EDI X12 · OW

EDI 940 - Warehouse Shipping Order

The depositor's electronic instruction to a 3PL to pick, pack, and ship inventory - triggering warehouse fulfillment with full detail on what to ship, where to send it, how to pack it, and which carrier to use.

✦ What It Does

The EDI 940 Warehouse Shipping Order is how a depositor (the business that owns inventory stored at a 3PL) instructs the warehouse to fulfill an outbound shipment. When a retailer places a purchase order, a DTC consumer places an online order, or a distributor requests replenishment, the depositor's OMS or ERP generates a 940 and sends it to the 3PL's WMS to trigger the pick-pack-ship process.

A 940 provides everything the warehouse needs to execute without manual intervention: the ship-to address and contact information, each item to be picked with SKU, quantity, and unit of measure, any special packaging or labeling requirements (including retailer-specific GS1-128 label requirements), the required ship date and delivery window, carrier and service level instructions, and any retail compliance notes like PO numbers that must appear on the label.

After shipping, the 3PL responds with an EDI 945 Warehouse Shipping Advice, confirming what was actually shipped - carrier, tracking number, quantities, and any exceptions (shorts, substitutions, out-of-stocks). The 940/945 pair is the operational heartbeat of outsourced fulfillment: the depositor sends orders in, shipping confirmations come back out, and inventory is decremented accordingly.

⚡ When It's Triggered

  • A retailer's EDI 850 Purchase Order is received and needs to be fulfilled from 3PL stock
  • A DTC or marketplace order (Amazon, Shopify, Walmart.com) is routed to the 3PL for fulfillment
  • A wholesale replenishment order is released from the depositor's ERP to the 3PL
  • A store replenishment trigger from a demand planning system creates outbound orders for DC operations
  • A backorder is released when previously out-of-stock inventory arrives and is available to ship
  • A replacement shipment is initiated following a return or damaged goods claim

Who Uses EDI 940

3PL & Fulfillment Centers

3PLs receive 940s from dozens or hundreds of depositor clients and auto-import them into their WMS to create outbound orders. High-volume 3PLs process thousands of 940s daily. A well-mapped 940 integration eliminates manual order entry, reduces pick errors from transcription mistakes, and enables same-day fulfillment SLAs by getting orders into the WMS immediately.

eCommerce Brands

DTC brands using 3PL fulfillment partners connect their OMS (ShipBob, Shopify, NetSuite) to their 3PL's WMS via 940. Every online order becomes a 940 automatically - including gift messaging, special packaging instructions, and carrier preferences. Without EDI 940 automation, brands rely on manual order feeds or proprietary portal integrations that break during peak season.

Retail (DC Operations)

Retailers with 3PL-operated distribution centers use 940 to direct outbound replenishment to stores and direct-to-consumer shipments. The 940 carries store-specific packaging and labeling requirements - individual store addresses, ticketing instructions, and floor-ready merchandise specifications - that the 3PL must execute to avoid compliance chargebacks.

Distribution

Distributors using outsourced warehousing send 940s to their 3PL when wholesale orders are released. The 940 must include the distributor's customer's address and any specific carrier routing from the end customer's routing guide. Complex distributor-to-retailer 940s often carry multiple reference numbers (distributor order number, end-customer PO, retailer DC number) that all need to appear on the shipping label.

Key Data Elements

W05: Warehouse Shipping Order Identification

Opens the 940 body after the ST segment. W0501 = order status/purpose code (N = new order, C = cancel, R = replace), W0502 = depositor order number (the OMS order ID), W0503 = purchase order number (the end buyer's PO), W0504 = release number. This segment establishes the order identity - the depositor order number in W0502 becomes the cross-reference key throughout the 940/945 exchange.

N1/N3/N4: Party and Address Information

Identifies the ship-to consignee (ST) with full address, and optionally the bill-to party (BT) and depositor (DE). For retail shipments, the N1 loop may also carry the retailer's DC number or store number in N104 (identification code). Accurate ship-to address data drives carrier rating, label generation, and delivery appointment scheduling at the 3PL.

G69: Line Item Detail - Description

Free-form product description for each line item. Used alongside W20 for the line detail. Retail compliance sometimes requires specific item descriptions on pack slips and labels that match what the retailer expects - G69 carries that text. Also used for gift messages or special instructions on DTC orders.

W20: Warehouse Shipping Order Line Item

The line-item detail segment: W2001 = quantity ordered, W2002 = unit of measure code (EA = each, CA = case, PL = pallet), W2004 = item description, W2006 = UPC/GTIN or buyer's item number, W2007 = product/service ID qualifier. One W20 loop per SKU. The 3PL's WMS maps W2006 to their internal SKU for warehouse location and pick instruction generation.

G62: Date/Time Reference

Required ship date (10 = ship not before, 02 = ship not after or delivery by) and sometimes a requested delivery appointment. For retail compliance, the ship window is non-negotiable - late shipments trigger on-time/in-full (OTIF) chargebacks. The 3PL uses G62 dates to prioritize the order in their WMS work queue and select carrier service level.

CA3 / AT5: Carrier and Special Handling Instructions

Specifies the required carrier (SCAC code), service level (GND = ground, 2DY = 2-day, 1DY = overnight), and any special handling codes. For retailer-compliant shipments, the SCAC from the retailer's routing guide is mandatory - the 3PL must use exactly that carrier. AT5 special handling codes flag requirements like liftgate (LG), appointment delivery (AP), or inside delivery (ID).

Related Transaction Sets

945

Warehouse Shipping Advice

The 3PL's confirmation that the 940 order has shipped. Contains actual carrier, tracking/PRO number, quantities shipped, and any exceptions. The depositor's OMS ingests the 945 to close out the order, generate the ASN to the end buyer, and update customer-facing tracking information.

856

Ship Notice / Manifest (ASN)

After the 945 is received, the depositor generates an 856 ASN to the end retailer or buyer. The 856 references the same PO numbers and item details as the 940, and includes the carrier and tracking data from the 945. Retail compliance requires ASN transmission within hours of shipment.

943

Warehouse Stock Transfer Shipment Advice

If inventory is being transferred to the 3PL before outbound orders can be fulfilled, a 943 advance notice accompanies the inbound stock. The 3PL receives the 943 to plan putaway before a wave of 940s arrives once the new inventory is confirmed received via 944.

947

Warehouse Inventory Adjustment Advice

Inventory available to fulfill 940 orders can be affected by cycle count variances, damage write-offs, or receiving discrepancies. A 947 from the 3PL communicates these adjustments back to the depositor's inventory system, preventing 940s from being sent for items that are no longer in stock.

Need Help with EDI 940?

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