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Jul 08

Explaining EDI 846 Inventory Updates

edi-846An EDI 846 transaction set (EDIFACT: INVRPT) is an inventory inquiry/advice or an electronic version of inventory update. It is used by trading partners to communicate inventory levels and whether there is enough stock of goods on hand to be sold electronically. It has become particularly important for online retailers such as Amazon to have this information at hand, particularly when drop shipping. Online retailers cannot reliably offer goods to consumers without having up to date information regarding a supplier’s inventory of goods.

EDI can help solve this problem through the EDI 846 transaction set and most large online retailers now insist that their suppliers are capable of sending them the EDI 846 transaction set. The EDI 846 can be sent multiple times a day or a few times a week depending on the needs of the trading partners.

A typical EDI 846 includes:

  • Inventory Amount
  • Committed Inventory
  • Quantity On Order
  • Backorder Quantity
  • Inventory in Transit
  • Returns

 

A typical EDI 846 is used to:

  1. The seller of goods and services can provide inventory information to a prospective purchaser, with no obligation to the purchaser to acquire these goods.
  2. A representative of a seller of goods can supply inventory information to that seller.
  3. For one location to supply another location with up to date inventory information.
  4. An inquiry as to the availability of inventory or stock with no obligation on the seller of the goods to reserve that inventory.

 

For further information on how B2BGateway can help your organization set up and handle the EDI 846 inventory update with your trading partners, please visit us online at www.B2BGateway.Net, email Sales@B2BGateway.Net or call 401-401-9595.