If you’re working in supply chain, retail, or wholesale distribution, chances are you’ve come across the term EDI 846. But what exactly is it, and why is it important for your business operations? In this guide, we’ll break down the essentials of EDI 846, how it works, and the benefits it can bring to your business.
What is EDI 846?
EDI 846, also known as the Inventory Inquiry/Advice document, is a standard electronic data interchange (EDI) transaction used by suppliers to provide detailed inventory availability information to retailers or trading partners.
This EDI document helps businesses keep track of inventory levels in real time, enabling better planning, purchasing, and fulfillment.
Key Functions of EDI 846
The EDI 846 is used to:
- Report current inventory levels across warehouses or locations
- Share product availability status
- Communicate backorder or restock dates
- Allow trading partners to plan purchases more effectively
Whether it’s for drop shipping, just-in-time inventory, or omnichannel retail, the EDI 846 plays a critical role in streamlining operations.
Who Uses EDI 846?
The EDI 846 is primarily exchanged between:
- Manufacturers
- Distributors
- Wholesalers
- Retailers
- Third-party logistics (3PL) providers
This transaction is especially common in industries like apparel, automotive, electronics, healthcare, and consumer goods.
Benefits of Using EDI 846
Implementing the EDI 846 offers a wide range of advantages:
- Improved Inventory Visibility
Retailers can make smarter purchasing decisions with up-to-date inventory data.
- Reduced Stockouts & Overstocks
Better planning means fewer disruptions in supply and excess inventory.
- Enhanced Customer Experience
Customers can see what’s available in real time, improving trust and satisfaction.
- Operational Efficiency
Automated inventory updates reduce the need for manual entry and communication errors.
Common Data Elements in an EDI 846
A standard EDI 846 document typically includes:
- Item Identifiers (SKU, UPC, GTIN)
- Quantity Available
- Warehouse or Location ID
- Unit of Measure
- Inventory Status (available, reserved, backordered)
- Restock Dates (if applicable)
How Does EDI 846 Work?
The process usually involves:
- Supplier or warehouse system generates the EDI 846 file
- File is transmitted via AS2 software or a Value-Added Network (VAN)
- Retailer’s system receives and interprets the data
- Inventory updates are reflected in internal systems or online channels
This exchange may happen on a scheduled basis (e.g., hourly or daily) or in real time depending on the system setup.
EDI 846 vs Other EDI Documents
It’s helpful to understand how EDI 846 fits within the broader EDI ecosystem:
- EDI 850 – Purchase Order
- EDI 855 – Purchase Order Acknowledgment
- EDI 856 – Advance Ship Notice (ASN)
- EDI 810 – Invoice
While the above focus on ordering and shipping, the EDI 846 ensures everyone has clear visibility into what’s available to order.
Best Practices for Implementing EDI 846
To get the most out of your EDI 846 integration:
- Ensure system compatibility with your trading partners
- Map data fields correctly during implementation
- Automate updates for real-time accuracy
- Validate inventory data regularly to maintain trust and performance
The EDI 846 is more than just a data file — it's a powerful tool for optimizing inventory management and enhancing supply chain communication. By implementing EDI 846, businesses can reduce manual work, improve accuracy, and ultimately deliver a better experience for customers and partners.