What is EDI in simple terms?

EDI (Electronic Data Interchange) is a standardized way for two companies' computer systems to exchange business documents — purchase orders, shipment notices, invoices — without email or manual entry. Retailers require it so their systems can process your shipments automatically.

Which EDI documents matter most in fulfillment?

The 850 purchase order, the 856 advance ship notice (ASN), the 810 invoice, the 855 PO acknowledgement, the 860 PO change, and the 997 functional acknowledgement. The 856 and the UCC-128 label it maps to are where most chargebacks happen.

What is an ASN and why do retailers care?

An ASN (EDI 856) tells the retailer exactly what is on the truck, in which carton, on which pallet, before it arrives. Their receiving team scans one label and the whole pallet is accounted for. A wrong or late ASN usually means an automatic chargeback.

What is a UCC-128 / GS1-128 label?

It is the carton or pallet license plate that carries the SSCC number tying that physical carton back to a line in your ASN. Format, placement, and print quality are all specified in the retailer's routing guide.

Do I need EDI to sell to Walmart, Target, or Costco?

Yes. Major retailers require EDI for purchase orders, ASNs, and invoices. Some allow a web portal for very low volume, but it does not scale and still carries the same compliance rules.

Should my 3PL handle EDI or should I?

The shipping side of EDI — ASNs and carton labels — has to be generated from what physically ships, so it belongs with whoever packs the pallet. Order and invoice flow can sit with you or your 3PL. The important thing is that no one is retyping data between systems.

What is an EDI VAN, and do I need one?

A VAN (value-added network) routes EDI documents between trading partners. Most brands reach retailers through a provider like SPS Commerce or TrueCommerce rather than building direct connections.

What causes EDI chargebacks?

Late ASNs, ASNs that do not match what was physically shipped, wrong or unscannable carton labels, incorrect pallet configuration, and missed delivery windows. Nearly all of them are warehouse execution issues, not software issues.

What is EDI in simple terms?

EDI (Electronic Data Interchange) is a standardized way for two companies' computer systems to exchange business documents — purchase orders, shipment notices, invoices — without email or manual entry. Retailers require it so their systems can process your shipments automatically.

Which EDI documents matter most in fulfillment?

The 850 purchase order, the 856 advance ship notice (ASN), the 810 invoice, the 855 PO acknowledgement, the 860 PO change, and the 997 functional acknowledgement. The 856 and the UCC-128 label it maps to are where most chargebacks happen.

What is an ASN and why do retailers care?

An ASN (EDI 856) tells the retailer exactly what is on the truck, in which carton, on which pallet, before it arrives. Their receiving team scans one label and the whole pallet is accounted for. A wrong or late ASN usually means an automatic chargeback.

What is a UCC-128 / GS1-128 label?

It is the carton or pallet license plate that carries the SSCC number tying that physical carton back to a line in your ASN. Format, placement, and print quality are all specified in the retailer's routing guide.

Do I need EDI to sell to Walmart, Target, or Costco?

Yes. Major retailers require EDI for purchase orders, ASNs, and invoices. Some allow a web portal for very low volume, but it does not scale and still carries the same compliance rules.

Should my 3PL handle EDI or should I?

The shipping side of EDI — ASNs and carton labels — has to be generated from what physically ships, so it belongs with whoever packs the pallet. Order and invoice flow can sit with you or your 3PL. The important thing is that no one is retyping data between systems.

What is an EDI VAN, and do I need one?

A VAN (value-added network) routes EDI documents between trading partners. Most brands reach retailers through a provider like SPS Commerce or TrueCommerce rather than building direct connections.

What causes EDI chargebacks?

Late ASNs, ASNs that do not match what was physically shipped, wrong or unscannable carton labels, incorrect pallet configuration, and missed delivery windows. Nearly all of them are warehouse execution issues, not software issues.

What Is EDI? A Plain-English Guide for Brands Shipping to Retail

What Is EDI? A Plain-English Guide

If you are about to ship to Walmart, Target, Costco, or any major retailer, you will be told you need EDI. Here is what that actually means, which documents matter, and where brands get charged back.

The documents: 850, 855, 856, 810, 997

ASNs and UCC-128 / GS1-128 labels

Routing guides and delivery windows

Why chargebacks are usually a warehouse problem

EDI Is a Language, Not a Product

EDI is simply a standardized format that lets a retailer's system talk to yours. The retailer sends a purchase order as an 850. You acknowledge with an 855. When the goods ship, you send an 856 advance ship notice describing exactly what is in each carton on each pallet, and every carton carries a UCC-128 label whose SSCC number matches that notice. You invoice with an 810. Each side confirms receipt with a 997. That is the whole loop. What makes it hard is not the format — it is that the data has to match the physical pallet, every time, inside the retailer's delivery window.

EDI 850 — Purchase Order

The retailer's order: items, quantities, prices, ship-to location, and the delivery window you are committing to.

EDI 855 / 860 — Acknowledgement & Change

You confirm what you can ship, and the retailer communicates changes to an existing PO before it ships.

EDI 856 — Advance Ship Notice

The hierarchical description of the shipment: pallets, cartons, items. This is the document that must match the physical truck exactly.

UCC-128 / GS1-128 Label

The scannable carton license plate carrying the SSCC that links each physical carton to its line in the ASN. Format and placement are dictated by the routing guide.

EDI 810 — Invoice

Your invoice, matched by the retailer against the PO and the receipt. Mismatches here delay payment.

EDI 997 — Functional Acknowledgement

The receipt confirmation. No 997 means the document never landed — silence is not success.

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The Routing Guide Is the Real Rulebook

Every retailer publishes a routing guide covering carton dimensions and weights, pallet height and stacking, label placement down to the inch, carrier selection, appointment scheduling, and the delivery window. EDI tells the retailer what is coming; the routing guide dictates how it must physically arrive.

A warehouse that reads the current routing guide before every shipment prevents most chargebacks. A warehouse that saved a PDF two years ago will not.

Why EDI Belongs Close to the Pallet

An ASN is a promise about physical reality: this carton, on this pallet, holds these units. It can only be accurate if it is generated from the actual pick and pack, scan by scan, rather than typed from a spreadsheet after the truck leaves.

At Logix we generate carton labels and ASNs from scan-verified pack data in our WMS, so the document the retailer receives and the pallet on their dock describe the same thing.

Getting Started Without Overbuying

Most brands do not need a custom EDI build. A provider such as SPS Commerce or TrueCommerce maps your retailer's requirements and connects to your systems, and your 3PL executes the shipping side.

Before signing anything, ask which retailers your 3PL actively ships to today, whether they review routing guides per shipment, and what their chargeback rate looks like. Those three answers tell you more than any feature list.