What is an EDI VAN?
An EDI VAN (Value-Added Network) is a private, hosted network that allows EDI documents to be exchanged securely over the VAN between trading partners. It serves as a centralized space for your company to utilize for digital mail, for example a post office but for digital documents in the EDI space that receives, stores, routes, and delivers each company's data according to the EDI standards.
The benefit for the companies is that they don't set up multiple point to point connections with each trading partner; instead, they only connect to the VAN once, and can communicate with all of their partners once they are connected to the VAN.
Why Businesses Use an EDI VAN
Across industries, businesses leverage EDI VANs (Value-Added Network) to facilitate electronic data transfer in a secure manner to trading partners. Instead of establishing individual point-to-point connections, an EDI VAN, EDI users can connect to multiple partners on one centralized network. This makes it much easier to communicate, especially for organizations with many suppliers, distributors, or customers.
For businesses choosing EDI VAN, security is one of the most common factors. EDI VAN's offer encryption, authentication and secure routing protocols to help ensure information is secure during the transmission process. Industries such as health care, logistics or retail have regulations to meet (HIPAA, GDPR, GS1) so transferring information securely can be very important.
Reliability is a second factor. EDI VAN's offer a managed service with enterprise-grade uptime like Infocon Systems so that clients do not have to worry about downtime or late transactions. The EDI VAN service will also mediate document translation and validation to ensure that messages meet required standards (ANSI X12 or EDIFACT) before they are sent/received.
Key Functions of an EDI VAN
| Function | What It Does |
|---|---|
| Message Routing | Delivers documents to the correct trading partner |
| Format Translation | Converts files between EDI standards (e.g., X12 ↔ EDIFACT) |
| Archiving | Stores documents for auditing and regulatory purposes |
| Notifications & Logs | Provides real-time status updates and delivery reports |
| Data Validation | Ensures documents are compliant with partner specs |
EDI VAN vs. Direct EDI (Point-to-Point)
| Feature | EDI VAN | Direct EDI (AS2, FTP, etc.) |
|---|---|---|
| Setup Complexity | Low | High |
| Trading Partner Reach | Thousands of partners | One partner per connection |
| Security | Provider-managed encryption | Custom-built |
| Maintenance | Handled by provider | Handled in-house |
| Cost | Monthly fee | Higher internal costs |
Common Use Cases for EDI VAN
EDI VANs are used widely across the industries as the medium for exchanging business documents in an automated manner. Retail is most commonly associated with EDI VANs to send and receive purchase orders (EDI 850), invoices (EDI 810), and advance ship notices (EDI 856) from large retailers and distributors. All of this helps support supply chain activities through improvements in order accuracy and reductions in manual data entry.
Similarly, in logistics and transportation, EDI VANs allow carriers, freight brokers, and shipper exchange load tenders (EDI 204), shipment status updates (EDI 214), and freight invoices (EDI 210) with its customers and partners. All of these transactions enable improved results in fleet management and virtually eliminate delays in shipments through constant communication and visibility to shipments through tracking and statuses.
Manufacturers can benefit by using EDI VANs to reduce the need for communicating and exposing a business' data through automation when it is cooperating with suppliers and customers. Typical uses of EDI VANs include material release schedules (EDI 830), shipping schedules (EDI 862), and product activity reports (EDI 852). In addition, this level of automation enables improved control of inventory levels, supporting lean approach principles and just-in-time production models.
E-commerce platforms and marketplaces leverage EDI VANs to ensure that the data flows seamlessly between sellers and their fulfillment provider. Many transactions such as inventory updates, order confirmations, return authorizations, among others are exchanged through the EDI VANs to ensure efficient and quick order fulfillment.
Types of EDI VAN
Although the primary function of an EDI VAN (Value Added Network) is to enable trading partners to communicate securely and efficiently, there are different types or versions based on features, methods of delivery, and levels of service. Here are the main types:
1. Basic EDI VAN
A basic EDI VAN offers basic EDI processes such as document routing, mailboxing, and basic delivery reporting. This option is best for a small company with low transaction volume and few integration needs.
2. Managed EDI VAN
A fully managed solution, where the VAN provider is responsible for everything from partner set up and mapping to monitoring and error handling. This option is best for an organization that wants to totally offload EDI management.
3. Cloud-Based EDI VAN (Modern VAN)
VANs are hosted on modern cloud infrastructure that is scalable to support higher volume data exchange, faster processing, improved analytics, and open and flexible APIs. Cloud-based EDI VANs are typically accompanied by web portals and dashboards and many times offer a WOW factor.
4. Industry Specific EDI VAN
There are VAN providers who specialize in an industry, such as retail, logistics, healthcare, or manufacturing, and they may have their own sets of documents, compliance, and workflows aimed to serve a very specific purpose.
5. Hybrid EDI VAN (VAN + Direct EDI)
Combines traditional EDI VAN infrastructure with direct connections for flexibility. Companies can use the VAN for the majority of partners and direct EDI for the rest.
Key Benefits of Using a VAN for EDI
Reduced Complexity: One connection allows you to trade with all of your trading partners.
Safe & Secure: Encryption, monitored data transmission & audit trails.
24/7 Support: Continuously monitored and expert assistance is available 24/7.
Data Translation: EDI formats converted to what meets your expectations.
Document Storage: You can easily look up archived or old documents from earlier transactions.
Scalable: It grows with you! No extra configuration necessary for scaling your business.
Compliance Ready: You stay current with EDI standards and agreements with your trading partners.
Cost-Effective: Eliminates manual work, reduces IT overhead and helps you avoid mistakes.
How Infocon Systems Simplifies EDI VAN
Infocon Systems is a leading EDI Service Provider, and provides VAN connectivity as a part of our complete solution offering. So whether you need VAN only connectivity with your current EDI Solution, or are considering outsourcing your complete EDI Program, we can help. We specialize in helping small businesses to mid-sized Enterprises that want to reduce costs and increase their efficiency.
Our EDI VAN services and EDI hosting can help you develop cost efficient partner relationships, whether your customers or suppliers are small, medium or large. As a certified top-tier EDI provider, we can take care of all of your EDI VAN needs at a very affordable price. You pay a low set up fee and simplified monthly fees based on your volume with all of your partners. There are no "extras".
Thousands of trading partners are available to you through Infocon Systems. Our network connects with any partner you may have inside or any country outside of the United States. More buyers are asking their suppliers to have the ability to reliably exchange e-commerce documents.
These companies want to reduce process costs by automating buying, invoicing and fulfilment processes. With EDI VAN from Infocon Systems, our solution is as easy to use as email, so you can focus on growing your business without worrying about EDI transmissions.
Reliable, Fast and Cost Effective
At Infocon Systems, we strive to help you meet the demands of today's cost requirements. Competitive suppliers want to make themselves less expensive to buy from by:
- Using Value Added Networks to develop automated customer relationships
- Complying with their customers’ EDI VAN services requirements
- Increasing efficiency through fast and accurate transmission of documents through a value added network.
In short, suppliers want EDI hosting and EDI VAN services that preserve the unique business arrangements they have worked hard to create with their customers – and they want them through a reliable EDI provider.
That is why many small businesses are turning to Infocon Systems. Infocon Systems is an EDI provider that is leading the charge in helping these suppliers automate B2B processes using web-based EDI provider solutions, including EDI hosting and EDI VAN services, all while reducing costs.
Simple and Affordable EDI VAN & Hosting Solutions
Infocon’s EDI hosting services support EDI transactions, XML transactions, flat files and other web based electronic document formats. Your information and your trading partner's document format are automatically transmitted. Both ANSI X12 and EDIFACT standards are supported. There is no software or hardware to install. All you need is FTP Internet access and email capability. Our hosting service provides the solution for you and takes care of day-to-day transmission monitoring.
Our dedicated team of EDI experts know how to deliver world-class, affordable, and reliable EDI solutions - because we’ve done just that for thousands of happy clients. You’re in good hands. And we would be honored to serve you.
To learn more about how Infocon Systems can take care of your Van EDI needs, please don’t hesitate to give us a call at +1 888-339-0722 or email sales@infoconn.com. We’d love to hear from you.
EDI VAN – Frequently Asked Questions (FAQs)
1. What is an EDI VAN?
An EDI VAN (Value-Added Network) is the secure, cloud-based network that allows one business to send their EDI documents. Companies connect to the VAN once (so they don't have to manage separate connections with each partner), and the VAN will manage the routing, formatting, and delivery of a business's EDI documents.
2. How does an EDI VAN work?
A secure digital mailbox is provided for all businesses. EDI documents are sent to and from this mailbox, and the VAN formats the documents, facilitates delivery confirmation, and securely sends them to the correct trading partner.
3. Who uses EDI VAN services?
Retailers, manufacturers, logistics providers, healthcare organizations, and suppliers of all sizes use EDI VANs to exchange their business documents.
4. What types of EDI documents can be exchanged over a VAN?
Common documents include purchase orders (EDI 850), invoices (EDI 810), shipping notices (EDI 856), inventory updates (EDI 846), and healthcare claims (EDI 837), among others.
5. Is EDI VAN secure and compliant?
Yes. Leading EDI VAN providers, like Infocon Systems, offer encryption, user authentication, audit trails, and compliance with standards like GDPR, and ISO 27001.
6. Can I integrate an EDI VAN with my ERP or accounting system?
Absolutely. EDI VANs are designed to integrate with systems like SAP, Oracle, NetSuite, QuickBooks, Microsoft Dynamics, and more.
7. How long does it take to get started with an EDI VAN?
Infocon Systems can typically get businesses connected and trading via EDI VAN within a few days, depending on the complexity and number of partners.
8. What’s the cost of using an EDI VAN?
Pricing varies based on document volume, number of trading partners, and integration needs. Infocon Systems provides tailored quotes based on your specific requirements.