X12 EDI 990: The Response to a Load Tender

What is an X12 EDI 990 Document?

The X12 EDI 990 Response to a Load Tender is a standardized electronic document within the ANSI X12 Electronic Data Interchange (EDI) framework. It is used by a motor carrier to respond to a shipper’s offer to transport a load, as communicated via an EDI 204 Motor Carrier Load Tender. The EDI 990 indicates whether the carrier accepts or declines the load and may include additional details about the acceptance or reasons for rejection. Within a Transportation Management System (TMS), the EDI 990 is a critical tool for confirming transportation arrangements, enabling efficient coordination between shippers and carriers.

Key Components of an EDI 990:

The EDI 990 contains structured data segments that provide a clear response to the load tender, ensuring effective communication. These include:

• Response Details: Acceptance or rejection status of the load tender, with a reference to the EDI 204 load identification number.
• Reason for Response: Codes or descriptions explaining the reason for acceptance (e.g., available equipment) or rejection (e.g., capacity constraints, scheduling conflicts).
• Carrier Information: Carrier identification details, such as name or Standard Carrier Alpha Code (SCAC).
• Additional Information: Optional details, such as confirmation of pick-up dates or specific equipment to be used, if the load is accepted.

How It Works in TMS Systems:

In a TMS environment, the EDI 990 is generated by the carrier’s system in response to an EDI 204 received from the shipper’s TMS. The shipper’s TMS, a software platform that optimizes transportation planning and execution, processes the EDI 990 to confirm whether the carrier has accepted the load or if alternative arrangements are needed. For example, a retailer’s TMS sends an EDI 204 to a carrier to transport 15 pallets of goods. The carrier responds with an EDI 990, accepting the load and confirming availability for the requested pick-up date. If the carrier declines due to capacity issues, the EDI 990 specifies the reason, allowing the shipper to tender the load to another carrier. This automation streamlines communication and ensures timely transportation planning.

Insights:

• Efficient Carrier Coordination: The EDI 990 automates the response process, enabling shippers to quickly confirm transportation arrangements or pivot to alternative carriers, which is critical in time-sensitive industries like retail or manufacturing.
• Decision-Making Support: By providing clear reasons for acceptance or rejection, the EDI 990 helps shippers understand carrier constraints and optimize future tendering strategies.
• Supply Chain Integration: The EDI 990 links transportation planning (via EDI 204) with execution, creating a seamless flow of information that supports end-to-end logistics visibility.

Benefits in TMS Systems:

• Operational Efficiency: Automates carrier responses, reducing manual communication and speeding up load assignment processes.
• Accuracy: Standardized data ensures clear and precise communication of acceptance or rejection, minimizing misunderstandings.
• Visibility: Provides real-time confirmation of carrier availability, enabling shippers to track transportation planning progress.
• Integration: Seamlessly connects with TMS and shipper systems, creating a cohesive logistics workflow.

Challenges and Considerations:

• Data Accuracy: Errors in the EDI 990, such as incorrect load references or response codes, can delay transportation planning, requiring robust data validation processes.
• System Integration: The carrier’s system and shipper’s TMS must be configured to process EDI 990 documents accurately, which may involve technical setup or support from an EDI provider.
• Compliance: Adhering to X12 standards and shipper-specific requirements is critical to ensure the response is processed correctly and avoid disruptions.
• Security: Sensitive data, such as load details or carrier information, requires secure transmission protocols like AS2 or SFTP to protect against breaches.

Getting Started with EDI 990:

To implement EDI 990 for your TMS System:

1. Partner with Ramp Systems to facilitate transaction setup and management.
2. Configure the TMS and carrier systems to generate and process EDI 990 documents, ensuring compatibility.
3. Agree on data standards and communication protocols with carriers and other trading partners to ensure consistency.
4. Test transactions thoroughly and monitor performance to maintain accuracy and reliability.

Why It Matters:

The EDI 990 is a vital tool for coordinating transportation in supply chain operations, enabling efficient confirmation of load tenders and carrier availability. By automating responses to load offers, it reduces errors, enhances visibility, and supports timely transportation planning. This document is essential for shippers and carriers aiming to optimize logistics processes and deliver reliable service in competitive environments.