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OCR an Efficiency Boost for Logistics

OCR an Efficiency Boost for Logistics

OCR an Efficiency Boost For Logistics 

Technological development for the logistics sector

The Logistic Industry experienced a variety of transformations with RPA, AI, robotics, and more technologies increasing their efficiency and performance. Companies like Amazon, Shopee or Lazada have smart warehouses that are semi automated. However many mid-tier companies are far from being completely digital.
One of the handicaps of the industry, when it comes to digital transformation, is the reliance on paper based documents, scanned documents and the human intervention to transform this input into usable data. These routinary activities generate bottlenecks that can be detrimental to customer service, efficiency and costs.

OCR as an enabler of digital transformation

OCR Technology enhanced by Intelligent Document Processing (IDP) can help improve the performance of the teams that have to manually input data in the accounting system, or input in the electronic repository and use the spare capacity in more key activities.
IDP can provide reliable data to automate the operation of a warehouse or cargo terminal, retrieve the data from inbound and outbound parcels, reduce the cost of processing documents, and increase speed on high-quality service.
Optical character recognition (OCR) software for data capture automation removes nearly all manual input, lowering the operating costs as much as 28% for some logistic firms.

3 Key processes that can be automated with OCR technology

1.- Optimize the processing of the transport order
Throughout the logistic process there are several documents that have to be digitized to guarantee the order reaches the destination. Some of these documents include information like Cargo description, shipment details, route, names, phone numbers and more. For large e-commerce companies, retailers and others this process is mostly digitized, however there are several steps that still require paper based documents.

Creating usable databases from these documents and interconnecting with other automations, CRM, ERPs or the route planning system is the true benefit of implementing OCR Technology into a logistics business.

2.- Ensure Data Reconciliation for Import and Export Documents
When performing an import or export, mandatory documents such as Bill of Lading, Commercial Invoice cum Packing List and Bill of Entry come into play at the all-important time of customs clearance.
Companies must reconcile and validate the information of the document with the one in the system. This is a key process that ensures data correctness. Even though regular freights usually use barcodes, QR or other methods; some companies and irregular freights still have most of the information in traditional format.


Ground officers checking the cargo still need to validate the compliance of the documents and goods leading to several potential automation like a picture or scan the list of goods that are being imported or exported and the Bill of Lading can accelerate the delivery and boost efficiency.


Ground officers checking the cargo still need to validate the compliance of the documents and goods leading to several potential automation like a picture or scan the list of goods that are being imported or exported and the Bill of Lading can accelerate the delivery and boost efficiency.

3.- Shipping agencies

Shipping agencies are in most cases the starting point of the logistic process for international freights, this sector is characterized by its competitiveness. Companies’ key differentiators are service, reliability and efficiency. One of the heavy manual tasks is the data processing of documents for the expedition process. This process can be optimized with IDP implementations and achieve a cost reduction and an increase in time efficiency.

Benefits of OCR for Logistics

OCR has many applications for different industries and the benefits focus on enhancing the digitization of paper documents, scanned documents or images. AppMan OCR is state of the art technology that has been recognized as the TICTA Award winner of Business Service, The Other Solution at the Thailand ICT Awards 2020.

Applying this technology for logistic related businesses like warehouses, shipping agencies, customs, and more bring several benefits.

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