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Herding Geese: The Retail Supply Chain
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On September 9th, 2002 Walmart announced that it had selected software from a small company called iSoft to power its new Internet-based EDI system. This was the shot heard round the world in the EDI industry. The new Internet EDI technology, called AS2, would circumvent the VANs, enabling businesses to exchange transactions directly over the Internet. Walmart’s announcement had catastrophic impacts to the EDI VAN business that had a virtual monopoly on supply chain B2B transactions for decades. Most analysts would place the EDI VAN sector in the category of a melting ice cube. In fact, in 2002 experts predicted that EDI VANs would be dead by the year 2010, if not 2005. However, the EDI VAN business is still a $1 billion sector in the year 2012.
Table Of Contents
- Walmart’s influence on the supply chain.
- AS2 and the Shot Heard ‘Round the World
- AS2 Kills the Value Added Networks (VANs)
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