3PL EDI is the electronic exchange of orders, shipping confirmations and stock data between your business, your retail customers and your 3PL, using standard document formats such as the X12 940 (warehouse order), 945 (shipping confirmation) and 856 (advance ship notice). You need it when a retailer or wholesale customer requires it. Check that your 3PL already trades EDI with your retailers, who pays for setup and mapping, and who is responsible for compliance chargebacks.
Most ecommerce brands never think about EDI until a large retailer or distributor accepts their product and sends a vendor compliance manual. Suddenly orders arrive as EDI documents, every carton needs a compliant label, and late or inaccurate shipping notices lead to chargebacks. Your 3PL sits in the middle of all of this. This guide explains how 3PL EDI works, which documents matter and what to ask a warehouse before you sign.
What is 3PL EDI?
EDI (electronic data interchange) is a way for businesses to send documents such as orders and invoices system to system in a fixed, agreed format, instead of by email or spreadsheet. In North America most retailers use the ANSI X12 standard. In Europe, Australia and much of Asia, the UN/EDIFACT standard is more common, often alongside GS1 barcode and labelling rules.
3PL EDI covers two links. The first is between you and your retail customers: they send purchase orders and expect shipping notices and invoices back. The second is between you and your 3PL: you send the warehouse an order to ship and it sends back confirmation of what left the building. Some brands connect both through an EDI provider; others ask the 3PL to trade directly with the retailer on their behalf.
If you only sell direct to consumers through your own store and marketplaces, you probably do not need EDI. Those orders usually flow through an app or API connection instead. See our guide to 3PL technology integration for how the two approaches compare.
Which EDI documents does a 3PL use?
Each EDI document type has a number. These are the X12 transaction sets you will hear most often in a 3PL EDI setup:
| Document | What it does | Usually sent by |
|---|---|---|
| 850 Purchase order | The retailer’s order for your product | Retailer to you |
| 940 Warehouse shipping order | Tells the 3PL what to pick, pack and ship | You to the 3PL |
| 945 Warehouse shipping advice | Confirms what the 3PL actually shipped | 3PL to you |
| 856 Advance ship notice (ASN) | Tells the retailer exactly what is in each carton and pallet before it arrives | You or the 3PL to the retailer |
| 943 / 944 Stock transfer and receipt | Notifies the 3PL of inbound stock and confirms what was received | You to the 3PL / 3PL to you |
| 846 Inventory advice | Shares stock on hand | 3PL to you |
| 810 Invoice | Bills the retailer | You to the retailer |
| 997 Functional acknowledgement | Confirms a document was received | Both directions |
EDIFACT uses names instead of numbers. For example ORDERS is a purchase order, DESADV is a despatch advice (the equivalent of an ASN) and INVOIC is an invoice.
How does 3PL EDI work with retailers?
A typical retail order follows this path:
- Order received: the retailer sends an 850 purchase order, which lands in your EDI or ERP system.
- Order sent to the warehouse: a 940 goes to your 3PL with the items, ship date and routing rules.
- Pick, pack and label: the 3PL packs to the retailer’s rules and applies compliant carton and pallet labels, usually GS1-128 labels with an SSCC barcode.
- Ship notice: an 856 ASN goes to the retailer, matching every SSCC to its contents, before the truck arrives.
- Confirmation and invoice: the 3PL sends a 945, then you invoice the retailer with an 810.
The ASN is where most problems start. If it is late, missing or does not match what physically arrives, retailers can reject the delivery or issue chargebacks under their vendor compliance rules. That is why 3PL EDI is as much about warehouse accuracy and labelling as it is about software.
Brands moving into wholesale often choose a 3PL on storage and pick rates, then discover the warehouse has never traded with their retailer. Mapping a new retailer can take weeks and testing must pass before the first order ships. Ask for a list of retailers the 3PL already ships to compliantly before you sign.
What should I ask a 3PL about EDI?
- Experience: which retailers and distributors do you already ship to with 3PL EDI, and can you share compliance scorecards?
- Documents: do you support the 940, 945, 856, 943, 944 and 846, or the EDIFACT equivalents your customers use?
- Connection: do you trade directly, through your own EDI provider, or through ours? Do you support AS2 or a VAN (value-added network)?
- Labelling: can you print GS1-128 / SSCC labels and meet each retailer’s carton and pallet rules?
- Costs: what are the setup, mapping, per-document and per-retailer fees? Add these to your fulfillment cost per order so you compare quotes fairly.
- Testing: how long does onboarding a new retailer take, and who runs the test cycle?
- Chargebacks: who pays when a chargeback is caused by a warehouse error, such as a wrong label or a late ASN? Put this in the contract.
Include these questions in your 3PL RFP and build EDI testing into your 3PL implementation project plan.
Frequently asked questions
Do all 3PLs support EDI?
No. Many ecommerce-focused 3PLs connect through apps and APIs only. 3PLs that serve retail and wholesale customers usually offer 3PL EDI, but experience with specific retailers varies widely, so ask for proof.
What is the difference between EDI and API?
EDI sends standard documents in batches and is required by many retailers. An API is a real-time connection between two systems and is common for ecommerce stores and marketplaces. Many brands use both: API for direct-to-consumer orders and EDI for retail orders.
How much does 3PL EDI cost?
Costs vary. Expect some combination of a setup or mapping fee per retailer, a monthly fee and a per-document or per-transaction charge, from either the 3PL or your EDI provider. Get them itemised in every quote.
How long does EDI setup take?
If the 3PL already trades with your retailer, it can be quick. A new retailer connection with mapping and testing commonly takes several weeks, so start early.
Who is responsible for EDI chargebacks?
The retailer charges you as the supplier. Whether you can recover the cost from your 3PL depends on your contract, so agree in writing which errors are the warehouse’s responsibility.
Need a 3PL that already trades EDI?
Warenous matches brands with pre-screened 3PLs that ship compliantly to retailers and compares their quotes on your real orders, for free.
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