SELECTING YOUR EDI VAN PROVIDERS

One of the things you have to consider when you are getting into EDI transactions is how you

are going to select your VAN provider. Value Added Networks can be one of the best ways for

you to start to get the savings and perks that are commonly available to larger corporations, but

aren't marketed toward smaller ones. Everything from chargeback avoidance, advance ship

notifications and supplier discount arrangements can be accessed via an EDI VAN provider.

How does a Value Added Network or EDI VAN work?

For large companies, gaining access to discounts and supplier specials is easy as their general

operations are going to be producing in bulk orders. If a global corporation is going to book a

hotel for their operations managers, the sheer volume of reservations is going to generate a

special discount. If you are not a global company, you can get a standard business discount and

that is about it. If you use a VAN for your EDI then you stand to accrue bonuses and discounts

towards your costs as the VAN bases their service responses on total EDI transactions, not just

specific ones.

Why VAN can be better than turn-key

Using a VAN provider instead of a turn-key provider for your EDI transactions can work out

better for your company, even if you are large enough to access equivalent discounts with a

turn-key or bespoke provider as you are still accruing total transactions. The more annual

instances you have, the more you can access via a VAN provider. While you may not need a

broad variety of services or supplies every year, VAN can help your general supply line and

operations managers think outside the box by removing the worry of cost increase. Better still,

with a VAN provider all of your EDI transactions are not only standardized but they are

integrated into a single system. That means less training on your end, and less people to deal

with on the provider end too. A single point of contact always proves more efficient in the end.

How do you pick the right VAN provider?

The only way to pick a good VAN provider is to look at what your needs are, and have an idea

of what you would like to be able to access if the price was right. Good VAN providers will let

you name the price for the services that you want and then work to find you a match for what

you need. The best VAN provider employs a strong two-way communication path with your

manager to determine your needs, while taking their main guidance from your EDI directives.

You need to talk with your VAN representative to assess what it is you really need. Avoid the

mistake of basing your directives solely on your past EDI transactions, with a good VAN

provider the options that will be available to you should be updated and change every year as

they move forward with new agreements with suppliers. Checking in to see what is available to

you, as well as receiving updates from your VAN provider will make sure that you get the most

from your partnership together.