All About EDI 846 (Inventory Inquiry/Advice)

EDI (electronic data interchange) is a big deal. Fortune Business Insights estimates that the U.S. EDI market will be worth $4.52 billion by 2030. That's probably no surprise to anyone familiar with EDI's benefits for seamless communication.

EDI saves time, increases accuracy, and improves relationships with trading partners, making it one of the most significant advances in B2B communication. For businesses managing inventory across multiple channels, EDI 846 has become essential for maintaining real-time visibility into product availability.

If you're preparing to implement an EDI system, you may need to use EDI 846. Learn more about the 846 EDI document type, who uses it, and how it can transform your inventory management.

About Orderful

Orderful gives companies a more efficient way to automate EDI 846 inventory feeds with their trading partners through one unified platform. Whether you need Web EDI for manual processing or API integration for automated inventory updates, Orderful handles partner-specific requirements, real-time validation, and all communication protocols. Explore the full platform to see how it supports modern EDI 846 workflows and visit our pricing page to understand how cost effective it is to get started.

What is EDI 846?

EDI 846, also known as Inventory Inquiry/Advice, is an EDI transaction commonly used by dropshippers, e-commerce retailers, and companies that sell directly to consumers. Buyers and sellers use it to communicate about their inventory levels in real-time.

The raw format of EDI 846 is only readable by machines. An EDI software solution is required to translate it into a human-friendly format that integrates with your ERP, WMS, or e-commerce platform.

With EDI 846, you won't have to wonder if your trading partners have the items you need in stock. This transaction provides instant visibility into availability, forecasted restock dates, and discontinued items.

EDI 846: Key elements

This EDI inventory document provides several critical details related to product availability:

Basic Information:

• Inquiry date and time: EDI 846 includes the precise date and timestamp of the inventory inquiry
• Identification information: The 846 document includes the retailer's and vendor's ID numbers for easy reference
• Product identifiers: Uses standard identifiers like stock keeping units (SKUs), universal product codes (UPCs), or GTINs
• Units of measure: Specifies whether products are measured in pounds, ounces, kilograms, cases, pallets, or other relevant units
• Inventory quantities: Current stock levels for each item, the core purpose of the 846 transaction

Additional Supplier Information:

• Forecasted restocking dates: Lets buyers know when out-of-stock items will be available again
• Discontinued items: Provides advance notice when suppliers discontinue products, giving retailers time to find alternatives
• Inventory by location: For multi-warehouse suppliers, specifies quantities available at each distribution center
• Overstock notifications: Alerts partners about excess inventory available at discounted prices

How to use EDI 846

EDI 846 is a bidirectional transaction set, meaning information flows between seller and buyer. This makes it useful for various business scenarios:

E-Commerce and Dropshipping

If you run an e-commerce business using dropshipping, your reputation depends on accurate inventory information. Suppliers send 846 updates (often multiple times daily) so your platform automatically reflects current stock levels. This prevents overselling products you can't fulfill and enables accurate delivery promises.

Retail Inventory Management

Retailers use EDI 846 to maintain optimal stock levels. Suppliers can proactively send 846 documents when they notice low inventory, enabling vendor-managed inventory (VMI) programs. This reduces stockouts during peak seasons while minimizing excess inventory carrying costs.

Warehouse-to-Warehouse Communication

Multi-location businesses use EDI 846 internally to coordinate inventory between warehouses. Before transferring stock or placing new orders, distribution centers can check availability at other locations, reducing unnecessary purchases and shipping costs.

Supplier Selection

Buyers request 846 documents from multiple suppliers to compare availability and reliability. This data helps determine which suppliers maintain deeper stock and more consistent availability for critical items.

EDI 846: Benefits and essential considerations

Like other EDI document types, 846 offers significant benefits for inventory management:

Key Benefits:

Increased accuracy: EDI eliminates manual data entry errors and ensures every transaction is legible and correctly formatted.

Real-time updates: EDI 846 provides current insight into stock levels, making it easier to determine when to reorder items and preventing stockouts.

Improved relationships: With automated EDI communication, you don't have to wait for trading partners to manually respond to inventory inquiries. This speed strengthens business relationships.

Competitive advantage: Major retailers like Amazon, Walmart, and Target often require EDI 846 capability. Companies using EDI don't want to return to manual processes, giving you an edge over competitors still relying on phone calls and emails.

Increased efficiency: Using EDI 846 eliminates periodic manual inventory counts and handwritten forms, increasing productivity without additional resources.

Better decision-making: Historical 846 data helps identify unreliable suppliers, spot demand trends, and optimize inventory investment based on real availability patterns.

Implementation Considerations:

Timing and frequency: Some retailers require 846 updates daily or even hourly. E-commerce dropshippers typically need near-real-time updates to prevent overselling. Your systems must process and act on 846 data quickly through automated workflows.

Inventory accuracy: EDI 846 is only as valuable as the data feeding it. Ensure your warehouse management system accurately tracks stock levels and implements proper cycle counting before launching 846 transactions.

Trading partner requirements: Each retailer may have unique 846 specifications, update frequencies, and required data fields. Plan for partner-specific testing and validation requirements.

EDI 846 specification

EDI 846 adheres to the X12 standards developed by the Accredited Standards Committee (ASC). These standards meet the following criteria:

Consensus-based: ASC develops standards based on input from key stakeholders across industries.

Syntax-neutral: The X12 standards work with various computer systems and programming languages.

Complementary: ASC created these standards with interoperability in mind, meaning EDI 846 works seamlessly with other transaction sets like EDI 850 (purchase orders), EDI 856 (advance ship notices), and EDI 810 (invoices) to create complete document flows.

Get Started with EDI 846 on Orderful

Orderful offers a cloud-based EDI platform that makes implementing EDI 846 simple and cost-effective for businesses of any size.

Why Choose Orderful for EDI 846?

Fast implementation: Start exchanging 846 documents in days, not months. Our pre-configured connections and automated mapping eliminate lengthy setup processes.

Real-time validation: Orderful validates your 846 documents against each partner's specific requirements before sending, preventing rejected transactions and costly chargebacks.

Single API for all partners: Build your 846 integration once through Orderful's RESTful API. We automatically handle partner-specific formatting, communication protocols (AS2, SFTP, VAN), and requirement updates.

Transparent pricing: Web EDI at $189/month per trading partner includes unlimited 846 transactions, all communication channels, 24/7 support, and real-time validation. No per-transaction fees or hidden costs. View our pricing.

Certified Network Buildout: Need to connect with a new trading partner? We'll add any partner's specific 846 requirements to our network within 24 hours at no additional charge.

All Plans Include:

• 997/999/TA1 acknowledgments (always free)
• All communication channels (AS2, FTP, SFTP, VAN)
• Real-time transaction validation
• Business Rules Engine for custom inventory logic
• 24/7 EDI support from industry experts
• UCC-128 compliant labels

To start using EDI 846 documents to your advantage, speak to one of our experts about implementing a trusted EDI solution for your business.

Frequently Asked Questions About EDI 846

What is EDI 846 used for?

EDI 846 (Inventory Inquiry/Advice) exchanges real-time inventory information between trading partners. Suppliers send 846 documents to communicate current stock levels, product availability, and restock dates. It's essential for dropshipping, e-commerce, and vendor-managed inventory programs.

Who sends EDI 846 documents?

EDI 846 is bidirectional. Both buyers and sellers can send it. Suppliers typically send 846 to retailers providing inventory updates. Retailers may send 846 inquiries requesting current stock information. Multi-location businesses also use 846 internally between warehouses.

How often should EDI 846 be sent?

Update frequency depends on trading partner requirements. Amazon and major e-commerce retailers often require hourly 846 updates for dropship inventory. Traditional retailers might accept daily or weekly updates. Orderful supports any frequency your partners require.

What's the difference between EDI 846 and EDI 852?

EDI 846 communicates current inventory levels (what's in stock). EDI 852 reports sales and movement data (what sold). Together, these transactions enable vendor-managed inventory programs where suppliers manage retailer inventory based on real-time sales and stock data.

Do I need EDI 846 for Amazon?

Yes, Amazon requires EDI 846 capability for many supplier programs, particularly dropship and vendor-managed inventory arrangements. Amazon typically requires multiple 846 updates daily with specific data elements. Orderful's platform is pre-configured for Amazon's EDI requirements.

How much does EDI 846 implementation cost?

Costs vary by approach. Traditional EDI middleware with custom 846 mapping can cost $50,000+ for initial setup. Orderful offers transparent pricing: Web EDI at $189/month per trading partner for 846 processing, or Integrated plans starting at $1,999/month for automated API-based 846 exchange with unlimited transactions.