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EDI Network

EDI documents are electronically exchanged over communication networks, which connect trading partners to one another. These documents are stored in user mailboxes on the network's EDI server from where they can be downloaded/ uploaded at the user's convenience. Value Added Networks (VANS) are third party communication networks established for exchanging EDI traffic amongst partners. 

Communication of EDI Message 
EDIM stands for EDI message. An EDIM is shown in figure below. It consists of:


i) Heading: A set of heading fields each one of them is an information item giving a characteristic to the EDI message.  
ii) Body: A sequence of one or more body parts of the message.
 
The primary body part contains the EDI interchange itself or a forwarded EDI message, The other body parts that can be included in the EDIM are related to primary body part and can be used to carry data such as voice, text or a drawing related to the interchanged. The EDI heading contains information required to provide services such as selective retrieval that fully satisfies EDI requirements.

EDI Communication Channels 
Trading partners traditionally exchange EDI documents via direct link, private or proprietary networks, and third-party VANS:

1) Direct Link: These networks, including leased lines, are the most straight- forward communication method. They allow a company to dial up and connect directly to partners' computers. They are most cost-effective alternative for transmitting high volumes of data and are thus very appealing to those large companies that must transmit huge amounts of data daily.
 
With direct link, each trading partner provides its own technical support to address issues such as protocol and speed conversion, because different computer systems use different communication protocols and transmission speeds.
 
In addition, companies must have phone lines available at the same time, deal with substantial administrative overheads to ensure reliable delivery, provide audit control and recovery procedures in case of communication link failure or unavailability, and so on.
 
These issues are compounded when the number of direct-linked trading partners increases. As a result, direct link network is only applicable to large companies that must transmit high volumes of data daily.

2) Private or Propriety Network: A Private or Propriety Network, usually provided by a hub company, is a closed network only available to its trading partners (the spokes). The hub handles protocol conversion and administrative overheads so that the spokes can dial up to the hub private network without conversion and pay only the cost of a telephone call.
 
This type of network is limited and is only available to those trading partners that have a close relationship.
 
For example, an automobile manufacturer and its part suppliers. When this type of network is used, the hub company provides technical supports to both itself and its spokes.
 
3) Value-Added Network: A Value-Added Network plays an intermediary role analogous to a post office or delivery service that provides reliable delivery of documents in a secure environment.

VANS provide the following value added services to support EDI:
 
i) Mail Boxing,  
ii) Protocol Conversion,  
iii) Standard Conversion,  
iv) Reliability,  
v) Security,  
vi) Administration,  
vii) Implementation Assistance, etc.
 
In the traditional EDI environment, most companies exchange EDI documents via VANS. Despite the popularity, convenience, and flexibility of VANS, their costs are frequently the dominant expense of EDI.

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