EDI 816 - Organizational Relationships

EDIFACT

The EDI 816 is the electronic version of a paper document type that is comprised of two formats. The first format is used for delivering location addresses. The following format is used to communicate information about the organizational relationships between locations –– such as store services by specific distribution centers or warehouses.

The EDI 816’s primary role is to deliver information to trading partners such as the sender’s location addresses and corresponding codes. It is also used to provide detail on each location’s eligibility to purchase under terms of the relationship with a seller.

EDI Documents

Benefits of using an EDI 816

There are benefits to all trading partners, buyers, sellers, and logistics partners in implementing the electronic trading of the EDI 816. Many of these are dependent on how automated and unified the transaction is for each party. Some of these benefits that include:

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Better operating efficiency through reduced time needed to complete transactions by each party
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A reduction in the volume of paper documents
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Elimination of data entry errors associated with manual processes
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Potential to increase the overall speed of fulfillment, allowing a retailer to lower their on-hand inventory

The key data elements included in the EDI 816 Organizational Relationships:

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Codes to identify original or addition information (added to previous detail)
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Codes to represent previous information that needs deletion
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Senders locations, addresses and corresponding codes
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Eligibility to purchase under the terms of a seller

A larger parent organization with numerous locations may include any of the following:

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Manufacturers with multiple locations for production, assembly, distribution, etc.
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Multi-hospital and medical facility healthcare systems
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A chain of retail stores and regional distribution centers
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Associations with geographical membership locations

Common issues regarding EDI 816 Organizational Relationships

Incorrect data

Have you had to go back-n-forth between sellers and carriers to provide the correct information?

Manual entry errors

Are you frequently dealing with discrepancies? Is spending too much time resolving these discrepancies that it’s impacting your business?

Delivery address issues

Is it a hassle to add/update shipping addresses in your system? Have you ever used the wrong carrier for your order fulfillment?

Automate 816 Organizational Relationships with Full-Service EDI

Tracking down the appropriate location address for transaction shipments can be complicated and time-consuming. Full-service EDI providers like SPS Commerce can automate your EDI 816 and all your related EDI tasks. We do this with technology and associated staffing resources that take on the responsibility of customizing, optimizing, and operating your EDI solution. The SPS team actively manages 9,000 changes from retailers each year.

We communicate directly with your trading partners to manage connectivity, setup, requirements, updates and support efforts. We also take full ownership of understanding all of your trading partner’s requirements and making all the associated 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?

Eliminate the expense of manual processes.

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