Understanding ASN: Advanced Shipping Notice Explained

How do you ensure your goods arrive on time and without any discrepancies in today’s fast-paced logistics environment? In logistics and supply chain operations, seamless communication and coordination are vital to ensuring the timely and efficient delivery of goods. One crucial tool that helps in this regard is the Advanced Shipping Notice (ASN). ASN shipping allows businesses to streamline their operations, improve accuracy, and enhance visibility throughout the shipping process.

As e-commerce continues to grow, the role of efficient logistics becomes even more critical. The Philippines’ e-commerce market saw significant growth in 2024, reaching USD 28 billion, with projections indicating it will expand to USD 40.5 billion by 2027. This growth highlights the increasing demand for streamlined shipping processes like ASN shipping, which helps businesses meet customer expectations for speed, accuracy, and efficiency.

In this blog, we’ll break down what ASN shipping is, how it works, and the benefits it offers to businesses looking to optimize their supply chain and inventory management.

What Is ASN Shipping?

ASN stands for Advanced Shipping Notice, a document or electronic communication that provides detailed information about a shipment before it arrives at its destination. The ASN shipping notice is sent by the supplier or manufacturer to the recipient or consignee (e.g., a warehouse, retailer, or buyer) and contains important details about the goods in transit.

The ASN shipping document typically includes:

• Order number
• Shipment number
• Shipping date
• Expected delivery date and time
• “Ship from” and “ship to” addresses and contact information
• Item details and quantity
• Physical characteristics (type of packaging used, etc.)
• Pallet codes
• Shipment tracking details (tracking number, BOL number, etc.)
• Packaging details (e.g., on which pallet, in which carton, etc.)
• Carrier information
• UCC 128/GS1 numbers
• Barcode information

Example: ASN Shipping in Local Retail

In the Philippines, large retailers like SM, Robinsons, or Puregold often require suppliers to send ASN documents via EDI (e.g., EDI 856) before deliveries are made to their warehouses or distribution centers.

For example, a local food and beverage manufacturer shipping multiple SKUs to a Puregold distribution hub in Laguna would generate an ASN that includes carton-level packaging details and GS1 barcode data. This allows the retailer’s warehouse team to pre-scan and pre-sort the goods upon arrival, speeding up the unloading, cross-docking, and shelf replenishment processes, especially during peak sales periods such as holidays or promotions.

Also Read: CBM Meaning in Shipping Explained

One of the most common methods of transmitting ASN data is through the use of EDI 856, which ensures secure and automated information exchange. Let’s understand what EDI 856 is.

What Is EDI 856?

EDI 856 is an Electronic Data Interchange (EDI) standard used to transmit shipment information from suppliers to customers via secure, computer-to-computer connections. It enables seamless communication, helping improve supply chain accuracy and efficiency.

In the Philippines, EDI 856 is increasingly used by businesses in retail, distribution, and export, especially those handling large-scale operations.

EDI 856 follows the ANSI X12 format, a standard regulated by the American National Standards Institute in the United States. However, for businesses using different global EDI standards, the same transaction is referred to as DESADV (Despatch Advice) under the EDIFACT format, which is more common in Europe and other international markets.

For example:

• Philippine businesses trading with North America typically use the ANSI X12 EDI 856 format.
• Those working with European or global partners may use the EDIFACT DESADV version.

In both cases, the purpose remains the same: to provide the receiving party with shipment details in advance.

By using EDI 856, businesses can automate ASN creation and transmission, ensuring that customers have all necessary shipment details ahead of time. This leads to faster, more accurate processing when goods arrive, supporting smoother and more efficient logistics operations.

Now let’s explore how this ASN shipping works and its role in modern logistics.

How Does ASN Shipping Work?

An ASN shipping notice typically follows an established process that allows both the shipper and recipient to track and manage the shipment more effectively. Here’s how the process works:

1. Preparation and Creation of ASN: The supplier or manufacturer prepares the ASN once the goods are ready for shipment. This document is created using the order details, packaging information, and expected shipping schedule. The ASN may be created manually or, more commonly, through electronic data interchange (EDI) systems, which automatically generate ASN data based on shipment orders.
2. Transmission of ASN: Once the ASN is created, it is transmitted to the recipient. This can happen via email, EDI, or a warehouse management system (WMS), depending on the method agreed upon between the trading partners. For larger companies, automated ASN transmission is common, reducing errors and saving time.
3. Shipment and Tracking: The shipment proceeds according to the details provided in the ASN. The recipient can track the goods using the information provided, such as tracking numbers and expected delivery times. This helps the recipient prepare their warehouse, arrange for unloading, and ensure the proper resources are in place.
4. Receiving and Verification: Upon arrival of the goods, the recipient can cross-check the ASN with the physical shipment to verify that the contents match. This verification process helps ensure that there are no discrepancies in the shipment, such as missing items or damaged goods.
5. Final Processing and Integration: After the shipment is verified, the ASN details are integrated into the recipient’s inventory system or enterprise resource planning (ERP) system. This updates the inventory counts and allows for smooth processing and stocking of the goods.

Achieve quick and dependable delivery for your customers with Inspire Solutions Asia‘s Same Day and Next Day services. We offer Same-Day delivery within Metro Manila and select nearby regions, as well as Next-Day delivery to various provinces throughout the Philippines. Contact us to schedule a meeting and learn how we can streamline your delivery process, ensuring your products arrive on time for your customers.

Now that we understand how ASN shipping works, let’s explore the key benefits it brings to businesses in managing their supply chains.

Benefits of ASN Shipping

ASN shipping offers several key benefits for both suppliers and recipients, enhancing the efficiency of the entire supply chain. Here are some of the top advantages of using ASN:

1. Improved Visibility: One of the most significant benefits of ASN shipping is the improved visibility it provides throughout the shipping process. By receiving an advanced notice of the shipment, the recipient can track the movement of goods in real-time and prepare for the arrival. This allows businesses to anticipate issues, such as delays or missing items, before the goods even arrive.
2. Faster Receiving Process: ASN shipping streamlines the receiving process by providing detailed information about the shipment ahead of time. Warehouse staff can prepare for the delivery, organize unloading procedures, and reduce delays caused by confusion or unpreparedness. This can significantly speed up the receiving process and get goods into inventory more quickly.
3. Reduced Errors and Discrepancies: By receiving an ASN shipping notice, the recipient can verify the shipment against the details provided in the notice. This helps catch any discrepancies early on, such as missing or incorrect items, damaged goods, or shipping errors. This level of accuracy reduces costly mistakes and minimizes the need for returns or reorders.
4. Better Inventory Management: ASN shipping integrates well with inventory management systems. As shipments are received, ASN data automatically updates inventory counts, allowing businesses to maintain accurate stock levels. This leads to improved inventory control and helps businesses avoid stockouts or overstock situations.
5. Enhanced Supplier and Retailer Relationships: Sending an ASN demonstrates professionalism and efficiency, helping suppliers and retailers build trust and maintain strong relationships. By providing accurate and timely information about shipments, suppliers can show their commitment to customer service and reliability, which can lead to increased business opportunities.
6. Cost Savings: By improving operational efficiency, reducing errors, and speeding up the receiving process, ASN shipping ultimately helps businesses save on operational costs. This can lead to lower labor costs, faster inventory turnover, and fewer returns, all of which contribute to cost savings.

Also Read: Understanding Logistics Services: Types and Benefits

Given these advantages, it’s clear that ASN shipping plays a vital role in improving supply chain efficiency. Let’s now examine how ASN integrates with modern technologies to further enhance logistics operations.

How ASN Shipping Integrates with Modern Technologies

ASN shipping works seamlessly with modern logistics technologies, particularly in the areas of warehouse management systems (WMS), enterprise resource planning (ERP), and electronic data interchange (EDI). These technologies enhance the accuracy and efficiency of the ASN process, offering additional benefits:

• Warehouse Management Systems (WMS): ASN data is often integrated into WMS, allowing for real-time updates to inventory and efficient warehouse operations. This integration ensures that goods are stored and processed according to the most accurate information available.
• Enterprise Resource Planning (ERP): ASN shipping is often incorporated into a company’s ERP system, ensuring that the entire supply chain is connected and updated. This integration helps maintain smooth communication between departments, from purchasing to inventory management.
• Electronic Data Interchange (EDI): Many companies use EDI systems to automate the transmission of ASN data between suppliers, manufacturers, and retailers. This reduces human error, speeds up the process, and ensures accurate and timely data sharing across the supply chain.

With a clear understanding of ASN shipping and how it integrates with modern technologies, let’s take a look at how businesses can implement ASN shipping for optimized logistics.

Implementing ASN Shipping for Optimized Logistics

To take full advantage of ASN shipping, businesses should focus on streamlining the integration of ASN data into their supply chain operations. Here are key steps to implement ASN shipping effectively:

1. Establish Clear Communication Channels:
   Ensure that both suppliers and recipients are clear about the ASN requirements, including the format, frequency, and methods of transmission. This can be done by establishing clear standards for how ASN data will be shared.
2. Integrate ASN with Inventory and ERP Systems: For maximum efficiency, ASN data should be integrated with inventory management systems and ERP solutions. This allows for automatic updates to stock levels and better overall visibility.
3. Utilize EDI for Automation: Automated data exchange through EDI can reduce manual data entry, minimize errors, and speed up the process of transmitting ASN information.
4. Train Staff on ASN Process: Proper training ensures that warehouse staff and other relevant personnel understand how to receive, process, and verify ASN shipments. This helps maintain accuracy and operational efficiency.
5. Monitor and Adjust ASN Processes: Continuously evaluate the ASN process to identify areas for improvement. This could include optimizing data flow, improving accuracy, or enhancing communication with suppliers.

Also Read: Comprehensive Guide to Logistics Planning Strategies

Now that we’ve covered how ASN shipping integrates with logistics technologies, let’s explore how Inspire Solutions Asia can help you streamline your supply chain.

How Inspire Solutions Asia Helps with Logistics and Shipping

At Inspire Solutions Asia, we recognize the importance of Advanced Shipping Notices in optimizing the shipping and receiving process. Our logistics solutions are designed to streamline the entire supply chain, ensuring smooth and efficient operations.

Here’s how we can help:

1. Seamless ASN Integration: We offer end-to-end solutions that help businesses integrate ASN shipping data into their warehouse management systems (WMS) and ERP platforms, ensuring better visibility and inventory management.
2. Advanced Freight Management: Our advanced freight solutions provide timely ASN updates, helping businesses track shipments and manage resources efficiently. We simplify customs clearance, reduce errors, and optimize delivery schedules.
3. Technology-Driven Solutions: With EDI, cloud-based platforms, and real-time tracking, we enable seamless communication between suppliers, buyers, and logistics partners, making the ASN process more effective and automated.
4. Customized Logistics Services: Whether you’re a small business or a large enterprise, we offer customized ASN solutions tailored to your specific supply chain needs. We work closely with our clients to enhance communication, reduce errors, and ensure efficient operations.

Working upon our expertise in logistics and shipping, we can help you optimize your ASN shipping process, improve inventory management, and ensure timely and accurate deliveries. Want to streamline your supply chain operations and reduce errors? Contact Inspire Solutions Asia today to discover how our tailored logistics solutions can enhance your efficiency and drive cost savings.

Conclusion

ASN shipping plays a crucial role in modern supply chains by improving communication, accuracy, and efficiency throughout the shipping process. By utilizing Advanced Shipping Notices, businesses can streamline receiving procedures, reduce errors, improve inventory management, and ultimately save costs.

At Inspire Solutions Asia, we focus on making logistics easier with tailored warehousing, fulfillment, and shipping services. Our knowledge and experience enable businesses to reduce costs and enhance operational efficiency, guaranteeing a smooth supply chain experience. 

Allow us to handle your shipping requirements in a way that best aligns with your business goals. Contact us for consultations, demonstrations, or additional information about our services. 

Get in touch to get started!