VPN vs. VAN 1

[rmb0707]

We are a hospital and we are going to start sending 810, 850's etc.. via EDI. Our IT dept has no experience in EDI. At first, we are only transmit to one vendor, which is about 40% of the transactions. In six to twelve months, we plan on adding two or three trading partners.

We don't know which to choose, either VPN or VAN. I understand that VPN can only transmit to one trading partner and it much cheaper than VAN, which would be fine for us until we add another trading partner.

How to you choose between the two?

Ron Bender
Centegra Health System
(815) 759-8235
rbender@centegra.com

 

[Crimson74]

Hi Ron,

A direct connection to one partner is fine indeed if you have only one. However, once you get EDI capable, you will surely want to expand it to other partners. Regarding using a VAN, it all depends on the volume of your EDI traffic.
If you are planning to send/receive a lot of data, you should negotiate a fixed price with a VAN supplier. Most of the times you will be able to get a good deal. If you're not sure how much traffic there will be, you could use both.
Start using a VPN with your first partner and just get a mailbox on a VAN just in case your VPN goes down. You can use the VAN as a back then. Ususally if you don't use the mailbox, you only have to pay an annual mailbox fee which is usually not much or even free. What you also might want to take into account it to pick the same VAN as the one that has supplied you with the translator software (if you purchased the software that is ofcourse). For example: If your run GENTRAN, go with the Sterling VAN. You usually could use that as a tool in negotiations (e.g. I'll buy your software but I want a years worth of free traffic on your VAN). It also makes things usually easier technically.
Different software suppliers and VANs sometimes blame each other when you have a tech. problem. When you have used a supplier as a one stop shop for all your EDI requirements, it is easier to get tech. thing sorted out quicker.

 

[rajeshcmos]

Hi Ron,

On a long run, I feel that VAN would be more appropriate for your business. Since you have mentioned that you have more than one trading partner, it would be nice to go for VAN rather than Private Networks. Again, it depends on the volume of EDI data transmission. If files are huge, best option will be VAN.
Thanks ! Rajesh