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EDI 947 Warehouse Inventory Adjustment Advice

July 6th, 2023

What is an EDI 947 Warehouse Inventory Adjustment Advice?

EDI 947, also known as the Warehouse Inventory Adjustment Advice, is an electronic document used for communication between suppliers and warehouses. It facilitates the exchange of information related to inventory adjustments, such as inventory receipts, returns, rejections, and transfers. The transaction set allows third-party warehouses or suppliers to immediately inform their clients about the inventory levels.

Benefits of EDI 947

  • Real-time Communication: The transaction allows for near real-time communication of inventory adjustments, ensuring that trading partners have accurate and up-to-date information about inventory levels.
  • Efficient Reconciliation: The document streamlines the reconciliation process between trading partners by providing detailed information about the adjustments made, including quantities, reasons, and reference numbers.
  • Enhanced Inventory Management: The timely communication of inventory adjustments enables better inventory planning, demand forecasting, and decision-making for both suppliers and warehouse operators.

Implementation of EDI 947

To implement EDI 947, suppliers and warehouses need to establish a common understanding of the transaction set and its data requirements. Both parties need to discuss format of the electronic document, data elements, and the communication protocols. They must also ensure that their respective systems are capable of generating and receiving EDI 947 documents.

Once implemented, the process begins with the warehouse sending an electronic request for an inventory adjustment to the supplier. The supplier then responds with an EDI 947 document, containing the relevant information regarding the adjustment. This information typically includes the item code, quantity, reason for adjustment, and any additional notes.

The EDI 947 document falls under the category of the X12M Supply Chain transaction set. It is integrated with the trading partners’ respective warehouse management systems (WMS), enterprise resource planning (ERP) systems, or inventory management systems, which enables automatic updates of inventory records.

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