Value-Added Network - VAN

A private network used by a company primarily for routing, storing and delivering electronic data interchange (EDI) messages. A value-added network (VAN) also provides other services such as message encryption, retransmission and support. VANs may be operated by large companies for efficient supply chain management with their suppliers, or by industry consortiums and telecom providers.

The emergence and expansion of the internet has lessened the attraction of VANs, largely due to cost considerations. Some VANs have staved off the challenge from the internet by focusing on specific industry sectors, such as healthcare and manufacturing.

Investment dictionary. . 2012.

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