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A value-added network (VAN) is a private provider that manages electronic data interchange (EDI) for companies, offering services such as secure email transmissions and file encryption. VANs have been around for decades, but the internet has expanded their range of services and made them more accessible to smaller businesses. VANs offer EDI translation, secure email, reporting tools, and other services. Costs vary based on the range of services required, with customization and as-needed options available.
Also known as a VAN, a value-added network is a type of private provider contracted by a company to manage the electronic data interchange or EDI process for the company. In many cases, the network will also serve as a means of running a variety of different network services, including online commerce solutions. Sometimes referred to as turnkey communications, a value-added network allows even small businesses to use services such as secure email transmissions, file encryption, and even different forms of management reporting between different points within a corporate structure or with a business partner.
The concept of a value-added network has been around for decades. Before the advent of the Internet for general business, larger companies tended to use these types of networks to handle the efficient and secure transmission of data within a corporate infrastructure or with a select group of customers or suppliers. While the range of services provided by these types of networks has been more specialized in past decades, the ability to use the Internet for many of these functions has prompted service providers to re-examine the range of offerings presented to potential customers. In the process, smaller companies found that the cost of using a value-added network was going down, making it easier to access different service options that allowed them to compete with larger companies in ways they weren’t. possible before the widespread use of the Internet became common.
Today, a value-added network is likely to provide a number of services that are considered part of the electronic data interchange process. This includes so-called EDI translation, a strategy that allows data to be secured between two points using encryption that renders the information of little or no use without access to the encryption keys. Secure e-mail is another common service offered by a value-added network, which facilitates the use of this medium to transmit documents and share confidential information without concerns of interception by unauthorized parties. Reporting tools are also often provided as part of network services, an offering that can make it easier for any business to carry out the day-to-day management process.
The costs associated with a given value-added network are often based on the range of services required by the customer. Vendors typically offer several service packages designed for businesses of different sizes and types, with some degree of customization included in the basic rates. Many providers also offer a range of services outside the scope of any single contractual offer, allowing customers who may need a certain service on an infrequent basis to purchase it on an as-needed basis, rather than buying a more expensive package that includes the service in the basic package.
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