Amazon relies on Vendor Central to efficiently manage its business operations with suppliers. For non-EDI suppliers, the typical process includes Purchase Order, Fulfillment, and Invoicing. Here's a breakdown of each step:
Purchase Order Release: Amazon periodically releases purchase orders to suppliers, notifying them via email about the new order.
Confirmation and Back Orders: Suppliers are expected to log in to Vendor Central within a few days and confirm the purchase orders. In case they are unable to deliver on the required date, they need to back order the item.
Routing Request: Before shipping the product, suppliers must create a routing request in Vendor Central. This request authorizes the use of a pre-specified shipping carrier, with Amazon randomly choosing between UPS or FedEx.
Shipping Labels: Suppliers should use their provided Amazon account to log in to FedEx or UPS and print shipping labels. It's important to note that suppliers do not pay for shipping charges and cannot add them to their invoices.
Shipment Tracking: Once the products are shipped, suppliers must promptly update the shipment tracking numbers and Expected Delivery Date (ETD) in Vendor Central. This step should be completed as soon as the shipment is sent and at least four hours before it arrives at the Amazon warehouse. Failure to do so may result in chargebacks from Amazon.
Invoicing: Suppliers should log in to Vendor Central and create invoices.
Automating the Process:
The above process involves significant manual work, which increases the risk of data entry errors and inaccuracies. To mitigate these challenges, Amazon highly recommends using Electronic Data Interchange (EDI) to automate the process.
Amazon Vendor Central EDI Compliance:
For EDI-compliant vendors, the process includes the following messages:
EDI 850: New Purchase Orders
EDI 855: Suppliers review the Purchase Order and send Purchase Order acknowledgment, including delivery confirmation and back orders.
EDI 727: Suppliers send routing requests via EDI 727, specifying the order being shipped and the quantity.
EDI 737: Amazon responds with the routing confirmation and assigns a carrier, providing an Amazon Reference Number (ARN) in the message.
EDI 856: Suppliers ship materials and send an EDI 856 to Amazon. This comprehensive message includes the order number, shipped items, quantities, carrier details, tracking number, and expected delivery date. Remember, this message should contain the Amazon Reference Number provided by Amazon. Failure to include this may result in rejection of the Advance Shipment Notice (ASN).
EDI 810: Suppliers submit EDI 810 for invoices. Ensure that this message references the corresponding order and invoiced quantity accurately.
Why Choose Amazon EDI Compliance?
Unlocking Numerous Advantages
Becoming EDI-compliant for Amazon brings invaluable benefits to your business. While Vendor Central allows manual transaction management, it is not scalable for growing enterprises. As the order volume exceeds 50 per month, manual management becomes arduous. Therefore, transitioning to EDI compliance is a smart choice for businesses operating on Amazon.
Options for Achieving EDI Compliance
In-House EDI Translator Software
Implementing an in-house EDI translator software is one approach to achieving compliance. However, this method requires a significant initial investment, extensive learning, and substantial IT resources and support infrastructure.
VAN (Value-Added Network) Providers
Large VAN providers offer another solution. However, it is important to consider that VAN services can be costly, charging high per-transaction fees and monthly expenses starting at a minimum of $3000. These expenses add up quickly, impacting your bottom line.
Cloud-Based EDI Software
For a simplified approach, consider using a user-friendly cloud-based EDI software like TPSynergy. This solution seamlessly connects with suppliers' accounting software, such as Quickbooks, enabling smooth EDI message exchange while reducing manual effort. Effortlessly enhance your overall business efficiency with this solution.
Take Action Today!
Contact us now to schedule a complimentary one-on-one demo. Discover how our integration capabilities can transform your business, making Amazon EDI compliance effortless and efficient. Visit us at www.tpsynergy.com for more information.
By implementing an automated approach, suppliers can streamline their interactions with Amazon, reduce errors, and enhance operational efficiency.
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