Ask any experienced EDI analyst which transaction set generates the most chargebacks for suppliers, and the answer is almost always the same: the EDI 856 Advance Ship Notice. Not because the 856 is complicated — it is not — but because suppliers underestimate how precisely buyers require it to be filled out, and how quickly penalties stack up when it is wrong or late.
What Is an EDI 856?
The 856 is the electronic document a supplier sends to a buyer when goods leave the warehouse. It is a detailed advance notification that tells the buyer exactly what is on the truck before the truck arrives. A well-formed 856 includes:
- Shipment-level data — carrier SCAC code, PRO number, bill of lading number, ship date
- Order references — the original PO number(s) the shipment fulfils
- Pallet and carton hierarchy — how many pallets, how many cartons per pallet, and the SSCC (Serial Shipping Container Code) for each
- Item-level detail — UPCs, quantities, and lot or serial numbers for every item packed
- Routing information — destination DC or store, ship-to address confirmation
Why Retailers Require the 856 (And Penalise Non-Compliance)
A retailer's distribution centre receives hundreds of shipments per day. Without an accurate 856 in their system before the truck arrives, DC staff have to manually count, verify, and key in every item — a process that takes hours and introduces errors. The ASN eliminates this: receiving staff scan the SSCC barcode on each pallet, the 856 data populates automatically, and the pallet is put away in minutes.
Walmart's Retail Link, Target's Partners Online, and most other major retailer portals will issue chargebacks for:
- Missing 856 (not sending one at all)
- Late 856 (sent after the shipment arrives at the DC)
- Inaccurate 856 (quantity or item mismatches versus what was actually shipped)
- Missing or invalid SSCC barcodes on cartons and pallets
Chargeback rates for 856 violations typically range from 1–5% of the invoice value per offence. For a supplier shipping $50,000 per month to a single retailer, that is up to $2,500 in monthly fines — before accounting for the administrative burden of disputing them.
The SSCC Barcode: Where Most Suppliers Get Tripped Up
The SSCC (Serial Shipping Container Code) is an 18-digit identifier that uniquely identifies each carton and pallet in a shipment. It must be printed on a GS1-128 compliant label and match exactly the SSCC segment in the 856. Generating and managing SSCCs requires a GS1 company prefix and label printing capability — two things many small suppliers are not set up for out of the box.
Timing Is Everything
Most retailers require the 856 to be transmitted at or before the time of shipment — some require it within a specific window, such as within two hours of the truck departing. Late transmission is penalised the same as no transmission. Automating 856 generation as part of your shipment confirmation workflow — rather than as a manual step someone remembers to do — is the only reliable way to stay consistently compliant.