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How to automate unstructured transactional documents

Businesses around the world are feeling the effects of the global supply chain disruption. One of the challenges facing purchasing departments is that suppliers are providing multiple order confirmations for each purchase order. This results in a dramatic increase in order confirmations that need to be processed. Unlike invoices, order confirmations are typically unstructured documents.

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Unstructured documents are not suitable for solutions such as RPA or traditional OCR as they struggle to extract the necessary data. As a result, purchasing departments need to implement intelligent process automation tools to future-proof their business processes.

The Netfira Platform uses artificial intelligence to extract data from order confirmations. After extraction, the Platform compares and validates the information with the corresponding purchase order. This workflow automation is crucial to the procure to pay process. The benefits can be seen through the Netfira Platform’s implementation at Zentis who automatically process orders into SAP.

The challenge with automating unstructured documents

The basis for successful document automation is data accuracy. Read hear about how to improve data quality in procurement. Automation of document workflows can only be achieved if there is no need for manual correction after data extraction.For many document types, where data is structured and fits within predictable templates, reliable data extraction is easy to achieve. However, many documents within a business process do not meet this criteria and contain data that is largely unstructured. As a result many purchasing managers face a backlog of order confirmation emails with no way to automate the data extraction of these complex documents.

The challenge with processing unstructured documents

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Intelligent data extraction alone can help businesses digitise their processes. Automation, however, requires the software to not only extract but also understand, compare and validate the data. This level of automation means users only need to be involved when discrepancies occur and action is needed. The Netfira Platform is an intelligent document automation solution that is proven to reliably processes unstructured documents such as order confirmations.

How the business logic of the Netfira Platform enables a high degree of automation

When dealing with document workflows in the P2P process it is important to account for discrepancies and variations in the data. These variations are common with order confirmations because details often change throughout the process. The Netfira Platform is equipped with intelligent business logic that allows it to handle inconsistencies found in order confirmations.

How Zentis automates order confirmations with the Netfira Platform

Zentis GmbH is known, among other things, for its chocolate and marzipan specialities, quality jams, jellies and sweet creams. Procurement establishes itself as a resilient innovation driver by using the Netfira Platform to automate the processing of purchase order confirmations. This intelligent document processing reduces the manual workload in procurement and allows more time for value-adding tasks.

Zentis Case Study

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Automating order confirmations without deviations

The purchasing department of Zentis creates the order in its ERP system and sends it to the supplier. At the same time, the data is sent to the Netfira Platform. The supplier then creates the order confirmation and sends the document to Zentis by e-mail. This e-mail address is linked directly to the Netfira Platform.

The Platform automatically extracts data from transactional emails and compares it with the purchase order. If the confirmation matches the order, the information is entered in the buyer’s ERP system automatically. The confirmation is then archived in the system. The Netfira Platform allows Zentis to achieve nearly 100% automatic processing of order confirmations where there is no deviation.

Order confirmations with deviations

Deviations can be identified quickly and easily in the familiar ERP environment. The Platform directs the buyer directly to parameters that need to be checked. The structured and standardised process for handling deviations saves the purchasing department time and reduces stress in the approval process.For checking and clarifying the deviations, the buyer has a variety of processing options directly in the system. These are based on the logic of data conversion, the definition of tolerances and data enrichment.

Benefits of automating order confirmations

The time saved in the procurement team through the automation of order confirmations is significant. The cloud-based solution accelerates the approval process and reduces the risk of human error. Analogue checks of documents and items are no longer necessary, significantly reducing the manual workload required.

As a result, the procurement department has more time to concentrate on more essential and value-adding tasks. Furthermore, purchasing can handle the increased volume of order confirmations brought about by the shipping crisis and the shortage of materials.

Automate unstructured transactional documents with the Netfira Platform

The recent supply chain disruptions have impacted procurement profoundly. The growing number of purchase order confirmations can hardly be processed manually anymore. Buyers need to employ procurement automation solutions to remain in control of their workload and increase productivity. Therefore, the automated processing of purchase order confirmations becomes an increasingly urgent matter.

The Netfira Platform enables a high degree of automation and reduces manual workload almost wholly. The Netfira Platform has a proven track record for automating order confirmations effectively, and the software’s implementation at Zentis demonstrates this.

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Has the coronavirus pandemic boosted the digitisation of purchasing processes?

For over a year now, the corona pandemic has had the global economy firmly in its grip. In spring 2020, it quickly became apparent that purchasing was behind when it comes to digitisation. However, the COVID-19 pandemic also triggered positive developments as it helped to change our view of digitisation. Companies began to realise that technology and digitalisation tools are a stabilisation and success factor in times of existence-threatening crises. But what about the digital transformation in purchasing today? Has the coronavirus pandemic boosted the digitisation of purchasing processes? 

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The digitisation of purchasing processes has become a priority

Surveys show that during the coronavirus pandemic, cost reduction, supplier management and the digitisation of purchasing processes are of central importance. Most companies have reconsidered their priorities in response to the crisis. While process efficiency and efficient data management have long been decisive prerequisites for modern and resilient purchasing, these issues are even more important today. That is why it is now vital to digitise further and optimise operational purchasing processes. Buyers acknowledge the importance of digitised processes but do they use intelligent automation tools to achieve that goal?   

Too little operational automation in procurement

The automation rate in operational purchasing is still comparatively low in 2021. Yet, the automation of operational activities plays a vital role in the digitisation of purchasing processes. The automation of operational processes leads to reduced manual tasks, fewer errors, more efficiency and transparency, and process optimisation in procurement. Furthermore, in the fight against the consequences of the pandemic, purchasing plays a crucial role in the company. Disrupted supply chains put risk management as well as supply and process security at the centre of attention. The use of digital automation tools and software solutions enables and facilitates these tasks immensely. 

Cloud-based platform solutions have a high future potential

Survey results show that only a small proportion of cloud-based platform solutions are currently  used, but most companies consider them to have a high future potential for procurement. The Netfira Platform, for example, is offered as a SaaS solution (Software-as-a-Service) and operated in the cloud. Compared to on-premise solutions, the SaaS service model provides low costs, high flexibility and cost-effective scalability while guaranteeing high data protection. This is particularly important in times like these, as procurement must react to developments and requirements in an agile, flexible and cost-efficient way. 

Artificial Intelligence has high application potential in the future

Even though only a small proportion of the companies surveyed use Artificial Intelligence (AI) in purchasing, most are convinced that AI has high application potential in the future. The AI-based Netfira Platform already demonstrates this. Innovative Artificial Intelligence can show its full strengths particularly in operational procurement, which is predominantly characterised by manual tasks. When processing documents and data, AI imitates the human behaviour of those involved in the process. This means automated data exchange at the push of a button with high data accuracy. AI thus brings enormous added value to purchasing and facilitates and accelerates B2B communication. Time-consuming and error-prone work is noticeably reduced, and buyers have the opportunity to invest time and resources in other tasks such as risk management, supplier management and liquidity management.

Obstacles to digitising purchasing processes

The results of surveys indicate that although the companies surveyed recognise the application potential of new technologies, they encounter technical and organisational obstacles when implementing and using them. The most common barriers are lack of compatibility and interfaces between systems, insufficient investment budget, bad data quality, high data protection requirements, and lack of technical infrastructure. The Netfira Platform integrates seamlessly into any existing ERP and IT systems and guarantees a bidirectional digital exchange of data and documents with business partners regardless of their processes and ERP systems. The artificially intelligent cloud solution turns unstructured data into structured data and allows organisations to automate document processing tasks and free employees of manual, repetitive and error-prone activities. Read here how the Netfira Platform increases data quality in purchasing through process automation.  

How can the digitisation of purchasing processes be boosted?

The situation of purchasing has not changed that profoundly compared to 2020. The current pandemic makes it necessary to not only rely on short-term solutions for crisis management. Instead, digital automation tools combined with the advancement of new technologies like AI and SaaS are now decisive for competition. The impact of COVID-19 should be an impetus for structural change and an opportunity to identify and address existing deficits in digitalisation quickly. Particular attention should be paid to long-term and sustainable digitisation partnerships. Using new digital technologies and state-of-the-art electronic solutions, procurement departments can become more resilient during and after the crisis. 

 Sources:  

https://stoehr-faktor.de/dokumente/download-studien/2020-08-studie-neue-bmoe-studie-management-summary.pdf 

https://www.bme.de/corona-ist-weckruf-fuer-digitale-transformation-im-einkauf-3698/ 

 

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Trending articles

Has the coronavirus pandemic boosted the digitisation of purchasing processes?

For over a year now, the corona pandemic has had the global economy firmly in its grip. In spring 2020, it quickly became apparent that purchasing was behind when it comes to digitisation. However, the COVID-19 pandemic also triggered positive developments as it helped to change our view of digitisation. Companies began to realise that technology and digitalisation tools are a stabilisation and success factor in times of existence-threatening crises. But what about the digital transformation in purchasing today? Has the coronavirus pandemic boosted the digitisation of purchasing processes? 

Share:

The digitisation of purchasing processes has become a priority

Surveys show that during the coronavirus pandemic, cost reduction, supplier management and the digitisation of purchasing processes are of central importance. Most companies have reconsidered their priorities in response to the crisis. While process efficiency and efficient data management have long been decisive prerequisites for modern and resilient purchasing, these issues are even more important today. That is why it is now vital to digitise further and optimise operational purchasing processes. Buyers acknowledge the importance of digitised processes but do they use intelligent automation tools to achieve that goal?   

Too little operational automation in procurement

The automation rate in operational purchasing is still comparatively low in 2021. Yet, the automation of operational activities plays a vital role in the digitisation of purchasing processes. The automation of operational processes leads to reduced manual tasks, fewer errors, more efficiency and transparency, and process optimisation in procurement. Furthermore, in the fight against the consequences of the pandemic, purchasing plays a crucial role in the company. Disrupted supply chains put risk management as well as supply and process security at the centre of attention. The use of digital automation tools and software solutions enables and facilitates these tasks immensely. 

Cloud-based platform solutions have a high future potential

Survey results show that only a small proportion of cloud-based platform solutions are currently  used, but most companies consider them to have a high future potential for procurement. The Netfira Platform, for example, is offered as a SaaS solution (Software-as-a-Service) and operated in the cloud. Compared to on-premise solutions, the SaaS service model provides low costs, high flexibility and cost-effective scalability while guaranteeing high data protection. This is particularly important in times like these, as procurement must react to developments and requirements in an agile, flexible and cost-efficient way. 

Artificial Intelligence has high application potential in the future

Even though only a small proportion of the companies surveyed use Artificial Intelligence (AI) in purchasing, most are convinced that AI has high application potential in the future. The AI-based Netfira Platform already demonstrates this. Innovative Artificial Intelligence can show its full strengths particularly in operational procurement, which is predominantly characterised by manual tasks. When processing documents and data, AI imitates the human behaviour of those involved in the process. This means automated data exchange at the push of a button with high data accuracy. AI thus brings enormous added value to purchasing and facilitates and accelerates B2B communication. Time-consuming and error-prone work is noticeably reduced, and buyers have the opportunity to invest time and resources in other tasks such as risk management, supplier management and liquidity management.

Obstacles to digitising purchasing processes

The results of surveys indicate that although the companies surveyed recognise the application potential of new technologies, they encounter technical and organisational obstacles when implementing and using them. The most common barriers are lack of compatibility and interfaces between systems, insufficient investment budget, bad data quality, high data protection requirements, and lack of technical infrastructure. The Netfira Platform integrates seamlessly into any existing ERP and IT systems and guarantees a bidirectional digital exchange of data and documents with business partners regardless of their processes and ERP systems. The artificially intelligent cloud solution turns unstructured data into structured data and allows organisations to automate document processing tasks and free employees of manual, repetitive and error-prone activities. Read here how the Netfira Platform increases data quality in purchasing through process automation.  

How can the digitisation of purchasing processes be boosted?

The situation of purchasing has not changed that profoundly compared to 2020. The current pandemic makes it necessary to not only rely on short-term solutions for crisis management. Instead, digital automation tools combined with the advancement of new technologies like AI and SaaS are now decisive for competition. The impact of COVID-19 should be an impetus for structural change and an opportunity to identify and address existing deficits in digitalisation quickly. Particular attention should be paid to long-term and sustainable digitisation partnerships. Using new digital technologies and state-of-the-art electronic solutions, procurement departments can become more resilient during and after the crisis. 

 Sources:  

https://stoehr-faktor.de/dokumente/download-studien/2020-08-studie-neue-bmoe-studie-management-summary.pdf 

https://www.bme.de/corona-ist-weckruf-fuer-digitale-transformation-im-einkauf-3698/ 

 

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Why the corona pandemic is an opportunity for digital transformation

In 2021, the corona pandemic is not yet over. Even after one and a half years in which COVID-19 has dominated people’s lives, Germany is still lagging in many areas of digitisation. But are there also positive developments? Is the corona pandemic a unique opportunity for driving digital transformation in companies? 

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Germany is behind in terms of digitisation

Economic experts have long criticised Germany’s sluggish digitisation efforts in industry and economy. Many companies see the need to adapt their processes, approaches and business models to the rapid advancements in technology, but changes are often implemented too slowly or not at all. The failures of politics and industry have become apparent through the coronavirus pandemic: it has exposed and exacerbated the structural problems that had existed before but had not been taken seriously. Germany’s digitisation deficit has been revealed in many areas. These areas include e-government, e-health, e-learning, digital infrastructure, remote work and digital business models in general. 

Digitisation boost through the COVID-19 pandemic

The corona pandemic has also led to positive developments. It has triggered a kind of “forced digitisation” in many companies, authorities and organisations. As a result, millions of people are enjoying the benefits of the leap into the digital future. In many companies, all meetings are held online using video chat platforms, and doctors, for example, have set up digital office hours. Read here how we at Netfira have managed to stay in touch as a global team during the COVID-19 pandemic. Whether in schools, administrations or companies: a digital infrastructure that allows processes to function without people having to come together physically has proved to be not only a competitive advantage but necessary for survival. 

A changed view on the importance of digitisation through the corona pandemic

Hastily implemented digitisation of processes is not the most significant development caused by the corona pandemic. It is true that digitisation efforts have been massively accelerated and that results and practicable applications were suddenly achieved. However, it is much more important that the COVID-19 pandemic has permanently changed our view of digitisation. People are aware that technology and digitisation tools are a stabilisation and success factor in times of existence-threatening crises, which can determine a company’s economic survival and not a negligible point on a business agenda. Companies recognise the risks they take if they do not have a digital strategy and cannot switch to alternative ways of working or sales channels in an emergency. That is why companies have started to take measures to prepare for current and future crises. For example, many enterprises rely on AI so that production and basic work processes can continue in the event of a crisis. As we now practice using digital technologies, a new understanding of technology, new ideas and new business models are emerging. 

The corona pandemic as an opportunity for digital transformation

The coronavirus pandemic is thus an excellent opportunity for digital transformation in companies. While people acknowledge the importance and possibilities of digitisation, digital progress must continue to be promoted. Understandably, short-term digital efficiency gains and poorly conceptualised digital solutions have been used to react to the rapid and surprising developments in the spring of 2020. But after some time, the focus should be on long-term and efficient digital automation solutions. A digitisation strategy with reliable digitisation and automation tools is crucial for the digital transformation within an enterprise. Only then can the digitisation boost be an advantage for companies in the years to come.   

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