ASNs are a heart of a Supply chain ecosystem since they communicate the order status and the consignment ETA well before the goods arrive!!
If used in a streamlined manner, ASNs are a primary determining factor between a good and a bad supply chain. So what are ASNs ? ASNs are the shipment details sent by our supplier about the oncoming cargo. After a PO has been raised, we expect a two way communication between us ( buyer) and the supplier. The Supplier sends us a detailed sheet mentioning all the cargo details. Details in the ASN include Cargo details, PO number, Batch Number, Logistics Partner details, ETA, Serial Number. Without a ASN, we will have a total blindspot toward the oncoming vendor delivery.
ASN is addressed as a Shipment Notification in SAP ERP. The system code is defined as LA in SAP ERP. ASN can be made mandatory in the PO in SAP ERP. Unless a ASN is registered in the system, SAP will not allow you to do a Goods Receipt if ASN is made mandatory. For Complex Supply Chain companies like Walmart, P&G the ASN is always mandatory. If you are working on a de-centralized EWM systems, ASNs are the core of the logistics processes. In simpler terms, ASNs are known as Inbound Deliveries.
In practice, the supplier and buyer systems are connected through EDI, so as soon as the truck leaves the supplier premises, a ASN is triggered and sent to the buyer server. All details about the cargo are saved and sent to the buyer. Aonline tracking number helps the buyer to track the shipment in realtime. Also, a ASN is a solid proof that the cargo has left the supplier premises. For EXW shipments, the ASN can play a pivotal role in the payment release process.
ASNs are designed primarily for inbound communication from the vendor, its not prudent to send any outbound communication through this documents. In case of a Milk Run scenario where the suppliers delivers to multiple buyers in a specific sequence, ASNs can be sequentially linked through a external application to ensure streamlined operations for the supplier.
In a overseas import shipment by Sea, the Bill of Lading would serve as a ASN for the buyer. Beware. the Bill of Lading has to have a “ Shipped on Board “ stamp from the shipping company otherwise it may happen that the container ship has not yet sailed from the origin port and the supplier sends you a standard Bill of Lading so that you will release his money. A ‘’ Shipped on Board “ sign means that the ship has actually sailed from the origin seaport.
ASNs are a critical tool for PO monitoring, we can send delivery reminders based on ASN reports.
And would like to emphasise, ASN is Advance Ship Notice. Its not Advanced Shipping Notice or Advanced Shipping Notification or any other commonly addressed terms.
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