EDI 754 - Routing Instructions

What is the EDI 754? The EDI 754 transaction set, also called Routing Instructions, is used by retailers or other organizations to communicate shipment routing instructions to a supplier. This document typically includes details about the preferred carrier, transportation mode and shipment routing instructions.

EDI Documents

The EDI 754 format

The EDI 754 enables efficient shipment coordination, ensuring the shipping process aligns with the buyer’s preferences and requirements.

The EDI 754 format by SPS Commerce

The typical structure of an EDI 754 transaction set is:

BGN: Beginning segment

Provides basic information about the routing instructions, such as the date and reference number.

PER: Contact information

This segment is critical in ensuring that there is a clear point of contact for any queries regarding the routing instructions conveyed in the EDI document.

N1: Name

Identifies a party by name. This segment can be used multiple times to specify different entities involved in the transaction, such as the buyer, seller or carrier.

N4: Geographic location

Specifies geographical information related to the routing instructions, such as the destination city, state and country.

TD5: Carrier details

Provides details about the transportation method and carrier information.
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L11: Reference identification

Used for referencing associated documents or details relevant to the routing instructions.

G62: Date/time

Indicates relevant dates and times for the transaction, such as the requested ship or delivery date.

LX: Assigned number

Marks the beginning of a specific detail section within the transaction set, often used to organize the document into logical groupings.

AT7: Shipment status details

Contains status information and details about the shipment.

MS3: Interline information

Provides information about interline carriers (if applicable).

How is the EDI 754 used?

Communication of routing instructions:
The primary use of the EDI 754 is for a buyer or retailer to communicate detailed routing instructions to a supplier.
Shipment coordination:
The EDI 754 enables the supplier to align their shipping process with the buyer’s preferences and requirements, ensuring that goods are shipped according to specified instructions.
Compliance with shipping policies:
By sending the EDI 754, a buyer ensures that the supplier is fully aware of their shipping policies and logistics preferences, helping to enforce compliance with these policies.
Efficient handling of large shipments:
For large or complex shipments that may require special handling or routing, the EDI 754 provides a structured way to communicate these needs clearly and accurately.

Popular retailers that use the EDI 754 include:

Benefits of using the EDI 754 Routing Instructions

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Increased efficiency:

The EDI 754 streamlines the communication process between buyers and suppliers, reducing the time and effort required to convey routing instructions. This efficiency can lead to faster shipping times and more timely deliveries.

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Improved accuracy:

Automating the transmission of routing instructions significantly reduces the likelihood of errors associated with manual data entry or miscommunication. This leads to fewer shipping errors, such as misrouted shipments.

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Cost savings:

The EDI 754 promotes a more efficient routing process, including optimized transportation routes, cost-effective carriers and minimized delays and chargebacks.

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Enhanced visibility:

The structured format of the EDI 754 allows for better tracking and more visibility. All parties involved can easily access and understand routing information, leading to improved coordination and planning.

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Compliance and standardization:

The EDI 754 helps enforce compliance with the buyer’s shipping policies and promotes standardized communication of routing instructions.

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Strengthened supplier-buyer relationships:

Clear communication of routing instructions can lead to improved relationships between buyers and suppliers. Suppliers are better equipped to meet buyers’ expectations, leading to higher satisfaction levels.

Common issues regarding EDI 754

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Inaccurate or incomplete information:

The EDI 754 document may contain inaccurate or incomplete routing instructions due to data entry errors or miscommunication between parties. This can lead to shipments being incorrectly routed or delayed.

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Non-compliance with routing instructions:

Suppliers may not comply with the routing instructions specified in the EDI 754 due to oversight or misunderstanding. This can result in increased shipping costs or contractual penalties.

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Integration and compatibility issues:

Integrating the EDI 754 into existing systems can be challenging, especially if trading partners use different EDI standards or versions. Compatibility issues may hinder the seamless exchange of routing instructions.

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Timeliness of information:

Delays in sending or receiving EDI 754 documents can result in outdated routing instructions.

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Managing updates and changes:

Routing instructions may need to be updated or changed after the initial EDI 754 document has been sent. Managing these updates efficiently can be challenging.

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Technical failures:

Technical issues, such as software bugs, network outages or hardware failures, can disrupt the EDI process, leading to delays or loss of data.

Automate EDI 754 Routing Instructions Message with SPS Commerce

Managing ongoing EDI tasks can be complex and time-consuming. Full-service EDI providers like SPS Commerce deliver EDI technology and associated staffing resources responsible for customizing, optimizing and operating your EDI solution.

SPS communicates directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. SPS also takes ownership of understanding your trading partner requirements and making map changes.

SPS Fulfillment proactively monitors and optimizes your solution to prevent errors and minimize data entry.

Interested in learning more about our EDI solution?

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