940 AND 945 DOCS SMOOTH INFORMATION FLOW TO 3RD PARTY LOGISTICS COMPANIES

By February 5, 2010News

EDI can be used by any company that has the need to exchange business documents with another company. EDI is primarily used with vendors selling their goods to big box retailers, such as Wal-Mart or Target, but that is not the only place where EDI can be used.

Everyday, I speak with companies that would like a better way to send picking sheets to their 3rd party logistics companies (3PL). A 3PL is an outsourced warehouse that is responsible for holding inventory, picking/packing and shipping good on behalf of their customers. The 940 and 945 documents give companies the ability to communicate this information with the 3PL using EDI.

The 940 is used to send the 3PL an electronic picking sheet. Once the 3PL receives the 940, it will pick, pack and ship the goods. Depending on the needs of the EDI trading partner, the 3PL can either send an 856 ASN to the retailer or just send the 945 document back to the vendor. Once the vendor receives the 945, it could create an 810 invoice to send back to the retailer.

These documents are fully integrated in MAPADOC and make dealing with a 3PL much easier.

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