Article 58: What is Advanced Shipping Notification (ASN) in SAP MM?
What is an Advanced Shipping Notification (ASN)?
An Advanced Shipping Notification (ASN) is an electronic notification sent by suppliers to inform buyers that goods have been shipped and are on their way. It provides detailed information about what was shipped, quantities, tracking details, and expected delivery dates.
Why is ASN important for businesses?
Supply Chain Visibility:
- Real-time tracking of shipments in transit
- Proactive planning for receiving operations
- Better inventory management with advance notice
- Reduced uncertainty about delivery timing
Operational Efficiency:
- Dock scheduling optimization
- Labor planning for receiving activities
- Cross-docking opportunities identification
- Reduced inspection time with pre-notification
Cost Reduction:
- Lower inventory holding costs through better planning
- Reduced expediting expenses
- Fewer stockouts due to better visibility
- Optimized warehouse operations
What information does an ASN contain?
Shipment Details:
- Supplier information and ship-from location
- Purchase order references and line items
- Material numbers and descriptions
- Quantities shipped vs. quantities ordered
Logistics Information:
- Carrier name and contact details
- Tracking numbers for shipment monitoring
- Expected delivery date and time windows
- Transportation mode (truck, rail, air, ocean)
Packaging Details:
- Number of packages or handling units
- Package types (boxes, pallets, containers)
- Weight and dimensions for each package
- Packaging hierarchy and contents
How does ASN fit into the procurement process?
Traditional Process Without ASN:
- Purchase Order sent to supplier
- Goods shipped (buyer unaware)
- Goods arrive unexpectedly
- Receiving scrambles to process
- Potential delays and inefficiencies
Enhanced Process With ASN:
- Purchase Order sent to supplier
- ASN sent when goods ship
- Buyer prepares for arrival
- Efficient receiving process
- Automated goods receipt
What are the different types of ASN?
Supplier-Generated ASN:
- Created by supplier when goods are shipped
- Sent electronically via EDI or web portal
- Contains actual shipping information
- Most common type in practice
Carrier-Generated ASN:
- Created by transportation provider
- Includes pickup and transit updates
- Provides tracking and delivery estimates
- Useful for logistics coordination
System-Generated ASN:
- Automatically created by WMS or ERP system
- Based on shipment processing rules
- Integrated with order management
- Ensures data consistency
When should companies implement ASN?
High-Volume Operations:
- Multiple daily deliveries requiring coordination
- Complex receiving operations needing advance planning
- Cross-docking and flow-through requirements
Supply Chain Complexity:
- Multiple suppliers and shipping locations
- Various transportation modes and carriers
- International shipments with longer lead times
Automation Requirements:
- Desire to reduce manual data entry
- Need for real-time inventory updates
- Integration with warehouse management systems