Value Added Networks have been central to EDI since the technology's earliest days. Before the internet was commercially available, VANs provided the only practical way for organizations to exchange EDI documents electronically. While direct connectivity options like AS2 and SFTP now offer alternatives, VANs continue to play an important role in the EDI ecosystem, particularly for organizations with large numbers of trading partners or those in industries where VAN usage is the established norm.
A VAN operates conceptually like a postal service for EDI documents. The sender deposits a document into their VAN mailbox, the VAN routes it to the recipient's mailbox (potentially on a different VAN), and the recipient retrieves it. This store-and-forward model decouples the sender and receiver, meaning both parties do not need to be online simultaneously, and the VAN handles all routing, queuing, and delivery confirmation.
How VANs Work
Mailboxing
Each VAN subscriber receives a mailbox identified by a qualifier and ID (such as a DUNS number, GLN, or VAN-assigned identifier). Outbound documents are deposited into the mailbox with routing information specifying the recipient's qualifier and ID. The VAN's routing engine determines the delivery path, whether the recipient is on the same VAN or a different one. Inbound documents accumulate in the recipient's mailbox until retrieved. VANs typically offer multiple retrieval methods including scheduled polling, real-time push notifications, and web-based portal access.
Interconnection
A critical VAN capability is interconnection, where documents are routed between different VAN providers. If your trading partner uses a different VAN than you, the two VANs communicate through peering agreements to deliver the document transparently. Major VAN providers like OpenText, IBM Sterling, and Data Interchange maintain extensive interconnection networks. This means you can reach virtually any EDI-enabled organization through a single VAN subscription, regardless of which VAN they use.
Value-Added Services
Beyond basic message routing, VANs provide services that justify the "value added" in their name:
- Compliance checking: VANs can validate EDI documents against standard syntax rules and trading partner-specific requirements before delivery, catching errors early.
- Format translation: Some VANs translate between EDI standards (for example, converting X12 to EDIFACT) or between EDI and other formats like XML or CSV.
- Tracking and reporting: VANs maintain detailed audit trails of every document sent and received, with delivery status, timestamps, and acknowledgement records.
- Partner management: VANs provide directories and onboarding tools that simplify the process of establishing new trading partner connections.
- Disaster recovery: VAN infrastructure includes redundancy and failover capabilities that individual organizations might struggle to replicate.
VAN Pricing Models
VAN pricing typically combines a monthly subscription fee with per-transaction or per-kilocharacter charges. The per-transaction model means costs scale with volume, which can become expensive for high-volume EDI operations. Interconnection fees, charged when documents cross between different VANs, add another cost layer. Some VANs offer flat-rate pricing tiers for predictable budgeting. Organizations should carefully analyze their transaction volumes and partner distribution across VANs when evaluating VAN costs.
Major VAN Providers
The VAN market has consolidated significantly over the past two decades. Major providers include OpenText Trading Grid (formerly GXS), IBM Sterling Commerce Network, Cleo (formerly Extol), TrueCommerce, SPS Commerce, and Data Interchange. Each provider has strengths in particular industries or regions. SPS Commerce, for example, focuses heavily on retail EDI, while Data Interchange has a strong presence in European automotive markets.
VAN vs Direct Connectivity
The decision between using a VAN and establishing direct connections depends on several factors. VANs make sense when you have many trading partners, especially if they are spread across multiple industries and regions. The VAN handles the complexity of maintaining separate connections and configurations for each partner. Direct connectivity via AS2 or SFTP becomes more cost-effective for high-volume relationships with a smaller number of partners, where per-transaction VAN fees would be significant. Many organizations adopt a hybrid approach, using direct connections for their highest-volume partners and a VAN for the long tail of lower-volume relationships.
Related Resources
Compare VANs with direct connectivity options in our AS2 and SFTP guides. For modern alternatives, see API-Based EDI. Industry-specific VAN usage is covered in our Retail, Automotive, and Logistics industry guides.