Solving the Vendor ASN Compliance Problem

Advance Ship Notice (EDI-ASN) non-compliance is the single biggest problem affecting delivery performance and generates the most compliance charges within the retail industry. According to studies conducted by the Retail Value Chain Federation (RVCF), effective vendor ASN management and compliance is the key to mitigating the risks of failing to meet delivery requirements, associated fines, and negative end-customer experience. This problem extends to multiple industries beyond retail and the solutions are also the same.

An on-time, accurate, and valid ASN is vital for safeguarding your vendor compliance program, reducing supply chain cost and delivering the perfect order. So why is it so difficult to get there?

Here’s the story

A vendor/manufacturer receives an order from a large buyer organization. She relies on her ERP & EDI systems to provide the data needed to fulfill the order and to also comply with the buyer’s complex ASN data requirements. However, neither the vendor’s ERP nor her EDI system is designed to sufficiently handle the complete set of data and business rules required by the buyer. 

To complicate things further, the vendor might use one or more third-party logistics (3PL) organizations to fulfill the order. The 3PL’s IT systems are now involved in the management of this order and outbound ASN. The 3PL undertakes various transformations of the data to satisfy their internal systems & process requirements and fulfill the PO on behalf of the vendor. (Many 3PLs do not take on the liability of sending ASNs on behalf of their customers. More on this topic in an upcoming blog).

So as in a “broken telephone” game, as the order shuffles from organization to organization, the PO originator’s order requirements, the integrity of transferred data, and the sanctity of buyer’s business rules may fail to transfer completely and accurately. This results in an inaccurate ASN being generated and transmitted, which ultimately fails in its purpose when goods arrive at the buyer’s dock-door.

Or even worse, it could result in an incorrect, partial, or late shipment at a consumer’s front door. It is a story without a happy ending, as service levels erode, and hard-earned business is lost.

How’s it being solved?

The validation of all final required data and business rules is the crucial step to mitigating the risks of incomplete or inaccurate data. A multi-enterprise solution that holds and validates an ASN against all the business and data requirements of the PO provides the crucial final compliance check, ensuring all information required for delivery is available and accurate. Unlike a traditional EDI application, such a solution is a compliance order management system (C-OMS) that holds all the buyer’s business rules within its algorithms to validate the vendor’s outbound ASN data, before it is sent out via EDI.

SPICE’s iKompli is such a cloud multi-enterprise EDI data validation and business rules C-OMS solution that bolts on to your EDI system. Existing EDI networks and ERP systems remain undisturbed. C-OMS has a simple but important purpose - it validates inbound and outbound EDI data in real time and prevents inaccurate EDI data to be transmitted to buyers. 

Problems are identified before the EDI ASN is released and the shipment arrives at the dock-door, or front door! With iKompli C-OMS, vendor compliance and deductions staff can uncomplicate your life, improve vendor performance, and increase your supply chain gains.