EDI 940 - Warehouse Shipping Order

EDI 940 Warehouse Shipping Order is a transaction set in Electronic Data Interchange (EDI) that is used for providing shipping instructions to carriers. 

This transaction set streamlines the shipping process by providing carriers with all of the necessary information they need to fulfill the shipping order. It eliminates the need for paper-based shipping instructions and helps to reduce errors and delays in the shipping process.

What is EDI 940?

The EDI 940 is an electronic document used to electronically transmit shipping instructions from the shipper to the carrier. This electronic document complies with the ANSI X12 EDI specification.

The EDI 940 transaction set typically includes information such as the shipping order number, ship-to and ship-from locations, requested shipping dates, carrier information, item descriptions and quantities, and other relevant information necessary for the carrier to ship the goods.

Benefits of the EDI 940

There are several benefits of using EDI 940 for providing shipping instructions to carriers, including:

Improved accuracy and reliability of data transmission

Increased automation and reduction of manual intervention

Better visibility and communication between trading partners

Improved supply chain management and increased operational efficiency

Segments of an EDI 940

Warehouse Shipping Order, contains a set of standard data elements that are used to communicate information related to a shipment from a warehouse or distribution center to a transportation carrier.

Here are some of the key data elements included in the EDI 940:

  • Shipment Identification
  • Order Information (such as PO number, order date, and requested ship date)
  • Product Information (such as the product code, description, quantity, and unit of measure)
  • Shipping Information (as the carrier code, mode of transportation, and shipping instructions)
  • Bill of Lading Information 
  • Shipment Status Information
  • Financial Information (such as total shipment cost, billing and payment terms, and any other charges or credits) 

How is an EDI 940 Used?

EDI 940 is used to electronically transmit shipping instructions from the shipper to the carrier. The process typically involves the following steps:

  • The shipper creates a shipping order in their ERP, which generates the EDI 940 transaction set.
  • The EDI 940 transaction set is then sent to the carrier via a secure EDI connection. This can be done through a VAN (Value-Added Network) or directly through a web-based portal.
  • The carrier receives the EDI 940 transaction set and processes the shipping order accordingly. This may involve scheduling a pickup, generating shipping labels, and arranging for transportation.
  • The carrier sends an EDI 945 transaction set (Warehouse Shipping Advice) back to the shipper, which confirms that the shipment has been received and provides details such as the shipment date, carrier information, and tracking number.

Common Issues Regarding the EDI 940

Here are some common issues that may arise when using EDI 940:

  • Data accuracy: One of the most common issues with EDI 940 is inaccurate or incomplete data. This can cause delays and errors in the shipping and delivery process.
  • Missing or invalid data elements: Another common issue is missing or invalid data elements, such as incorrect addresses, product codes, or shipment quantities. This can lead to shipment rejections and delays.
  • Non-compliance with EDI Standards: EDI 940 must comply with industry-standard formats and protocols. Failure to comply can result in errors, rejected transactions, and fines.
  • Integration with legacy systems: Integration of EDI 940 with legacy systems can be challenging, as older systems may not be compatible with EDI standards and may require additional customizations.
  • Communication failures: EDI 940 transactions rely on electronic communication between trading partners. Communication failures, such as network or system downtime, can lead to delays and errors in the shipment process.

To prevent these issues, it’s important to have a robust and reliable EDI system in place, with proper data validation and error-checking mechanisms. 

EDI 940 Specifications

  • Transaction Set Header (ST):

    • ST01: Transaction Set Identifier Code (940)
    • ST02: Transaction Set Control Number
  • Beginning Segment for Warehouse Shipping Order (W05):

    • W0501: Order Type Code
    • W0502: Ship Date
    • W0503: Order Number
    • W0504: Vendor Number
    • W0505: Warehouse Number
  • Shipping Order Identification (W06):

    • W0601: Reporting Code
    • W0602: Identification Code
    • W0603: Reference Identification
    • W0604: Identification Code Qualifier
  • Ship-To and Bill-To Information (N1 Loop):

    • N1 Segment (Name):
      • N101: Entity Identifier Code (ST for Ship-To, BT for Bill-To)
      • N102: Name
      • N103: Identification Code Qualifier
      • N104: Identification Code
    • N3 Segment (Address Information):
      • N301: Address Information
      • N302: Address Information
    • N4 Segment (Geographic Location):
      • N401: City Name
      • N402: State or Province Code
      • N403: Postal Code
      • N404: Country Code
  •  

  • Shipping Instructions (LX Loop):

    • LX Segment (Assigned Number):
      • LX01: Assigned Number
    • W01 Segment (Line Item Detail):
      • W0101: Order Line Number
      • W0102: Quantity Ordered
      • W0103: Unit or Basis for Measurement Code
      • W0104: Product/Service ID Qualifier
      • W0105: Product/Service ID
    • W76 Segment (Total Shipping Order):
      • W7601: Number of Units Shipped
      • W7602: Weight
      • W7603: Unit or Basis for Measurement Code
  • Carrier Information (TD5):

    • TD501: Routing Sequence Code
    • TD502: Identification Code Qualifier
    • TD503: Identification Code
    • TD504: Transportation Method/Type Code
    • TD505: Routing
  • Transaction Totals (CTT):

    • CTT01: Number of Line Items
    • CTT02: Hash Total of Quantity Ordered
  • Transaction Set Trailer (SE):

    • SE01: Number of Included Segments
    • SE02: Transaction Set Control Number

Frequently Asked Questions

EDI 940 is used by manufacturers, wholesalers, retailers, and third-party logistics providers. It is particularly valuable for businesses that manage inventory in warehouses and need to communicate detailed shipping instructions to ensure accurate order fulfillment.

EDI 940 benefits businesses by streamlining the shipping process, reducing manual data entry errors, and improving the accuracy and speed of order fulfillment. It enhances supply chain visibility, facilitates better inventory management, and ensures timely communication between suppliers and warehouses.

Implementing EDI 940 involves setting up EDI software to create, send, receive, and process the document. Businesses must establish EDI partnerships with their trading partners, agree on data standards, and configure their systems to integrate with existing Warehouse Management Systems (WMS) and Order Management Systems (OMS).

An EDI 940 document typically includes order details such as product identification, quantities to be shipped, ship-to and bill-to addresses, carrier information, and special shipping instructions. It also contains information about the shipping dates and any relevant references or order numbers.

Common challenges in using EDI 940 include ensuring data accuracy, maintaining data security, managing different EDI standards, and achieving seamless integration with existing systems. Businesses must also handle the technical complexities of EDI software and maintain strong communication with trading partners to ensure smooth data exchange.

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