THE ADVANTAGES OF USING AN EDI VALUE-ADDED ...

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WHAT IS AN EDI VALUE-ADDED NETWORK (VAN)

An EDI VAN uses lines to create a business-to-business network for electronic communication. This particular type of network is called &#;value-added&#; because of the variety of services and communication protocols facilitated that otherwise wouldn't be available through a regular line.Using an EDI VAN creates seamless communication channels between supply chain vendors and other trading partners while allowing data translation between multiple formats. A lot of this communication is automated through the VAN, providing more efficient e-commerce transactions and supply chain management.VANs are time-tested and utilized by all industries and provide several distinct advantages over other forms of electronic business communication.

EDI COMMUNICATION = EFFICIENT B2B COMMUNICATION

Compared to manual transaction processing, fax communication, and even , an EDI VAN allows you to exchange business data significantly faster. In many cases, the data sent over a VAN is inputted directly from other business software, eliminating manual data entry that requires labor time and runs a higher risk of errors.In fact, the VAN audits the data in transport to detect errors and correct them whenever possible. Since a VAN sends data with a variety of protocols, it creates a fast communication channel between businesses in any industry, allowing each party to use the data format most suited for their organization.

Whether you're new to EDI or ready to move to a VAN focused on your needs, starting service with BOLD VAN is a cinch. See our processes:

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EDI IMPLEMENTATION

EDI MIGRATION

BOLD VAN manages the entire implementation and migration processes in as little as a day without interrupting EDI communication.

IMPECCABLE RELIABILITY

A VAN is a gold standard for EDI communication. VANs are secure enough to meet government and HIPAA security standards, and data-sensitive organizations have trusted them for decades.In addition to being reliable for security measures, VANs are just extremely reliable in general. In fact, our VAN has a 99.998% uptime.Once you've implemented EDI into your supply chain, you won't be able to live without it &#; and fortunately, you won't have to. Unlike other business services, an EDI VAN is one you can certainly count on to keep your operations running smoothly.

COMMUNICATION TO RURAL AREAS

The global economy has increased manufacturing costs to the point that more companies are outsourcing manufacturing to China and other developing countries for lower costs. However, with those lower manufacturing costs also comes a variety of other issues &#; for example, a common problem is internet outage.The last thing you want is a lapse in communication between your manufacturer and other vendors in your supply chain for hours on end. Fortunately, a VAN bypasses this issue because VANs use lines for communication to ensure data is exchanged 24/7, anywhere in the world.Your supply chain is only as strong as its weakest link, and when you're dealing with manufacturers (or other vendors) in third-world countries you want to ensure you're still maintaining a first-class operation. Aside from security and overall reliability, this is one of the biggest reasons that VANs remain the standard for EDI communication over newer (and older) technology.

BECOME EDI COMPLIANT

Companies like Costco, Amazon, Walmart, and others have individual requirements a company must meet to join their vendor/supplier network and exchange EDI data. Since VANs are the most-preferred EDI communication channel, there's a high probability that companies will require you use a VAN to meet their EDI compliance requirements.When you already use a VAN for EDI communication, becoming EDI compliant for a new trading partner is usually a simple process. If you're a BOLD VAN customer, it's incredibly easy because we handle EDI compliance for you.Different VANs communicate interchangeably, so if you're using BOLD VAN as your EDI VAN provider, you can automatically communicate with any other VAN network in the world. At that point, EDI compliance is usually a matter of setting up new protocols for communication that you haven't used before and doesn't take long at all.Learn more about BOLD VAN's powerful, reliable, and cost-effective VAN.

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With limited knowledge of the current electronic data interchange (EDI) landscape it can be tough to identify whether or not it is in your company&#;s interests to move on from your existing Value Added Network (VAN) supplier. Unfortunately, many businesses persevere with legacy systems due to a combination of fear of what is involved in changing to a new VAN provider and ignorance of the benefits offered by transitioning to a new system.

Often these reasons are further buttressed by decision makers&#; confusion regarding the exact nature of the often labyrinthine data exchange systems currently in place in their organisation. Due to the gradual and organic nature in which legacy data processes evolve to cope with the constantly changing requirements of growing businesses, clarity regarding networks, connections, mappings etc. is often lost along the way. Unfortunately, in these situations it is impossible for EDI to be used as a strategic instrument. Instead, complex and outdated processes are likely to lead to dangerous errors.

Having an outdated EDI process in place today is more dangerous than ever. Things can spiral downwards extremely quickly as unreliable data exchange leads to you getting a bad ranking as a supplier, in turn leading to reduced quality ratings and ultimately to you occupying a much worse negotiating position in future customer discussions. You could even end up on the dreaded no-bid list!

Given the business-critical nature of the information being exchanged and the dangers of retaining outdated or overly complex systems, the decision to transition to future-proof your B2B integration processes is an extremely important one. This article aims to provide you with a simple list of things to think about to help you identify whether or not your current VAN is well-placed to help your business grow, what is involved in switching providers and when to move on.

What is a value added network (VAN)?

Simply put, a VAN is a privately hosted service which provides a means for companies to trade data with partners. These networks provide benefit to businesses by simplifying the means of communication. As we will explore, however, a VAN provider can offer far more than simply acting as a data conduit between business partners.

For a more detailed explanation, you can check our introductory article on the subject &#;Value Added Network (VAN) &#; Key Questions Answered&#;.

Is your current set-up working for you?

Too many VANs spoil the broth

As we&#;ve already touched on, one commonly experienced issue with legacy data systems is their complexity. One factor often adding to this complexity is the use of multiple VAN providers. While this may not immediately seem like a problem, it does come with various downsides, including:

• Higher costs &#; While you might not be paying each of your current VAN providers much, the combined total for managing data exchange processes via multiple VAN providers will inevitably cost more than if you were to transition to a single provider.
• No single responsibility &#; A huge benefit of outsourcing critical data processes such as e-invoicing is the ability to pass the responsibility for monitoring messages to a third party. This benefit is hugely undermined when multiple providers are involved.
• Less flexibility &#; Whether it&#;s changing trading partners or switching focus to a new market or region, businesses are constantly evolving. In order to cope with this change it&#;s important that your B2B processes are flexible. Unfortunately, when multiple VAN providers are involved flexibility is compromised, leading to frustration and delays surrounding updates and adjustments.

Can your VAN supplier meet your current AND FUTURE needs?

Without visibility of what else VAN suppliers may be able to provide it can be difficult to identify areas where a new or existing VAN system is lacking. Further, too many businesses fail to consider the extent to which their B2B integration partner will be able to meet their future requirements. Below is a list of things to consider when assessing potential providers to ensure you benefit from a reliable, flexible and future-proof system:

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• Data transparency and ease-of-use &#; Access to real-time information regarding your EDI via a user-friendly platform is important to monitor current performance and identify areas for improvement. With this in mind, check that your prospective provider can offer the following:

1. Status overview of all sent and received messages
2. Full text search of all sent and received documents
3. Flexible message statistics and graphical representation of your communication flow
4. Message archive with customisable retention periods
5. Download option for local processing
6. User management with unlimited users

The ideal EDI solution is one which is embedded in your existing ERP system, enabling EDI processes to be seamlessly integrated into your user interface.

• Scalability &#; As your business grows and your partners and inbound/outbound messages increase in number it&#;s important that your key logistics processes are able to keep up. Choosing a provider that can offer additional benefits when needed, such as supplier relationship management features or web-based EDI connection, will ensure you are fully prepared for any future growth.
• Support &#; While most VAN suppliers will offer &#;support&#;, the level and accessibility of this support varies greatly. In addition to checking how easy it is to get hold of someone who can help you fix any issues quickly, make sure you select a provider that offers proactive (rather than simply reactive) support, as this will ensure potential issues are caught before they are able to develop.
• Ease of partner integration &#; Onboarding partners is often viewed as a time-consuming and headache-inducing process. By selecting a VAN provider that will manage the onboarding process from start to finish this need not be the case. If you are likely to be interacting with partners who don&#;t currently have EDI systems in place, selecting a provider that can offer them a web-based EDI connection is also extremely important.
• Monitoring and proactive alerting &#; Whether you&#;re concerned about checking that messages have been sent and received, renewing certificates or ensuring correct e-invoicing protocols are followed, choosing a provider that offers efficient round-the-clock monitoring of data processes and proactive alerting can provide peace of mind and relieve pressure on in-house teams.
• Analytics / SRM &#; Access to key performance indicators (KPIs) and metrics relating to your suppliers can be hugely useful in helping you to identify areas for improvement. A good VAN provider may even allow businesses to set targets for partners, in turn helping them to meet expectations.
• Ongoing updates &#; Although EDI is far from a new technology, data exchange processes and protocols are constantly improving. Unfortunately, however, many VAN providers are not future-focussed and may neglect to implement important updates relating to key new requirements. For example, not every VAN provides access to Peppol, which in turn can cause a big issue with e-invoicing. By choosing a VAN provider that is committed to implementing updates in line with these ongoing developments you will ensure your organisation&#;s data exchange processes to continue to function at optimum level.
• Pricing structure &#; Just like the levels of support and quality of monitoring offered by VAN providers, pricing structures can also vary greatly. Even if you are satisfied with the price quoted to handle your current EDI needs, make sure to consider whether their structure suits your future needs. Many contracts include prohibitive &#;price cliffs&#; which can prove extremely costly if your EDI usage changes.

For a detailed breakdown of how much work is done by different EDI providers, download our infographic on this topic.

Other things you may want to consider before switching:

• Do they have experience in your industry?

• What is their reach geographically?

• Are case studies available?

• What is included in the service &#; will the EDI provider look after mapping and conduct thorough testing?

Our decision guide compares on-premise v cloud managed EDI services in detail

What&#;s involved in switching VAN provider?

Arguably the biggest reason businesses put off changing VAN providers is fear of what the process will involve and the potential consequences if things were to go wrong.

It&#;s true that, handled incorrectly, switching VANs could result in not being able to send or receive information if messages are sent to the wrong place or a VAN doesn&#;t recognise traffic due to routing or mapping issues for example. However, this is not a problem when the process is handled by a capable provider. In addition to having experience in connecting to all commonly used VANs internationally, from Ariba to X.400, a good provider will provide a dedicated project manager to oversee the migration process from start to finish, ensuring the switch is as fast and efficient as possible.

While the time needed to complete migration depends entirely on your particular situation, with an experienced provider offering expert support there should be no issues or disruption to you or your partners&#; businesses.

&#;When should I switch?&#;

Once you&#;ve decided to move away from your existing VAN it makes sense to go ahead with the data migration process as soon as you are able to. Often switching VAN suppliers comes at the end of a long period of assessment of and/or dissatisfaction with existing providers &#; why stretch the process out any more? The sooner you switch, the sooner you can experience the benefits of efficient B2B integration!

Find out more

For more information about ecosio&#;s unique B2B integration solution and how it could help your business, you can visit our Integration Hub page.

Alternatively, if you have questions about your specific situation please contact us or use our chat &#; we are happy to help!

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