d placement of each separate piece of data. “Translation to a standard format can be accomplished by internal systems or it can be done by a separate package of software. Regardless of the means you choose for translation, the end result of the process will be an output file generated in a specific format that any subscriber to the standard can understand.”3In a simple one-to-one EDI relationship, transmitting data can be as simple as making a modem connection, and sending the file. However, this would become impractical with more than just a small number of vendors. If a manufacturer has to send out thousands of PO's each week to hundreds of suppliers; it would require a small army to transmit all of their PO's. Even if the manufacturer had an extensive network available, successful transmission would require that all vendors be linked into the network.Providing a connection to the sender's computer to allow receivers to log on and collect their data would be one way to avoid these problems, but it poses a serious security problem. It will work on a limited basis, but only with controls, including separate hardware to isolate the system being accessed by third parties. Few companies would accept these approaches, for any extensive use of EDI. If these alternatives were required, chaos would reign, and once again most EDI users would quickly return to preparing printed documents, so that they could rely on the mail to distribute all their documents.Fortunately, the EDI user doesn't have to rely on either of these alternatives. They can turn to third party network services, commonly referred to as "Value Added Networks" or VAN's. The VAN functions as a clearing house for electronic transactions, in effect serving as a private electronic mail service. The VAN routes each vendor's data to their own electronic mailbox. The VAN provides an answer to the pressing problem of security. It allows trading partners to be secure in the ...
