ASN - Advanced Shipping Notice

Advanced Shipping Notice (ASN) is an electronically sent notification of an upcoming or pending delivery sent directly to the buyer from a third-party-logistics or the supplier, well in advance.

The ASN's structure or format basically depends on what your prospective customer might demand or what information you need to provide being a supplier or a 3PL partner. Typically an ASN includes:

• Order information – Purchase order (PO) number, supplier details.
• Delivery date and time – Estimated arrival date, time, and expected transit duration.
• Pallet codes – Number of pallets, cases, or units in the shipment.
• Product details – SKUs, item descriptions, and batch/lot numbers.
• Location information – Ship-from and ship-to addresses.
• Physical details of the consignment (the type of packaging, etc) – Weight, dimensions, and packaging type.
• Freight information – Carrier name, tracking number, and shipment method.

The ASN is a notification sent before the shipment is dispatched, followed by an invoice post or at the time of delivery.

How ASNs Work in the Supply Chain

An ASN is sent before the shipment leaves the supplier's facility. This notification allows the receiving party to prepare for the delivery and cross-check shipment details before arrival.

The ASN Process Flow

• Supplier sends an ASN via Electronic Data Interchange (EDI) to the buyer.
• Buyer’s Warehouse Management System (WMS) receives the ASN and updates expected deliveries.
• Upon arrival, barcode scanning or RFID technology matches ASN details with the actual shipment.
• Discrepancies (such as missing or extra items) are flagged, and suppliers are notified for corrections.

Usually, ASNs are provided by the third-party logistics companies, but can also be done by the sellers themselves if there is no 3PL involved. Talking about the modern sellers, they never accept packages which are delivered without an ASN from the supplier.

What happens after the Advanced Shipping Notice is received?

To make it easier for the seller, the supplier can either put barcodes on all the shipped boxes, crates and cases or maybe attach RFIDs and add that information to the ASN. When the shipment is received, the seller scans the shipment's serial shipping container code (SSCC) with the ASN to maintain accuracy. Any sort of error identified is directly notified to the supplier and is rectified.

To make sure that the same shipment hasn't been received before, the associated purchase order is pulled out from the inventory system. Again, there can certainly be times when the order would be the same but not the SSCC.

The Importance and Benefits

ASN-based shipping and receiving practices assist businesses and buyers with quick and accurate loading and unloading of shipment, never forgetting the efficient sorting and management of inventory.

Benefits of ASNs for Businesses

ASNs improve supply chain efficiency by reducing errors, streamlining warehouse operations, and enhancing inventory accuracy.

1. Faster & More Accurate Receiving

• Warehouse teams know what’s arriving in advance, enabling pre-sorting.
• Reduces unloading time and ensures efficient cross-docking.

2. Reduced Shipping & Receiving Errors

• ASN barcode scanning eliminates human errors in manual data entry.
• Reduces order mismatches, ensuring accurate shipments.

3. Improved Inventory Visibility

• ASNs integrate with Inventory Management Software for real-time stock tracking.
• Helps businesses optimize stock levels, reducing overstocking and stockouts.

4. Better Compliance & Supplier Accountability

• ASN minimizes human errors, preventing mix-ups with similar product SKUs.
• Ensures vendors meet shipment accuracy requirements, reducing costly mistakes.

If at all there occurs to be any discrepancy caused between the order placed and the shipment received, ASN makes it very quick to figure it out. With this, the seller can always claim the shipping insurance if at all anything goes missing and there is a changed number of shipments received at the other end.

ASN offers multiple logistical and supply chain benefits; helps with accurate and on-time dispatch and delivery. If someone from the warehouse team, who is in charge of the incoming consignments, is notified regarding the shipments that are expected to arrive, s(he) can easily arrange an outbound transportation of the same, accordingly.

Best Practices for Implementing ASNs

To maximize the benefits of ASNs, businesses should follow these best practices:

Use EDI or API for Seamless ASN Integration

• Ensure real-time data exchange between suppliers, buyers, and logistics teams.
• Automate ASN processing for faster, error-free transactions.

Train Warehouse Teams on ASN Workflows

• Educate staff on scanning barcodes, RFID matching, and discrepancy reporting.
• Reduce receiving errors by ensuring teams understand ASN verification processes.

Establish ASN Compliance Standards with Suppliers

• Require suppliers to send ASNs before shipment dispatch.
• Standardize ASN formatting for consistency across vendors.

ASN vs. Other Shipping Documents

Unlike standard shipping documents that accompany a delivery, ASNs are proactive notifications sent before a shipment arrives. The table below highlights key differences:

The Challenges Involved

To get the ASN system implemented, there are certain investments that you need to make. RFIDs and barcode scanning are the core participants for the ASN system to work effectively. Now, what does this mean? This means that your entire supply chain should fulfill the aforementioned requirement. Just because of a lot of finances involved, the bigger suppliers and businesses adopt ASN before the smaller firms.

When it comes to accuracy, there are two faces. The major challenges with ASN are item quantity mismatch, line or header errors, etc. All these inaccuracies in the data will lead to unexpected delays, lost productivity, etc. Once the error is noticed, the client can intimate the vendor about it. Once this is done, the entire process has to be followed again, with rectified figures and resending the corrected ASN.

Along with all the above-mentioned challenges, training your staff to get acclimated with the ASN system is also a task. Once and only when they are all set, can ASN assist.