The Replenishment Order provides detail for the movement of goods from your location to the 3PL. For example, assume that you are located in Chicago and you have many customers in Los Angeles, but you cannot afford to have your own distribution center. A 3PL can be your Distribution Center until you grow large enough.
To contain cost, multiple efficiencies are needed, such as the 3PL knowing in advance and in detail what is coming to them. This detail enables them to have the space and crew ready. To do so, the 3PL needs to know the arrival date, trucker, quantity of each item, etc. This means routine, high volume communication should be automated using the same processes as current EDI. You can avoid labor intensive web forms.
The most daunting challenge is to adapt your business application to provide the detail. The shipping dock needs to assemble, pack, and ship in a similar manner as customer orders are filled. This includes setting a shipping label (GS1-128) for their receiving process.
Yet, the replenishment process must not regard the goods as sold. A popular approach is to set the 3PL as a false customer in the business application with a price set to $0.01.
The documents exchanged are:
- Warehouse Stock Transfer Shipping Advice (943) – notice to warehouse that transfer shipment has been made from manufacturer about what’s coming.
- Warehouse Stock Transfer Receipt Advice (944) – reply confirming, also tells about loss or damage goods.
Many do not integrate the 944 because shortage and damage levels are low. It can be received and printed.
This project has the hidden advantage of the shipping staff using their existing, time proven procedures to maintain their high level of efficiency.
Read more about the three classes of documents are exchanged with 3PLs: Shipping Orders, Replenishment Orders, and Inventory Reports.
DCS knows your ERP system/business application so integration will be done correctly, promptly, and economically. DCS’ NEXT LEVEL™ Conversion Service offers the experience you need to integrate EDI with your new ERP system based on our years of experience.
Did you implement the replenishment documents when you implemented the shipping documents? What challenges did you encounter and how did you solve them? What tips do you have for others considering this project?
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