EDI Network

An EDI network is simply a term that refers to a means of aggregating your EDI communications in one readily identifiable group. This very specific definition will become clear a bit later, the more broadly accepted definition of EDI network is that it is an organization that enables the exchange of EDI data between parties. This type of EDI networks is also known as an EDI VAN or EDI Service Bureau. The EDI network in this definition is simply a business that acts as a gateway between companies that exchange data with each other using EDI. In this model the network is very similar in its scope to the role of the US postal service. Just like the USPS, an EDI Network provides mailboxes where customers can pick up data and drop off data for ultimate delivery to other companies. An EDI networks is often the easiest and most cost effective means of getting started with EDI but quickly can become expensive if your use of EDI increases.

Benefits of the EDI Network For a business that is just getting started with EDI, using the services of an EDI network can be a very cost effective means of implementing EDI. With an EDI Network you will not need to worry about implementation guidelines or about ensuring that your communications with your trading partners are successful - that's because the responsibility of the EDI network is to ensure that your EDI data is processed and sent as required. Most EDI networks also have services and tools available to make use for first time EDI users more cost effective. As your use of EDI grows however you may find that the EDI network becomes more expensive - often prohibitively so. Over time many businesses realize that using an EDI network needs to be replaced with another solution.

Enabling your Own EDI Network

Can you become your own EDI VAN? The answer to that question is both yes and no. No in the sense that you don't want to re-create the entire EDI network infrastructure, but yes in the sense that it may make more sense for your business to exchange data directly with your trading partners without involving an EDI VAN. With the right EDI and communications software you can create an infrastructure that allows you to use new communications protocols like AS1 an AS2 to directly send and receive EDI data without the use of a network. In the past creating this type of hub and spoke model where your business is the hub and your trading partners are the spokes, was financially very difficult because finding AS2 compatible software that allowed for the number of connections necessary was difficult and expensive. 

Leveraging your EDI Network Regardless of the structure you deploy, using your network efficiently is a key aspect of implementing EDI in a way that will maximize revenue and minimize costs. Using your network effectively can make a business significantly more profitable and viable in both good and bad economic times.

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