Use in Business-to-Business (B2B) Transactions

1. Procurement: A buyer sends an 850 Purchase Order to a supplier, who responds with an 855 Purchase Order Acknowledgment.
2. Shipping & Logistics: The supplier sends an 856 Advance Ship Notice to inform the buyer of shipment details before delivery.
3. Billing & Payment: An 810 Invoice is sent from the supplier to the buyer, who may respond with an 820 Payment Order/Remittance Advice.
4. Inventory & Warehousing: Retailers and distributors use 846 Inventory Inquiry/Advice to share stock levels or check availability.
5. Retail & Supply Chain: Common in large industries like retail, automotive, healthcare, and manufacturing, where partners rely on predictable, real-time data exchanges.

Benefits:

• Increases efficiency and reduces errors.
• Speeds up order-to-cash cycles.
• Enhances traceability and compliance.
• Improves partner relationships through reliability and consistency.

Overall, X12 EDI plays a vital role in modern B2B environments by streamlining communication, reducing operational costs, and supporting scalable, automated business processes.