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Are Value-Added Networks the Way to go for B2B Communication?

You are probably familiar with this ‘BIG VAN’ claim repeated early and often by the champions of value-added networks (VANs):

‘The advantage of the network is the network itself.’

The claim, like all wide-ranging quotes, is to some extent only relatively true. Its validity depends upon who you are connecting with and how actively you link up with your trading partners. A closer look at the flow of goods and information within your business network will possibly reveal that no single network or VAN can address all your B2B/B2C communication needs.

While EDI and, in some instances, the VAN does help you connect, connecting with all your trading partners translates into a significantly higher ROI.  EDI today means more than simply X12; it means supporting multiple standards, formats, and transactions from X12, UN/EDIFACT, and GS1 XML trade messages to a number of non-EDI formats like JSON, flat files, text files, and proprietary XML message formats.

Read more: The truth behind the “competitive advantage” of value-added networks

EDI also means accessing a diverse set of communication methodologies – like AS2, MFTP, FTP, SFTP, and APIs – each with their own set of variables. While transaction formats and transportation methodologies make EDI more versatile, the complexity of handling such varied data formats and communication methodologies creates its own set of challenges, particularly when you consider the ‘BIG VAN’ value proposition.

The ‘BIG VAN’ value prop proudly claims that all members in your value chain are available on the same network or VAN as yours; while true to some extent, this is not an entirely accurate assessment. A VAN connection is by all accounts handy and, in some cases, necessary to interact with some trading partners. But it certainly is not everything.

The right tool with the right EDI transportation methods delivers far more effectively than ‘BIG VAN’ and at a lesser cost.

The Significance of the EDI VAN Interconnect

The ‘BIG VAN’ claim is largely backed by the EDI VAN interconnect. The interconnect is a tool that helps your value added network communicate with other value added networks and facilitates exchange of EDI transaction documents between connected pairs of trade partners. The more partners you connect with, the bigger the benefit derived from your communication network.

VAN interconnects effectively reduce friction between and among VANs, while also reducing the need for new VANs. The largest of the VANs reduce VAN-related confusion within partner networks by making claims to connect to thousands of trading partners; in effect though, ‘BIG VAN’ highlights the characteristics of EDI under which all EDI solutions and VAN partners operate. 

But what about transactions beyond X12 EDI? 

‘BIG VAN’ and the interconnect rely on a steady stream of ISA and GS identifiers within X12 transactions to move data, without which the ‘BIG VAN’ is about as useful as a cell phone without buttons.  While the VAN connection does handle X12, what about images, APIs, or XML files? These are typically not included in ‘BIG VAN’ offerings and, in most cases, require a different product altogether, adding to your overall cost.

A closer look at the VAN interconnect reveals that the reality of ‘BIG VAN’ is very different from the claim; if the interconnect connects ALL VANs then ALL VANs have the same access to trading partners, which means that ‘BIG VAN’ has a very different concern. ‘BIG VAN’ is concerned that it will inevitably be relegated to the stature of an ‘Ordinary VAN’ and without reservation. 

‘BIG VAN’ makes a big claim and living up to that claim is becoming nearly impossible.  This makes all ‘small VAN’ operators a competitive threat – why else would ‘BIG VAN’ make such claims if not to control and confuse the market? The VAN interconnect and image files remove the confusion from the claim ‘the advantage of the network is the network itself’; what else is there to the reality of ‘BIG VAN’?

The Synergy

Architecturally speaking, an EDI solution is actually made up of three components (or solution layers, if you’ll pardon the expression) – the transportation, transformation, and integration layers. While EDI is very effective when it leverages a ‘VAN’ connection, the VAN component is only a fraction of EDI, less than 30%.

Think about your VAN connection in the same way you think about how your mobile phone functions.  Your mobile phone functions by combining the services provided by the phone manufacturer, an infrastructure provider, and a telecom company; similarly, EDI functions by leveraging the synergy of these component layers to work as a synchronous whole.

Components of the ‘VAN Solution’

  • Transportation. Along with VANs, this layer works using many other methodologies such as AS2, MFTP, FTP, SFTP, and APIs. Most of these methodologies have been around for a couple of decades now. Your VAN, in fact, may still be using FTP to connect you with your VAN mailbox; if it is not leveraging FTP, it is likely using AS2. Get in touch with your EDI team representative and ask, they should be able to tell you.
  • Transformation. The transformation layer facilitates translation between different (EDI) formats. Formats like X12, UN/EDIFACT, GS1 XML trade messages, JSON, flat files, text files, or proprietary XML messages are transformed into formats that your ERP systems can easily understand and use.
  • Integration. In the final layer, the transformed message is available to be consumed by the ERP. API connectors have been introduced in recent years to connect you with your ERP in a normalized way, much like the ODBC connector you may have used in the past.  The integration layer can be an API or a connector like ODBC or ODATA – the main emphasis here lies in providing (a) the route for landing the messages and (b) feedback that lets you know whether the order was rejected or accepted. The latter is the target, which requires the least manual input.

Do More Connections Provide More Benefits?

The key word is ‘choice’. If one network has the potential to provide a competitive advantage, do multiple networks offer even greater benefit?

The quantity of available networks is only one criteria that determines how effective your network is.  Connecting to multiple VANs is, frankly, a drain on resources, particularly when all VANs make use of the same VAN interconnect. 

While there is a need to be mindful of the connections available to your trading partners, using multiple VAN connections to stay in touch makes no sense at all. It is like having two or more cell phones or cable TV subscriptions, particularly when methodologies like AS2, MFTP, FTP, SFTP, and APIs are available.  Many of these options have low or no cost associated with them while VAN costs are subscription based and incur transaction fees that need to be paid monthly, much like that second cell phone that we referenced earlier.

The AS2 Effect

Application Statement 2 (AS2) is used for a reliable and secure transfer of data over the Internet. It provides a direct, unhindered connection with a trading partner and delivers document receipts and real-time tracking without requiring a VAN or a VAN interconnect. Your standard internet connection serves as the transportation layer; it is payload-agnostic, which means you can use the same tool to transmit images and every business has internet connectivity today. 

Unlike a VAN, AS2 does not typically have monthly charges or transaction fees. It reduces the chances of transaction failure by establishing a one-to-one transmission channel, without the need for a middle man, a VAN interconnect, or a ubiquitous VAN. Also, there is a Message Delivery Notification, but more on the MDN at a later time.

Putting It All Together

Now that we have unpacked the ‘BIG VAN’ claim, we can conclude that your EDI solution should provide more than one communication channel, has to be capable of handling a wide range of EDI formats, and MUST integrate smoothly and automatically with your enterprise systems.

We’ve also come to the conclusion that ‘BIG VAN’ cannot support the features that you need without complicating matters with additional software and subscriptions.

That’s why PartnerLinQ is different. PartnerLinQ is not a VAN; rather, it is a highly scalable, dependable, and configurable EDI and B2B communication solution. PartnerLinQ is ‘integration without complication’ that supports integration with Microsoft Dynamics 365 and other ERP systems. It includes an AS2 solution, FTP, MFT, and SFTP and can connect with any VAN, making it the perfect tool for B2B/B2C communication for your EDI and non-EDI partners.

PartnerLinQ also supports API-based ecommerce platforms like Shopify and Magento out of the box, providing your organization a seamless shift between EDI and API integrations; there’s nothing to add and nothing to buy, it’s all in there.

The solution also operates seamlessly between EDI and non-EDI formats – from X12, UN/EDIFACT, and GS1 XML to non-EDI formats like XML and JSON. While there are too many formats to list in a blog, this is a crucial factor that make PartnerLinQ a perfect choice for your EDI, B2B, and API integration and for smooth communication, while decreasing your reliance on ‘BIG VAN.’

The Road from Dynamics AX to Dynamics 365 with Modern EDI

Managing an organization is a constant juggling act across finance, sales, operations, HR, and other departments. ERP systems help keep important business data in one place, ensuring it’s safe, organized, and accessible.

Time is Running Out for Businesses that Still Use Dynamics AX

Dynamics AX is a legacy ERP solution that was offered by Microsoft for mid-sized to large organizations beginning in 2008. Mainstream support for Dynamics AX 2009, 2012, and 2012 R2 ended in 2018, while mainstream support for Dynamics AX 2012 R3 will end in 2021.

Beyond October 2021 Microsoft will no longer accept support tickets or release feature updates. And once extended support ends in 2023, Microsoft will no longer release bug fixes or security patches! In this scenario, upgrading to Microsoft Dynamics 365 appears to be the best course of action for businesses that still use Dynamics AX.

How does such a change affect supply chain connectivity for your organization? Continue reading to find out how Dynamics 365 stands in comparison to Dynamics AX, and how PartnerLinQ can help your organization avoid business disruption as you transition to a modern ERP platform.

Key Advantages of Microsoft Dynamics 365

As a cloud-based platform, Microsoft Dynamics 365 offers a simpler way to access your information anywhere, from any device. With an on-premises Dynamics AX, providing global access to business information wasn’t as straightforward.

For example, users situated thousands of miles from your Dynamics AX datacenter could experience performance issues. Dynamics 365 is hosted on Microsoft Azure Cloud datacenters across the globe and isn’t affected by large distances or disparate workgroups accessing the same system.

PartnerLinQ and Microsoft Dynamics

PartnerLinQ is a robust, scalable, and complete EDI integration solution that bridges the gap between modern and traditional EDI. As a fully managed cloud solution, it operates seamlessly with Dynamics 365 to consolidate data from disparate endpoints, perform data validation, and provide error alerts in a single management console.

PartnerLinQ provides flexible, secure, and cost-effective data interchange, freeing businesses from legacy systems that suffer from multiple limitations. It also allows you to connect with multiple ERP systems right out of the box; so while transitioning from Dynamics AX to Microsoft Dynamics 365, you can connect with both during the transition.

With native support for multiple AS2, VAN, and direct-to-partner data formats and standards, prebuilt API connectivity with leading ecommerce providers, and an extensive business rule library, PartnerLinQ can reduce your partner onboarding time by as much as 75%.  It can be deployed as an on-premises or SaaS cloud solution depending on your operations, current ERP platform, and business requirements.

Working with Microsoft Dynamics, PartnerLinQ provides a single, real-time view of transaction volume, errors, and other statistics for all inbound and outbound transactions. These real-time analytics help your organization identify issues, pinpoint their root cause, and prevent chargebacks that can severely impact operating margins.

PartnerLinQ makes it easy to drill down and view details for a specific trading partner or transaction error and make corrections. It also allows users to generate custom reports using a wide range of metrics and performance indicators.

Should I Migrate from Dynamics AX to Dynamics 365 to Use PartnerLinQ?

While upgrading to Microsoft Dynamics 365 is a smart digital investment for most businesses, upgrades can take several months. But you can benefit from PartnerLinQ while you’re still using Dynamics AX.

For businesses that use either Dynamics 365 or Dynamics AX, PartnerLinQ works out of the box in most EDI integration scenarios. It can integrate simultaneously with both versions, which helps ensure continuity of EDI operations during an upgrade of your ERP system. Since you can use a single PartnerLinQ license with both Dynamics AX and Dynamics 365 at the same time, you don’t have to worry about licensing when you upgrade.

So you need not wait until after your ERP upgrade to address your supply chain connectivity needs. Start using PartnerLinQ today and then migrate to Microsoft Dynamics 365. Our solution helps you transition to your new platform seamlessly.

Conclusion

Many organizations across retail, ecommerce, wholesale, distribution, and other industries are already using PartnerLinQ, which has become a cornerstone for many operations across their modern B2B architecture. Whether you’ve already upgraded or are just beginning your transition planning, there’s no need to wait. Enhance your global partner communication capabilities today with PartnerLinQ. Get in touch with our experts to begin your journey.

The cooperative advantage of EDI integration

The cooperative advantage of EDI integration

Following transportation and transformation, integration is the final step in the EDI process. While transportation provides a pathway for business data and transformation converts the data into a format that the recipient’s system can consume or otherwise accommodate, integration brings the transformed data into the internal or host system. The end-to-end process is always a cooperative affair. This cooperation between endpoint applications enables data transfer between them, improving relationships through seamless coordination across systems, departments, trading partners, transportation networks, and even beyond boundaries.

A good line of communication within your own business functions and with other businesses is essential for success. It brings parties together by promoting a sense of partnership and shared responsibility. When done properly, EDI integration brings about cooperative opportunities that benefit all of the parties involved.

It’s important for trading partners to understand that EDI isn’t new; in fact, it’s one of the older methods of communication between trading partners. Because of its age, it benefits from wide use and acceptance. Newer versions of EDI are far more intertwined with today’s technologies, fully embracing technology standards well beyond X12. This includes XML, JSON, SOAP, and APIs, not to mention making use of technologies such as AS2, SFTP, and innumerable partner-managed connections.

EDI implementation won’t take you head and shoulders above your competitors; rather, it serves as a sign of business maturity, advancing growth within the businesses that have chosen to implement or redeploy EDI software, solutions, and services in recent years. Where EDI was once only found in industries like apparel, grocery, and retail, interest in EDI has seen a resurgence in industries like third-party logistics, food service, wholesale trade, healthcare, and the construction of gas and water utilities.

Using EDI for transportation and supply chains across business footings leads to inventory optimization and direct-to-consumer success, driving businesses ever forward. The transportation industry, which has a historical EDI footprint, is expanding its use of EDI into the area of transportation planning. EDI integration with eCommerce gateways and shipment management tools improves supply chain efficiency, reduces time to market, and improves both visibility and customer service. The email confirmation for your recent online order didn’t show up in your email box by accident. It crossed paths across modern EDI technologies between the time that you completed your order and your phone notified you that “you’ve got mail”.

Recently, there has been a rise in traceability concerns with products – from romaine lettuce to over-the counter medications – resulting in brand impacts on well-renowned companies like Tylenol and Chipotle. A more modern approach and use of EDI technologies can have a significant impact on these areas of commerce. Responding to the ever-present threat to business success, food service and healthcare organizations are expanding their EDI use with a new emphasis on supply chain traceability. FMCG and pharmaceutical companies are now using EDI to trace food from farm to table and the chain of custody in the drug supply chain.

Many business owners assume that EDI integration requires a massively disruptive and costly overhaul of their business processes; as a result, they miss out on the cooperative benefits that EDI offers. The truth is that EDI isn’t disruptive at all and certainly not in the way a trading partner might expect. Rather, EDI complements the business process. Adopting a modern approach to EDI leads to changes that not only reduce manual effort and free up more time to automate other parts of your business. It also helps reduce time to market and improves supply chain efficiency, visibility, and customer satisfaction.

GS1 (formerly the Uniform Code Council) funded a study in 1998 that led to the creation of the General Business Model. The model, enlightening for its time and a predecessor of things to come, identified key buyer-seller relationships and (perhaps unintentionally) key EDI transactions involved in a typical buy-sell relationship. The General Business Model identified four main buyer-seller interactions:

  • Information sharing (EDI 832 Transaction Set – Price/Sales Catalog)
  • Ordering (EDI 850 Purchase Order)
  • Delivery (EDI 856 Advance Ship Notice (ASN))
  • Payment (EDI 810 Invoice Transaction)

While a strategic advantage may remain the most common reason for implementing or redeploying EDI, a more compelling case has been made by way of this discussion. So let’s look at the cooperative advantage that EDI integration provides to suppliers and buyers.

Impact on suppliers

Studies (such as of Gromley’s) show minimal to no staff reduction after EDI implementation. While this may appear counterintuitive, the results of implementation provide valuable insights into the inner workings of business.

One study conducted in 8 major companies found that none of the customer service coordinators or clerical workers received higher salaries or promotions because of their EDI experience. Interestingly, even though EDI automated many manual tasks, an equal number of tasks were added to customer service roles.

One might therefore infer that in addition to reducing manual tasks, EDI integration also helped organizations reschedule backlog work items. In other words, EDI integration helped companies make work efforts more manageable, extending beyond the backlog and in to areas such as customer service improvements and cost savings across departments. Thereby, the initial benefit was spread throughout the organization.

Impact on buyers

Simply put, EDI integration saves buyers time and money. EDI provides buyers timelier product ordering, shipment, and delivery information. This increased knowledge results in a better understanding of their suppliers’ and supply chain operations, encouraging an increased level of cooperation and trust between the buyer and its suppliers. This understanding, cooperation, and trust helps both parties to reduce inventories, improve materials management, and increase productivity gains, further improving efficiency and driving cost savings across the buying organization.

Garnering the Cooperative Advantage with EDI

Information sharing

Today, opportunities in EDI extend well beyond order, deliver, and pay. Looking for more opportunities for cooperation begins with looking for opportunity within. Whereas most initial EDI integration improves processes, encouraging teams to become more involved in the EDI process can yield even better results, particularly when redeploying an EDI strategy. Encouraging individuals across the organization now equipped with new EDI knowledge and elevating their responsibilities will increase EDI integration opportunities across the organization.

Business process improvements

EDI integration helps streamline your business operations by increasing order and invoice accuracy, reducing late or incorrect shipments, and avoiding excess inventory. EDI also offers distinct advantages when companies begin to dig deeper into their processing, forecasting, and production schedules, and presents further opportunities to grow their business with the EDI practice without expanding the workforce, becoming a strategic ally in that mission.

Increased responsiveness

Relationship responsiveness goes a long way with your customer base and should be viewed as a bread-and-butter part of the business and a necessary investment in a better business future. EDI integration, when properly managed, results in an increased business awareness among customers and stakeholders, often accompanied by increased requests from within the organization to boost those interactions. Responsiveness to these business requests, the result of a newfound understanding, relies on modern integration techniques, which puts your next EDI integration steps ahead of competitive opportunities.

When you complete your initial EDI integration or redeployment, take a moment to recognize and speak with your teams and talk about their successes and accomplishments. Only then will you begin to hear their desire to look and move forward. The right EDI partner will help you with this and ensure that you have plans for your organization’s future and its future with EDI. For expert advice on your EDI integration needs, get in touch with the PartnerLinQ team today.

The truth behind the “competitive advantage” of value-added networks

“Value-added networks provide competitive advantage.”

On the surface, this statement seems to make sense of the eternal value-added network (VAN) claim that the advantage of their network is their network. While stated as fact, “the advantage of the network is the network” is only relatively true, depending on who you’re connecting with and whether the network is where you can find your trading partners (or at least some of them). What does that mean for the rest of your trading partners?

This argument for the VAN being a competitive advantage begins to unravel when you look more closely at trade among trading partners. You’ll arrive at the conclusion that a single network or VAN can’t possibly serve all of a company’s needs.

Read more: VAN independence: So, how does a trading partner break from their VAN?

Begin at the end

The advantage of EDI technologies is connecting with your trading partners… and not just some of them. The ability to connect to most or all of them offers the greatest ROI.

However, the complexity of EDI and related technologies presents compatibility challenges. There are many EDI standards, formats, and transactions. There’s X12, UN/EDIFACT, and GS1 XML trade messages. There are also non-EDI formats like JSON, flat files, text files, and proprietary XML message formats. Let’s not forget about the myriad of communication methodologies such as AS2, MFTP, FTP, SFTP and APIs, or the number of transactions and variants.

Clearly, not everyone you need to connect with will be on the same network or VAN. That’s why a VAN must have an interconnect.

What’s an interconnect?

An interconnect is a tool that VANs use to communicate with other VANs. It aids in the exchange of EDI transaction documents belonging to individual clients. All VANs use interconnects to ensure delivery of transaction documents among the participants within various VANs. This begins to demonstrate the point of a VAN: connecting with more networks provides a bigger advantage.

Why haven’t I heard about interconnects before?

The real value of interconnects to VANs was that they help keep new VANs out of the market. Discussing interconnects dispels the notion that belonging to a VAN is an advantage. That’s why VANs don’t like to talk about them. If they did, they’d also have to talk about the characteristics of EDI, which reduces VAN confusion within the consumer.

The three-part harmony

For EDI to be effective, it needs three layers: transportation, transformation, and integration. In the marketplace, these layers are typically seen bundled together as what has come to be known as the “VAN solution”. However, they should be viewed as separate solutions that work together in harmony to produce the desired results.

A classic example of this harmony can be found in your pocket: your mobile phone. One company produces your device, another delivers your cellular service, and a third provides the local and long-distance lines that you connect to when speaking with someone on a landline.

The three essential components of EDI are:

1.    Transportation

The transportation layer allows partners to talk to one another. While VANs are dominant in this space, several successful methodologies like AS2, MFTP, FTP, SFTP and APIs also exist; most have been in use for over 20 years. In fact, your VAN may use FTP to connect to your VAN mailbox; I encourage you to ask your EDI representative.

2.    Transformation

The second component is the transformation layer. This is where the translation between EDI formats takes place. X12, UN/EDIFACT, GS1 XML trade messages, JSON, flat files, text files, or proprietary XML messages are transformed into a format that your ERP system can consume.

3.    Integration

Lastly there’s the integration layer: the path into the enterprise system where the transformed message is consumed. It can be a connector (like ODBC or ODATA) or an API. The primary focus is a path for the order to take without manual intervention.

So more connections are better?

Yes! If belonging to a network is a strategic advantage, then access to multiple networks is even more of a strategic advantage. It’s actually not so much about the number of networks as it is about the availability of connections to your trading partner and choice of those connection methods. VANs typically involve monthly subscription costs and transaction fees (or kilo-character fees), whereas in most cases, methodologies like AS2, MFTP, FTP, SFTP, and APIs have no monthly costs directly associated with them.

What’s AS2?

Applicability Statement 2 (AS2) is a protocol used to transport data securely and reliably over the Internet. It provides document receipt and tracking without the need for a VAN or interconnect. In short, AS2 provides a direct connection with a trading partner.

AS2 makes use of the Internet as a payload-agnostic mechanism for delivery of EDI transaction documents, reducing potential points of failure. More importantly, it eliminates transaction-based charges that occur with the exchange of EDI transaction documents through a VAN connection.

PartnerLink and AS2

Visionet’s PartnerLink solution is different. PartnerLink isn’t a VAN; it’s a highly scalable, reliable, and configurable EDI and B2B interchange solution that integrates natively with Microsoft Dynamics 365 for Finance and Operations. It also supports integration with most other ERP systems. PartnerLink includes an AS2 solution and connects to all of the major VANs, making it the perfect tool for B2B communication with both EDI and non-EDI trading partners.

What about APIs?

PartnerLink also provides built-in support for API based eCommerce platforms like Shopify, Magento, and many others, allowing companies to shift seamlessly between EDI and API-based integrations. This makes PartnerLink a complete EDI, B2B, and API solution for frictionless partner communication.

…and nonstandard transactions?

PartnerLink enables communication with non-EDI organizations, too. It supports a wide range of EDI formats like X12, UN/EDIFACT, GS1 XML trade messages, non-EDI formats like XML and JSON, and custom formats to ensure reliable and secure communication with any trading partner organization.

What’s the lesson here?

“VANs provide competitive advantage” is only true when there’s no advantage found in access to multiple networks.

  • EDI solutions should provide more than one communication channel for exchanging documents with trading partners, including VAN, AS2, SFTP, FTP, and MFT.
  • EDI solutions should provide a transformation component – a mechanism for handling a range of EDI formats.
  • EDI solutions should provide a clear integration path into your enterprise system that doesn’t require manual intervention or ongoing maintenance.

VAN Independence: How Does a Trading Partner Break from Its VAN?

VAN Independence: How Does a Trading Partner Break from Its VAN?

What’s Your VAN Independence Strategy?

Independence Day is now behind us and summer is nearing its end. The 4th of July holiday encourages reflections, reflections that include independence and country. It also includes independence in financial, personal, and business matters. Returning to work following the mid-summer holiday this year, I began to think about systemic independence – specifically the independence of trading partners who are more willing than ever to declare themselves independent from their VAN.

A value-added network (VAN) is a private network used by a company to facilitate and ensure the exchange of EDI transaction documents with one or more trading partners.

Communication

Traditional EDI includes costs of configuration, transformation, integration, and communication. EDI communication typically includes the use of a VAN. EDI requires a mechanism that allows trading partners to send and receive messages. While there are other methods, the VAN is the most conventional one.

There are many such VANs available, typically through subscriptions. These VANs communicate with members as well as among each other, allowing VAN subscribers to communicate with one another regardless of the community to which they belong.

Foundation

The original VANs were much more than what service-based organizations associated with a transport mechanism. Many began their lives as services associated with “computing time” back when computers were rare and the needs for computing were greater. Companies like IBM set up massive communication channels using the IBM Systems Network Architecture (SNA) to facilitate the use of mainframe computers; such interactions and transaction exchanges were subsequently moved to smaller and smaller machines using File Transfer Protocol (FTP).
 

van-independence-foundation

Domination

Once in place, VANs began reducing the services they provided. No longer providing computing services, they set their sights on becoming massive communication channels. They set up their own independent communications networks, complete with “mailboxes” and “interconnects”. The mailbox was an address on a VAN used by a trading partner to pick up and drop off transaction documents. On the other hand, the interconnect was a tool used by VANs to communicate with other independent VANs to help delivery and exchange of transaction documents.

Substitution

Once in place, VANs began reducing the services they provided. No longer providing computing services, they set their sights on becoming massive communication channels. They set up their own independent communications networks, complete with “mailboxes” and “interconnects”. The mailbox was an address on a VAN used by a trading partner to pick up and drop off transaction documents. On the other hand, the interconnect was a tool used by VANs to communicate with other independent VANs to help delivery and exchange of transaction documents.

So why aren’t more companies moving to AS2? It may be because no one has explained the benefits in a way that makes a comparison easy.

Explanation

AS2 securely moves more data at a lower cost by relying on Internet access rather than a dedicated network. The VAN’s monthly access fees and kilo-character costs disappear.

AS2 relies on software and the Internet to accomplish the same tasks that were once only found in the domain of VANs.
 

van-independence-explaination

Erosion

Market consolidation of EDI products and services has recently seen a consolidation of VANs, with many of the impacted customers moving toward AS2. Considering the growth rates we saw in the use of “free email” in the browser wars of the 1990s, industry experts agree that AS2 is likely to become more like FTP in its frequency of use.

What’s the Lesson?

EDI buyers will look for an EDI solution that:

  • Offers independence from the VAN, can leverage any type or number of independent connections, and is in tune with today’s market
  • Has a willingness to go that extra mile for their business
  • Provides improved service offerings at a fixed cost and includes everything they need to make it work
  • Integrates directly with their ERP, works without manual intervention, and helps them be more efficient.

Questions to Ask Your Client

  • Are you happy with your current EDI solution?
  • Is your EDI solution integrated or does it require manual intervention like logging into a portal, uploading spreadsheets, or running a batch process to make it work?
  • Are you using multiple solutions to communicate with your trading partners?
  • How would you like to break from these dependencies?
  • Would you be interested in hearing about a frictionless EDI solution?

Build your digital partner ecosystem with a powerful cloud solution for EDI and Real-Time APIs

PartnerLinQ is an innovative, process-centric B2B integration solution that enables progressive organizations to build their digital partner extensible platform leveraging APIs and robust EDI capabilities.

With PartnerlinQ, organizations in most industries including fulfillment (3PL), retail, Ecommerce, wholesale, and distribution can achieve operational efficiencies through streamlined B2B communication and real-time visibility. PartnerlinQ brings management of all forms of B2B interchange including EDI, real time APIs, and file based/proprietary formats into a cohesive solution which is easy to use and manage.

PartnerlinQ requires zero customization to Dynamics 365 for Operations and Dynamics AX 2012 to make your ERP EDI ready.

PartnerLinQ Features and Benefits:

  • Designed for ease of use in managing EDI
  • Rapid partner on boarding based on hundreds of preconfigured EDI transaction and partner mappings
  • Powerful and configurable business rule engine for automating document exchange
  • Driven by business processes, beyond traditional point-to-point EDI interchange
  • Supports APIs for Shopify, BigCommerce, Magento, Jet, Amazon, DHL, UPS, and others.
  • Unified management and workflow of all B2B communication channels
  • Centralized B2B communication through a scalable and reliable solution
  • Supports small package shipment and tracking
  • Responsive solution that identifies and reports issues before they put business relationships at risk
  • Highly scalable – Cutting edge, server-class architecture on Azure platform that scales to handle extreme seasonal spikes
  • Browser based access, built-in reporting and notification capabilities

The PartnerLinQ solution is a fully managed cloud solution with complete EDI/B2B management professional services. PartnerLinQ is also available as licensed solution managed entirely by the customer. For more information please contact PartnerLinQ.

The Importance of Delivery Model in Today’s EDI Campaigns

For many enterprises EDI is the main source of how revenue flows into the business. It’s often considered the lifeblood of a company. If not done well there can be a great deal of risk and hardship.

Managing an EDI campaign requires a specific knowledge base that few have. Different from other areas of business these skills are not widely carried across the majority of today’s technical staffs. Generally companies are lucky to have a small handful of people with this unique background. This makes choosing the correct software/service provider and delivery model imperative to avoid problems that could damage customer relationships and cash flow.

Many other technology platforms that companies invest in have inherent cross training. CRM and ERP environments often have large teams of people that work on them and in them on a daily basis. This is rarely the case with EDI.

For years companies didn’t have much choice when it came to B2B community enablement. They are mandated to participate by their trading partners and this would require them to buy software and hire the appropriate technical talent. Fortunately today there are choices. Some still buy the software, maintain the environment and staff required. Some take advantage of other delivery models and offload much of the heavy lifting when it comes to EDI.

There are three general delivery models to choose from:

  • On premise / self-managed
  • Hosted / self-managed
  • Cloud / managed service

On premise / self-managed model has been around for forty years. This is a common choice for companies that still desire to keep everything in-house and don’t assign a great deal of importance to a cloud strategy.

Hosted / self-managed model is similar. The end user still needs to maintain the staff with the required skillset. Their EDI environment may be collocated in an offsite data center but the company is still responsible for the daily maintenance of the environment, adding transaction sets / trading partners and error resolution.

With the prevalence of cloud based ERP and CRM solutions today the two models above, for some, make less sense and carry a risk of failure. Getting and keeping EDI capable people has become difficult. Companies that have made the decision to implement a cloud/managed service delivered ERP/CRM see the value in outsourcing.

When making a decision on which direction and delivery model to choose a company needs to look a three things. Does this provider line up with your cloud strategy? Do you want to maintain EDI capabilities in-house? Do you see the value and reduced risk involved with today’s cloud/managed service delivery? The answers to these three questions should help point you in the right direction. To learn more please Contact PartnerLinQ.

EDI Solutions for Dynamics 365

EDI Solutions for Dynamics 365

Complete EDI, B2B and API solution for frictionless partner communication.

Exchanging business data with other organizations can be expensive and technically challenging:

  • Many EDI solutions fail to scale to high volumes and become sluggish under peak loads
  • Standalone EDI systems need to be maintained separately from ERP platforms and create a disconnect between EDI processing and other business processes.
  • Your partner will use probably different EDI platforms and data formats than your own.

Scalable and centralized end-to-end EDI transaction management

Traditional EDI platforms have multiple limitations. Partner onboarding can be time-consuming and frustrating, and communicating with partners that don’t use EDI requires expensive, difficult-to-maintain customization. Complicated error tracking, poor transaction visibility, and vendor rule management lead to expensive chargebacks that can severely impact your margins.

PartnerLinQ simplifies partner onboarding by supporting business rule-based transactions with businesses with existing EDI setups as well as non-EDI businesses. Its advanced business rule engine and extensive pre-configured business rule library make it easy to configure, save, and reuse business rules for multiple partner organizations and EDI scenarios.

PartnerLinQ can be configured to generate alerts that are triggered when specific conditions are met, and can be used to quickly identify EDI bottlenecks or errors. These notifications are a critical component of PartnerLinQ’s error handling functionality and can help reduce business costs by preventing chargebacks and low transaction throughput.