Monday, February 20, 2006

What is new in EDI VAN service?

Communication service providers have seen tremendous changes in the last ten years. Capabilities have expanded and costs have plummeted. EDI VAN service has not been an exception. EDI VAN services have been impacted primarily by three factors – 1. the EDI market has expanded, 2. AS/2 communication has become an alternative to EDI VAN communication in some cases, and 3. web-based EDI has reduced costs.

EDI (Electronic Data Interchange) has been in use since the last 1960’s. For over 45 years the number of companies using EDI solutions has continued to grow. Economies of scale have had a positive impact on prices as the infrastructure necessary to support EDI VAN service has grown. Increased market size has brought increased efficiencies.

AS/2 communication is way of sending and receiving EDI transactions securely over the internet between companies. Although there is not a need for an EDI network, there is a need for software, hardware and expertise to support AS/2. Large companies are finding that their size makes AS/2 a better choice than EDI VAN communication. Smaller companies frequently outsource their AS/2 needs to web-based EDI solution providers who maintain the infrastructure necessary and who can then pass the savings on to their clients.

Web-based EDI has made is possible for small companies to have an affordable EDI solution. Internet access makes it easy to either view web forms that have EDI transactions translated into an easy-to-read format or to import and export EDI transactions into back office systems.

Changes in EDI VAN service have made EDI (Electronic Data Interchange) affordable and useable for companies of any size. Companies that choose the right EDI VAN can reap the benefits of an affordable EDI solution and compete effectively with companies that make large investments in software, hardware and EDI expertise in order to meet their EDI trading partners’ EDI compliance requirements.