Properly Communicate with your Customers Using EDI Forecasting

With the onset of on-demand buying and the need to keep inventory tightly managed, companies need to ensure that their forecasting is providing them a complete picture of their customers’ demands.  Manufacturers use material forecasting to ensure that they produce the level of material that satisfies their customers without producing an overcapacity where too much inventory is left on the shelf, or worse, falling short and finding themselves with not enough inventory to fulfill the order.  The best way to achieve this is implementing an 830 Planning Schedule transaction.

What makes up the 830 Planning Schedule with Release Capability document?

An 830 EDI Planning Schedule with Release Capability is organized into the following segment and data elements.

• A segment can contain at least one data element.
• Each data element contains a data field.

Data elements could include vendor number, resource authorizations, period-to-date cumulative quantities, or specific ship/delivery patterns, identical to a paper planning schedule.  There are an infinite number of possibilities available for a company to include data on an 830 Planning Schedule with Release Capability.

The senders of 830 Planning Schedules are typically manufacturers communicating with their suppliers.  As such, the two trading partners represent a buyer (the manufacturer) and a seller (the supplier).  The Planning Schedule allows the seller to plan resources such as labor and material, and to fulfill orders automatically based on the customer’s inventory levels.

830 transactions that include a Material Release are likely to include resource authorizations, period-to-date cumulative quantities, and shipping or delivery patterns for weekly, monthly or quarterly requirements.  This can eliminate the need for the customer to generate separate Purchase Orders.  This information in a single 830 transaction can relate to all production items sourced from a given supplier site.

How is it used?

The 830 Planning Schedule with Release Capability can be used in three ways:

1. A basic forecast
2. A forecast with buyer’s authorization for the seller to commit to resources, such as labor or materials
3. A forecast that is also used as an order release mechanism or purchase order

After the 830 Planning Schedule with Release Capability is received, a 997 Functional Acknowledgment is sent back indicating that the Planning Schedule with Release Capability was successfully received.  It is important to note that not all 830s can be used to create a purchase order. Only trading partners with 830s that have release capabilities can be used to create a PO.

Why is implementing an 830 important?

When properly implemented, the 830 forecast can provide weeks or even months in advance the information you need to make accurate decisions on inventory levels.  This allows you to plan productions and shipping requirements to meet your customers’ demands.  It also provides valuable and direct communication to your customer informing them of:

• Previously received quantities.
• Packaging requirements.
• Requested ship and delivery dates.

Upon receipt of this transaction, the customer can:

• Plan for future requirements to purchase raw materials for production to fabricate and deliver articles in accordance with the delivery instructions.
• Know whether the instructions are related to forecast or firm delivery
• Synchronize the material flow between the buyer and customer.

Implementing EDI is now more economical than you think because your existing EDI system can be used.  Our DCS EDI Specialists have experience to extract, transfer, and load 830 forecast data to your EDI system for creation of a Forecast Release.  This is the document vendors expect.  It works for all vendors – large and small.  For small vendors, a connection to their EDI network (such as IBM, GXS, True Commerce, SPS Commerce, or others) means that they pay for converting your EDI to a web form.

If you would like additional information on how the 830 Forecast can benefit your company and what it takes to implement, contact us today.