Advice of shipment

Advice of shipment
Primary topic
Related topics
Methods and techniques

Advice of shipment (shipping notice, shipping advice) is a part of supply logistics subsystem- the other name - supply chain management process (SCM). This is a commercial document, whose owner is the seller. ASN is a notification ofInsert non-formatted text here pending deliveries, sent by seller after getting an order[1].

Shipment notice workflow[edit]

Advice of shipment is an important element of workflow at company. Most buyers and companies will not accept delivery without getting ASN. Advice of shipment helps the buyer or company planned receiving goods and know what components are in a delivery. This document is similar to packaging information/ supplier packaging information (SPI). For example Bill of Lading (shortcut BL) is document issuance by a carrier to a transport agent, thanks to whom it is known that shipment is loaded onto the ship[2].

This is a specific confirmation of the delivery for the logistics department, without which you cannot start production planning. It is often send in electronic version by e-mail and it is also in common with Electronic Data Interchange (EDI) document. It is an electronic computer-to-computer exchange of data in one standard for all users. This document helps two unknown entities to make a "conversation" either internal or external[3]. It allows companies to reduce waste of paper and what is the most important, save a lot of money. Those companies which are using EDI, can reduce amount of employees. This assumes that in a company's warehouse you can reduce employment about one person thanks to the system's work. What is, more ASN can be used to pay the invoice due to the fact it is showing what is inside the delivery. Another advantage of using EDI is reduce manual mistakes at advice of shipment[4].

Considering the main goal of the advice of shipment is to brief supply chain about delivery. After getting an order is needed to send details about carriers, expected delivery time and where shipment will be delivered. In supply chain management process it is defined as incoterms (International Commercial Terms) such like EXW, DDP, DAP and lead time. Also, it depends of types of transport – air, land, water, road.

Information that should be at shipment advice[edit]

In ASN you can put the list of ordered components, goods. It is necessary to collect goods in a warehouse properly. Some goods are hard to entry into storage or some of them must be stored at the right temperature. Advice of shipment determine the products that are hard to put away and in which trucks are vendors’ products. Sometimes may also be attached copy of the invoice, some certificates like RoHS, REACH[5]. It is important that those certificates should be attached, due to OSH policy for products like adhesives, resin. The shipping notice enable the seller describe the package, the contents and also configuration of shipment. What should be include in document[6]:

  • PO number ( purchase order number ) or any other number of the contracts,
  • date of advise of shipment,
  • number of commercial invoice,
  • payment terms or Letter of Credit Number,
  • the name of shipping carriers, different types for sea shipments, land and air, e.g. Lufthansa, Emirates, FedEx, UPS, Maersk Line,
  • expected time of delivery shipment,
  • description of commodity,
  • value of invoice,
  • in sea transport – BL, container number,
  • gross and net weight of consignment.

Footnotes[edit]

  1. Kelly L., Sebastian J. Garcia-Dastugue, Douglas M. Lambert, Dale S. Rogers 2001
  2. The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies 2012
  3. Electronic Data Interchange (EDI) 1996
  4. The Lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies 2012
  5. Directive of the European Parliament ... 2011
  6. Supplies and Food Aid - Field Handbook 1989

References[edit]

Author: Aleksandra Malczyk