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FREE online courses on ECOMMERCE FUNDAMENTALS - Electronic Data
Interchange - Value Added Networks |
In addition to dedicated or dial-up mode connectivity, an
EDI user must decide whether to support direct communication with each trading
partner or engage a Value Added Network (VAN) provider. For a fee, the VAN
will collect and discriminate a firm's EDI transactions.
A VAN customer supports a single connection between himself and the VAN's
nearest point-of-presence - in dial-up mode.
Other value-added features of VANs include:
Each party to an EDI delivery must approve the trading
relationship prior to use of the VAN. Sender and receiver will notify the VAN
that sender is authorized to have transactions delivered to receiver.
VANs normally provide detailed activity logs and periodic
reports on usage by mailbox.
VAN on-network translation from and to ASC X12 formats is
less frequently requested because generation translator products have made this
offering obsolete. However compliance checking which ensures that the
transactions exchanged meet the ASC X12 standard is applied during transaction
testing.
Most VANs today offer exchange of
transactions with trading partners who are customers of other VANs. The pricing
of this service is not uniform and current audit procedures between competing
VANs are limited. The frequency of exchange also varies widely depending on the
agreement reached between the originating and terminating VAN.
