What is Advanced Shipping Notice: Significance in eCommerce
Today, all customers want their products delivered to the doorstep in the lowest possible time. Hence, they want to track their orders continuously to satisfy their wait time. With increasing demand, even retailers and distributors want to track their inventory thoroughly to ensure ample inventory. They also want to remove the excess debt stock and ensure they are on a budget when purchasing more merchandise. To ensure that the reserves are filled as per the decided time and date, visibility is equally important to ensure that the supply chain runs smoothly and any hiccups can be accommodated. This is where essential documents like advanced shipping notices come into the picture.
With this article, let’s look at an advanced shipping notice, the information, how to create one, and its benefits.
What is an Advanced Shipping Notice?
An advanced shipping notice is one document that gives a detailed insight into the pending delivery. It contains shipping details, order details, and other characteristics so the recipient can be prepared for delivery. The ASN is usually shared in electronic data information(EDI) or XML format.
Information Included in the Advanced Shipping Notice
The following data is included in the ASN –
- Order information (order number)
- Delivery date and time
- Delivery location information
- Pallet codes
- Product details
- Physical characteristics of the delivery (like the type of packaging)
- Courier information
The use of an electronic data interchange or EDI is more relevant for an ASN as it notifies the recipient beforehand. If you fax or manually send the item, it might not reach the right people at the right time.
The Process of Creating an Advanced Shipping Notice
The first step in creating an ASN is to get a shipment authorization from the supplier. This can be done by creating a purchase order, planning, or shipping schedule.
The next step is to send the advanced shipping notice to the recipient organization.
After this, the ASN is verified through the Receiving Open Interface. The in-transit and purchasing supplies are updated for each validated ASN line.
Next, application advice is sent to the supplier in case of any discrepancy.
The ASN is used to create receipts after the goods arrive at the destination.
What Purpose Does an Advanced Shipping Notice Help?
The advanced shipping notice document is helpful for the recipient or buyer to check information like
- What orders have shipped,
- Items that are being shipped,
- Order quantity
- Delivery date
- If the shipment contains the entire order
- If any barcode is available
- Tracking number
- Delivery company
This information is crucial for retailers, distributors, and sometimes customers. Usually, the vendor sends an ASN to the retailer to make them aware of incoming shipments.
This information can help the retailer make essential decisions for the inventory, decide where they want to store this inventory, improve inventory visibility across locations, etc.
It helps keep the supply chain transparent, improves the efficiency among stakeholders, and helps in more effective decision-making.
Benefits of an Advanced Shipping Notice
The first advantage of an advanced shipping notice is the visibility provided throughout the supply chain. It helps the retailer’s receiving team know what they accept into the warehouse management system. It can help customers order products through dropshipping websites such as tracking numbers, order details, delivery dates, etc.
Next, the ASN helps communicate the details of online orders accurately and efficiently. It contains all the necessary information the retailers and customers need to form decisions. The advanced shipping notice provides visibility among the fleets of orders during the holiday season.
The ASN is final confirmation for eCommerce retailers who need to replenish their inventory. This means they can decide if they need more merchandise, update their inventory systems, list items on the website concerning the availability of stock, etc.
The ASN is an essential document for vendors and retailers as you must maintain a constant flow throughout the supply chain. The advanced shipping notice gives you a heads up when you need to ensure that you are receiving inventory. You must take this document with utmost seriousness to ensure that you can plan your supply chain well ahead of time.