Guide to EDI Document Types for Manufacturing
Electronic data interchange (EDI) provides the digital infrastructure for modern manufacturing. EDI manufacturing documents play a crucial role in supply chain management.
But what is EDI? And what are the most common EDI document types used by manufacturing companies? This article will explore manufacturing EDI, various document types and the benefits of electronic data interchange for most manufacturing companies.
What Is EDI?
EDI is a sophisticated process for exchanging critical information in a standard electronic format between two companies, also known as trading partners.
What Are the Benefits of Using EDI?
Electronic data interchange provides end-to-end visibility into supply chains throughout the manufacturing industry. Other benefits of manufacturing EDI include:
- Increased supply chain efficiencies
- Less manual data entry, leading to fewer errors
- Improved growth opportunities
- Streamlined transactions
- Better customer service
- Additional productivity capacity
Introducing EDI can also reduce overhead and related costs for a manufacturing company.
Enhanced Automation With Manufacturing EDI
EDI documents are the lifeblood of manufacturing communications. Trading partners rely on manufacturing EDI for the critical information they need to run their businesses. When EDI is used in manufacturing, the resulting automation frees staff to focus on higher-value activities like customer service, product innovation and quality control.
Manufacturing EDI for Your Business
1 EDI Source has years of expertise helping manufacturers with EDI manufacturing solutions. We understand the needs of the manufacturing industry and create EDI systems that meet the requirements of companies like yours. If you’re looking for a smooth manufacturing EDI integration or want to update your existing systems, we can help. Contact us today to take advantage of our suite of EDI software solutions and services.Contact Us
What Are Common EDI Manufacturing Documents?
EDI document types will vary from industry to industry, but most manufacturing companies will use the following EDI manufacturing documents:
This is the standard purchase order companies send to order products. An EDI 850 purchase order generally includes the same details as a paper purchase order, including the items and quantities to be manufactured, prices, applicable discounts and shipping information. There are several benefits to using an EDI 850 purchase order, such as:
- Reduced time lags
- Faster order processing
- Fewer data entry errors
- Eliminated duplicates
Manufacturers will sometimes send an EDI 997 functional acknowledgment to confirm that the purchase order was received or rejected for technical reasons. This allows the sender to quickly re-submit the purchase order in case of rejection.
The EDI 855 purchase order acknowledgment is the official acceptance of the purchase order and its terms. It also can indicate if the purchase order is formally rejected or if any of the terms are changed. An EDI 855 saves time and money because it doesn’t require any follow-up. It allows companies to automatically update their systems, so there are no errors when they send out invoices.
Manufacturers will send an EDI 856 advance shipping notice to let customers know that an order shipment is on its way. An EDI 856 contains all the details concerning the shipment, including the contents, packaging, quantity of items, tracking numbers and delivery dates. With an EDI 856, it’s easier for customers’ shipping and receiving departments to schedule incoming shipments. It also increases accuracy for billing purchases. Some manufacturers prefer to send an EDI 857, which is a combination of an advance shipping notice and an invoice.
An EDI 810 invoice is the electronic version of the traditional paper invoice. It contains all the typical invoice details, such as payment terms and shipping particulars. The EDI 810 invoice eliminates the costly, labor-intensive processes involved with paper invoices, such as printing and mailing.
Customers send an EDI 820 payment order/remittance advice when they pay manufacturers for an order. It matches the payment to an invoice and details the billed and paid amounts. An EDI 820 traditionally ends the trading cycle for an order.
This is a planning schedule with release capability that manufacturers send to suppliers to indicate their expected needs for a certain period. Suppliers use an EDI 830 to automatically meet manufacturers’ needs, which is particularly useful for just-in-time deliveries.
Other EDI Transaction Sets
There are many other EDI document types that manufacturers may occasionally send or receive. These include:
- EDI 196 – Contractor Cost Data Reporting
- EDI 832 – Price/Sales Catalog
- EDI 844 – Product Transfer Account Adjustment
- EDI 846 – Inventory Inquiry/Advice
- EDI 849 – Response to Product Transfer Account Adjustment
- EDI 852 – Product Activity Data
Rely on 1 EDI Source for Your Manufacturing EDI Needs
Backed by years of manufacturing EDI expertise, 1 EDI Source is the go-to EDI resource for manufacturers. Our suite of EDI software solutions and services is sure to meet your requirements. Contact us today for the robust features and visibility you need.Request a Demo Contact Us