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The Marriage of AI and OCR solves the big three freight invoice problems: quality, speed, & cost.
Read Time: 2 minutes
Freight bill processing, a long-standing challenge in the logistics and transportation industry, has been plagued by the inherent variability of data, leading to increased complexity. As the industry continues to experience growth and expansion, addressing the issues of inaccuracy, loss of efficiency, and rising costs becomes imperative. Fortunately, integrating Machine Learning (ML) with Optical Character Recognition (OCR) presents a solution that revolutionizes the freight billing process.
The intricacies of freight billing involve capturing data from various form types, each requiring entry into a company’s financial operations platform. This form diversity introduces complexities and necessitates innovative solutions to enhance accuracy, reduce processing time, and cut costs. ML-powered OCR systems emerge as game changers, offering the ability to extract data from multiple sources without the risk of human error associated with manual invoice processing.
In the past, OCR technology faced limitations related to specific text types, rigid rule-based approaches, and challenges in handling diverse field locations and formatting. Handwriting recognition was particularly daunting. However, the integration of Machine Learning introduces a paradigm shift by adding context to the text captured by OCR. This means the previous constraints no longer apply, allowing for a more flexible and adaptable system.
One notable advantage of ML-enhanced OCR is its ability to navigate exceptions seamlessly. Traditional OCR systems struggled when faced with deviations from established rules. Still, the machine learning component enables the system to learn and adapt, accommodating text, format, and handwriting variations. This adaptability not only enhances accuracy by eliminating errors but also contributes to significant reductions in freight invoice processing time.
The efficiencies gained through ML-enhanced OCR translate into tangible benefits for businesses in the logistics and transportation sector. By automating data extraction from diverse sources, companies can streamline their freight billing processes, reducing operational costs and improving overall efficiency. Moreover, the integration of ML minimizes the need for manual intervention, freeing up valuable human resources for more strategic tasks.
In conclusion, the marriage of Machine Learning and Optical Character Recognition presents a transformative solution to the challenges inherent in freight bill processing. This innovative approach addresses the complexities associated with data variability and paves the way for a more accurate, efficient, and cost-effective future in the logistics and transportation industry. As businesses embrace these technological advancements, they position themselves to thrive in the dynamic landscape of the evolving freight management ecosystem.
At iTech Data Services, we specialize in outsourcing and automation solutions for freight invoice processing and audit services that improve profitability while reducing risk. We invite you to contact the iTech team to discuss your freight invoice processing or audit needs.
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IDS Commander iTech2021
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