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What is OCR?

Optical Character Recognition (OCR) is a technology that enables you to convert different types of documents, such as scanned paper documents, PDF files or images captured by a digital camera into editable and searchable data. 

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What is OCR used for?

OCR technology is used to convert different kinds of images containing written text (typed or printed) into machine-readable text data. Instead of retyping a written text manually, you can convert all the required materials into a digital format within several minutes using a scanner (or a digital camera) and Optical Character Recognition software. 

When is OCR used in procurement?

In procurement, OCR is mainly used to scan and digitise information from, for example, printed invoices, purchase order confirmations etc. That means it is used to capture documents and incorporate data into the downstream systems. 

How does OCR work?

Using OCR software involves three steps:  

Step 1: Pre-processing the document image 

Step 2: Character Recognition  

Step 3: Post-processing the document image 

Main disadvantages of OCR

• Expensive  
• Low accuracy, mistakes are likely 
• Labour-intensive to correct mistakes created by OCR 
• Not all documents can be processed 

Alternative to OCR: The Netfira Platform

OCR vs. the Netfira Platform

	OCR	Netfira Platform
Costs	The software is expensive, special scanning hardware needed, training, materials and staffing costs	SaaS solution: Minimal investment costs
Accuracy	Low accuracy, mistakes are likely	Very high data accuracy, hardly any errors through AI
Correcting errors	Labour-intensive	AI is capable of learning and is becoming more and more precise, check and correct discrepancies easily
Scope of application	Only works with specific formats	No restrictions, AI can also work with and structured unstructured data

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