A local network is a network that starts with an IP address of 10.x.x.x, 192.x.x.x or 172.x.x.x. By convention these addresses are not allowed to pass through any router on the internet keeping them as local/private networks. LAN’s (Local Area Networks).
The connection may be either wired through an ethernet connection or a local wireless (wi-fi) connection. The wireless connection could be used if employees were picking stock in a warehouse. They would have access to the data file as defined by the permissions set in their user file. As outlined in Enabling Menus for Web Pack Users.