What is an EDI 940?
EDI 940, also known as a Warehouse Shipping Order, is an electronic document sent from a supplier, manufacturer, or seller to a third-party logistics (3PL) provider or remote warehouse. It acts as an official request to ship goods from a warehouse to a specific buyer or location.
This transaction follows the ANSI X12 EDI standard, ensuring smooth and secure data exchange between businesses, commonly used in distribution, retail, manufacturing, and eCommerce operations.
A typical EDI 940 message contains all relevant order and shipping details, such as:
Purchase Order Number
To link the shipping order to a sales or purchase transaction
Expected Shipping Date
Helps with scheduling and fulfillment tracking
Receiver Contact Info
For order coordination and delivery assistance
Carrier & Routing Details
If specified by the seller for shipment optimization
Warehouse Instructions
Includes product details, quantity, and units of measure
Ship-To Address
Final delivery destination for the goods
Special Handling Requirements
Refrigeration, fragile handling, or special packaging
How EDI 940 Works
The EDI 940 process is initiated when a business needs to ship goods from its inventory stored at a 3PL or warehouse. Here’s how it flows:
- Seller Sends EDI 940: The seller’s ERP (e.g., Odoo) automatically generates and sends an EDI 940 to the warehouse.
- Warehouse Acknowledges Receipt: The warehouse replies with an EDI 997 Functional Acknowledgment confirming they received the order.
- Shipment Fulfillment: Based on EDI 940, the warehouse prepares the shipment.
- Warehouse Sends EDI 945: Once goods are shipped, the warehouse sends back an EDI 945 Warehouse Shipping Advice confirming the shipment and its details.
This automated flow eliminates the need for phone calls, emails, or paper-based shipping requests.
EDI 940 improves speed, accuracy, and coordination with 3PLs, leading to faster order fulfillment. Key benefits include:
Faster Shipping Order Processing
Send warehouse shipping instructions in seconds—directly from your business system.
Reduced Errors in Order Fulfillment
Pulls verified order data automatically from systems like Odoo, reducing manual mistakes.
Real-Time Coordination with 3PLs
Ensures your logistics partners receive clear and timely shipping requests.
Supports Order Updates & Cancellations
Easily modify or cancel warehouse orders through follow-up EDI 940 messages.
Stronger Data Security & Compliance
Sensitive shipping data is encrypted in transit, keeping information protected.
Optimized Streamlined EDI Workflows
Integrates seamlessly with EDI 945 to close the loop and provide shipment visibility.
