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Value-Added Network (VAN)

Value-added Network (VAN) is an electronic communication system used to exchange standardized information between companies that build comprehensive supply chains. VANs create a link between pre-defined partners, streamlining the communication process and making it less complex. By taking over the transmission, validation and management of data, VANs reduce the need for multiple communication partners at the point of exchange.

VANs facilitate the exchange of Digital Data Interchange (EDI). EDI is the standard for electric data interchanging allowing companies to exchange documents such as orders, invoices and shipping notices. The complexity and speed of EDI makes the use of a VAN advantageous. Before EDI, businesses relied on paper documents that took longer to process and had more errors.

Organizations today have complex supply chains that span across numerous partners, geographical boundaries and even jurisdictions. Exchange of information is impossible without a unified platform, making it essential for good coordination between the partners. VANs provide companies in the same domain with a common platform over which to exchange data. It eliminates the need to use multiple networks, multiple vendors, and multiple technologies while optimizing the supply chain processes.

VANs provide added value to the entire data exchange process. They make the process equivalent to sending an email instead of a letter. VANs are a secure and reliable platform, verifying the sender and receiver of the data. Companies no longer need to worry about the data being tampered with or delayed.

VANs allow companies to customize the data exchange. Companies can customize the layout and the type of data they want to receive or send. They will determine when the data is sent and received, based on their needs. This level of customization boosts efficiency while ensuring secure data exchange.

VANs help organizations remain competitive and decrease their costs. Companies can save on data exchange costs by using VAN services because they involve fewer partners in the exchange process. They also help simplify the entire process and eliminate the potential for communication errors.

Overall, Value-added Networks (VAN) are essential for companies with complicated supply chains that span across numerous partners, geographical boundaries, and jurisdictions. They provide a secure and reliable platform for the exchange of digital data including orders, invoices and shipping notices, optimizing the supply chain process. VANs reduce the need for multiple communication partners and provide data exchange customization that boosts efficiency. Ultimately, VANs help organizations remain competitive and save on data exchange costs.

Glossary Index