Intelligent Document Processing for supply chain automation

The Intelligent Document Processing (IDP) is transforming document handling within the supply chain, making it faster, more accurate, and automated. In a context where efficiency, traceability, and responsiveness are crucial, IDP overcomes the limitations of manual processes, which are often slow, costly, and error-prone.

Document challenges in the supply chain

Document processing in the supply chain can significantly reduce operational efficiency. Many companies face major difficulties when relying on manual or traditional approaches (e.g., OCR), underlining the need for automated solutions like IDP.

Let’s look at the types of documents involved and the issues tied to manual handling.

Document types in the supply chain

Documents can appear in various formats and require specific approaches for effective processing. The most common documents include:

• purchase and sales orders: require verification against catalogs and price lists.
• transport documents (delivery notes - DDT): must be reconciled with the actual goods received.
• invoices: need to be fiscally and accounting-wise verified.‍
• customs documents: involve high regulatory complexity.‍
• logistics contracts: often require review of legal clauses.

Manual document handling presents several difficulties:

• long processing times and high costs: manually processing large volumes of documents demands considerable time and resources.
• data errors: manual data entry increases the risk of errors, potentially causing cascading issues.
• decision-making delays: decisions are often slowed due to sluggish document workflows.

These problems not only reduce operational efficiency but also compromise data traceability.

What is IDP and its key features

With the challenges of document processing clear, let’s explore how IDP can solve these problems. Intelligent Document Processing is a technology that automates document handling, going beyond simple text recognition (OCR). It’s a solution based on AI, machine learning, and NLP, capable of extracting data from structured, semi-structured, and unstructured documents—reducing errors and saving time.

Thanks to these technologies, IDP enables:

• automatic data extraction (codes, quantities, amounts, dates)
• document classification by type and content
• data validation through comparison with company databases
• data integration into ERP, WMS, TMS systems

These capabilities simplify document processing, reduce errors, and minimize human intervention—a significant leap forward in operational efficiency.

Applications of IDP in the supply chain

IDP is used across various areas of the supply chain, including:

• purchase and sales orders: automatic extraction of product codes, quantities, and prices from PDFs or emails, with validation and automatic order creation in the management system.
• transport documents (DDT): acquisition and reconciliation with orders and received goods, with automatic delivery status updates.
• customs documentation: data extraction for regulatory checks and automatic system entry.
• invoices: automatic reading and verification of invoices against orders and DDTs to ensure consistency.‍
• returns: automation of document processing in return workflows, including validation and logistics system updates.

Benefits of IDP in the supply chain‍

Having seen how IDP works and its applications, let’s understand the concrete benefits it offers.

IDP simplifies document processing and makes supply chain operations more efficient. Implementing IDP solutions offers numerous advantages:

• Time and cost savings: drastic reduction in manual data entry
• Accuracy: lower risk of errors, thanks to automatic checks and validation rules
• Operational responsiveness: faster flows and real-time updates
• Scalability: efficient management even with high document volumes

Implementing IDP accelerates decision-making processes and makes the company more agile in responding to market changes, while seamlessly integrating with existing systems.

System integration

IDP enhances the supply chain by integrating with existing business systems. Automation becomes a reality thanks to a continuous data flow across platforms. Here's how IDP connects with main enterprise systems.

Connection with Core Systems

IDP directly connects to:

• ERP systems: to automatically process orders, invoices, and accounting documents
• Transportation Management System (TMS): to handle transport and customs documents
• Warehouse Management System (WMS): to manage warehouse-related documentation

This integration allows inbound documents to be matched to enterprise systems, with automatic data entry into the appropriate databases.

Customizable configuration

Modern IDP platforms also offer a high level of customization, adapting to various operational contexts and specific business needs:

• Multilingual support, useful for companies operating internationally
• Handling of non-standard document formats, even with variable layouts
• Configurable validation rules, based on company parameters

These features make IDP highly flexible, suitable for both small businesses and large enterprises with complex, global supply chains.

Conclusion

‍Intelligent Document Processing (IDP) is changing the way companies manage the supply chain. By automating document processing—from data extraction to integration into business systems—IDP simplifies and improves operational processes.

Thanks to the automation of activities such as purchase order and delivery note processing, IDP ensures greater accuracy and more effective traceability through digitalization. This results in reduced operational times and costs, improving overall efficiency.

In an increasingly competitive market, IDP is a key enabler of supply chain digitalization. Its ability to easily integrate with existing systems helps companies optimize processes and prepare for the challenges of global logistics. This evolution not only smooths operations but also provides a strategic advantage for the future.

Do you have specific questions or want to learn more? Book a call to get more information.

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