Artificial intelligence (AI) has irrefutable potential to improve business operations, but not always in the ways one might imagine. For some, artificial intelligence in supply chains conjures up images of robots managing conveyor belts or drones speeding up delivery times. While this may eventually become a reality, the application of AI to modern supply chain management strategies is far more practical.

Supply chains are under intense pressure to deliver on time, whether to other organizations or directly to consumers. The situation is further exacerbated by staffing shortages across the country, which have reduced the number of employees available for daily business tasks.

Ai-driven Intelligent Document Processing (IDP) can replace manual data entry with automatic data capture, enabling digital extraction and export of information in minutes, simplifying customs compliance and reducing backlogs. By integrating AI applications that optimize the user experience and deliver instant, measurable results, the supply chain industry can streamline daily operations, simplify manual data entry, and save businesses time and expense.

Here are some examples of the best use cases for integrating intelligent document processing into supply chain management operations, as well as the obstacles that the technology can overcome:

Manual data entry error

Gartner estimates that poor data quality costs businesses an average of $12.9 million per year. Many factors contribute to this statistic, with manual data entry playing an important role. This is not only time consuming, but also increases the possibility of introducing human error. The more errors, the worse the data quality, leading to bad business decisions. In addition, manually entering data leaves the supply chain with outdated information because employees can't keep up with the volume of data. The rush to catch up can precede input data quality, resulting in businesses with inaccurate information and outdated data, leading to inefficiencies and poor decisions.

In 2020, a study ranked manual data entry as one of the most hated office jobs among employees, leading to high employee turnover. Intelligent document processing eliminates manual data entry, allowing employees to focus on high-value tasks. Data quality improves and data processing speeds up, saving businesses money and time.

Data inconsistency

If a company has a position for manual data entry, chances are more than one person is responsible for the position. Adding people may reduce the time it takes to record this data into the system, but it may also lead to data inconsistencies. For example, each employee responsible for manual data entry may define categories differently and interpret data differently. As a result, information may be entered correctly but shifted or sorted inconsistently, worsening the quality of the data available to the company. While this can be reduced with proper training, it does not eliminate the possibility of such inconsistencies.

Intelligent Document Processing (IDP) provides consistency and quality of data entry. The system can read documents like a human, but it can do a better job of identifying and sorting content rather than blindly analyzing the format. As AI systems are used more, it will get better at data capture, making all entries more accurate. This can greatly reduce the number of data conflicts in the supply chain.

Persistent backlog

Backlogs and bottlenecks continue to cause delays in transport and logistics. This problem in individual companies could have a negative impact on the global economy. Companies can solve this problem by suspending sales and orders while they deal with the backlog, but need to guarantee a continuous revenue stream to keep the company going. From here, the backlog continues to pile up, exacerbating the problem and frustrating customers and employees. As the supply chain expands, it becomes increasingly impractical for one person to be responsible for dealing with these backlogs.

Intelligent document processing greatly reduces the time to deal with backlogs and speeds up the delivery of goods. Invoices will have a faster output, errors in documents will be identified faster, and the system can incorporate real-time error correction feedback. Inaccuracies can be addressed immediately and the need for further traceability of the process is eliminated.

With email integration, smart file handling becomes even more powerful. Imagine being able to proactively keep vendors in the loop with automated email notifications and status updates. You can now automate notifications and alerts, send payment and invoicing information, confirm receipts, and provide status and subsequent updates via email.

According to data released by IDC, the global Intelligent Document processing (IDP) market will grow at a compound annual growth rate of 23.1% over the next five years. Almost all industries are beginning to recognize the importance of incorporating IDPs into their business models.

However, advances in AI in the supply chain, or any industry, will not happen overnight. When designing new technology, improvement is always a gradual process. In order to ensure that the supply chain gets the best AI, it must start at the basic level. Intelligent file processing provides the AI elements needed to automate and streamline workflows for greater operational flexibility. This technology eliminates tedious manual data entry while providing a gateway to the collective future that can support the drones and robots that capture everyone's attention.