Chart of the Week – ASN accuracy

Would you lend on 3.4% error rates?  Many in the lending industry talk about using various processing activities which can trigger Supply Chain Finance opportunities to release working capital.  So far, the approved invoice has been the main one.

Dr. Bryan Gibson of Auburn University conducted a study with retailers who were attempting to improve ASN Accuracy.  ASNs or Advanced Shipment Notices are used to notify buyers of pending deliveries, similar to a packing list. It is usually sent in an electronic format and is a common EDI document.  The ASN can be used to pay suppliers directly for goods received, by conducting a 3-way match with the company’s ERP system.

According to Dr. Gibson’s study, the contents of the cartons do not match the content of the ASN more than 4% of the time.  Lenders do not want to be the exception in any transaction.


Note that the retailers studied were engaged in ongoing programs to improve ASN Accuracy.


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