What is an EDI VAN?

A Value Added Network โ€” or VAN โ€” is a secure private network which acts as an intermediary to enable the secure exchange of electronic business documents between multiple trading partners.

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An EDI Value Added Network (VAN) is a secure private network that facilitates the exchange of EDI documents. It helps businesses simplify their electronic trading; instead of managing multiple EDI connections to different trading partners, an organization can use one connection into a Value-Added Network that connects to all its business partners.ย ย 

Incoming documents are managed in a virtual mailbox, which needs to be manually checked and processed via data entry by the receiving party. The EDI VAN receives mail from senders, sorts it for intended recipients, and delivers it to the recipient's mailbox.ย ย 

VANs offer a range of services, including message validation, audit trails, and notifications.

An EDI VAN is a secure private network that facilitates the exchange of EDI documents. It helps businesses simplify their electronic trading; instead of managing multiple EDI connections to different trading partners, an organisation can use one connection into a Value-Added Network that connects to all its business partners.ย 

Incoming documents are managed in a virtual mailbox, which needs to be manually checked and processed via data entry by the receiving party. The EDI VAN receives mail from senders, sorts it for intended recipients and delivers the mail to the recipientโ€™s mailbox.

EDI revolutionises the way in which trading partners communicate business-to-business transactions such as Purchase Orders, Invoices and Advanced Shipping Notices (ASNs).

Your company can realize EDI benefits by moving away from exchanging documents paper-based, such as:ย 

  • Security: Electronic data transfers can be made securely using encryptionย 
  • Service: Messages are automatically routed to the correct mailbox. Business partners connect to the EDI VAN to retrieve their messages.ย 
  • Validation: The EDI VAN will verify the business partner's identity and the message's validity. Errors can be corrected automatically without your involvement.ย 
  • Fast Onboarding of new trading partnersย 
  • Flexibility: VAN sends and receives data with a variety of protocols; it creates a communication channel allowing each partner to use the data format most suited for their organization and makes the exchange with different partners easier and quicker to be set upย 
  • Tracking: All EDI messages are tracked and recorded so nothing will be lost.ย 
  • Message notification for each new message arriving in the mailbox.ย ย 

When businesses use a Value-Added Network to transmit EDI messages they can:

โ€ขย ย  ย Benefit from a secure communication channel. EDI VANs improve the integrity of your data by analysing in the contents of incoming and outgoing messages to check for errors.
โ€ขย ย  ย Increase compliance with trading partners. Some retailers mandate EDI via a Value-Added Network to their suppliers. As a result, choosing to trade through an EDI VAN can ensure compliance.
โ€ขย ย  ย Improve order-to-cash lifecycles. EDI VANs enable standardised electronic messages to be communicated which means faster message delivery and quicker payment for your products.
โ€ขย ย  ย Trade reliably. EDI connections often represent a businessโ€™s most high-value contracts and Value-Added Networks are a highly dependable method of trading.
โ€ขย ย  ย Reduce trading partner touchpoints. By acting as a middle point between your business and your trading partners, a Value-Added Network reduces the workload involved in EDI communication.
โ€ขย ย  ย Get a complete audit trail. Value-Added Networks track and record the transferral and transaction of all EDI messages that pass through them. In increasingly competitive corporate environments, it is becoming critical for organisations to ensure supply chain visibility, traceability, and security.
โ€ขย ย  ย Stay aware with notifications. To ensure transactions are actioned in an efficient manner, trading partners within the VAN network are notified when a message arrives at their mailbox.

Before choosing to get started with an EDI VAN, itโ€™s important to partner with a provider with the experience to ensure that your EDI messages will flow seamlessly throughout your supply chain. With EDI often representing an organisationโ€™s most valuable contracts itโ€™s essential to choose the EDI provider that best meets your businessโ€™s needs.

TrueCommerce operates its own network, which provides a complete communication service for allย trading partners. Our hosted service and in-house EDI experts make trading, management, reporting, and maintenance of your VAN connections simple. If you would like to begin using an EDI VAN, you can fill in the form below to learn more.

To find out more,ย click hereย or fill in the form below.

TrueCommerce provides a range of EDI solutions to meet the requirements of small, emerging, mid-market and enterprise businesses.ย Findย the right EDI solution for your requirements.