Costco EDI Compliance
Costco is a membership only store that offers a variety of value-priced products and produce. The company was founded in 1976 and has thrived since, becoming the 2rd largest retailer in the world as of 2015. Costco is also the biggest membership warehouse club in the U.S.
Costco provides a long line of products such as clothing, home appliances, fresh fruit and vegetables, meat, dairy, flowers, jewelry, wine, furniture, and much more.
EDI documents are communicated through a transmission method called VAN (Value Added Network). The following EDI document types and labels are mandatory by Costco and have been fully tested by CovalentWorks for exact compliance with Costco’s EDI specifications.
Costco EDI Requirements
- 810 Invoice
- 812 Credit/Debit Adjustment
- 820 Payment Order/Remittance Advice
- 824 Application Advice
- 850 Purchase Order
- 852 Product Activity Data
- 856 Advance Ship Notice
- 860 Purchase Order Change/Cancel
- 864 Text Message
- 997 Acknowledgment Document
- Branded packing slips for drop shipments
- GS1-128 (formerly called UCC-128) bar code shipping labels
Costco requires several different label types when a purchase order is fulfilled.
The ASN (Advance Shipping Notice) will contain comprehensive information about the packing of the products that are being sent to Costco and as well as transportation information. For example, the numeric weight, volume, carrier SCAC code, equipment number, Bill of Lading number, carrier reference number, and shipped date will be included in addition to data that comes from the purchase order.
Costco uses the SOPI, SOTPI, SOTI and SOIP format for ASN’s. SOPI is mainly used for shipments with more than one item type and SOIP is typically used for shipments that have only one item type.
An SOPI (Shipment, Order, Pack (carton) and Item) ASN is also known as “Pick and Pack” because more than one type of item can be picked from the supplier’s shelves and packed into the same carton. SOIP (Shipment, Order, Item and Pack) is commonly called “Standard Pack” because it allows for only one product type to be packed into any one container.
The SOTPI (Shipment, Order, Tare (Pallet), Pack (carton) and Item) packing structure is like the SOPI packing structure, except that the cartons are in turn loaded onto one or more pallets. Lastly, the SOTI packing structure is like the SOPI packing structure, except that the carton information “P” (Pack) replaced by the T (Tare) pallet information.
Costco uses a cross docking system. Cross docking is a supply chain process in which products from a supplier are delivered to a store through a distribution center. Trucks from the suppliers dock on one side of the distribution center and trucks going out to the stores dock on the other side of the distribution enter. Product is not usually stored.
Here is a sample of a label