What Is a Value Added Network?

Value-added network is an information system that exchanges information between manufacturing, wholesale, logistics, and retail industries through computer service networks.

Value-added network

The biggest feature of VAN is that through the computer service network, different enterprises and different network systems can be connected to each other, thereby making different forms of data exchange possible. Because VAN realizes the connection of different systems and the exchange of different formats, it provides countless users with the service of exchanging data and creates added value, so it is called value-added network.

The basic structure of a commercial VAN is shown in the figure :

Large enterprise VAN. This is built by large-scale production enterprises, wholesale enterprises, logistics enterprises, and retail enterprises.

VAN processing function. Including, exchange of transaction information (order, product information, etc.); logistics information (delivery, storage, inventory, distribution, etc.); settlement business (bank transfer, payment inquiry, credit card settlement, etc.).

Information supply function. Including databases, image materials, survey services, etc.

Communication function. Email, audiovisual transmission, etc.