Different Types of Value Added Networks

Different Types of Value Added Networks

There are different types of value added networks that offer various services to meet the needs of different industries and businesses.

Different type of Value Added Network Solution (1200 x 628 px) (1200 x 1200 px) (1200 × 628 px)


A Value Added Network (VAN) is a private network that provides additional services on top of basic data transmission for secure electronic data interchange (EDI) between trading partners. VANs act as intermediaries, facilitating the exchange of EDI transactions between businesses by providing services such as data validation, formatting, encryption, and communication protocols to ensure the secure and reliable transmission of data.

VANs also offer value-added services, such as data mapping, data transformation, and other customization options, to meet specific business requirements. VANs serve as a secure and efficient means for businesses to exchange electronic business documents, such as purchase orders, invoices, and shipping notices, with their trading partners, enabling seamless integration of supply chains and enhancing business processes.

How VAN Works

When companies and their trading partners need to communicate, they typically connect to the same value-added network (VAN), which is often outsourced to an EDI VAN provider. Once all parties are connected to the VAN, any EDI documents they send to each other will pass through the VAN before reaching their intended recipients. The VAN may also handle any necessary translation of the EDI documents to ensure they arrive in the correct format.

Businesses often utilize value-added networks to enhance the efficiency of their supply chain management with suppliers. VAN works in a mailbox setting, companies transmit transactions to a VAN, which then delivers them to the receiver's mailbox. The receiver retrieves the transaction by contacting the VAN and subsequently sends their own transaction. Although the system shares similarities with email, it primarily serves as a means for transmitting standardized, structured data rather than unstructured text.

Market Stats About Value Added Network

  1. Market Size: According to a report by Market Research Future, the global Value Added Network (VAN) market was valued at USD 1.73 billion in 2020 and is projected to reach USD 3.51 billion by 2027, with a CAGR of 10.3% during the forecast period (2021-2027). [Reference: Market Research Future - Value Added Network (VAN) Market Report]
  2. Adoption of Cloud-based VANs: Cloud-based VANs are gaining popularity due to their scalability, flexibility, and cost-effective nature. According to a report by Allied Market Research, the global cloud-based VAN market is expected to reach USD 4.92 billion by 2027, growing at a CAGR of 11.3% from 2020 to 2027. [Reference: Allied Market Research - Cloud-based Value Added Network (VAN) Market Report]

VAN Connection Types

  1. One-to-One

The one-to-one network is a direct point-to-point connection between two businesses to exchange EDI data.  In this type of network, there is a direct connection between two nodes, and value is added to the information that is transmitted between them.


A peer-to-peer network is where two devices are connected directly to each other for the purpose of sharing files or resources. In this case, value is added by enabling the devices to communicate with each other without the need for a central server or intermediary.

  1. One-to-Many

As the name says, a single business is connected to multiple businesses to exchange EDI data.


A single supplier connected to multiple trading partners using a third-party VAN. No matter which communication protocol is used at the trading partner end, VAN can easily connect and transmit the EDI data.

  1. Many-to-Many

In this type of setup, multiple businesses are connected to one another. This is the most common type of VAN network connection majorly used in the healthcare, finance, and logistics industries as there are many segments connected to each other via a single destination node.

Here is the List of 9 Different Types of Value Added Networks

Value Added Network Solution

Value-added networks (VANs) are a crucial component of modern business communication, allowing companies to exchange electronic data in a secure and efficient manner. There are many different types of Value Added Networks (VANs) available, each with its own unique features, services, and benefits, catering to the diverse needs of businesses across various industries and geographies. In this blog, we'll explore the different types of VANs and help you choose the right one for your business needs.

  1. Traditional VANs: These are the original type of VANs that have been in use for many years. They provide a wide range of services, such as data validation, formatting, encryption, and communication protocols, to ensure secure and reliable EDI transactions between trading partners.


  1. Internet-based VANs: Also known as Web-based VANs or Web EDI, these VANs leverage the internet as the communication medium for EDI transactions. They provide web-based interfaces that allow businesses to access and manage their EDI transactions through a web browser, making them more accessible and convenient.


  1. Cloud-based VANs: These VANs are hosted on cloud platforms and provide EDI services over the internet. They offer scalable, flexible, and cost-effective solutions for businesses, as they eliminate the need for on-premises hardware and software and provide on-demand resources for processing EDI transactions.


  1. Integrated VANs: These VANs are integrated with other business systems, such as Enterprise Resource Planning (ERP) systems or Warehouse Management Systems (WMS). They enable seamless integration of EDI transactions with internal business processes, enhancing automation and efficiency.


  1. Industry-specific VANs: Some VANs are tailored for specific industries or verticals, providing specialized services and compliance with industry-specific EDI standards and regulations. Examples include VANs for healthcare, retail, automotive, and logistics industries.


  1. Value-added service provider VANs: These VANs are offered by value-added service providers (VASPs) who specialize in providing additional services on top of basic VAN services. These services may include data mapping, data transformation, data validation, and other value-added services to meet specific business requirements.


  1. Global VANs: These VANs have a global presence and provide EDI services for international trading partners, enabling global supply chain integration and facilitating EDI transactions across borders.


  1. Managed service provider VANs: These VANs are offered by managed service providers (MSPs) who provide end-to-end management of EDI transactions for businesses, including VAN connectivity, mapping, data validation, and other services, relieving businesses of the burden of managing their own EDI infrastructure.


  1. Hybrid VANs: Hybrid VANs combine the benefits of both traditional and cloud-based VANs. They offer the security and reliability of traditional VANs, while also providing the flexibility and scalability of cloud-based VANs. Hybrid VANs are ideal for businesses that require a high level of security for their data but also need to be able to quickly adapt to changing business needs. They can also be customized to meet specific business requirements, such as integrating with legacy systems or providing advanced analytics and reporting.



Value Added Networks (VANs) play a critical role in facilitating electronic data interchange (EDI) between businesses. There are different types of VANs that offer various services to meet the needs of different industries and businesses. Choosing the right type of VAN depends on the business's size, industry, and EDI needs. Understanding the differences between the various types of VANs is crucial in selecting the most suitable one for your business.

25 Benefits of Value Added Network

25 Benefits of Value Added Network

A value-added network (VAN) is important for businesses that rely on electronic data interchange (EDI) for their communication and transactional needs. It can help businesses improve their efficiency, reduce costs, and enhance their competitive edge. This blog discuss the top 25 benefits of value added network

Value Added Network Solution


In today's fast-paced business world, efficient and secure communication is essential for success. A Value Added Network (VAN) acts as an intermediary between businesses, ensuring that data is transmitted between trading partners securely and efficiently. VAN also provides a range of other benefits for businesses which includes data translation, message routing, and data transformation.

VANs use advanced encryption and security protocols to ensure that data is transmitted safely and securely between trading partners. This helps to protect sensitive business information from cyber threats and data breaches. It offers reliable data exchange, ensuring that messages are delivered to their intended recipients in a timely and efficient manner. This helps to reduce errors and improve communication between businesses, ultimately leading to better collaboration and stronger partnerships. Additionally, third-party VAN providers often offer other value-added services such as real-time tracking, secure mailbox, duplicate control, data validation, and reporting, further enhancing communication and collaboration between businesses.

Another big advantage of using a VAN network is its scalability and flexibility. As businesses grow and expand, their communication needs may change. A VAN can easily adapt to these changing needs, allowing businesses to add or remove trading partners as needed. Additionally, VANs can support a wide range of communication protocols and file formats, making it easy for businesses to communicate with partners using different systems. This flexibility and scalability can help businesses stay competitive and adapt to changing market conditions.

Here are the top 25 benefits of Value Added Network:

1. Improved Data Accuracy

VAN provides data validation and formatting services, reducing errors and ensuring data accuracy in electronic transactions.

2. Enhanced Security

VAN's use secure protocols and encryption techniques to protect data transmitted between trading partners, reducing the risk of data breaches.

3. Simplified EDI Implementation

Provides easy-to-use interfaces and tools for setting up and managing EDI connections, simplifying the implementation process for businesses.

4. Increased Operational Efficiency

Automates the exchange of data, reducing manual data entry and processing, which helps to streamline business operations.

5. Faster Transaction Processing

Enables real-time or near real-time transaction processing, reducing transaction times and improving supply chain efficiency

6. Cost Savings

Eliminate the need for businesses to build and maintain their own EDI infrastructure, which can result in cost savings in hardware, software, and maintenance.

7. Scalability

Can handle large volumes of data and transactions, making them scalable to accommodate business growth.

8. Global Reach

VANs have extensive networks that can facilitate EDI transactions with trading partners around the world, enabling global supply chain integration.

9. Increased Visibility

Provides visibility into the status of transactions, enabling businesses to track and monitor the flow of data in real-time.

10. Improved Customer Service

Enables faster order processing and response times, leading to improved customer service levels.

11. Enhanced Business Relationships

Helps businesses establish and maintain electronic connections with their trading partners, facilitating efficient communication and collaboration

12. Simplified Compliance

Can help businesses comply with industry-specific EDI standards and regulations, ensuring that data is exchanged in a compliant manner.

13. Reduced Paperwork

Eliminates the need for paper-based transactions, reducing the cost and time associated with manual data entry and processing.

14. Increased Data Visibility

Provides businesses with better visibility into their data, enabling them to analyze and leverage data for strategic decision-making.

15. Improved Accuracy of Order Processing

Automates the exchange of orders, reducing the risk of errors associated with manual order processing.

16. Faster Invoice Processing

VANs enable electronic invoicing, reducing the time and effort required for invoice processing.

17. Enhanced Inventory Management

Enables real-time visibility into inventory levels, helping businesses optimize their inventory management processes.

18. Reduced Lead Times:

Achieve faster communication and transaction processing, reducing lead times in the supply chain.

19. Improved Cash Flow Management

Facilitate faster payment processing and reduce the need for paper-based transactions, improving cash flow management for businesses.

20. Increased Trading Partner Connectivity

Providing businesses with a single connection point to multiple trading partners, simplifying connectivity and reducing the need for multiple point-to-point connections.

21. Enhanced Order Tracking

Real-time order tracking capabilities, enabling businesses to track the status of orders throughout the supply chain.

22. Better Supplier Collaboration

Facilitate efficient communication and collaboration with suppliers, improving supplier relationships and reducing order fulfillment delays.

23. Reduced Manual Data Entry

Automate the exchange of data, reducing the need for manual data entry and associated errors.

24. Improved Order Accuracy:

VANs provide data validation and formatting services, reducing order errors and improving order accuracy.

25. Increased competitive advantage:

By leveraging the benefits of VANs, businesses can improve their operational efficiency, reduce costs, and enhance their supply chain management, resulting in a competitive advantage in the marketplace.


Value added network (VAN) can offer numerous benefits to businesses that rely on electronic data interchange (EDI) for their communication and transactional needs. VANs provide a secure and reliable platform for exchanging EDI messages with trading partners, ensuring the integrity and confidentiality of data. Additionally,

VANs offer value-added services such as data transformation, translation, and mapping, which can help streamline business processes and reduce errors. VANs also provide real-time visibility and tracking capabilities, enabling businesses to monitor and manage their EDI transactions efficiently. Finally, by outsourcing their EDI requirements to a VAN, businesses can save on costs associated with managing an in-house EDI infrastructure. Overall, the use of a VAN can help businesses improve their efficiency, reduce costs,

Frequently Asked Questions