
What is VAN?
A Value-Added Network (VAN) is a private, hosted service that provides a secure and efficient platform for businesses to exchange electronic information with their partners. The primary purpose of a VAN is to facilitate Electronic Data Interchange (EDI), which involves the computer-to-computer exchange of business documents in a standardized format.
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What a VAN actually does
How a VAN works (simple flow)
A VAN is responsible for moving, translating support services, and managing EDI traffic between trading partners. It doesn’t just “send files”—it adds structure, security, and control.
Key functions include:
- Message routing: Sends documents from your company to the correct trading partner
- Store-and-forward delivery: Holds messages until the receiver is ready
- Protocol conversion: Handles different communication formats (AS2, FTP, SFTP, etc.)
- Security & encryption: Protects sensitive business data in transit
- Audit trails: Tracks every document sent, received, or failed
- Mailbox system: Each company has a secure “inbox/outbox” inside the network
Here’s the typical EDI process using a VAN:
- Your system creates a document
- Example: Purchase Order (PO) or Invoice
- Document is translated into EDI format
- Your ERP or EDI software converts it into a standard structure
- Document is sent to the VAN
- Instead of going directly to the partner, it goes to the VAN mailbox
- VAN routes the document
- The VAN identifies the correct trading partner
- Delivery to recipient VAN mailbox
- The partner retrieves it from their secure mailbox
- Acknowledgement returned
- Confirmation (like an “electronic receipt”) is sent back
Why companies still use VANs
Even though direct connections (like AS2) exist, VANs are still widely used because they simplify complexity:
- You don’t need separate connections for every partner
- Easier onboarding of new trading partners
- Centralized monitoring and error handling
- Works well for companies with many suppliers/customers
VAN vs Direct EDI (AS2)
- Direct EDI (AS2): Point-to-point connection between two companies
- VAN: One connection to the network that connects you to many companies
So instead of building 100 individual connections, you build 1 connection to the VAN.
Why choose PEG?

Expertise Matters
Leverage our EDI and B2B specialists' industry knowledge for strategic advantage.

Customized Solutions
Tailor our services to fit seamlessly into your unique business processes.

Security First
Rely on our robust infrastructure for secure and reliable data exchange.

Customer-Centric Focus
Experience personalized solutions that align with your specific needs and challenges.
Partnership
Partnership
We are proud to be partners with Commport at Precision e-Business Group! This strategic collaboration enables us to offer superior EDI solutions, enhancing the efficiency and reliability of your business transactions. With Commport's advanced network services and our commitment to excellence, we provide seamless and secure electronic data interchange to drive your business forward.
Unlock Seamless Business Communication with PEG VAN Services
Are you ready to experience the future of secure and efficient data exchange? Choose PEG for your VAN services.
Explore Our VAN Services Contact us for a consultation.





