Value added networks are third party networks that provide services to execute authorized transactions with valid trading partners using EDI. Each VAN has a centralized computer system that maintains two files for each user, that is, Postbox: where outgoing messages are placed, and Mailbox: where incoming messages can be picked up
Value added networks VAN Example
Above, Nice Store needs to place orders for bread, meat and vegetables. It establishes a link to Value added networks through the dial up line, and sends EDI-based order messages for the three suppliers which are temporarily stored in its postbox. VAN computer system inspects postbox, unpacks
interchanges (electronic envelopes), repackages them as new interchanges and moves them to the
mailbox of the intended recipients. The three recipients check their mailboxes for new interchanges,
pick them up and cause them to be transmitted to their respective processing systems. They can also send acknowledgment messages and cause them to be stored in their respective postboxes. VAN
checks them and put them in the mailbox of Nice Food.
Advantages of VANValue added networks VAN Example
Above, Nice Store needs to place orders for bread, meat and vegetables. It establishes a link to Value added networks through the dial up line, and sends EDI-based order messages for the three suppliers which are temporarily stored in its postbox. VAN computer system inspects postbox, unpacksinterchanges (electronic envelopes), repackages them as new interchanges and moves them to the
mailbox of the intended recipients. The three recipients check their mailboxes for new interchanges,
pick them up and cause them to be transmitted to their respective processing systems. They can also send acknowledgment messages and cause them to be stored in their respective postboxes. VAN
checks them and put them in the mailbox of Nice Food.
Two big advantages of using a VAN in EDI are time independence and protocol independence. Time
independence means that the sending and receipt of the interchange or messages can be carried out at
the convenience of the users involved. Thus, they are not required to be connected with each other at
the same time. Protocol independence means that interchanges are re-enveloped with the transmission
protocol appropriate to the recipient when they are retrieved from the postbox by the VAN. Thus, a Value added networks VAN can provide protocol compatibility between the sender and the recipient, wherever that is missing.
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