Advance Shipping Notice (ASN)

Definition

An Advance Shipping Notice (ASN) is an electronic document that a supplier sends to a retailer or buyer before a shipment arrives. It provides detailed information about the shipment, including the purchase order, products, quantities, packaging, carrier, tracking details, and expected delivery date.

What Is an Advance Shipping Notice (ASN)?

An Advance Shipping Notice gives retailers advance visibility into an incoming shipment so they can prepare for receiving, update inventory records, and verify the shipment against the original purchase order.

For suppliers working with major retailers such as Walmart, Amazon, Target, and other large retail networks, accurate ASN data is an important part of shipping and compliance processes. Retailers may use ASN information to plan receiving activities and match physical shipments with the electronic shipment details.

Why Advance Shipping Notice Matters

An ASN helps improve visibility and coordination between suppliers, carriers, warehouses, and retailers. It matters because:

• It improves receiving efficiency: Retailers can prepare for incoming shipments before they arrive and use ASN data to speed up receiving and putaway.

• It provides shipment visibility: Retailers can see what products are being shipped, in what quantities, and when the shipment is expected.

• It supports inventory accuracy: ASN information can be matched with purchase orders and physical shipments to identify discrepancies.

• It supports EDI compliance: Many retailers require suppliers to send an EDI 856 ASN within a specified timeframe and according to retailer-specific requirements.

• It helps reduce shipping errors: Accurate shipment information makes it easier to identify mismatches in products, quantities, packaging, or other shipment details.

How Advance Shipping Notice Works

The ASN process typically follows these steps:

• Order preparation: The supplier prepares a shipment against an existing purchase order.

• Shipment information is captured: Product, quantity, packaging, carrier, tracking, and delivery information is collected.

• ASN is generated: The supplier creates an ASN, commonly as an EDI 856 transaction.

• ASN is transmitted: The shipment information is electronically sent to the retailer before the shipment arrives.

• Shipment is received: The retailer uses the ASN to prepare for receiving and compare the expected shipment with the physical goods.

• Discrepancies are identified: Differences between the ASN, purchase order, and actual shipment can be investigated and resolved.

What Information Does an ASN Include?

The exact requirements vary by retailer, but an ASN commonly includes:

• Purchase order number

• Shipment identification number

• Supplier and ship-to information

• Item numbers or product identifiers

• Product quantities

• Carton and pallet information

• Packaging or shipment hierarchy

• Carrier information

• Tracking or shipment reference numbers

• Ship date

• Estimated delivery date

• Shipment weight and other transportation details

The EDI 856 transaction provides the electronic structure used to communicate this shipment information between trading partners.

Common ASN Challenges for Retail Suppliers

Suppliers can face several challenges when managing ASNs, including:

• Sending an ASN late or failing to send one

• Incorrect purchase order or item information

• Quantity mismatches between the ASN and physical shipment

• Incorrect carton or pallet information

• Missing shipment or carrier details

• Incorrect tracking information

• Barcode or label mismatches

• Failing to meet retailer-specific ASN requirements

These errors can create receiving delays and, depending on the retailer's compliance program, may contribute to chargebacks or other supplier compliance issues.

Advance Shipping Notice and Retail Compliance

For retail suppliers, ASN accuracy is more than a logistics requirement. It can directly affect supplier compliance and the receiving process.

Retailers often define their own ASN requirements, including required data elements, transmission timing, packaging hierarchy, labeling, and validation rules. Suppliers therefore need to ensure that the ASN accurately reflects the shipment and follows the specific requirements of each trading partner.

Accurate ASN data helps suppliers reduce avoidable receiving issues, improve shipment visibility, and minimize the risk of compliance-related deductions.