IDC MarketScape for Worldwide Intelligent Document Processing (IDP) Software 2023-2024 Vendor Assessment
IDC MarketScape named Hyland a Leader in intelligent document processing for its IDP capabilities and strategies.
Why your GPS should lead to intelligent document processing
For shipping and freight companies looking to save money, IDP can deliver fast and measurable returns on investment.
Alan Pelz-Sharpe
Researcher, Impact of AI & Blockchain in the Enterprise
Over the years, we have worked on many supply-chain-related projects, and in every case, we observed two things: the innovative, if not cutting-edge, use of technologies (in recent years, blockchain and IoT) and the mountains of paperwork that are being manually processed. It’s such a stark contrast of the old and new that it gets to me every time.
When it comes to technology and what we might call the digital world, it seems as if there is a constant focus on improving the efficiency of the physical movement of goods, while there is no focus at all on the biggest overhead and revenue eater — the paperwork associated with each shipment.
I have a theory as to why that's the case. Take, for example, something as ubiquitous as GPS and associated IoT devices. A simple low- or no-cost test tells you they work; the package or vehicle is precisely where the technology tells you it’s at. Those devices are simple to adopt and provide immediate insights and associated benefits. Moreover, you typically don’t need to change anything, such as packaging, warehouses and transportation modes, to use the technology.
Back-office skepticism
Making changes in back-office operations isn’t so simple. It takes time and effort, and there has to be a degree of trust that the results will be worth the effort. Moreover, back-office technologies used in supply chain operations have a long history of falling short of expectations.
When speaking at supply chain conferences, I almost always ask the audience a simple question: “Do you use a WMS (warehouse management system)?” The answer is invariably yes, and all the hands go up.
This is followed by the question, “Do you trust the data in your WMS?” and again, invariably, almost all the hands go back down. Few can imagine a supply chain operating today without enterprise resource planning (ERP), WMS or supply chain management (SCM) systems.
They were hugely expensive investments and never really lived up to their promise. We might be stuck with them and have few alternatives, but it doesn’t mean we like them or even trust them. Hence, the skepticism for back-office operational improvements through new technology is fully justified.
Skepticism, however, shouldn’t become an immovable barrier to change and progress. There are many relatively digital work changes that don’t involve wholesale disruption that can deliver huge improvements to reduce overheads, improve profitability, eliminate errors and rework.
Intelligent document processing can deliver results
The supply chain paperwork trail is long, complex and messy. Be that in the myriad formatted BOLs (bill of ladings), detailed manifests or the drudgery of reconciling invoices. Add to this the manual data entry errors (handwritten or keyed entry) we encounter daily, which often aren’t picked up until delivery has been made and require a lot of time, work and money to resolve.
Though no magic wand can fix all those issues, modern intelligent document processing (IDP) software can make significant inroads into the problems and deliver fast and measurable returns on your investment.
Reasons to explore IDP
As analysts and, most likely, supply chain professionals, we are both wary of grand claims when it comes to software, and rightly so. However, in our work at Deep Analysis, looking at the technology now available and speaking with and researching how enterprises use this tech, we can confidently say that, at the very least, the following claims around streamlining processes, improving accuracy and increasing efficiencies not only ring true but should be high on your priority list to test and explore. Here are a few reasons why:
- Automated data extraction: IDP can automatically extract relevant data from invoices, purchase orders and shipping documents, reducing manual entry and minimizing errors.
- Faster processing times: IDP can rapidly process and route documents, leading to quicker decision-making and faster order fulfillment.
- Enhanced accuracy: IDP leverages AI and machine learning, and therefore continuously improves its data recognition capabilities, leading to higher accuracy in document processing and reduced discrepancies.
- Cost reduction: Automating repetitive tasks decreases labor costs and resource allocation, allowing teams to focus on strategic activities.
- Seamless integration: IDP solutions can easily integrate with existing (if unloved) supply chain management systems, creating a cohesive workflow and improving overall operational visibility.
It's important to note that today’s document processing and automation software is light years ahead of where it was just a decade ago. A technical revolution has improved the accuracy and reliability of these systems beyond comparison.”
It’s time to start your IDP journey
It’s important to note that today’s document processing and automation software is light years ahead of where it was just a decade ago. A technical revolution has improved the accuracy and reliability of these systems beyond comparison.
This is not the same software that you may have tried to use in the past to scan a document. This is software powered by advanced AI algorithms that are further trained, retrained and maintained on your specific document and data needs.
The tech community, including the analysts here at Deep Analysis, have been following and lauding these vast advances over the past several years. Still, their power and ability to transform back-office, paper-based work is only now gaining traction in the outside world, and there is no reason for the supply chain community to be missing out.
Yes, it’s a journey, and those piles of paper documents won’t disappear overnight, but it’s a journey that is incredibly easy to get started on. Even the first steps will likely deliver significant benefits and lighten the load.
About the author
Alan Pelz-Sharpe has more than 25 years of experience in the IT industry, working with end-user organizations such as FedEx, The Mayo Clinic and Allstate, and vendors such as Oracle and IBM. He is a former partner at The Real Story Group, consulting director at Wipro, research director at 451 and VP for North America at Ovum.
