In this knowledge base article, Freya Jane, customs expert at iCustoms, an AI platform for simplifying customs and trade compliance, explains the challenges manufacturers face with traditional document processing methods and how Intelligent Document Processing is helping to overcome them.
Everything from the food industry to the medical system depends on manufacturing to some extent. This industry is dedicated to providing valuable products to a wide range of customers. However, the goal of delivering goods on time is often delayed due to challenges like document processing. Here comes Intelligent Document Processing (IDP) to assist you.
This blog will walk you through the significance of IDP for your manufacturing business.
What is Intelligent Document Processing (IDP)?
Intelligent Document Processing (IDP) is software that automates the manual data entry processes. It uses artificial intelligence (AI) and machine learning (ML) to read, scan, extract, and organise data from any document, whether it be structured, semi-structured, or unstructured.
Using advanced techniques such as Natural Language Processing (NLP) and Optical Character Recognition (OCR), IDP understands the context and meaning of the data in different documents, ensuring accuracy.
IDP has a wide variety of applications across various industries, such as manufacturing, finance, healthcare, global trade, etc.
IDP in the manufacturing industry
In today’s manufacturing landscape, manual document processing procedures, such as OCR, are still used, which reduces productivity. Businesses should now adopt advanced technologies such as document automation to eliminate labour-intensive tasks.
Embracing automation, such as intelligent document processing (IDP), eliminates repetitive tasks and increases work efficiency, allowing the industry to focus on what truly matters.
Key manufacturing documents handled by IDP
IDP extracts data intelligently and precisely from the following key documents used in the manufacturing industry:
- Invoices
- Order forms
- Proposals
- Quality assurance records
- Sales orders
Common challenges faced by manufacturers
Manufacturing businesses face these challenges with conventional document processing methods:
- Manual work: The legacy data extraction and processing techniques rely heavily on manual work, which increases the risks of mistakes and costs.
- Inaccurate data: There is a greater risk of errors in the manual processing of manufacturing documents, increasing data inaccuracy, which leads to fines and delays.
- Inconsistency: Manual processing procedures keep changing at different locations, leading to inconsistency and lack of standardisation.
- Scalability: Legacy or traditional systems are incapable of expanding with the growth of your business, making it difficult for you to handle large volumes of documents.
Benefits of IDP for manufacturing businesses
IDP comes up with the following benefits for manufacturing businesses:
Increased efficiency
Intelligent document processing (IDP) automates the repetitive manual tasks that workers previously handled, freeing up time and resources to focus more on business growth strategies.
The significant reduction in time consumed by document processing results in increased efficiency. Expedited processes and reduced manual tasks help manufacturing businesses complete tasks on time and increase productivity.
Improved accuracy
Manual data entry and document processing are associated with human error, which can increase costs and reduce efficiency. IDP eliminates the risk of human mistakes by automating the data extraction and entry processes.
It ensures the accuracy and reliability of the data, leading to well-aimed decision-making. Data accuracy saves manufacturing businesses from delays and hefty fines, improving overall efficiency.
Cost savings
Automating manual tasks eliminates dependency on labour, which saves you labour costs. You can also save on operational expenses as IDP reduces human errors and streamlines processes.
Improved compliance
Manufacturing certain goods may require adherence to particular industry standards or regulations. By accurate analysis of the required documents, IDP ensures compliance with these regulations. It saves businesses from fines or penalties arising from non-compliance.
Signs that your business is ready for IDP
Assess your business’s readiness for IDP by diving into the following pointers:
- Document overload: If your business constantly has to deal with piles of documents, IDP is for you! Get benefits from the automation and save plenty of time and resources.
- Complex operations: Workflow and document handling complexities increase as your manufacturing business expands. Get assistance from IDP to handle this chaos effortlessly.
- Compliance requirements: International manufacturing businesses usually face strict regulatory requirements. To make sure your business is compliant, IDP processes each document with utmost precision.
- Manual processing: Is your business facing delays due to slow, manual document processing? If yes, then IDP is for you; ensure faster processing with fewer mistakes.
The bottom line
Intelligent Document Processing (IDP) offers manufacturing businesses an excellent opportunity to improve their procedures and enhance efficiency. By ensuring data extraction accuracy and compliance, it streamlines the workflow for manufacturers and boosts business growth.
About the Author
Freya Jane is a seasoned writer and customs expert who works with iCustoms. She is passionate about crafting engaging content and has expertise in creating informative content on a variety of topics, including technology and business.
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