An 846 Inventory Inquiry Advice allows suppliers to inform their customers about the inventory information of their product. It may be requested by the customer, but it’s also a way for suppliers to provide information about their products without obligating their trading partners to make a purchase.
The 846 will include inventory information such as item quantities, descriptions and locations. Detailed information such as quantity on hand, quantity committed, quantity on order, quantity on back order and quantity in transit may be included in some cases.
The 846 Inventory Advice can be used for three different purposes:
- Reliable fulfillment for end consumers – This is the most common use of the 846. As we discussed in a post about Drop Shipping earlier this summer, the Inventory Inquiry is important to retailers who cannot reliably offer products to consumers without clear information regarding a supplier’s inventory.
- Information to potential customers – The 846 can be used to provide important inventory information to potential customers.
- Sellers representatives – In the instance of goods sold by a representative for a seller, the 846 can be transmitted to provide information about on-hand quantities.
In drop ship relationships suppliers are accountable for any products listed on e-tail sites. E-tailers utilize the Inventory Inquiry Advice to ensure that suppliers can fulfill any and all orders placed for their products on the E-tailer’s website. Slip ups, errors, and miscommunication involving the 846 will affect suppliers’ scorecards. This can lead to chargebacks and fees or, worst case, cessation of the supplier-retailer relationship.
The 846 Inventory Inquiry Advice is an important transaction that, when used properly and efficiently, benefits suppliers, retailers and end consumers.The 846 Inventory Inquiry Advice by Steve Brewer