What is an EDI 846?
An EDI 846 is an electronic version of a paper inventory update. It is used by trading partners to communicate inventory levels and whether there is stock of inventory on hand to be sold electronically. An EDI 846 can be sent multiple times a day or a few times a week to trading partners. Typically an EDI 846 includes:
- Inventory Amount
- Committed Inventory
- Quantity On Order
- Backorder quantity
- Inventory in transit
EDI 846 Format
EDI 846s enable businesses to streamline the supply chain by eliminating the need to manually data enter information into different systems such as shopping carts or ERPs. The automation also keeps the cost of business down as a whole because it frees up resources and reduces human error.
How do I send/receive an EDI 846?
It is quite simple for a system to send/receive EDI 846s. For the most part, the transmitting is done through the Internet or Value Added Network (VAN). To keep EDI costs affordable, today most EDI transmission is done through the internet using AS2 or secure FTP, eliminating the need for an expensive VAN. The file is kept secure using encryption to keep the data safe.
Translating an EDI 846
Once an EDI 846 document has been received, it must be translated into a functional format for your system. The majority of organizations have their own standard set of definitions for EDI 846s so companies use a platform like logicbroker to configure and translate these different documents. Once the EDI 846 is translated, the inventory information can be synced to your internal system of record such as an ERP or shopping cart – eliminating the need for manual data entry. Many retailers use logicbroker to update inventory automatically from trading partners to their shopping cart –eliminating lost sales due to inaccurate inventory levels. Also, suppliers find it useful because they can quickly communicate inventory levels to their trading partners- eliminating the need to send/receive emails, faxes, or phone calls. Typically, many organizations will send back similar documents such as an EDI 832 (Product Catalog Price File).
To learn more, please download our complete EDI 846 booklet.