Orderful vs. VANs: Total Cost, Time-to-Value, and Risk Compared

VANs (value-added networks) once served as the backbone of electronic data interchange (EDI), routing documents and maintaining connections between trading partners. But today’s supply chains move faster, with higher transaction volumes and stricter compliance demands. Legacy VAN systems just can’t keep pace anymore. On top of not keeping up, they also add layers of cost, delay, and risk that slow business operations. 

In this article, we'll compare VANs to Orderful’s modern, API-first EDI platform and show how you can cut total costs, speed up onboarding, and future-proof your data exchange strategy.

What Is a VAN in EDI?

A VAN (value-added network) is a third-party service that transmits, stores, and routes EDI documents between trading partners. Before the internet made direct EDI connections practical, VANs acted as the secure middle layer — managing message delivery, mailboxing, and basic compliance checks.

In the past, VAN-based EDI solved the critical challenge of connecting companies that used different EDI systems and protocols to exchange data. They helped ensure purchase orders, invoices, and shipping notices reached their destinations intact. But as technology advanced, that same intermediary model developed into a bottleneck.

Today’s supply chains depend on real-time data exchange and instant visibility across systems. Designed for batch processing, VANs introduce delays and additional costs whenever data moves between business partners. They often add unnecessary complexity, especially for companies that need to onboard a large number of trading partners or manage high transaction volumes.

Modern EDI solutions like Orderful remove the VAN middleman and connect partners directly through APIs for faster, more reliable EDI transactions.

The Hidden Costs of VANs

On the surface, a VAN can look like a simple way to manage EDI communication. You pay a service provider, connect your trading partners, and let the network handle the rest. But the reality is that VAN pricing hides layers that drive up the total cost of ownership fast.

Most EDI VAN services charge per-transaction or per-document fees, plus mailbox and connection costs. Every new trading partner or document type means new maps to configure and maintain, and each one adds ongoing expenses. Many companies underestimate their total VAN costs by 30–40% once indirect costs start showing up in the financials.

Indirect costs often include IT labor for troubleshooting failed EDI transactions, delayed partner onboarding, and the manual work required to keep mappings and compliance tests current. This complexity also limits scalability and drains resources that companies could invest back into the business.

Orderful eliminates unpredictable fees with a flat, per-partner pricing model that delivers predictable EDI costs and a faster return on investment.

Time-to-Value Challenges with VANs

One of the biggest drawbacks of the traditional EDI-VAN model is the long time it takes to realize value after signing a contract. VAN onboarding is a slow, manual process that involves configuring new maps, testing data formats, and validating compliance with each trading partner.

For companies managing multiple trading partners or document types, onboarding through a legacy VAN can stretch from weeks into months. Each new connection often requires IT intervention and back-and-forth testing before a single EDI transaction can flow reliably.

This doesn't just slow business processes. It delays revenue. Launching a new retailer or supplier connection that should take days can instead take an entire quarter. And that lag directly impacts growth.

Orderful shortens the path to value by replacing manual VAN processes with automated, API-based onboarding that gets new trading partners connected in days, not months.

Risk Factors in Legacy VAN Systems

Beyond cost and delay, legacy VAN systems introduce serious operational risks. Without the right EDI solution, the consequences of these risks can add up, to both your budget and your growth potential.

Financial Risks

When EDI communication relies on a single intermediary, any disruption to that network can halt document exchange with every connected partner. Long trading partner onboarding times, missed SLAs, downtime, or failed transactions can quickly translate into lost revenue and costly chargebacks.

Compliance Risks

The manual data entry and oversight involved in using VAN systems also increase the risk of errors and non-compliance. Outdated mapping, missed updates, or formatting errors can lead to inconsistent data accuracy, triggering rejections from retailers and distributors. Even small EDI data discrepancies can lead to financial penalties or delayed shipments, especially in high-volume supply chains.

Flexibility Risks

Vendor lock-in is another common risk. Many VAN providers use proprietary translators and custom configurations, which makes switching providers expensive and time-consuming. The longer a company stays on a legacy VAN, the harder it becomes to modernize EDI operations.

Orderful minimizes these risks with a secure, cloud-native platform that automates compliance validation, improves data accuracy, and provides real-time visibility into every EDI transaction.

Orderful vs. VANs: A Side-by-Side Comparison

The difference between a legacy VAN and a modern EDI provider like Orderful becomes clear when you compare cost, speed, and operational risk. Traditional VANs rely on outdated data transmission methods and manual mapping that limit system performance and supply chain visibility. Built for real-time data connectivity, Orderful protects sensitive business data while automating EDI messages and partner compliance.

Here are some key considerations for modernizing your existing systems.

VANs vs Orderful 

ROI of Switching from VANs to Orderful

When businesses compare a traditional VAN to a modern EDI platform, the return on investment becomes hard to ignore. Legacy systems often seem affordable at first, but per-transaction costs, mailbox charges, and maintenance expenses quickly add up. The longer you stay on a VAN-EDI model, the higher your total cost of ownership grows.

Orderful eliminates those variable expenses with flat, per-partner pricing that keeps EDI costs predictable. Companies also save by reducing chargebacks, manual data entry, and IT troubleshooting time. Those indirect savings often rival or exceed the direct subscription costs of the platform itself.

Faster trading partner onboarding accelerates revenue because businesses that once waited months for EDI connections can start transacting in a matter of days, improving cash flow and maximizing operational efficiency.

When to Replace Your VAN

Even with years of service, a value-added network can eventually hold your business back. If your EDI operations feel slower, more expensive, or harder to maintain, it may be time to consider a modern alternative. Here are a few clear signs that your VAN is due for replacement:

• Rising VAN costs that make EDI transactions unpredictable and difficult to budget.

• Onboarding backlogs caused by long testing and setup cycles for new trading partners.

• Limited integration capabilities that make it difficult to connect to ERPs or other business systems.

• Frequent chargebacks due to outdated mappings or missed compliance updates.

• Limited visibility into transactions that prevents proactive issue resolution.

Orderful gives you a predictable pricing model and swifter partner onboarding. With the ability to connect to most business software and ERP systems seamlessly, the platform can help meet all your business needs.

How to Transition from a VAN to Orderful

Replacing a VAN doesn’t have to mean starting from scratch. With the right migration process, you can move your EDI operations to Orderful with minimal disruption and immediate gains in speed, accuracy, and visibility.

Here’s a simple framework for making the switch:

• Audit your current VAN connections. Identify trading partners, business document types, and transaction volumes so you know where to start.

• Prioritize high-volume trading partners. Migrating the connections that generate the most activity first helps you see quick wins and early ROI.

• Migrate in phases. Orderful’s prebuilt compliance templates simplify configuration, testing, and validation, so you can move partners in groups without interrupting daily operations.

• Go live with confidence. Orderful’s modern EDI platform provides real-time monitoring, testing and validation, and alerts to ensure every transaction moves smoothly.

Get the most out of your EDI investments by transitioning to Orderful’s API-first platform. You’ll reduce complexity, lower ongoing costs, and gain full control over EDI performance from day one.

Why Orderful Is the Better Alternative

Orderful isn’t just a replacement for legacy VAN systems. It's a complete rethinking of how EDI processes should work in modern business, connecting trading partners directly through APIs for real-time collaboration and instant data validation.

• Cloud-native, API-first architecture gives companies faster system performance and stronger supply chain visibility. 

• Automation and built-in compliance remove manual mapping, eliminate batch delays, and keep sensitive business data secure.

• Predictable, flat-rate pricing replaces the variable costs that come with VAN providers. 

• Support for thousands of existing systems and document formats lets businesses modernize EDI operations without disrupting daily workflows.

Whether you’re a growing supplier or a global enterprise, Orderful helps your team operate with agility — reducing errors, simplifying partner management, and unlocking long-term operational efficiency.

Next Steps in EDI Modernization

If your company is still relying on outdated VANs, now’s the time to evaluate whether that model aligns with your long-term goals. 

Start by assessing your current EDI performance. Review transaction volumes, EDI usage, integration gaps, and areas of frequent delays or chargebacks. From there, outline a roadmap to modernize your data connectivity and partner communication.

Orderful makes the switch simple. API-first architecture allows you to connect trading partners quickly, test and validate transactions in real time, and protect sensitive business data at every step.

Still running on a VAN? See how Orderful can reduce your costs, speed up onboarding, and future-proof your EDI strategy. Book a demo today.