Advice of shipment

Advice of shipment
See also
Ocean bill of lading Import declaration Shipping note Goods received note Delivery note Contra deal Dangerous goods declaration Shipping bill Export declaration

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.

Shipment notice workflow

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.

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. 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.

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

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. 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:

• 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.

Examples of Advice of shipment

• A shipping notice is a document sent to alert the recipient that a shipment of goods is on its way. It usually includes the sender’s and recipient’s addresses, a description of the goods, quantity, and an estimated delivery date.
• A shipping advice is an electronic document used to inform the recipient that a shipment of goods has been sent. It includes details such as origin and destination locations, shipment id, product description, quantity, estimated delivery date, and tracking information.
• A delivery order is another type of shipping advice. It is a legal document that is sent to the recipient along with the goods. It includes the sender's and recipient's addresses, the description of the goods, the quantity, and the estimated delivery date. It also includes a signed acknowledgement of receipt of the goods.

Advantages of Advice of shipment

Advice of shipment is an essential part of supply chain management process (SCM) which provides multiple advantages. The main advantages include:

• Increased visibility of merchandise throughout the supply chain as it provides detailed information about the shipment, including the product description, origin, destination, quantity and delivery date.
• Improved accuracy of inventory management as it helps to track the shipments in real-time and provide more up-to-date information.
• Reduced cost of shipment as it allows to identify potential cost saving opportunities and optimize the processes.
• Enhanced customer satisfaction as it provides customers with timely and accurate information about their orders.
• Improved communication between different stakeholders in the supply chain as it enables them to share information in a transparent manner.

Limitations of Advice of shipment

Advice of shipment is a useful and important tool for supply chain management, but it is not without its limitations. The following are some of the main limitations of Advice of shipment:

• It does not provide detailed information about the shipment, such as the specific contents of the shipment.
• It does not track the entire journey of the shipment, only providing details of the beginning and end points.
• It does not provide information about the cost of the shipment or the delivery progress.
• It does not provide real-time tracking and updates of the shipment.
• It does not provide information about the condition of the shipment, such as the temperature or humidity.

Other approaches related to Advice of shipment

Introduction: Besides Advice of shipment, there are other approaches related to supply chain management and logistics.

• Vendor Managed Inventory: Vendor Managed Inventory (VMI) is a business model where the supplier is responsible for managing and maintaining the inventory levels of a retailer.
• Just-in-time (JIT) inventory management: Just-in-time (JIT) inventory management is an inventory control approach that is designed to reduce inventory costs and ensure customer satisfaction by receiving goods only as they are needed in the production process.
• Cross-docking: Cross-docking is a supply chain management practice in which goods are transferred directly from an incoming truck or other mode of transportation to an outgoing truck or other mode of transportation with minimal or no storage in between.
• Automated Guided Vehicles: Automated Guided Vehicles (AGV) are autonomous mobile robots used to move materials in industrial environments. AGVs are used to transport goods around warehouses, factories, distribution centers and other industrial facilities.

Summary: Advice of shipment is one approach related to supply chain management and logistics. Other approaches include Vendor Managed Inventory, Just-in-time inventory management, Cross-docking and Automated Guided Vehicles.

References

• Directive of the European Parliament and of the council on the restriction of the use of certain hazardous substances in electrical and electronic equipment (2011), 2008/0240 (COD)
• Federal Information Processing Standard Publication 161-2 (1996), Electronic Data Interchange (EDI) , National Institute of Standards and Technology
• Kelly L., Sebastian J. Garcia-Dastugue, Douglas M. Lambert, Dale S. Rogers (2001), The Supply Chain Management Process, "The Intarnational Journal Of Logistics Managemnt", Volume 12, Number 2
• Palevich R. (2012), The lean Sustainable Supply Chain: How to Create a Green Infrastructure with Lean Technologies, Pearson FT Press, New Jersey
• Reuvid J., Sherlock J. (2008), The Handbook of International Trade. A guide to the Principles & practise of Export, The Institute of Export, Philadelphia
• Singh R. (2009), International Trade Operations, Excel Book Private Limited, New Delhi
• Stevens F. (2017), The bill of lading: holder rights and and liabilities, Ghent University, Faculty of Law, Ghent
• United Nations High Commissioner for Refuges (1989), Supplies and Food Aid - Field Handbook, UNCHR, Geneva

Author: Aleksandra Malczyk