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Turnaround time for the freight invoicing process has long depended upon a list of complex needs, stringent regulations, and high accuracy. From the beginning, the challenge has been deciphering the BOL and putting its components into a well-defined, readable, and useful format. Proper indexing and accurate data entry have a beneficial impact on all systems within the supply chain. Hindrances to reaching MES create a breakdown in efficiency that prevents a business from continuing to scale. What is the best solution? Machine Learning for freight invoice processing. How? By outsourcing freight invoice processing to a company using machine learning designed specifically for the logistics landscape.
Machine learning-enhanced OCR has not only introduced a new way to process invoices but also created a platform that has evolved into analytical and predictive mechanisms affecting the entire supply chain. Bringing automation to the front end while raising standards in efficiency, cost control, and accuracy, Machine Learning allows a completely different view of how to direct cash flow, systems, and overall ability to scale.
Manual invoice processing thrives only when “yes” is the answer to these three questions:
1 Is it cost-effective?
2 Is it accurate?
3 Is it efficient?
Human error is the number one reason for freight billing errors. BOLs are complex and frustrating documents with many components that must be scrutinized: Are rates and standards matched, contract obligations met, and math errors corrected? Repetition causes high turnover in personnel, so costs rise from training and onboarding. Auditing adds to the expense column, and the effects of declining accuracy and efficiency cause longer turnaround times. The invoice process and its department create an estimated 10% of overall expense in the supply chain. Inefficiency in invoicing slows cash flow, and slowdowns mean declining ROI.
It’s easy to think of the overall process of transporting goods from the warehouse to the customer. But on the road, the driver may meet hundreds of opportunities to be delayed. Add inefficient route planning, poor inventory management, high maintenance costs, difficulty detecting fraud or security breaches, and the pile of negative outcomes can grow.
Machine learning incorporates algorithms that predict the problems mentioned above and data analysis showing hidden patterns of spending or demand forecasting. Through machine learning, unforeseen disruptions and challenges can be thwarted. AI solutions continue to evolve exponentially, revolutionizing ways to move and store goods. It begins with an AI solution in Freight Invoice Processing.
Machine Learning is a branch of AI focusing on data and algorithms to imitate how humans learn and gradually improve accuracy. Algorithms uncover hidden insights and make accurate predictions by analyzing vast amounts of historical and real-time data and applying pattern recognition in machine learning. The result? Unprecedented levels of efficiency and accuracy.
Machine learning applies to everything from optimizing inventory management to minimizing delivery times, reading demand fluctuations, or adapting to market conditions. ML handles both structured and unstructured data.
Statistics show that 30% of freight invoices processed by humans are erroneous. That percentage will reduce dramatically when using ML systems. Machine learning optimizes workflow by automatically extracting data, validating it, and flagging exceptions for further scrutiny. That validation process ensures that data on the invoice matches all predefined criteria, reducing errors.
Automating repetitive tasks reduces the need for manual intervention, lowering personnel and space costs. Fewer disputes arise, helping maintain good customer relations. Since machine learning systems handle large volumes of invoices, processing time shrinks from days to minutes. So, the overall savings in time, accuracy, and efficiency fold neatly into a huge supply-chain-wide effect.
Outsourcing Machine Learning Freight Invoice Process
Companies that have been on the front lines of machine learning exploration and have adapted it for processing invoices in the logistics industry have proven over and over that machine learning takes your business to new levels of growth. Using up-to-the-minute algorithms to create solutions for your specific needs and protecting your data with the highest security are reasons to explore the idea. Below are the benefits and impacts Machine Learning can have on your business. A phone call to us will give you more interesting information to consider.
Impact on efficiency and cost savings
Efficiency improved through effective data processing
Savings on space, personnel, and time through every phase
Error reduction through automation of data entry and auditing
Increased income that can be diverted to other areas
Overall compaction of time, resources, and processing
Outsourcing the freight invoice process to a company that uses machine learning-optimized systems with high security significantly reduces expenditures and increases opportunities to scale across the entire supply chain. For a closer look at what is available for your company to go to the next level in freight invoice processing, please contact iTech for a proof of concept or more information.
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IDS Commander iTech2021
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