VAN (Value Added Network) Communication Service

VAN or Value Added Network is a third-party private network provider focused on network services including postal functions for EDI transactions. VAN services cover secure emailing, messages encryption, management reporting, and accepts different communication protocols. These VAN features enable reliable connectivity between organizations, businesses and government or private bodies. Being a convenient and secure way of data sharing and communication, Value Added Networks facilitate Electronic Data Interchange in online business and e0commerce itself.

How Value Added Networks are created?

Let’s take a common telecom company that leases its communication channels to a definite network provider. This provider adds additional services to the line and so Value Added Network is created. The functions and options as well as enhancements and improvements that are added to lines mostly focus on EDI.

In online business VANs make sharing information easier as VAN become a single point of contact for all parties involved in the process. The number of direct contacts are reduced and standard data is shared by Value Added Network with defined receivers.

If we compare Value Added Network with e-mail exchange process, we will see that they are quite similar. However, email transmits unstructured text, while VANs transfer structured and standardized data. Usually, Value Added Networks are operated by large telecome companies.

In the era of Internet VANs have faced a strong competition. Internet is more cost-effective, but VANs focus on special industry data transmission. VANs are actively used by healthcare bodies, manufacturing, supply chain and retail.

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