Replace Your VAN with Direct EDI
Stop paying per-document VAN fees for EDI translation and routing
Value Added Networks (VANs) were built in the 1980s to route EDI documents between trading partners. They charge per-document or per-kilocharacter fees that add up fast: $0.05-$0.25 per document, plus monthly minimums, interconnect fees, and setup charges. Modern direct connections (AS2, SFTP, API) make VAN middlemen unnecessary for most suppliers.
What VANs Actually Do
A VAN is essentially a mailbox. Your trading partner sends an EDI document to the VAN. The VAN holds it until your system picks it up. That's it. The VAN doesn't validate the data, doesn't integrate with your ERP, and doesn't handle non-EDI orders. For this mailbox service, you pay per-document fees, monthly minimums, and interconnect charges when you add new trading partners. It made sense when FTP didn't exist and the internet wasn't reliable. That was 40 years ago.
The Hidden Costs of VAN-Based EDI
VAN costs are deceptive. The per-document rate seems small until you multiply it by thousands of documents per month. Then add interconnect fees for each new trading partner. And monthly minimums that you pay even when volume is low. And the VAN only handles the transport, so you still need a separate EDI translator and a separate ERP integration. Three systems, three vendors, three invoices.
How OrderSync Eliminates VAN Dependency
OrderSync uses direct connections (AS2, SFTP) to exchange EDI documents with your trading partners. No VAN middleman. The platform handles EDI translation, validation, and ERP integration in one system. You still get reliable document exchange, but without the legacy pricing model. For trading partners that require VAN connections, OrderSync handles the VAN interconnect on our side so you don't need your own VAN subscription.
How OrderSync Solves This
Industries Affected
This challenge is particularly common in these industries:
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Frequently Asked Questions
What is a VAN in EDI and do I still need one?
A Value Added Network (VAN) is a third-party mailbox service that routes EDI documents between trading partners. With modern direct connection methods like AS2 and SFTP, most suppliers no longer need their own VAN subscription. Your EDI provider can handle VAN interconnects on their end if a trading partner requires it.
How much can I save by replacing my VAN?
VAN costs typically run $200-$500 per month in minimums plus $0.05-$0.25 per document, plus interconnect fees of $500-$2,000 per new trading partner. Switching to direct connections can save $5,000-$15,000 annually for a mid-size supplier.
Will my trading partners accept direct EDI connections?
Most large retailers and distributors accept AS2 or SFTP connections directly. For trading partners that only accept VAN-to-VAN communication, your EDI platform can maintain a VAN connection on the back end while you avoid managing your own VAN subscription and fees.