Intelligent Document Processing (IDP) for Transportation and Logistics Automation

A seamless workflow is paramount for success in every industry today. We see automated workflows in mortgage, insurance, finance, and almost every other industry. 

However, logistics is one of the many sectors in which automation can benefit the most. It is the largest sector in the world, efficiently moving goods between cities and countries through transportation, warehousing, inventory management, packaging, and distribution. They coordinate transportation modes, plan routes, manage warehouses, track inventory, and ensure timely customer delivery. They play a critical role in supply chain operations, ensuring goods reach their destinations on time and cost-effectively.

The logistics and transportation sector runs on large amounts of data from numerous activities, such as invoicing, shipping, routing, customs declarations, transport management, etc. The data they need is scattered across proforma invoices, customs forms, waybills, labels, packing lists, and other structured, semi-structured, and unstructured document types. All of the data is stored in files and folders containing paper documents, emails, Excel files, Word files, PDFs, and sometimes even scanned images.

The ELEPHANT in the ROOM

The critical issue is that logistics and transportation companies heavily rely on manual document management and data entry tasks, which are time-consuming, error-prone, and labor-intensive. This leads to inefficiencies, delays, and increased operational costs.

According to the 1-10-100 Rule of Data Entry, 

• $1 per record - The cost of verifying a record as it is entered
• $10 per record - The cost of remediation to fix errors after they are created
• $100 per record per year - The cost of inaction

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Every minute wasted on manual document processing translates to high operational costs and potential setbacks.

Intelligent Document Processing (IDP) Is a Game-Changer for the Logistics and Transportation Sector

With advanced ML and AI capabilities, an Automated logistics management system can automate an end-to-end logistics operation. It is a valuable tool that offers accurate and streamlined data extraction from structured, semi-structured, and unstructured logistics documents. AI-driven automation has the capacity to learn and adapt to document types, layouts, and varying data structures enhancing accuracy at every step.

Document Processing in Logistics

The logistics industry deals with many documents daily, from bills of lading to customs forms. However, manually processing these documents can be daunting and prone to errors and delays. IDP for Logistics offers a revolutionary solution that automates document processing, saves time, reduces errors, and improves efficiency.

Here are ten essential logistics documents that can be efficiently automated with Intelligent Document Processing (IDP):

• Bill of Lading (BoL)
• Air Cargo Manifests
• Customs Documentation
• Proof of Delivery
• Packing Lists
• Insurance Certificates
• Shipping Manifests
• Purchase Orders
• Freight Invoices
• Dangerous Goods Declaration

Understanding the Manual Challenges in the Logistics and Transportation Sectors

• Delays & Errors

Employees spend significant time sorting and organizing data from each document individually, which results in data entry errors in shipment details, addresses, and customer information, slower processing times, and increased labor costs.

• High Operational Costs

Manual document processing leads to increased labor costs, inefficiencies in resource allocation, and missed opportunities for cost-saving measures.

• Poor Visibility into the Supply Chain

Since it is done manually, there are no real-time insights into inventory levels, shipment statuses, and route optimization, hindering decision-making and responsiveness to customer demands.

• Limited Accessibility - Huge Volumes 

Difficulty locating critical documents such as bills of lading, customs forms, and proof of delivery, resulting in delays in resolving customer inquiries and disputes. Also, accessing and sharing information stored in paper documents across different cities hinders collaboration and decision-making.

• Variety and Complexity of Documents

The diverse layouts and formats of logistic documents like Bills of Lading (BoL), invoices, and purchase orders from different vendors lead to inconsistencies in manual data extraction.

• Lack of Scalability

Inflexible systems and processes led to bottlenecks. It is difficult to scale operations to meet growing demand without investing in additional resources due to reliance on manual processes that are time-consuming and error-prone. 

• Security and Compliance Risk

Paper-based document management poses risks. Without automated systems for tracking and managing documents, maintaining regulatory compliance and safeguarding sensitive information is a struggle.

The logistics and transportation sectors face numerous challenges hindering growth and profitability. To top it all, traditional and outdated solutions fail to deliver the efficiency and agility required in today's competitive environment. 

5 Outdated Approaches That Won’t Cut It for the Logistics Sector

• Traditional Route Planning Software: Although conventional route planning software was designed to optimize transportation routes, it often lacked real-time data integration and predictive analytics capabilities, resulting in suboptimal route decisions and inefficient resource allocation.
• Legacy Fleet Management Systems: While legacy fleet management systems offer basic functionalities for tracking vehicles and monitoring driver activities, they fail to provide comprehensive insights into fuel efficiency, vehicle maintenance scheduling, and driver performance, hindering efforts to enhance operational efficiency.
• Conventional Dispatching Methods: Traditional dispatching methods relying on manual communication channels, such as phone calls and emails, are prone to delays, miscommunications, and errors, impeding the timely assignment of tasks and coordination of logistics operations.
• Spreadsheet-Based Inventory Management: Although spreadsheet-based systems are a standard tool for inventory management, they lack automation capabilities and real-time synchronization with warehouse operations, leading to inventory inaccuracies, stockouts, and inefficient order fulfillment processes.
• Paper-Based Documentation Processes: Reliance on paper-based documentation processes, such as handwritten delivery receipts and manual paperwork for customs clearance, results in time-consuming data entry tasks, delays in information processing, and increased risks of errors and compliance issues.

Traditional solutions for document processing are no longer sufficient to meet the demands of the modern logistics industry. These obsolete technologies are inefficient, error-prone, and unable to keep pace with the dynamic nature of logistics operations.

Logistics and Transportation Operations that IDP Can Revolutionize

Automated logistics solutions offer a revolutionary solution to the challenges of the logistics and transportation sectors. From order processing to inventory management, IDP can make logistics operations efficient.

1. Document Management: IDP streamlines the handling and processing of various documents involved in logistics operations, including bills of lading, invoices, customs forms, manifests, and proof of delivery documents. By automatically capturing, categorizing, and extracting data from these documents, IDP reduces manual data entry efforts, minimizes errors, and improves document organization and retrieval.

2. Order Processing: IDP automates the processing of customer orders, from order receipt to fulfillment. By extracting order details from incoming documents such as purchase orders and sales contracts, IDP accelerates order entry, reduces processing times, and ensures accuracy in order fulfillment, leading to improved customer satisfaction and retention.

3. Shipment Tracking and Monitoring: IDP enhances real-time visibility into shipment statuses and locations by automatically capturing and updating tracking information from carrier documents, shipping labels, and delivery confirmations. This allows logistics companies to monitor shipments proactively, identify potential delays or issues, and provide timely customer updates, improving transparency and service reliability.

4. Inventory Management: IDP optimizes inventory management processes by automating the capture and analysis of stock receipts, packing lists, and inventory reports. It helps minimize stockouts, reduce excess inventory holding costs, and improve inventory turnover rates by accurately tracking inventory levels, locations, and movements in real time.

5. Vendor Management and Compliance: IDP facilitates vendor management and compliance by automating the processing of vendor invoices, contracts, and compliance documents. By automatically verifying vendor information, matching invoices with purchase orders, and flagging discrepancies or non-compliance issues, IDP streamlines vendor onboarding and invoice approval workflows and ensures adherence to contractual and regulatory requirements.

6. Customs and Regulatory Compliance: IDP assists in ensuring compliance with customs regulations, trade laws, and industry standards by automating the processing of customs declarations, import/export documentation, and regulatory filings. IDP helps mitigate compliance risks, minimize customs delays, and avoid penalties or fines by accurately interpreting and validating compliance-related information from these documents.

7. Financial Management and Billing: IDP can streamline financial management and billing processes by automating the extraction and validation of billing information from invoices, shipping documents, and payment receipts. By accelerating invoice processing, improving billing accuracy, and facilitating faster payment reconciliation, IDP enhances cash flow management, reduces billing errors, and strengthens financial controls.

Automated logistics management system enables companies to streamline operations, reduce costs, improve accuracy, and enhance efficiency by automating key business processes. 

How Infrrd’s Logistics Automation Solution Benefited Covantis

One real-world example of Infrrd IDP implementation in the logistics industry is Covantis, a global platform for trading agricultural commodities. By leveraging Infrrd’s logistics automation system, Covantis has been able to automate document processing, improve efficiency, and enhance transparency in the supply chain. Look at how they transformed their challenges with Infrrd IDP.

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Advantages of Automated Logistics and Transportation Operations with Infrrd

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Infrrd's IDP solutions offer numerous benefits for logistics and transportation companies. From improved accuracy and efficiency to enhanced compliance and security, Infrrd's IDP solutions empower companies to take their operations to the next level.

100% Accuracy Guarantee: Infrrd’s advanced ML algorithms and Natural Language Processing capabilities ensure 100% accurate data extraction from structured, unstructured, and semi-structured documents, including handwritten and poorly scanned ones. 

No-Touch-Processing: Industry’s first NTP solution. Fully automated document processing eliminates the need for human intervention. With Infrrd, there is no more manual data entry or extraction.

Tailored Customization: Refine and customize our algorithm to suit any business case. Achieve 100% extraction accuracy for every paper, regardless of format, document type, or complexity. We tailor an intelligent solution with custom document templates and industry-specific algorithms that fit their needs.

Reliable Scalability to Handle Document Volumes: Infrrd automates end-to-end processes without hiring resources. You can handle fluctuating document volumes effortlessly, ensuring seamless operations even during peak demands.

Seamless Integration: With Infrrd’s API integration capability, we seamlessly integrate with any existing systems and improve your operational agility.

Cost-Effectiveness: Infrrd IDP offers long-term cost savings and ROI potential compared to manual processes or alternative solutions. It reduces labor costs, error rates, and operational inefficiencies, improving profitability and competitive advantage.

Technical Support and Maintenance: Infrrd’s comprehensive support and maintenance packages ensure timely assistance with technical issues, updates, or customization needs. Our dedicated support team, with expertise in IDP technology, effectively addresses customer queries.

Data Security and Compliance: Our encryption protocols ensure confidentiality, safeguarding sensitive data for peace of mind. Infrrd IDP ensures compliance consistency by automatically validating data against regulations, reducing non-compliance risks and legal complications.

Implementing IDP solutions can be challenging, but Infrrd's proactive approach helps companies overcome these challenges. By addressing data security and privacy concerns and providing comprehensive training and support, Infrrd ensures a seamless integration process for its IDP solutions.

The Perfect Fit: Infrrd for Logistics Automation

Intelligent Document Processing (IDP) is a game-changer for the logistics and transportation sector. Logistics automation enables companies to streamline operations, reduce costs, and enhance efficiency by automating document processing and providing real-time insights into business operations. With Infrrd's automated logistics solutions, logistics and transportation companies can unlock their full potential and stay ahead of the competition in today's fast-paced world.