EDI

Value-Added Network (VAN)

A value-added network (VAN) is a private, managed network that routes EDI documents between trading partners like a digital post office. The sender drops a file in their VAN mailbox and the VAN delivers it to the receiver's mailbox. VANs charge per document or per character, which is why high-volume traders look at alternatives like AS2.

How a VAN works

A VAN uses a mailbox model. Each company connects once to the VAN, which handles delivery, addressing, retries, and the audit trail. VANs interconnect with each other so a sender on one VAN can reach a receiver on another, much like email providers exchanging mail.

VAN versus a direct connection

A VAN is simple to set up but charges ongoing per-document or per-kilocharacter fees that scale with volume. AS2 is a direct internet connection with no per-document fee, but you manage the connection and certificates yourself. Many programs run a mix of both depending on what each partner supports.

Related Terms

EDI (Electronic Data Interchange)

EDI (Electronic Data Interchange) is the computer-to-computer exchange of business documents like purchase orders and invoices in a standard electronic format. It replaces paper, fax, and email so two trading partners' systems can transact directly, without anyone re-keying the data.

AS2 (Applicability Statement 2)

AS2 (Applicability Statement 2) is a secure internet protocol for sending EDI and other business documents directly between trading partners. It wraps the payload in encryption and a digital signature and returns a signed receipt called an MDN. AS2 is the most common direct connection method in retail EDI, avoiding per-document VAN fees.

EDI Capable

Being EDI capable means a company can send and receive business documents electronically in a standard EDI format that its trading partners accept. A retailer asking if you are EDI capable wants to know whether you can exchange orders, invoices, and ship notices as compliant X12 transactions without manual handling.

Learn More

EDI Transaction Guides EDI Document Types Reference

Frequently Asked Questions

A VAN, or value-added network, is a private network that routes EDI files between trading partners using a mailbox model, handling delivery, tracking, and the audit trail.

Not always. AS2 and SFTP let partners connect directly without a VAN, but some trading partners still require or prefer a VAN, so many companies use both.

Sources: ASC X12 standards body

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