For manufacturers and distributors choosing how to connect EDI systems, the decision between AS2, VAN, and API isn't just technical — it's financial. Each protocol has different setup costs, ongoing fees, and IT overhead.
Here's what you need to know to make the right choice for your business.
Understanding Your Three Options
AS2 Protocol
Direct, point-to-point connections between trading partners. Encrypted transmission over the internet using digital certificates.
Best for: Direct connections to major retailers who require AS2.
EDI VAN
Managed network service that routes EDI documents between trading partners regardless of their protocol.
Best for: Multiple trading partners with varied technical requirements.
API Integration
Real-time programmatic connections between EDI, ERP systems, and business applications.
Best for: Real-time automation and direct ERP integration.
AS2: Direct but Demanding
AS2 has become the standard for direct EDI connections, especially with major retailers like Walmart and Target.
Advantages:
- Fully encrypted transmission with digital certificate authentication
- Direct data flow from your system to your partner's
- No middleman fees for message routing
- Meets compliance requirements for most retailers
Hidden costs and limitations:
- Each new partner requires separate configuration and testing
- AS2 certificate management (renewals, monitoring, troubleshooting)
- IT overhead for server maintenance, firewall configuration, and monitoring
- Only works if your partner supports AS2 — many still require VAN
VAN: The Practical Choice for Multiple Partners
VANs handle the complexity of routing EDI documents between thousands of trading partners, regardless of which protocol each one uses.
Why VANs still dominate manufacturing EDI:
- Connect to any trading partner without individual configuration
- VAN handles protocol translation (AS2, SFTP, FTP) automatically
- Built-in message tracking, archiving, and audit trails
- Automatic retries and error handling
- 99.9%+ uptime guarantees
Modern VAN pricing models:
- Flat monthly rate (predictable, no surprises)
- Per-trading-partner pricing (scales with your network)
- Avoid legacy kilo-character fees that create unpredictable bills
When a VAN makes financial sense: If you have 5+ trading partners or work with major retailers, a VAN eliminates the IT overhead of managing individual AS2 connections. BOLD VAN customers typically save 30-80% compared to legacy VAN providers.
APIs: Real-Time Integration for Modern ERPs
API integration connects EDI directly to your ERP (NetSuite, SAP, Dynamics, Infor) for real-time automation.
What APIs enable:
- Instant data sync between EDI and your ERP — no batch processing delays
- Event-driven workflows (auto-create orders, trigger inventory updates)
- Granular visibility and custom dashboards
- Eliminate manual data entry completely
Considerations:
- Requires technical expertise for setup and maintenance
- Only works if your EDI provider offers robust API support
- Best used in combination with VAN or AS2 for partner connectivity
The Hybrid Approach: Why Most Manufacturers Use All Three
In practice, many manufacturers don't choose just one protocol. A typical setup includes:
- VAN for broad trading partner connectivity
- AS2 for one or two major retailers who require direct connections
- APIs for real-time ERP integration and automation
This hybrid model gives you universal partner coverage, retailer compliance, and internal automation — without forcing you into a single technical approach.
Cost Comparison: What You'll Actually Pay
Direct AS2:
- Setup: $500-2,000 per partner (testing, certificates, configuration)
- Ongoing: IT time for certificate renewals, monitoring, troubleshooting
- Total annual cost for 10 partners: $5,000-15,000 (mostly IT labor)
EDI VAN:
- Setup: Free partner onboarding with BOLD VAN
- Ongoing: Flat monthly rate or per-partner pricing
- Total annual cost: $3,000-12,000 depending on volume (minimal IT overhead)
API Integration:
- Setup: $2,000-10,000 for ERP integration (one-time)
- Ongoing: Minimal if using a managed EDI provider
- ROI: Eliminates manual data entry (10-20 hours/week for high-volume businesses)
Decision Framework: Which Protocol Is Right for You?
Choose AS2 if: You have 1-2 high-volume partners who require it, and you have dedicated IT staff to manage certificates and connections.
Choose a VAN if: You have multiple trading partners (5+), work with major retailers, or don't have IT resources for protocol management.
Add API integration if: You want real-time ERP sync, event-driven automation, or need to eliminate manual order entry.
Use a hybrid approach if: You need broad partner coverage (VAN), direct retailer connections (AS2), and internal automation (API).
Questions to Ask Your EDI Provider
- Do you support AS2, VAN, and API in one platform?
- What's your pricing model? (Flat rate vs. per-transaction vs. kilo-character)
- How long does partner onboarding take, and what does it cost?
- Can I migrate without changing EDI IDs or disrupting partners?
- What level of IT support is included?
- How is data archived, and for how long?
Ready to compare costs for your business? BOLD VAN offers transparent flat-rate pricing with no hidden fees. We support AS2, VAN, and API integration in one platform. Get a customized quote or call 844-265-3777.
Switching from another provider? Upload your current VAN bill and see how much you could save — risk-free migration guaranteed.
