected and actual shipments, resulting in errors and complicating the receiving process.
  
  
• Consistency Issues: Failing to meet retailer-specific ASN requirements can disrupt supply chain consistency and efficiency.
  
  

Best Practices for Advanced Shipping Notice (ASN):

• Timeliness: ASNs should be submitted before the shipment arrives at the facility to ensure smooth processing and avoid delays.
  
  
• Accuracy: The ASN must accurately reflect the physical shipment, including correct item details, quantities, purchase order number, and tracking number to prevent processing issues or rejections.
  
  
• Completeness: Ensure the ASN includes all required details as per the retailer's guidelines, such as item numbers, product descriptions, physical characteristics, carrier information, quantities, and any special handling instructions.
  
  

ASN Process Flow at Walmart and Amazon

Both Walmart and Amazon have established detailed ASN processes to ensure accuracy and efficiency in their shipping operations. This is an overview of their ASN procedures, helping suppliers understand and navigate the requirements to avoid common issues.

Walmart ASN:

Walmart ASN requirement involves three key EDI documents:

1. EDI 856 (Advance Shipment Notice): This document is sent by the supplier and provides detailed information about the upcoming shipment.
   
   
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 introduced stricter ASN standards, resulting in more frequent error and warning messages due to increased scrutiny. The Advance Shipment Notice Dashboard in Retail Link now provides improved visibility into ASN issues for Walmart suppliers.

Amazon ASN:

Amazon's ASN requirement is equally complex, with a strong focus on accuracy. They provide several key requirements:

1. On-Time Submission: ASNs must be received before the shipment arrives at Amazon’s facility. 
   
   
2. Accurate Unit Count: The quantities listed in the ASN must exactly match the physical shipment.
   
   
3. Valid ARN (Amazon Reference Number): A valid ARN is necessary for successful shipment collection.
   
   
4. PRO/BOL Accuracy: The PRO or Bill of Lading number must be accurate for prepaid shipments. 
   
   
5. Correct Expiration Dates: For perishable goods and items with shelf-life constraints, accurate expiration dates must be provided.
   

Amazon has provided common failure modes:

• Late ASN Arrivals: Issues with ASN submission batching or incomplete ASN submissions can cause problems.
  
  
• Data Quality Issues: Incorrect or missing PRO/BOL or ARN numbers, often due to carrier errors or EDI formatting problems, can cause processing delays.
  
  
• Receiving Problems at Amazon’s FCs: Issues during the receiving process at Fulfillment Centers (FCs) can lead to invalid chargebacks, though some may be waived under specific circumstances.
  

Common ASN Challenges for Vendors and Suppliers

ASN issues and challenges for vendors and suppliers are often more complex and wide-reaching than expected:

Accuracy Problems: Common issues with ASNs include discrepancies between the unit count listed and the actual shipment, as well as incorrect or missing UPC codes. There can also be inaccuracies in expected delivery dates or arrival times, along with errors in-store or distribution center information.

Timeliness Issues: Late ASN submissions can result from system delays, human error, or EDI failures, leading to missing ASNs. 

Technical Issues: EDI mapping errors can lead to data being placed incorrectly. These issues often arise when integrating ERP and EDI software or managing different versions of EDI specifications. Such technical challenges can complicate the process.

Retailer-Specific Challenges: Keeping up with frequent changes in retailer requirements, managing different ASN expectations across multiple trading partners, and navigating complex retailer portals for ASN submission are common obstacles.

Financial Implications: ASN-related challenges can lead to costly chargebacks and deductions for non-compliance, significant resource allocation for manual error resolution and disputes, and even the potential loss of preferred vendor status due to ongoing ASN issues.

The Visible vs. Hidden Costs of ASN Errors

How iNymbus Can Help

At iNymbus, we specialize in managing high volumes of deductions with our advanced automated deduction management system.  Our solution utilizes Robotic Process Automation (RPA) to automate entire deduction management process.  With support for over 25 retailers, whether be it portal-based or email based, our solution is designed to meet all your needs.

Features That Set Us Apart:

Automated Dispute Resolution: iNymbus handles 100% of retailer claims by automating the entire claims processing workflow, including claim initiation, validation, and resolution.

Document Retrieval and Organization: Our system efficiently retrieves and organizes all necessary documentation for disputing deductions, such as EDI transmissions, proof of delivery, and emails.

Retailer-Specific Processes: iNymbus is equipped with built-in knowledge of retailer-specific deduction and dispute processes. This ensures that each case is handled according to the appropriate guidelines. 

Root Cause Analysis: iNymbus analytics provide insightful KPIs, charts, and reports for understanding patterns, trends, and root causes.

Customizable Workflows: iNymbus offers flexible customization to meet your unique business needs. This flexibility allows businesses to tailor the solution to their specific needs.