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

What We Do?

What We Do?

Commport Communications provides a wide range of innovative and comprehensive supply chain management solutions for Electronic Commerce (EC). This includes Electronic Data Interchange (EDI), Value Added Network (VAN), and Global Data Synchronization Network (GDSN).

Commport supply chain solutions

Explaining what Commport does isn’t the easiest or sexiest thing to try to express especially in an elevator pitch style conversation. Statements like “we provide EDI and data sync services” are most often met with a look of confusion and when we go home at night to our spouses, all they seem to understand is that we work with computers. (but doesn’t just about everyone these days?)

I was once coming home from a GS1 Standards Event and upon reaching customs I was faced with the standard re-entry questions… “You say you have been travelling for work, what do you do for work?” My go to response has always been “ecommerce” and this is usually enough detail to get me through, but not this time.  The agent then looked at me and said “ecommerce is a very large field, can you elaborate”.  Caught slightly off guard, I told him that I was attending a conference to “define the international standards for the electronic exchange of product catalogue information through a global distributed networ….”  I didn’t even get to finish my sentence before his eyes glazed over and he just waved me through with a muttered “Welcome Home”.

So, what is it that we do at Commport?  We provide value added EDI and GDSN data sync services.  That’s great… but what does that mean?  At our last staff holiday party, surrounded by our spouses, our COO gave a speech that for the first time, clarified how what we do affects every one of us on a day to day basis.

“We help to put food on the shelf at your local supermarket.  We help to ensure that suppliers get paid. We help ensure that the product information that is made available to you as a consumer, is accurate and up to date – we help to make supply chains more efficient so that when you go to the store you can find the products and information about them that you need in order to make a purchase.”

For the first time ever, what we do here at Commport clicked for our spouses.  We often get lost in the nitty gritty details of what we do day to day and sometimes fail to take a step back and appreciate the broader impact of what it is we do.

Sure, supply chains existed before EDI and data sync technologies and goods were made available at stores for consumers to purchase. However, retailers such as Walmart have famously leveraged technologies based around EDI and supplier communications to optimize their supply chain management techniques.  In the case of Walmart specifically, this approach to its business is directly credited with helping to make it into the world’s largest retailer.

For a supply chain to be effective in today’s retail landscape, it takes collaboration with suppliers and the implementation of information technologies to get it right.  Using this approach, retailers are able to optimize their inventory, turns, warehouse management techniques and vendor payment schedule while suppliers are able to provide timelier logistics services, accurate information regarding product availability, and electronic invoices.

Putting EDI and data sync technologies into practice is beneficial for both the supplier and the retailer organizations, but the real win is dealt to the consumer who is able to find the products they are looking for, the information they need and with those, is able make the purchase that is right for them.

Enabling that is what we do at Commport, every day.


Ready to find out more?

Drop us a line today for a free quote!