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VAN stands for ‘Value Added Network’, which is private network where EDI traffic is exchanged securely. Trading partners will typically require an account with an EDI VAN such as GXS and this account simply acts as an electronic mailbox to both send and receive electronic documents. In addition to sending EDI documents to your trading partner via a VAN it is also possible to send EDI documents between VANs, these are known as ‘interconnects’. Interconnects are beneficial in so much as they will give you access to a much broader range of trading partners distributed across the world. Whilst EDI VANs have been around for nearly 30 years now, the Internet does provide an alternative method of transferring EDI documents. Even though the business benefits of using both are similar, the deciding factor of which to use will depend upon the partner agreement that has been prepared. Ideally, both EDI trading partners need to use the same method of transport, either a VAN or direct exchange through the Internet. Many of the larger companies will insist that all their suppliers should use the same method of sending documents.
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