.svg)
The supply chain and logistics industry is aggressively expanding. A Research and Markets report forecasts the global logistics market will grow at a CAGR of 5.7% by 2027. It predicts the market will reach USD 13,326.3 billion by 2027 from USD 9,525.1 billion in 2021.
The expansion of the industry is driven by the rise of e-commerce, globalization, and changing consumer buying behavior. As the industry grows, the amount of documentation and data involved in each transaction also increases.
Logistics companies face the challenge of managing the vast amount of data created daily. They rely on efficient data management to maintain their competitive edge. It has led to an increased demand for document processing solutions that can automate and streamline logistics.
Document processing in the supply chain industry is essential to maintain efficient operations and stay competitive. Logistics companies are already switching to electronic signature technology because of its cost-effectiveness.
They are automating routine tasks that involve documents. They use technology instead of traditional techniques, from scanning to data extraction.
Automated document processing in supply chains and logistics is expanding because it improves the customer experience. It also makes document processing, information sharing, tracking, and data analysis faster.
Automation of document processing gives logistics companies more control while lowering operating expenses.
This article will look at the various supply chain document processing methods, the need for OCR-based automation, and the benefits of document processing in logistics.
The conversion of handwritten or typed text and images is known as document processing. These documents can be paper-based or electronic.
During document processing, data from these documents can be transformed into properly arranged electronic information for easy storage and analysis.
Traditionally, document processing is handled by a dedicated team that reviews documents and makes data entries into legacy systems.
Manual document processing is error-prone and costly too. The large workforce and time required for manual document processing are some of the biggest problems for logistics companies.
Companies are shifting to automated logistics document processing for accurate data capture using Optical Character Recognition (OCR) technology.
Legacy OCR methods struggle to handle the complexity of handwritten notes and variable document types. Over time, these OCR tools have become more powerful, but they frequently produce subpar results. Complex documentation may need technical specialists to set up templates for each document.
Intelligent Document Processing (IDP) solutions ensure complete automation of logistics document processing. These offer end-to-end automation powered by recent developments in AI and computer vision.
It uses AI to scan structured and unstructured documents before assigning them to the appropriate category and format. The AI OCR document processing solutions are user-friendly as well. They offer an intuitive user interface that provides detailed insights.
Logistics companies using AI-powered OCR document processing tools may import various document types into a business system. As a result, they do not have to perform any human administration tasks traditionally included in the process.
The general procedure followed by AI OCR document processing solutions involves the following steps:
Logistics document processing involves a wide variety of documents. Typical documents used in the logistics and supply chain industry are:
In combination with other imaging and business management systems, OCR Tools are being used by 91% of organizations. They are significantly increasing productivity.
The ROI of an AI OCR logistics document processing tool is well worth the investment, regardless of the kind of documents you need to handle.
Let's look more closely at how supply chain document processing using AI-powered OCR tools will benefit your company.
Document processing plays a pivotal role in the success of a logistics or supply chain company.
It streamlines operations while increasing customer satisfaction through greater transparency. Besides reducing operational costs, it also ensures regulatory compliance as per industry norms.
OCR can drive value for your logistics company by enabling quicker and more accurate document processing.
Improve your bottom line by reducing processing time and labor costs. In addition, OCR eliminates the chances of human error in document data entry and reduces storage costs while making it easier to track documents.
The benefits of OCR technology-driven document processing in supply chain and logistics businesses are:
The logistics industry involves tons of documentation. Printing, storage, reproduction, mailing, and data retrieval from unstructured or semi-structured documents dramatically increase data entry costs. OCR-based document processing helps you reduce expenses by automating data entry.
A research report by Billentis on e-invoicing mentions that automated e-invoicing brings down costs by 60-80% compared to conventional paper-based processing.
Additionally, manual document management can result in losses through human errors such as misreading, wrongly noted details, duplication, and missing information.
Minimizing human interaction reduces errors and facilitates better utilization of resources.
Manual data entering leads to mistakes like typos, duplicate data, and unit inconsistencies during data extraction. It leads to many disruptions and delays further down the supply chain.
OCR supply chain document processing begins with sorting and labeling the data extracted from contracts, packing slips, and customs documents. It ensures data accuracy and consistency, making it simple to guarantee regulatory compliance and contract control.
Using AI, the OCR tools convert data into high-quality, structured data ready for analysis and deriving business value.
A benchmarking report by AIMultiple demonstrates an overall OCR Text Accuracy of around 90%.
OCR-based automation technology speeds up supply chain document processing.
For instance, DHL Supply Chain reported increased productivity by implementing IDP to automate invoice processing.
One of the challenges most logistics managers encounter is maintaining and using their fleets optimally. OCR technology makes document processing more manageable and more accurate.
The technology allows one to monitor each vehicle’s health and keep track of its location. As a result, it helps reduce fuel consumption, prevent late deliveries, and eliminate inefficiencies.
Enabling self-service for tracking consignments and expediting the resolution of logistics issues enhances the customer experience.
Paper-based document processing does not offer enough transparency.
Automating data capture using OCR tools helps digitize information, while AI helps to derive actionable insights from it.
Providing real-time information boosts customer trust and adds confidence in long-term relationships.
The inability to see and understand the shift in market demands and customer preferences is a challenge for logistics companies.
Using data analytics, supply chain companies can forecast demand and plan their operations to meet fluctuations.
OCR-powered logistics data processing ensures document availability for meeting regulatory requirements. In addition, it saves the logistics company from penalties due to missing or delayed documentation.
Documents related to the supply chain industry should be carefully organized and handled. They offer accountability, transparency, and crucial information about the stages involved in supply chain management.
OCR document processing tools ensure supply chain papers are appropriately handled. You can update them frequently, make them simply accessible for critical stakeholders, and establish a culture of transparency.
Avail the benefits of document processing in the logistics and supply chain industry with an industry-leading OCR tool from Butler Labs. Test the tool for free today.
