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Modern supply chains operate at a pace that demands accuracy and real-time visibility. Products move quickly from one point to another. This leaves very little room for uncertainty or manual work. When a shipment is in transit, both suppliers and buyers need timely and reliable information. This is why many organizations now depend on an advance shipping notice. It provides straightforward, real-time shipment details that strengthen visibility and keep inbound logistics on track.
Real-time shipping notifications matter more than ever. The document shipping market is expected to reach $28.1 billion by 2033, reflecting a 6.6% CAGR from 2025 to 2033. As shipping volumes grow, the need for precise digital shipment alerts grows with it. Without them, teams can face unnecessary labor and costly receiving errors.
An advance shipping notice closes that gap. It gives businesses a clear view of what is arriving, when to expect it, and how to prepare. The result is fewer surprises at the dock, smoother workflows, and stronger control across the entire supply chain.
In this blog, we will explore how it works, step by step, and how teams can use it to improve supply chain performance.
What Is an Advance Shipping Notice (ASN)?
An Advance Shipping Notice, or ASN, is an electronic shipping notice sent by a supplier to a buyer before a shipment reaches its destination. Think of it as a heads-up that details exactly what’s coming. When it will arrive, and how it’s packaged. Unlike a standard shipment update, an ASN is more than a simple notification. It is a structured shipment document containing item descriptions, quantities, purchase order numbers, carrier information, and tracking details.
For example, a warehouse that receives hundreds of deliveries each day can use ASN messages to schedule labor, allocate shelf space, and even automate barcode scanning. This reduces errors and avoids bottlenecks.
What Is the ASN Process?
The ASN process is a critical part of modern supply chain management. It starts when a supplier sends an electronic ASN to the buyer before the shipment leaves the warehouse. This early notification includes essential details such as purchase order numbers, item descriptions, quantities, and estimated arrival times.
Receiving this information early allows the buyer to efficiently prepare their warehouse. Staff can allocate space and prepare scanning systems to handle incoming goods. By linking the ASN advance shipping notice to the warehouse management system, businesses can automatically update inventory and reduce manual data entry. This reduces errors and ensures that shipments are received accurately.
Key points in the ASN workflow include:
- Supplier side: generating the ASN with accurate item and shipment details.
- Transmission: sending the notice through EDI or other integrated systems.
- Buyer side: preparing docks and resources, and using barcodes or RFID for fast verification.
Following this ASN cycle streamlines the shipment lifecycle, keeps inventory levels accurate, and avoids delays in receiving.
Supplier-Side ASN Process Flow (Before Shipment Leaves Warehouse)
Before a shipment leaves the warehouse, the supplier plays a critical role in ensuring smooth delivery.
Here’s how the supplier-side process typically works:
- Order Fulfillment Stage
Suppliers start by confirming the buyer’s order. Order confirmation includes checking quantities, SKUs, and delivery requirements. Any discrepancies are addressed before preparing the shipment to avoid delays later. - Gathering Product and Packaging Information
All items are reviewed, packed, and labeled in accordance with the advance shipping notice format. Dimensions, weight, and packaging types are recorded to help the buyer plan warehouse space and labor efficiently. - Tracking Number Generation
Each shipment is assigned a tracking number. This allows the buyer to follow the shipment in real time and plan resources accordingly. Tracking also reduces errors when multiple shipments are sent at once. - Labeling, Barcoding, and Palletization
Barcodes and labels are attached to packages for palletization. This ensures that goods can be scanned automatically upon arrival, cutting down manual data entry. - EDI, WMS, or SAP-Driven ASN Generation
Most suppliers use automated systems to generate the ASN. Electronic Data Interchange or warehouse management systems create the notice in the correct format and send it to the buyer. - Why ASNs Must Be Sent Before the Truck Leaves
Sending the advance shipping notice before dispatch gives buyers time to prepare docks, schedule staff, and allocate storage. - Impact on Buyer Receiving
Accurate ASNs improve inventory management and reduce errors at the receiving dock. When all details match the shipment, buyers can quickly scan, reconcile, and store goods.
Buyer-Side ASN Process Flow (Before Shipment Arrival)
Before a shipment arrives, buyers depend on the advance shipping notice to prepare for inbound operations. Here’s how the buyer-side process typically works:
- ASN Receipt in the WMS
The buyer’s warehouse management system receives the ASN, giving early visibility into items, quantities, packaging details, and expected delivery windows. - Purchase Order Matching
The system checks the ASN against the original digital PO. Any mismatched SKUs, quantities, or delivery requirements are flagged early, preventing delays at the dock. - Inbound Planning and Space Allocation
Once the ASN is validated, the warehouse prepares storage zones, clears space, and organizes putaway paths to avoid congestion during receiving. - Labor Scheduling and Dock Preparation
The receiving team uses the ASN to decide how many workers, forklifts, and dock doors are needed. This keeps dock scheduling under control and prevents last-minute scrambling. - Document and Verification Prep
Teams prepare paperwork, checklists, and inspection documents to verify shipments quickly upon arrival. - Why Buyers Need the ASN Before Arrival
A timely, accurate advance shipping notice helps warehouses plan the day, keep trucks moving, reduce receiving errors, and maintain smooth inbound flow.
Step-by-Step Detailed ASN Process Flow
A smooth EDI advance shipping notice process follows a clear set of ASN steps that help both sides stay aligned from the moment an order is placed to the moment the shipment is received and reconciled.
Below is an end-to-end ASN flow written in practical language that mirrors what teams experience every day.
Step 1: Order Confirmation and Planning
Everything starts when the buyer places an order, and the supplier confirms it. Both sides exchange basic details such as product type, quantities, and the expected ship date. Once this happens, internal planning kicks in. The buyer prepares capacity and timelines. The supplier begins to line up materials, people, and systems.
Step 2: Shipment Preparation by the Supplier
The supplier gathers SKUs, counts units, and checks packaging dimensions. They choose a carrier and capture tracking information early so it flows into the ASN advance shipping notice EDI message later. Packing and labeling follow next, including creating handling units with barcodes or RFID tags. Most teams use tools like WMS, SAP, or dedicated ASN modules to keep everything organized.
Step 3: ASN Creation
This is where the actual record takes shape. The supplier enters details like:
- Product descriptions
- SKUs and quantities
- Packaging details and weight
- Carrier info and tracking number
- PO number
- Estimated delivery date
Systems run accuracy checks to avoid errors that often cause delays during receiving. In SAP SNC, number assignment rules ensure every ASN is unique and traceable.
Step 4: ASN Transmission to the Buyer
Once validated, the supplier transmits the document through EDI, XML, or a supplier portal. Timing matters. The buyer should receive the ASN before the shipment leaves the warehouse so they can prepare. Some companies allow draft versions when details are still being finalized. Others require a locked version once the truck is loaded.
Step 5: Buyer Prepares for Arrival
When the buyer’s WMS or ERP receives the ASN. Warehouse teams prepare by adjusting:
- Space allocation
- Dock schedules
- Labor shifts
- Document packets
Early visibility prevents the typical bottlenecks that lead to congestion and slow unloading.
Step 6: Shipment Dispatch and Tracking
As soon as the truck leaves, tracking updates begin flowing. Buyers see real-time progress through IoT or RFID signals. Systems like SAP or warehouse platforms link these updates back to the ASN, so everyone knows exactly what is in transit and when it will arrive.
Step 7: Shipment Arrival at the Dock
At the dock, teams compare the physical shipment with the ASN data. Barcode or RFID scans automatically verify items. Any discrepancy surfaces instantly, reducing delays and guesswork. Automated workflows route exceptions to the right team.
Step 8: Goods Receipt and Reconciliation
The buyer posts the goods receipt. Inventory updates right away. If the shipment is partial or mixed, the system flags it so teams can reconcile PO, ASN, and actual counts without confusion.
Step 9: Post-Receipt Checks and Exceptions
If something is missing, damaged, or incorrect, alerts go out. The supplier gets notified for quick resolution. Some cases result in returns; others only require quantity adjustments. Systems like SAP SNC, WMS, and ERP keep a clean audit trail.
Step 10: Invoice Processing and Matching
A clean ASN speeds up financial processing. With accurate data in place, the three-way match between PO, goods receipt, and invoice becomes faster. Fewer discrepancies mean fewer disputes and quicker payments. It also improves long-term supplier performance.
What an ASN Typically Contains (Structure and Template)?
An advance shipping notice acts like a snapshot of a shipment before it leaves the supplier’s dock. A clear advance shipping notice template helps both sides understand what is on the way and when it will arrive. Most teams follow a similar advance shipping notice format, even if the software or industry differs.
A well-structured ASN includes core shipment data fields. These ASN elements help warehouses match incoming pallets to purchase order receiving and prepare the appropriate space and labor in advance.
Common ASN fields include:
- Purchase order number
- Shipment ID and date
- SKU numbers and product descriptions
- Quantities for each line item
- Packaging details such as carton count, pallet count, weight, and dimensions
- Barcodes or EPC labels
- Carrier name and tracking number
- Expected delivery date
- Lot or batch numbers (if relevant)
Below is a simple ASN sample layout:
- Header with supplier and buyer info
- Line-item table listing SKU, quantity, and packaging
- Footer with tracking, carrier, and delivery details
A clean, consistent template improves WMS accuracy. When data is formatted the same way every time, scanners read labels faster, receiving teams process goods with fewer errors, and inventory updates stay reliable.
Systems Used in ASN Management
Modern ASN management relies on a few core systems that help suppliers and buyers share shipment information quickly and with fewer mistakes. These tools support automation and smoother integration across the supply chain.
Here’s how each system fits into the process:
- EDI 856 (EDI advance shipping notice)
EDI is the most common way to send an ASN. The 856 document carries details about the shipment, including items, quantities, and packaging. It replaces manual emails or spreadsheets and helps both sides get accurate information in seconds. Many retailers require EDI because it cuts receiving time and reduces data entry errors. - ERP and WMS platforms
ERP and warehouse management systems receive incoming ASNs and match them to purchase orders. These systems help teams plan dock schedules, assign labor, and prepare storage space. When the truck arrives, the WMS uses ASN data to speed up AI scanning and receiving. - SAP SNC
SAP Supply Network Collaboration gives suppliers and buyers a shared view of shipment plans. It supports tasks like revising ASNs, checking order status, and tracking changes in real time. This improves collaboration and reduces back-and-forth communication. - Real-time data sync
All these systems work best when they stay connected. Real-time syncing keeps shipment updates consistent, prevents mismatched data, and ensures both sides know exactly what is on the way.
Conclusion
An advance shipping notice gives buyers a clear view of what is coming and when it will arrive. With an accurate ASN, teams can prepare space, schedule labor, and avoid last-minute surprises. It becomes easier to keep inventory in check and maintain supply chain efficiency.
Walking through the advanced shipping notice ASN process step by step also cuts down on errors. Each stage adds clarity, from the moment the order is confirmed to the final goods receipt. It keeps both sides aligned and reduces the back-and-forth that slows down modern logistics.
When companies use ASNs the right way, they receive shipments faster, run smoother operations, and build stronger partnerships across the supply chain.
How PackageX Helps Teams Improve the ASN Process?
Here’s how PackageX strengthens each stage of the ASN cycle:
Real-Time Visibility Into Inbound Shipments
PackageX connects ASNs to real-time tracking events from carriers and PackageX scan activity. Teams get live updates on shipment status, ETAs, and exceptions so they can proactively manage labor, dock scheduling, and space allocation.
ASN-Aligned Labels (Barcode, QR, RFID-Compatible)
PackageX automatically generates shipping, pallet, or carton labels based on ASN data. When a shipment arrives, teams scan the codes to instantly match physical goods to expected line items, eliminating manual checks and reducing reconciliation time.
Faster Receiving Through Automated Scanning
With PackageX Receive or Inventory, teams can:
- Scan cartons, pallets, or item barcodes
- Auto-match scans to ASN records
- Trigger instant inventory or status updates
This closes the loop between expected shipments and actual receipts, cutting check-in time and reducing errors.
FAQs
1. What is the purpose of an Advance Shipping Notice (ASN)?
An ASN provides buyers with early, structured shipment details, such as item quantities, packaging, and tracking, before the shipment arrives. This helps warehouses plan labor, allocate space, and reduce receiving errors.
2. How does an ASN improve supply chain efficiency?
ASNs enhance visibility by giving teams accurate, real-time information about incoming shipments. This minimizes bottlenecks at the dock, accelerates goods receipt, supports automated scanning, and reduces manual data entry.
3. What information is typically included in an ASN?
A standard ASN includes PO numbers, SKUs, item quantities, packaging details, pallet/carton counts, weights, dimensions, barcodes, tracking numbers, and expected delivery dates. These details help match shipments to purchase orders and speed up verification.
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