Wal-Mart and Target Now Require Shipment Notices (ASN’s). We can help!

Shipments to Distribution Centers require a Shipment Notice (ASN, 856) to arrive before the product arrives. The ASN alerts the receiving dock and provides information such as the PO number, the number of pieces, weight, Bill of Lading number, and other information. If a shipment to a DC contains product packed for stores (cross-docking), the ASN must show the number of pieces and other data for each store. Chargebacks are significant for failure to provide an ASN, late ASN’s, or erroneous ASN’s.

Overview

Many mass merchants have required ASN’s for many years, but grocers have not required them. Food producers vending to Wal-Mart/Sam’s Club and Target may now need to send ASN’s. The emergence of supply chain systems integrated with grocery products in Super Target and Wal-Mart Super Centers means the pattern of EDI is changing. Because these mass merchants have sophisticated supply chain management systems implemented, when they added grocery to their line of business, they expected the same types of systems as their previous non-grocery vendors had. Hence, they brought along the ASN’s as a key requirement for notifications of inbound shipments. This means that food producers anxious to serve Wal-Mart/Sam’s Club and soon Target must consider implementing the ASN.

The first step is to calculate the cost of implementation. Components of cost include an EDI system, a link to the shipping module of the ERP system, a labeling system (software and hardware), testing, and training. Since most companies have an EDI system, they will harness it for creation of ASN’s. If not, about $10,000 should be budgeted for a seasoned EDI system, another $5,000 for Labeling software and more for the scanning devices (if needed).

The next step is to determine if the volume is sufficient to justify integration. If more than 50 orders of 10 lines or more are shipped weekly, integration should be considered. Mapping (linking the EDI and ERP systems) and testing time for the first customer takes about a week. Or, if volume is low, a manual data entry form can be set-up in about a day. It is necessary to know the typical data entry time to properly decide.

Training of the Shipping Coordinator or Accounts Receivable person to perform daily operations and trouble shoot common problems takes about a day. I.T. training typically also takes a day. After training is complete, most food producers are self-reliant, and able to add the third and subsequent customers. (DCS is always at hand to provide an immediate response to production down.)

Conclusion

Creation of sound ASN’s will eliminate chargebacks and calls from irate, key customers. This task must be done properly, to minimize the project cost. DCS knows the challenge and can provide thorough, quick, and economical solutions due to our experience with ASN’s. On-going improvements are also easier when DCS is there to assist as needed because we are intimately familiar with the EDI programs of large grocers, food services, and co-packers such as Wal-Mart, Kroger, Sysco, Target, Supervalu, General Mills, and many more.

We look forward to solving your EDI headaches.