Understanding Home Depot EDI Requirements for Vendors

If you're a supplier to Home Depot, understanding their EDI requirements is critical to avoid costly penalties and maintain a strong vendor relationship. Home Depot enforces strict compliance rules for ASN submissions, barcode labeling, and on-time delivery. This guide covers everything you need to know about Home Depot's EDI requirements for 2025.

Overview: Home Depot's Vendor Compliance Program

All Home Depot suppliers automatically participate in the Vendor Compliance Program. This program ensures suppliers follow guidelines outlined in the Supplier Reference Guide for shipping, invoicing, and operational requirements.

Home Depot uses the X12 EDI standard and requires all suppliers to submit EDI transactions in AS2 format. Suppliers must be certified EDI vendors and monitor their performance metrics through Home Depot's Supplier Hub portal.

Required EDI Transaction Types

Home Depot requires the following EDI documents for vendor transactions:

1. EDI 850: Purchase Order

Home Depot sends the 850 to vendors with order details including:

• Purchase Order Number: Unique PO identifier
• Line Items: SKUs, quantities, unit prices
• Ship-To Location: Store, Distribution Center (DFC), or Regional Distribution Center (RDC)
• Delivery Date: Expected delivery date (critical for OTIF compliance)

2. EDI 856: Advance Ship Notice (ASN)

The 856 ASN is required for all purchase orders, even for direct-to-store shipments. The ASN must include:

• Shipment Identification: Unique shipment ID and PO reference
• TMS Ship ID: Required in the REF segment (failure results in $100 penalty)
• SSCC-18 Barcodes: 18-digit Serial Shipping Container Code for each pallet/carton
• Carrier Details: SCAC code, PRO number, tracking number
• Hierarchical Structure: Shipment → Order → Pack → Item levels

3. EDI 810: Invoice

Suppliers send the 810 invoice to Home Depot after shipment with:

• Invoice Number: Unique invoice identifier
• PO Reference: Links invoice to original purchase order
• Line Items and Charges: Item quantities, unit prices, freight charges
• Payment Terms: Net payment terms (e.g., Net 30, Net 60)

4. EDI 820: Remittance Advice

Home Depot sends the 820 to inform suppliers of payment details, deductions, and offsets applied.

5. EDI 997: Functional Acknowledgment

Both parties exchange 997 functional acknowledgments to confirm receipt and validation of EDI transactions.

GS1-128 Barcode Label Requirements

Home Depot requires GS1-128 shipping labels on all pallets and cartons. These labels contain barcodes that warehouse scanners read to match shipments with ASN data.

SSCC-18 Structure

The SSCC (Serial Shipping Container Code) is an 18-digit identifier assigned to each pallet or carton:

The SSCC-18 must appear in:

• Zone I of the GS1-128 Label: Printed as a barcode and human-readable text
• MAN Segment of the 856 ASN: Each SSCC-18 must be listed in the EDI file

Barcode Quality Requirements

Home Depot enforces strict barcode quality standards:

• If more than 1% of cartons have unreadable barcodes: $5 per carton penalty (applies to entire shipment)
• If more than 2% of cartons have unreadable barcodes: $10 per carton penalty (applies to entire shipment)

GS1-128 Label Contents

The GS1-128 label must include the following Application Identifiers (AIs):

• (00) SSCC-18: Unique container identifier
• (420) Ship To Postal Code: Destination zip code
• (02) GTIN: Global Trade Item Number (product identifier)
• (37) Quantity: Number of units in the container

Home Depot OTIF (On-Time In-Full) Requirements

Home Depot tracks supplier performance using OTIF metrics: On-Time delivery and In-Full fulfillment.

On-Time Delivery Threshold

Suppliers must maintain 90% on-time delivery accuracy. Failure to meet this threshold results in:

• 10% offset of items not shipped for late shipments

In-Full (Fill Rate) Threshold

Suppliers must maintain a 98% fill rate, meaning 98% of all SKU quantities on a PO must be filled and received at the final destination (DFC or RDC). Failure to meet this threshold results in:

• 10% offset of items not received

How OTIF is Calculated

On-Time: Shipment arrives on the delivery date specified in the 850 PO (or within the agreed delivery window).

In-Full: All SKU quantities on the PO are shipped and received. Partial shipments or short quantities count as non-compliant.

Home Depot Compliance Categories

Home Depot breaks compliance into three major categories:

1. Transportation Compliance

• On-time delivery (90% threshold)
• ASN timeliness (100% threshold)
• Correct carrier and tracking information

2. Data Quality Compliance

• Accurate SSCC-18 barcodes in ASN and labels
• Correct TMS Ship ID in ASN (REF segment)
• Matching PO numbers and SKUs across 850, 856, and 810

3. DTS (Direct to Store) and RDC/DFC Compliance

• Fill rate compliance (98% threshold)
• Barcode quality standards (under 1% unreadable)
• Proper packaging and labeling per Home Depot routing guides

Common Home Depot EDI Mistakes and How to Avoid Them

Mistake 1: Sending ASN After Shipment Arrives

Problem: The 856 ASN must be transmitted before the shipment arrives at the DC or store. Sending the ASN after arrival results in a $250 late ASN penalty.

Solution: Set up automated ASN generation in your EDI system to send the 856 immediately when the shipment is tendered to the carrier.

Mistake 2: Missing TMS Ship ID in ASN

Problem: Home Depot requires the TMS Ship ID in the REF segment of the 856 ASN. Missing or incorrect TMS Ship IDs result in a $100 penalty per ASN.

Solution: Verify that your EDI system includes the TMS Ship ID (REF*CN segment) in every 856 ASN before sending to Home Depot.

Mistake 3: Mismatch Between ASN and Physical Labels

Problem: The SSCC-18 codes in the 856 ASN (MAN segment) must exactly match the SSCC-18 codes printed on the GS1-128 labels. Mismatches cause receiving delays and compliance errors.

Solution: Use PlainEDI's 856 to CSV converter to verify SSCC codes in your ASN before printing labels and shipping.

Mistake 4: Unreadable Barcodes

Problem: Low-quality barcode printing, poor label placement, or damaged labels result in unreadable barcodes. If over 1% of cartons have unreadable barcodes, Home Depot charges $5-$10 per carton for the entire shipment.

Solution: Invest in high-quality thermal label printers, use GS1-certified label stock, and conduct regular barcode quality audits before shipment.

Mistake 5: Partial Shipments Without Communication

Problem: Sending partial shipments without updating Home Depot results in fill rate compliance failures and 10% offsets of items not received.

Solution: If you cannot fulfill the full PO quantity, communicate with Home Depot's buyer and send an 855 PO Acknowledgment indicating the partial quantity you'll ship.

Home Depot Supplier Hub and Performance Monitoring

Home Depot provides the Supplier Hub portal for vendor education, performance monitoring, and compliance reporting. Suppliers should regularly monitor their metrics in the Supplier Hub to identify issues before they result in penalties.

Key Performance Metrics in Supplier Hub

• On-Time Delivery %: Percentage of shipments delivered on time
• Fill Rate %: Percentage of PO quantities fulfilled
• ASN Timeliness %: Percentage of ASNs sent before shipment arrival
• Barcode Scan Rate %: Percentage of barcodes successfully scanned at receiving

Suppliers should aim for:

• On-Time Delivery: ≥ 90%
• Fill Rate: ≥ 98%
• ASN Timeliness: 100%
• Barcode Scan Rate: ≥ 99%

How PlainEDI Helps with Home Depot Compliance

PlainEDI helps Home Depot suppliers verify EDI files before sending to avoid costly penalties:

1. Verify 850 Purchase Orders

Convert Home Depot 850 POs to CSV to extract:

• PO numbers and delivery dates
• Ship-to locations (Store, DFC, RDC)
• SKUs, quantities, and unit prices

2. Validate 856 ASNs Before Sending

Convert Home Depot 856 ASNs to CSV to verify:

• SSCC-18 codes match physical labels
• TMS Ship ID is included in REF segment
• Carrier, tracking, and delivery date are correct

3. Check 810 Invoices

Convert Home Depot 810 invoices to CSV to verify:

• PO references match original orders
• Line items and charges are accurate
• Payment terms are correct

Home Depot EDI Onboarding Process

New suppliers must complete the following steps to become certified EDI vendors:

Summary: Home Depot EDI Compliance Checklist

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