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Get a head start on how to set your business up for operational success at KeHE
Understand KeHE’s electronic data interchange (EDI) document workflow, including the eight core documents KeHE requires
Learn the two types of EDI integration methods KeHE accepts
Discover how SPS Fulfillment can streamline your EDI integration and simplify scaling
With 19 distribution centers serving more than 31,000 natural food, grocery, and specialty stores across North America, KeHE relies on accurate, timely, automated communication in the form of electronic data interchange (EDI) documents to keep things running smoothly.
EDI was designed to provide businesses with a common “language” for sharing essential information electronically, without emails or manual entry. EDI documents follow the same basic nomenclature: “EDI” followed by a three-digit number between 100 and 999, where each number is specific to the type of information being communicated (e.g., EDI 810).
Throughout the retail supply chain, businesses pick and choose the documents they want to use to communicate, and KeHE is no different. The distributor has outlined a list of eight core EDI that its suppliers (also referred to as sellers) must be able to either provide or receive during the order fulfillment process.
Related Reading: EDI for Retail Supply Chains Cheat Sheet
The 8 Required EDI Documents at KeHE
The eight core EDI documents include three that are sent from KeHE to suppliers and four that are sent from suppliers to KeHE.
From KeHE to suppliers
- EDI 850 (purchase order request)
- EDI 860 (purchase order change request)
- EDI 812 (credit memo)
From suppliers to KeHE:
- EDI 855 (purchase order acknowledgement)
- EDI 753 (ready to ship notice for KeHE Pick Up)
- EDI 856 (advance ship notice)
- EDI 128 (GS1-128 label)
- EDI 810 (purchase order invoice)
Because these documents facilitate a conversation where data is exchanged between the supplier and KeHE, they are sent in a specific sequence. Learn the order and which party is responsible for which documents below:
1.) EDI 850: Purchase Order Request (KeHE to Supplier)
All KeHE orders start here: the purchase order (PO). SPS likens the EDI 850 to a detailed online shopping cart that ensures both parties agree to the specifics of an order before any products are shipped.
Using an EDI 850 PO request document, KeHE will send key information, including:
The purchase order number: A unique number that both KeHE and suppliers use to track the PO’s status and payment.
Product information: Includes the names and codes (e.g., SKUs) of the requested items, as well as pricing and item descriptions.
Pickup location: Where KeHE will pick up the requested items (if using KeHE Pick Up).
Ship-to location(s): Where the products should be delivered.
Other information: Includes things like payment terms and allowances.
2.) EDI 860: Purchase Order Change Request (KeHE to Supplier)
The EDI 860 (PO change request document) provides KeHE with a way to efficiently communicate changes to a previously submitted EDI 850 (PO). Such changes could include:
Quantity adjustments
Shipping detail modifications/additions (e.g., packing specifications, delivery notes)
Order or specific line-item cancellations
Note: KeHE doesn’t allow price changes via EDI, and end retailers (i.e., the stores that KeHE sells to) require a 90-day notice for price changes. Also, PO changes can only occur before KeHE receives an invoice.
3.) EDI 855: Purchase Order Acknowledgement (Supplier to KeHE)
With the EDI 855 (PO acknowledgement document), the onus shifts from KeHE to the supplier. Suppliers must send an EDI 855 document within 48 hours of receiving an EDI 850 from KeHE.
The EDI 855 is a formal confirmation that the supplier intends to fulfill the PO request. SPS likens it to a text message that a store sends to you after you place an online order. The EDI 855 clearly communicates whether the supplier can send what KeHE ordered or if adjustments need to be made.
KeHE notes that additional EDI 855 documents may be sent if the supplier's ability to fill the PO as it's written changes.
4.) EDI 753: Ready To Ship Notice for KeHE Pick Up (Supplier to KeHE)
If your products are being shipped via KeHE Pick Up (also referred to as "collect"), you must send an EDI 753. KeHE refers to this document as a "ready to ship notice," but SPS typically calls it a "request for routing instructions."
The EDI 753 serves to notify the distributor that the order will be ready for KeHE Pick Up on the date specified in the request. Suppliers must send KeHE the EDI 753 three days prior to the day the product is ready for pickup.
Suppliers that are unable to fill a PO as written can return allowable exception codes, but pricing changes are not allowed.
Once KeHE receives the EDI 753, it will schedule transportation to collect the order from the supplier.
5.) EDI 856: Advance Ship Notice (Supplier to KeHE)
Suppliers must provide an advance ship notice (ASN), or EDI 856 document, for each and every shipment. SPS likens ASNs to packing lists that tell KeHE exactly what’s inside each box, how many there are, and how they’re all packed together. ASNs also include when the products were shipped and the estimated delivery date.
Note: In addition to supporting order fulfillment, inventory management, and efficient receiving, KeHE uses the data provided in ASNs to fulfill FDA FSMA 204 Traceability requirements.
6.) EDI 128: GS1-128 Label (Supplier to KeHE)
The EDI 128 (aka GS1-128 or UCC-128) is a label containing a barcode that provides important product details when scanned, including:
Serial number
Batch or lot number
Best before date
Expiration date
Quantity
Package origin and destination
Carrier
Shipping method
Think of the EDI 128 like an in-depth name tag that gets the right items to the right place at the right time and ensures that they are compliant. KeHE prefers for all outer cases that contain multiple selling units to display a GS1-128 barcode.
7.) EDI 810: Purchase Order Invoice (Supplier to KeHE)
The EDI 810 is an electronic invoice sent by the supplier to request payment from KeHE for the items that were requested via the EDI 850 PO. KeHE requires EDI 810s to include the following:
PO number billed
Line items shipped on the EDI 855 PO acknowledgement
Distribution center
Payment terms
Other related allowances
Note: EDI 810s can only be sent after the EDI 855 PO acknowledgement. Also, KeHE will not accept another EDI 855 PO acknowledgement once an EDI 810 invoice is sent.
8.) EDI 812: Credit Memo (KeHE to Suppliers)
The EDI 812 (credit memo) is used by KeHE to inform suppliers when there is a short pay and why (e.g., quantity issue, price discrepancy). The EDI 812 helps maintain accurate financial records and helps ensure that both the supplier and KeHE agree on the adjustments made to the accounts.
KeHE’s EDI Program: Direct vs. VAN Integration
KeHE has partnered with SPS Commerce to create an EDI program that gives all KeHE suppliers the ability to transmit EDI documents. By enabling KeHE and its suppliers to exchange key documents electronically and in a standardized format, EDI empowers:
Faster transactions
Fewer errors
Lower costs
Stronger partnerships
Seamless scalability
KeHE supports two different EDI integration methods: direct and value-added network (VAN). With direct, or point-to-point, EDI, suppliers use software to manage EDI communications themselves. A VAN, on the other hand, is a third party that contracts with a supplier to handle EDI communication on the supplier's behalf in both directions — from supplier to KeHE and from KeHE to supplier.
Grow With SPS Fulfillment
Getting EDI right is vital to both getting set up and growing with KeHE. Direct EDI can be manageable for smaller businesses with few connections to manage. But as your business grows, so does EDI complexity. Partnering with SPS Fulfillment keeps orders moving by enabling seamless EDI communication with KeHE and beyond.
SPS Fulfillment:
Gives your team one place to manage orders, documents, and updates.
Gets retailer requirements right, reducing uncertainty and protecting your bottom line.
Automatically rebuilds workflows as your business grows, scaling your business without scaling complexity.
Here’s what the distribution director for a beverage supplier had to say about partnering with SPS for EDI:
“Previously, we entered all orders by hand, which took time away from activities that drive growth. We selected SPS Commerce because of their reputation as the leading EDI provider and their existing relationships with our distribution partners, including KeHE, UNFI, and Dot Foods. Choosing the industry leader gave us confidence we could automate and scale quickly.”
Discover how SPS Fulfillment can set you up for EDI success.
