Sent by the buyer in response to a 753 request, the 754 authorizes shipment with a specific carrier, SCAC code, ship window, and any special freight handling requirements that must be followed to avoid chargebacks.
The EDI 754 Routing Instructions is the buyer's authoritative answer to a supplier's EDI 753 routing request. Once a supplier indicates they are ready to ship, the buyer's transportation management system (TMS) evaluates the shipment details - origin, destination, weight, cube, commodity - and selects the optimal carrier from their negotiated freight contracts. The 754 delivers that decision back to the supplier so they can book freight exactly as the buyer requires.
A 754 typically contains the approved SCAC code (e.g., RDWY for ABF Freight, EXLA for Estes Express), the routing code or routing mode (LTL, TL, parcel), a pre-assigned PRO number if the carrier was pre-notified, the ship window (earliest and latest ship dates), and any special handling notes. The supplier must use the exact carrier and routing instructions provided - substituting another carrier, even one in the same family, is a compliance violation.
For collect shipments, the 754 is legally meaningful: it establishes which carrier is responsible for pickup and at whose direction. When a carrier dispute or lost-freight claim arises, the 754 exchange is the authoritative record proving the buyer directed the routing. This is why many retailers require the 753/754 loop even for shipments where the supplier already knows the likely carrier.
Large retailers with inbound freight programs (collect shipments) send 754s to every vendor shipping above their routing guide threshold. Major players like Walmart and Target process thousands of 754s daily through automated TMS routing rules, returning carrier assignments within hours of receiving a 753.
Grocery retailers and club stores (Costco, Sam's Club) use 754 to manage high-volume inbound freight across dozens of DCs. The 754 specifies not just the carrier but often the dock door assignment window at the receiving DC, enabling precise appointment-based receiving.
For high-value goods, buyers send 754s with carrier requirements that include insurance minimums, GPS tracking mandates, or team-driver requirements. The 754 NOTE segment carries these special handling instructions that go beyond just carrier selection.
Seasonal import and domestic consolidation flows mean apparel retailers use 754 to direct suppliers to use specific pool distribution points or cross-dock facilities. The routing instructions may include a hub SCAC for the first leg and an alternate carrier for final delivery.
Opens the 754 and correlates it back to the 753 request. BSN01 contains the transaction purpose code (00 = original, 08 = status), BSN02 is the buyer's own routing instruction number, and BSN03/BSN04 are date and time of issuance. The supplier's original shipment ID from the 753 is echoed back in a REF segment for cross-reference.
The most critical segment. TD501 = routing sequence (B = Origin carrier), TD502 = identification qualifier (2 = SCAC code), TD503 = the SCAC itself (e.g., SAIA, CTII, FXFE). TD504 = transportation method qualifier (LT = LTL, TL = Truckload, AE = Air Express). TD509 = service level code indicating priority.
Echoes back PO numbers (REF01 = PO), the supplier's original routing request number (REF01 = SN), and optionally a pre-assigned PRO number (REF01 = CN for carrier confirmation number). Suppliers must capture the PRO number and include it on the Bill of Lading and subsequent 856 ASN.
Specifies the authorized ship window: DTM01 = 037 (Ship Not Before Date) and DTM01 = 038 (Ship Not After Date). A third DTM with qualifier 017 (Estimated Delivery) may indicate the buyer's expected delivery date at the DC. Missing this window is a common source of routing chargebacks.
Used for free-form routing notes or special instructions that don't fit structured segments. N901 = L1 (Letters or Notes), N902 = short description, N903 = free-text message. Examples: "Call DC receiving at 555-1234 for appointment", "Floor-load only, no pallets", "Must arrive before 10am for unloading crew."
The 754 echoes back confirmed ship-from (N101 = SF) and ship-to (N101 = ST) addresses from the 753. If the buyer's routing logic mapped to a different DC than what the supplier specified (common in multi-DC situations), the corrected destination appears here - the supplier must ship to the address in the 754, not the 753.
The supplier's request that triggers the 754. Every 754 is a direct response to a 753 - the two transaction IDs are linked and must be reconciled in the supplier's system before freight is booked.
After receiving routing instructions, the supplier books the carrier and ships. The 856 ASN is sent to the buyer referencing the carrier SCAC and PRO number from the 754, closing the routing compliance loop.
The originating purchase order whose PO number flows through the 753 and 754 exchange. The 754 routing authorization applies to the specific POs listed, so any unrouteed POs remain open until separately handled.
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