Top 5 things to do to avoid EDI compliance fines


3/6/2020

by Jodi Abrams

EDI compliance fines are all the rage. Find out what you can do to stay out of this trend.

The bigger the retailer, the bigger the fine. With everyone having their own unique requirements, the best way to set yourself up for success is with a streamlined and automated process that has the flexibility to accommodate everyone’s demands. We’ll look at 5 things you can do to avoid some of these costly penalties.

1. MATCH THE LABEL TO THE BOX AND WHAT’S INSIDE

It seems simple, but in a busy warehouse, getting the right label on the right box doesn’t always happen. Take advantage of the tools and technology that is out there to make this process easy and foolproof. Utilize RF scanners to scan the product, set up the right functionality in SAP to determine based on the customer, what label is required. Then get that label printed right away on a station as close as possible to the product after it is packed. That way, you are going 1:1 and labelling as you go. If mixed pallet or carton labels are required, ensure you are scanning all items that belong in that handling unit before triggering your label output.

2. DELIVER ON TIME. NOT TOO EARLY, AND NOT TOO LATE

Many retailers such as Wal-Mart will send more than one date on their purchase orders. Sometimes it can make you feel like you are right in the middle of a Golidlock’s and the Three Bears story. Don’t ship before this date, but not after this date, this third date is just right! It’s important to adhere to these dates, or you will be slapped with a hefty fine. The right configuration in SAP can support this for you, allowing these dates to flow right through the system.

3. PROVIDE ALL THE MANDATORY INFORMATION

Whether on the label or your accompanying ASN (Advanced Ship Notice sent via EDI), there will be pieces of information you are required to include. This can include the material number and UPC code, tracking number, store location code, Wal-Mart department number and list continues. Set yourself up for success up front by testing multiple scenarios including different carriers, and modes as well as different product types and pack sizes to ensure your configuration and data are robust enough to handle any situation.

4. SEND YOUR ASN

It seems simple enough – but making sure your ASN actually gets sent out as soon as your shipment leaves the building can be hard. Your EDI provider needs to ensure that any errors and issues with ASN’s are addressed immediately. If your shipment arrives before your ASN does, you will get a fine when they are trying to receive your product. Pay special attention to locations that are a short drive from your warehouse. If it’s only an hour away – you only have an hour to get that ASN sent over and any issues resolved should they come up. Keep watch for 864 messages coming back. Retailers like Target will use that to communicate any errors or issues with your ASN. Act fact to resolve and resend and you can avoid a costly fine on that order.

5. ENSURE IT ALL MATCHES UP

From your ASN, to your label to any packing slips you might be including – make sure the data on all of them are aligned. If you are sending 12 digit UPC codes on your ASN, your label should match that. Leading 0’s in your BOL? Make sure it is the same way on all documents going out. With automated receiving being more and more common – anything that makes your order require manual intervention is sure to land you with a fine.



Author

About the Author: Jodi Abrams

Jodi is an expert in SAP and eCommerce integration, and is Vice President of Applications for CONTAX.