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3PLs and EDI
Crackerjack-IT Blog

How Does EDI Work with 3PLs?

February 21, 2025 by

Electronic Data Interchange (EDI) enhances communication between suppliers, retailers, and third-party logistics providers (3PLs), ensuring seamless order fulfillment and inventory management. When a retailer places an order (EDI 850), the supplier forwards it to the 3PL for processing. The 3PL then sends an advance shipping notice (EDI 856) to the retailer before shipment. To initiate fulfillment, the supplier issues a warehouse shipping order (EDI 940), and once the 3PL ships the order, they confirm the details via warehouse shipping advice (EDI 945). Real-time inventory updates (EDI 846) help suppliers maintain accurate stock levels, while invoices (EDI 810) automate billing. By integrating EDI, businesses improve efficiency, accuracy, and transparency in supply chain operations.… Read More

EDI Chargebacks
Crackerjack-IT Blog

What Are EDI Chargebacks?

February 19, 2025 by

EDI (Electronic Data Interchange) chargebacks occur when retailers penalize suppliers for failing to meet specific supply chain and data exchange requirements, ensuring operational efficiency. Common triggers include late or missing Advance Shipping Notices (ASNs), incorrect invoice data, labeling issues, and shipment discrepancies. Major retailers like Walmart, Amazon, and Target enforce strict compliance guidelines, issuing chargebacks for errors that disrupt their supply chains. To minimize these penalties, suppliers should review retailer compliance guides, invest in reliable EDI technology, and conduct regular audits to ensure accuracy in shipments and documentation.… Read More