ASN (Advanced Shipment Notice)

The Advanced Shipment Notice.is a terrific transaction when implemented properly. It is a critical component of JIT (Just int Time) programs, and is indispensable to global supply chain controls and operations. The “Advanced” is typically a misnomer as the transaction normally occurs at the shipment moment. Therefore, the receiver of the transaction receives notice in “advance” that the shipment is coming.

The ASN transaction is transmitted to the customer (or their agent) and used to update the receiving center’s database. The serial number identifying the shipment is bar coded on the label, so the receiving dock worker only needs to “wand” the serial number with a bar code reader to identify the shipment in their ERP system and designate the contents as received. Depending on the certification of the vendor, the customer may accept the contents of the shipment as detailed in the ASN, or may perform an additional inspection to verify the count, contents and/or quality of parts in the shipment.

The logistics operations can also utilize the ASN item/quantity details for scheduling deliveries, assigning locations in the warehouse, staging the inventory on the assembly line, create alerts if the shipment/cartons are not on time, and researching lost transactions by the tracking numbers and carrier details.
This is a large amount of data if manually entered or managed on paper documents.
The ASN message can be constructed to contain carrier, tracking numbers, manifest numbers, packing lists, pallet, RFID (Radio Frequency ID number) and other details. The ANSI X12 856 contains a flexible hierarchy. This flexibility can also add complexity because company usage varies dramatically.
I was invited to participate on the CompTIA/EIDX subcommittee on the XREF project and specifically did analysis for the ASN. The goal of the committee was to create “metadata” or common business data and then map this information across various standards such as: ANSI X12, UN/CEFACT, RosettaNet, xCBL, OAGIS, and UDEF. I first analyzed nine ANSI X12 856 ASN transactions and noted that there a number of differences in hierarchical loops utilized (except for Shipment and Item), data content, and location of data in the document. The good news is the ASN 856 is very flexible. The bad news is that is hardly standardized in its usage. RosettaNet does not contain the hierarchical flexibility of the ANSI X12 document. But it is a massive document in comparison to its X12 counterpart.
I predict the usage of the ASN growing as the global supply chain increases, and the US and other countries prevail upon importers to control and report on the goods coming into their countries. In the March 23, 2005 email from the U.S. Customs and Border Protection Commissioner, Robert C. Bonner he discusses the C-TPAT and baseline security initiatives. Although the document does not address ASN and similar B2B messaging specifically, tightening controls by the incorporation of messages and status is implied. You can read the complete email at: http://www.cbp.gov/xp/cgov/import/commercial_enforcement/ctpat/security_criteria/criteria_importers/commi_importer_criteria.xml

“The Customs-Trade Partnership Against Terrorism (C-TPAT) is the largest and most successful government-private sector partnership to emerge from the ashes of 9/11. Launched in November 2001, with only seven major importers, today C-TPAT has grown to more than 8,800 enrolled companies, which include United States importers, customs brokers, terminal operators, carriers, and some foreign manufacturers—all major players in the global supply chain. “
“From the beginning, voluntary participation and jointly developed security criteria, best practices, and implementation procedures were the guiding principles for C-TPAT. As the program has grown, so has our need for more clearly-defined security criteria to establish the minimum, baseline security expectations for membership in this voluntary, incentives-based program.”

So, I predict five major factors for the increase usage of the ASN:

• Globalization of industry, suppliers and service providers
  
• Increased emphasis on automation of supply chain operations especially as global inventories, and in-transit times are key factors in inventory and transportation costs.
  
• Emphasis on controls as entry points into the country from foreign entities is a continued terrorist threat.
  
• Risk mitigation and quick implementation of alternative supply sources in the case the supplier cannot deliver as promised due to hurricanes, floods, fires, epidemics, earthquakes. or in the case of political, labor instability or transportation disruptions.
  
• Shift in the growth of industry and consumer demands in the BRIC economies.
  

In Ian Bremmer’s February 7, 2006 article for Fortune Magazine, “Taking a Brick out of BRIC”:

"Ever since a team of Goldman Sachs economists coined the term "BRIC" in 2003--for Brazil, Russia, India, and China--this group of emerging-market countries has assumed greater importance in the international investment community's imagination. The firm's economists argued that, given sound political decision-making and good luck, the BRIC economies together could become larger than those of the world's six most developed countries in less than 40 years. In other words, the research predicted nothing less than a profound shift in the global balance of power."

You can read his full article at: http://money.cnn.com/magazines/fortune/fortune_archive/2006/02/20/8369169/index.htm