Role of Value Added Networks

ROLE OF VAN

1. To execute only authorized transactions with valid trading partners.
2. To enable the VAN to distinguish authorized transactions and valid trading partners.
Companies view EDI messaging as a function to be outsourced to a specialist.VANS provide this outsourcing function and serve as a messaging station for trading partners. Messaging can be transmitted from one party’s VAN to the other party’s VAN.

Company A (Vendor)

VAN COMPANY’S A AND B TRADING AGREEMENT

Company B (Customer or partner)

When author trading partner send a request for information to VAN .VAN transmit the data immediate back to the requesting partner with out needing to contact to the vendor.
If VAN does not have the requested data, it request the vendor for the data. After getting the data from the vendor, it sends back to the trading partners.