Back in the 1980s, when retailers and manufacturers first embraced EDI, the Value-Added Network (VAN) was the trusted way to exchange documents. It acted like a digital post office, but with slow dial-up connections and costs tied to every kilo-character, it wasn’t always efficient.
The early 2000s brought Internet protocols like HTTP, SFTP, and AS2 which were cheaper and faster alternatives, though still complex to manage. Today, the focus has shifted again, with modern integration platforms and API-enabled VANs making electronic exchanges easier, more reliable, and cost-effective.
In this blog, we’ll walk through the role of VAN in B2B EDI communication, their evolution, and the alternatives that are shaping EDI today.
What Is VAN In B2B EDI communication
A VAN in B2B EDI is a trusted intermediary, a secure virtual “post office†for business documents. It:
1. Provides each trading partner with a virtual mailbox.
2. Accepts your EDI documents, sorts it, and delivers it to the recipient.
3. Handles encryption, validation, and notifications.
4. Allows flexible protocol conversion (e.g., from SFTP to AS2).
5. Simplifies partner onboarding and avoids messy direct connections.
This setup ensures security, traceability, and efficiency, especially in complex, high-volume Business-to-Business environments. Here are some Pros and Cons of using VAN:
Pros Of Using EDI VAN services
- Simplified Connectivity: Instead of setting up dozens (or even hundreds) of direct links with business partners, you only maintain a single connection to the VAN. It then manages all the routing to your partners.
- Mailbox Convenience: VANs operate like a digital post office, documents are stored in secure mailboxes, making it easy to send, receive, and track EDI messages reliably.
- Security & Compliance: VANs provide encryption, authentication, and auditing features. They also help meet compliance requirements across industries (retail, healthcare, automotive, etc.).
- Protocol Flexibility: Many VANs can accept documents via one communication protocol (like SFTP) and deliver them through another (like AS2), making it easier to work with diverse partners.
- Visibility & Monitoring: VANs typically include reporting, delivery confirmations, and audit trails, giving organizations clear visibility into document exchange.
- Scalability: As businesses add more trading partners, scaling through a VAN is easier than maintaining multiple one-to-one connections.
Cons Of Using EDI VAN services
- Cost: VANs can be expensive, especially when fees are based on kilo-characters, transactions, or mailbox usage. For high-volume users, this can add up quickly.
- Performance Limitations: In the early days, VANs relied on dial-up, which was slow. While this has improved, VANs may still introduce extra steps compared to direct, point-to-point Internet connections.
- Dependency on a Third Party: Relying on a VAN means you’re dependent on its uptime, SLAs, and policies. Any disruption on their side can delay your document flow.
- Complexity for Small Businesses: For smaller companies or low-volume EDI users, the cost and setup of a specific VAN might outweigh the benefits, direct Internet-based methods or integration platforms can be more practical.
- Slower to Adopt New Tech: Traditional VANs have sometimes lagged in adopting modern API-based integration or cloud-native models compared to newer integration platforms.
Also read: 8 Best EDI Integration Tools [+Top Choice for Distributors]
What Are The Alternatives To VAN In B2B EDI?
As we’ve seen, Value-Added Networks (VANs) have been the backbone of EDI for decades. But they’re not the only option anymore. Over time, businesses have explored other methods, some more cost-effective, others more flexible. And today, integration platforms are emerging as the modern standard. Let’s break them down.
1. Direct Connections (Point-to-Point)
In this case, instead of routing messages through a VAN, companies connect directly to each trading partner using protocols like AS2, SFTP, or HTTPS.
It cuts out the middleman, reducing costs associated with kilo-character or mailbox fees. Retailers like Walmart have famously mandated AS2 connections from their suppliers.
The difference is that with a VAN, you only have to manage one connection, but with direct point-to-point connections, you may need to manage dozens or even hundreds of links if you work with many partners. That adds complexity in setup and maintenance.
2. Web EDI (Browser-Based Portals)
Smaller businesses often use a web portal provided by a partner or third-party provider. They log in through a browser, enter transaction details manually, and the system converts them into EDI format.
It’s simple, low-cost, and doesn’t require deep technical expertise, ideal for companies with only a few trading partners.
However, Web EDI is manual and entry-level, whereas VANs are fully automated networks for high-volume document flow.
3. API-Based Connectivity
Instead of sending batch files in EDI format, companies use APIs (Application Programming Interfaces) for real-time, system-to-system communication.
APIs enable faster and secure data exchange with greater flexibility. For example, an order update or shipment status can be transmitted instantly, not in a delayed batch file.
VANs focus on batch-based EDI file exchange; APIs are real-time, lightweight, and built for modern digital ecosystems (e.g., eCommerce, cloud apps, marketplaces).
4. Integration Platforms (The Modern Standard)
Integration platforms combine the best of all worlds. They support VAN-like mailboxing, handle AS2/SFTP connections, and increasingly offer API connectivity all from one unified platform.
Why it’s useful:
- Consolidation: You manage everything from a single dashboard instead of juggling multiple providers or protocols.
- Flexibility: Supports both traditional EDI and modern API integrations.
- Efficiency: Reduces complexity, improves visibility, and lowers long-term costs compared to running multiple systems in parallel.
- Scalability: As businesses grow, adding new partners or switching between protocols is easier and faster.
Unlike VANs, direct connections, or web EDI, an integration platform is not tied to a single method. It’s an all-in-one solution that adapts to both legacy systems and modern B2B communication needs.
Also read: Decoding EDI Managed Services [+Top Solution For Businesses]
Why Integration Platforms Are the Way Forward
As mentioned earlier, the industry trend since 2020 has been moving toward consolidated B2B integration solutions. While VANs are still reliable, and direct methods like AS2 remain widely used, the reality is that businesses today operate in hybrid ecosystems, trading with partners who may prefer EDI, APIs, or even simple web portals.
That’s why integration platforms stand out: they give you choice and control. You don’t have to commit to just one method; you can run EDI through a VAN connection, use AS2 for certain partners, and connect to a marketplace through APIs, all under one roof.
An ERP-First Integration Platform for B2B EDI Communication: DCKAP Integrator
DCKAP Integrator is built on a simple belief: your ERP (Enterprise Resource Planning) should be the center of all your operations. That’s why we call it an ERP-first integration platform. The Integrator ensures that your ERP is not isolated. It syncs seamlessly with all your other business systems so that every application from your CRM to your eCommerce platform reflects the same data in real time. This makes your ERP the backbone of your business, powering every decision with clarity and consistency.
Powerful EDI Communication
When it comes to EDI communication, DCKAP Integrator is particularly powerful because it handles both sides of the process:
- EDI Translation: If your business partner’s ERP “speaks a different language,†the Integrator maps and translates the data into a format that your systems understand and vice versa.
- EDI Integration: It connects your ERP with EDI and your internal business systems while also managing the external communication needed with trading partners.
In other words, it takes care of everything from internal workflow automation to external exchanges without the need for multiple tools or complicated setups.
Cost Flexibility with APIs and EDI
Another advantage is cost. Traditional EDI providers often charge by the number of business transactions, much like how early VANs operated. For manufacturers and distributors handling large volumes, this can quickly add up. With DCKAP Integrator, you have flexibility:
- Use EDI where it makes sense.
- Leverage APIs for real-time, cost-free data exchange, since API calls aren’t billed per transaction.
This combination means you get the strength of EDI and the agility of APIs, keeping your business processes efficient and your costs predictable.
On top of that, the platform is user-friendly. You don’t need to be a technical expert to manage it, teams can get visibility, monitor integrations, and ensure everything is running smoothly with ease.
To understand this a little better, let’s look at a real-world example. One of our clients faced challenges in streamlining their EDI communication and internal integrations. With DCKAP Integrator, we helped them connect their ERP with multiple systems, manage EDI translation, and ensure all data was synced seamlessly across platforms.
Below, you can see the case study and a snapshot of what the client had to say about their experience.
Customer Success Story On B2B EDI Integration With DCKAP Integrator
Tangent Technologies, a leader in the recycled plastic lumber industry, was looking for more than a traditional EDI setup. Their goal was to reduce the high transaction-based costs common in the market while building a future-ready integration approach.
With DCKAP Integrator, Tangent found a smarter way. They gained a platform that could seamlessly handle both EDI and API, giving them the flexibility to connect with trading partners in the way that worked best for each relationship.
With Infor SyteLine ERP at the center, DCKAP Integrator acted as a dynamic layer that connected all systems whether EDI-to-EDI, API-to-EDI, or API-to-API without requiring Tangent to rebuild existing processes. The result was greater visibility, reduced costs, and a future-proof architecture designed for long-term efficiency. Beyond the technology, Tangent also valued the hands-on support and reliability of the DCKAP team, making this partnership a strong foundation for their growth.
Once everything was implemented and running smoothly, here’s what they had to say about working with us:
To know more, read the full case study here.
So, if you’re exploring EDI or API integrations and want to simplify your operations, let’s connect. We’d be happy to discuss how DCKAP Integrator can support your business.
FAQs
How does EDI Value-Added Network (VAN) support electronic communications?
An EDI VAN acts as a communication network between trading partners, ensuring secure communication and data integrity. Beyond simple message delivery, many EDI VAN providers offer value-added services such as message archiving, compliance with industry standards, and monitoring of EDI transactions. These additional services can reduce operational risks while keeping costs predictable. However, integration solutions can comparatively save more money in the long run.
What are the key benefits of moving from manual data entry to electronic communications?
Switching to electronic data interchange brings a significant reduction in errors, faster document exchange, and better control of supply chain management. It also helps reduce operational costs by eliminating repetitive tasks. In addition, electronic communications create a secure communication layer that protects sensitive information.
What are best practices for implementing EDI in supply chain management?
Best practices include:
- Using a standard format for all documents to improve compatibility.
- Selecting a secure communication method that suits the specific needs of your partners.
- Relying on a secure platform to protect data integrity.
- Reducing operational costs by automating EDI transactions.
- Ensuring your system supports different ways of integration (VAN, API, or hybrid).
- Applying careful planning before onboarding new trading partners.
What critical role do communication protocols play in EDI transactions?
EDI relies on well-defined communication protocols (like AS2, SFTP, or HTTPS) to ensure a secure platform for exchanging documents. The choice of protocol depends on the specific needs of trading partners, ensuring both data security and compatibility with existing EDI solutions.
