What Are Electronic Delivery Notes and Why Use Them

Electronic delivery notes are documents that form part of the information exchange generated during the goods distribution process. Specifically, the delivery note travels with the goods on their way to the customer and lets them verify that the goods received match the purchase order.

In the logistics chain, the different messages exchanged among the parties involved in product distribution are essential to ensure successful operations. Thanks to EDI (Electronic Data Interchange) technology, these electronic messages are immediate, real-time, secure, and efficient.

Electronic delivery notes or shipping notices are referred to differently in EDI depending on the standard used. For example, in the X12 standard, the most widely used in the U.S. market, they’re called 856 Advance Ship Notice (ASN); in the EDIFACT standard, widespread in Europe, they’re known as DESADV or Despatch Advice.

Delivery notes can include as much information as the company deems necessary. In general, the message should contain who is shipping the goods, the receiver, delivery date and time, which product(s) are being sent, and an identifying code. Depending on the product, you can add expiration dates, a list of all items on the pallet, etc. The more information provided, the better the traceability of commercial operations and the optimization of the logistics chain.

The purpose of the DESADV (Despatch Advice) message is to inform the customer that the goods are being delivered. It also offers many advantages for both customers and suppliers

Benefits of Using Electronic Delivery Notes for Customers

• Security: Allow verification that the goods they will receive match their purchase order. With EDI, both documents are tracked, so the customer is alerted in case of any discrepancy.
• Forecasting: Make it possible to control when the material will arrive, since the message indicates when it will be ready to ship or when it has been shipped.
• Planning: Warehouses or relevant departments can plan the unloading of new products in advance thanks to the early information. This speeds up receiving, optimizes space and staffing, and improves stock control.
• Financial control: Enables reconciliation between goods delivered and invoices received. The message integrates into the purchasing management information system.

Benefits of Using Electronic Delivery Notes for the Supplier

• Streamlined delivery management: Thanks to faster action, as EDI enables automated processing.
• Proof of order delivery: Once the customer receives the advance notice, the solution automatically sends back a confirmation notice, accelerating the process. That confirmation document serves as assurance that the goods have been delivered.
• Shorter cash cycle: Automating order verification on both sides (customer and supplier) helps the invoicing process move faster.

How Is the DESADV Message Integrated into the EDI Solution? 

• As a supplier, based on the purchase order (ORDERS) issued by the customer, a delivery note is generated in the ERP system, selecting the actual quantities of each item reference that will be shipped.
• The EDI solution retrieves the delivery note data and automatically sends it to the customer in the expected format. This shipping notice is then automatically integrated into the customer’s management system or ERP.
• The customer verifies the shipping notice by comparing it with the original purchase order. This process is typically fully automated, as all commercial documents generated through EDI (order, delivery note, invoice, etc.) are traceable.
• The supplier receives a notification confirming that all checks are correct. If there is a discrepancy between the purchase order and the shipping notice, the customer sends a notice so the issue can be corrected in advance.

One of the major advantages of EDI solutions is their scalability. Once the technology is implemented, adding new messages is simply a matter of maximizing the investment to further optimize business operations. Additional messages such as DESADV can easily be incorporated into the standard EDI flow (purchase orders, electronic invoices, etc.).

EDICOM, a leading provider of EDI and electronic invoicing technology, offers two main models for implementing EDI solutions:

• Integrated EDI: Connects directly with the ERP, enabling automated transactions without changing internal work procedures.
• Web EDI: Ideal for companies managing a lower volume of operations. No technical implementation is required, the sending and receiving of EDI messages like DESADV is done through a private, secure web environment.

Companies are increasingly adopting EDI technology for their internal operations and supplier relationships, even making it a mandatory requirement. One of the additional advantages of working with EDI solutions is that they make companies more competitive in a globalized market where differentiation is key.

The more companies exchange data electronically, the more powerful and effective the system becomes.