What is EDI 862 Transaction?

The EDI 862 transaction, also known as the Shipping Schedule, is an electronic data interchange (EDI) document used in supply chain management to communicate shipping requirements and schedules between trading partners.

EDI 862 transaction set helps a customer in conveying precise requirements of shipping schedule to a supplier. Businesses usually use this transaction set in conjunction with EDI 830 Planning Schedule with Release Capabilites, used to communicate long-term production and delivery schedules between trading partners. EDI 862 can override certain information of shipping and delivery transmitted in the previous transaction of EDI 830 planning schedule, but it cannot replace the 830 transaction set. Also, it is important to note that the 862 transaction set cannot be used for authorization of labor, materials, or any other resources.

The 862 transaction is a useful tool for Just-In-Time (JIT) production. JIT focuses on minimizing inventory levels by receiving materials or products just in time for production or customer demand. The 862 transaction code provides customers with a mechanism for issuing precise requirements of shipping schedule on more frequent grounds than the 830 planning schedule transaction.

Components of EDI 862

EDI 862 falls under the category of X12M Supply Chain transaction set. This transaction set enables a customer location to issue shipping requirements independent of other customers’ locations when this EDI is sent by a consolidated scheduling organization

To understand the EDI 862 transaction, it is important to understand its components. The transaction entails the following details:

1. A header with identification numbers, dates, and other administrative details related to the shipping schedule
2. Schedule details with part numbers, quantities, and requested delivery dates.
3. Shipping information such as carrier name, shipping method, shipping instructions
4. Reference information, including purchase order numbers, invoice numbers, or other relevant identifiers for tracking purposes.

Benefits of EDI 862

EDI 862 enhances collaboration by providing visibility into shipment schedules and replenishment needs, which consequently helps improve planning and resource allocation. The virtual “paper trail” created by EDI 862 enables manufacturers to track changes to orders for accurate reconciliation. Moreover, automated data exchange eliminates manual input, saving time and enhancing efficiency. The streamlined communication and information flow also help optimize supply chain operations, reducing delays and costs associated with errors

Accelerate Business Data Exchange with Astera EDIConnect

Astera EDIConnect is an enterprise grade, no code data integration tool that allows seamless EDI data exchange. The tool is equipped with a built-in message parser, validator, and transaction builder and can easily handle transaction sets in X12 and EDIFACT formats. The best part about Astera EDIConnect is that even business users can easily leverage it to electronically exchange data