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Advanced Shipping Notice (ASN): Definition, Example and Benefits

Ngoc Lee
Advanced Shipping Notice (ASN): Definition, Example and Benefits
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Retailers and wholesalers both need reliable, quick information on where their shipments are. They require access to orders to keep constant supervision and achieve full transparency and accountability. This is where Advanced Shipping Notice (ASN), EDI ASNs, and EDI 856 documents come into play. EFEX offers comprehensive solutions to help you leverage these tools effectively. Let's look at what the ASN is and what it does in more detail!

Advanced-Shipping-Notice
Advanced Shipping Notice

What is an ASN - Advanced Shipping Notice?

An Advanced Shipping Notice (ASN) is an electronic document that provides detailed information about a pending delivery. It is sent by a supplier to inform the recipient about the shipment details before it arrives. The ASN includes crucial details such as shipment dates, tracking numbers, product types, quantities, and more. It serves as a proactive communication tool, enabling businesses to prepare for incoming shipments.

- Read More: What Is An Arrival Notice: Example And Form 

- Read More: 3PL In Supply Chain: Definition and Benefits 

- Read More: 3PL Vs 4PL: What Is The Difference Between Them?

As previously stated, an ASN is sent by a vendor to a retailer to notify them that delivery is already on its way to their specified delivery location. Regular customers are unlikely to have encountered the formal phrase 'advanced shipment notice' previously. However, they will be aware of the overall concept. When an order is shipped out, for instance, shipment notification emails are almost regarded as essential in e-commerce.

An ASN, on the other hand, will usually contain a lot of information besides just stating that a product has been delivered to a client or customer. WMS (Warehouse management systems) enable businesses to add exact data such as the time and date an item was dispatched, as well as the place from which it was shipped. Additionally, it also includes information about the item's type, weight, and the number of units shown in the delivery.

Customers can compare the ASN to their initial PO (purchase order) to ensure all are present and accurate when the products arrive. Given the volume of orders that merchants or other companies place on a daily basis, this is a really helpful reminder. An ASN, apart from a shipping label, must arrive before the delivery.

This implies it can offer an approximate delivery time so the receiver knows when to expect their package. This can assist companies to handle their orders, particularly if they're continually placing and receiving large orders!

👉 Read More: What Is An Arrival Notice: Example And Form 

👉 Read More: What is e-logistics? Benefits and Challenges 

EDI-856-is-also-known-as-Advance-Shipping-Notice
EDI 856 is also known as Advance Shipping Notice

What are the Benefits of an ASN?

What are the Benefits of an ASN
What are the Benefits of an ASN

There are several advanced shipping notice benefits, not only for sellers but also for buyers and final customers.

Visibility of orders

The ASN is a document that can be used for a variety of purposes. The receiver gets an expected shipment date when the order is dispatched to a distribution facility, warehouse, or retail. When a delivery arrives at a retail, distribution hub, or warehouse, the receiving staff will utilize barcode scanning to enter the information into the WMS - warehouse management system quickly and easily.

Moreover, it also aids in the unloading as well as sorting of products. It can be used to assist in the store allocation or flow-through process from the loading port to the shipping area, or out to the retailer or customer. Whenever things are delivered directly to a buyer, shipping information like the UPS, USPS, or FedEx tracking number is included. The paper can also be used to complete the method of acquiring funds from a buyer's credit card or debit

Details of online orders are sent

This document is especially useful for distributors and retailers who utilize online order fulfillment, particularly drop shipping. An ASN is used to send the shipment tracking information for items to the seller. The shop then provides all the details to the customer so that they may track the progress of their package's arrival.

Not to mention, the ASN plays a key element during the peak season like Christmas, when shoppers jam sites with online orders and retail shelves are emptied. They demand to know that their items will arrive on time, and with the increase in internet ordering, order visibility has never been more critical.

And it gives sellers and distributors the information they need to manage inventory more effectively and correctly predict the time orders will arrive. The ASN's insights have an influence on open-to-purchase spending, customer happiness, and inventory reduction, all of which improve a retailer's profit.

Confirms for the final purchase

Although this ASN appears to be nothing more than a shipping confirmation document at first look, it is actually much more. It is also proof of the final confirmation of the order's completion. Customers can confidently change their open-to-purchase budgets with this information. They can also change stock systems to reflect forthcoming inventory appropriately.

Suppliers can place barcodes on all packages, cases, or crates before sending the product and record that information in the ASN. Once the package comes, the information on the ASN will be utilized to immediately inspect the items and accept the shipment. It's as easy as scanning the products as they exit the truck and double-checking that everything is in its right place. Using ASNs is simple when you have the correct software. You'll never worry about it since the platform will take care of it automatically.

It helps save time

ASNs assist to streamline the shipping process by enhancing sorting and shipping efficiency and reducing human mistakes. They also make it simple to swiftly detect and fix delivery exceptions, which is important given that 93 percent of customers expect to be notified when their product is delayed.

Increases the efficiency of eCommerce communication

With modern e-commerce trends such as drop shipping getting traction, good communication both among companies and between customers and businesses is more critical than ever. ASNs are regarded as one of the most efficient tools for improving eCommerce order management efficiency.

Boosts Trust

Lastly, the ASN is an excellent means of establishing credibility. The ASN's openness and detail guarantee that everyone is informed of how their purchase is being completed, delivered, and the arrival date, whether it's involving your company and its suppliers or between you and your clients. Customers will trust you and your company if you provide this degree of depth and transparency.

What are the Challenges of an ASN?

Besides the benefits ASN brings to you when evaluating using ASNs throughout your business model, take the following points in mind:

  • Costs of installment. RFIDs & barcode scanning technologies must be integrated into your supply chain to properly deploy ASNs. Although this isn't the most expensive technology available, you still should be aware of.
  • Needed training time. ASN implementation will need staff training as well as a few acclimation time in order to achieve full effectiveness and get the most out of the system.
  • Errors in data. When it comes to a freight shipment, the most typical inaccuracy is reporting the number of things transported. If there is an issue, the entire procedure must be restarted. This is usually not an issue with parcel transportation.

👉 Read More: 3PL Cost: All Fees And Why You Need To Pay (Update 2023)

How Order Fulfilment Services’s EFEX Enhance ASN, EDI ASN, and EDI 856 Usage

EFEX offers advanced solutions to maximize the benefits of ASNs, EDI ASNs, and EDI 856 documents, particularly tailored for foreign customers operating in the Vietnamese market. Here’s how EFEX can help:

  • Enhanced Order Visibility: EFEX ensures that foreign customers receive timely and accurate ASNs, improving their ability to track and manage shipments into Vietnam. This enhanced visibility helps reduce inventory discrepancies and optimize stock levels, critical for navigating the complexities of international logistics.
  • Improved Efficiency: Our services automate the process of receiving and processing ASNs, significantly reducing manual errors and speeding up inventory updates. EFEX’s solutions integrate seamlessly with existing Warehouse Management Systems (WMS) and Enterprise Resource Planning (ERP) systems, facilitating smooth operations for foreign businesses.
  • Better Customer Satisfaction: By providing foreign customers with detailed and accurate shipping information, EFEX enhances their overall buying experience and builds trust. Ensuring timely deliveries helps maintain high service levels, crucial for businesses aiming to establish a strong presence in the Vietnamese market.

Key Features of EFEX Services

  • Real-Time Tracking: EFEX provides real-time tracking of shipments, allowing you to monitor the progress of your orders from dispatch to delivery. This tracking helps in better planning and coordination.
  • Automated Notifications: Automated notifications keep you and your customers informed about shipment statuses, reducing the need for manual follow-ups. This transparency builds customer trust and satisfaction.
  • Data Accuracy: EFEX ensures high data accuracy by validating the information in ASNs and EDI 856 documents, reducing the risk of errors. Accurate data helps in making informed decisions and improving operational efficiency.
Key Features of EFEX Services
Key Features of EFEX Services

Example of Advanced Shipping Notice

To illustrate the impact of EFEX services, let’s explore a few case studies where businesses have successfully integrated ASNs, EDI ASNs, and EDI 856 documents with EFEX’s solutions.

Case Study 1: Retail Giant

A major retail chain faced challenges in managing its complex supply chain, especially during peak seasons. By partnering with EFEX, the retailer integrated EDI 856 documents into its WMS. The results were significant:

  • Reduced Stockouts: The retailer saw a 20% reduction in stockouts, ensuring that popular products were always available.
  • Improved Efficiency: Warehouse operations became more efficient, with a 15% reduction in processing time for incoming shipments.
  • Enhanced Customer Satisfaction: With accurate and timely updates, customer complaints about delivery issues dropped by 30%.

Case Study 2: Wholesale Distributor

A wholesale distributor dealing with multiple suppliers struggled with inventory discrepancies and shipment errors. EFEX provided a solution by automating the receipt of ASNs and EDI ASNs. The benefits included:

  • Better Inventory Management: Inventory discrepancies were reduced by 25%, leading to more accurate stock levels.
  • Faster Processing: Automation of ASNs cut down the processing time by 20%, allowing the distributor to handle more shipments without additional resources.
  • Increased Accuracy: The accuracy of received goods matching purchase orders improved by 30%, reducing the need for manual corrections.

Future Trends in ASN, EDI ASN, and EDI 856

The landscape of supply chain management is continuously evolving, and so are the technologies supporting ASNs, EDI ASNs, and EDI 856 documents. Here are some future trends to watch:

  • Blockchain Integration: Blockchain technology can enhance the security and transparency of ASNs and EDI transactions, providing an immutable record of shipments and their statuses.
  • Artificial Intelligence (AI): AI can be used to predict shipment delays and optimize inventory levels based on real-time data from ASNs and EDI 856 documents.
  • Internet of Things (IoT): IoT devices can provide real-time tracking and monitoring of shipments, feeding data directly into ASNs and EDI systems for enhanced visibility and control.

This is an advanced shipping notice example with a basic form but it includes the full details of the package.

Example-of-ASN
 Example of ASN

Conclusion

The advanced shipment notice might be mistaken for another shipment confirmation. We've all become accustomed to receiving delivery emails when we purchase things thanks to the development of eCommerce, but the ASN is far more informative. Both sellers and buyers benefit from the ASN's visibility.

The Advanced Shipping Notice (ASN), EDI ASN, and EDI 856 documents are vital tools for efficient inventory and shipment management. Partnering with EFEX allows you to fully leverage these tools to enhance supply chain visibility, efficiency, and customer satisfaction. EFEX provides the technology and support you need to optimize your shipping processes and achieve greater operational success.

Contact us today to learn how EFEX can help you streamline your supply chain and improve your business operations.

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Ngoc LeeNgoc Lee is an Content Creator Manager at EFEX. She wields her long-term expertise in Logistics and Supply Chain, harnessing her top-notch writing and research skills to bring incredibly valuable content. Whether you're a small startup or a well-established enterprise, Ngoc Lee is here to equip you with the essential knowledge of e-commerce, fulfillment, and all things business-related.