VAN’s vs Internet?

Electronic Data Interchange (EDI) is a structured electronic exchange of data information between one application in one organization and an application in another. EDI is present is almost all companies around the globe, however which is the best option for a business that is looking to the future? Value added network (VAN) or the Internet.

The main advantage that resonates with VAN is its security. VAN has high quality security, if a business need its information to be secure VAN is the correct choice. However the cost of VAN is high as it charges by transaction and may also charge for the duration of the transaction. If a company is using VAN its corresponding company must also have VAN EDI in place for the transaction to occur. A larger company would be interested in VANs value added services such as it being a fully managed service.

EDI via the Internet is a quicker and cheaper way of exchanging data between organizations. A company would consider whether or not their data needs to have high security and if not Internet EDI is the way to go.  Small to medium size companies would avail of this type of data transfer as it is so cost effective.  However, I am sure, there will be advance in web EDI within the next couple of years that will challenge VAN EDI.

Therefore all-in-all, I believe that for the future of EDI in an organization a combination of both VAN and Internet EDI is the way forward. For more information on EDI check out : http://www.edibasics.co.uk/types-of-edi/