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  • Electronic B2B communication – is EDI the right solution?

    Electronic B2B communication – is EDI the right solution?

    Trending articles

    Electronic B2B communication – is EDI the right solution?

    EDI (Electronic Data Interchange) is used to connect businesses and to facilitate electronic B2B communication. It is a computer-to-computer exchange of business documents in a standard electronic format between business partners, which replaces postal mail, fax and e-mail processed by people. What are the features of EDI, how does it work, and what are the benefits and disadvantages of EDI? And is it the ideal solution for efficiently connecting suppliers and other business partners? Or are there other, better-suited options? 

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    What documents can be exchanged via EDI?

    Businesses exchange purchase orders, invoices and advance shipping notices via EDI systems. But there are many others, such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents. 

    What EDI standards are there?

    There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and ebXML. Furthermore, there are many different versions for each standard, such as ANSI 5010 or EDIFACT version D12, Release A. 

    Why are EDI standards needed?

    Unlike humans, computers are not very good at reading between the lines. Therefore, business partners must adopt a standard format to allow the receiving computer to understand the documents. A typical standard format describes each piece of information and in what format (e.g. integer, decimal, mm-dd-yy). 

    How does EDI work?

    Sending EDI documents involves three steps:  

    Step 1: Prepare the document 

    • Collect and organise the data.  
    • The system creates an electronic file with the necessary information to build an EDI document. 

    Step 2: Translate the document into EDI format 

    • Feed electronic data through a translator software to convert your internal data format into the EDI standard format using the appropriate segments and data elements.  
    • You can purchase an EDI translation software that you manage and maintain yourself.  
    • Alternatively, you can use the translation services of an EDI service provider. 

    Step 3: Connect and transmit your EDI document to your business partner 

    • To transmit your EDI document, you need to decide how you will connect to each of your partners.  
    • Option 1: connect directly using AS2 or another secure internet protocol.  
    • Option 2: connect to an EDI network provider using your preferred communications protocol and rely on the network provider to connect to your business partners using whatever communications protocol your partners prefer.  
    • Option 3: use a combination of both, depending on the particular partner and the volume of transactions you expect to exchange.

    What are the benefits of EDI?

    • Processing speed is increased  
    • Errors are reduced  
    • Efficiency is increased  

    What are the disadvantages of EDI?

    • When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.  
    • Another disadvantage of EDI is that these standards are highly rigorous.  
    • You could end up maintaining several different EDI connections to various business partners using different standards and formats.  
    • Using ED software is expensive for you and your business partners.  
    • For many suppliers, EDI is too complex and too expensive.  
    • You may also have to sponsor the cost of implementation for your trading partners, to lower their barriers to connecting.   
    • 100% supplier connection of EDI is almost unattainable. 
    • For suppliers and other business partners, onboarding to EDI systems is typically painful, laborious and disruptive.  
    • From a technical point of view, EDI is very complex.  
    • For EDI projects, in-house IT needs to be involved.   
    • EDI projects are time-consuming and costly to set up.   
    • Initial capital investment is needed (e.g. for EDI software, communications software, mapping and translation software, and EDI and mapping specialists).

    Conclusion

    EDI is a powerful but also expensive solution. One main disadvantage of EDI is that it is mainly based on restrictions and narrowing specifications. Documents are processed according to different rules for different business partners, which causes EDI to lack flexibility. This type of solution is typically slow and expensive to connect with business partners, and many suppliers and business partners cannot be connected electronically.   

    While EDI certainly offers advantages and benefits to manual data processing and optimises the document and data exchange, it also comes with many disadvantages. For example, EDI often means accepting restrictive standards and formats, long project times, and barriers. In addition, many business partners will be excluded from a digital B2B connection because EDI is too complex and expensive.   

    However, seamless B2B workflows, automated exchange of data and documents and the electronic connection of all significant business partners along the supply chain are the pillars of modern procurement.   

    So is there an alternative?

    The Netfira Platform offers a unique alternative to EDI solutions for automating B2B purchasing processes. 

    Whitepaper: A unique alternative to EDI and OCR


    Read now

    Netfira's whitepaper: A unique alternative to EDI and OCR

    Whitepaper: Eine einzigartige Alternative zu EDI und OCR


    Jetzt lesen

    Netfiras Whitepaper: Eine einzigartige Alternative zu EDI and OCR

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  • Electronic B2B communication – is EDI the right solution?

    Electronic B2B communication – is EDI the right solution?

    Trending articles

    Electronic B2B communication – is EDI the right solution?

    EDI (Electronic Data Interchange) is used to connect businesses and to facilitate electronic B2B communication. It is a computer-to-computer exchange of business documents in a standard electronic format between business partners, which replaces postal mail, fax and e-mail processed by people. What are the features of EDI, how does it work, and what are the benefits and disadvantages of EDI? And is it the ideal solution for efficiently connecting suppliers and other business partners? Or are there other, better-suited options? 

    Share:

    What documents can be exchanged via EDI?

    Businesses exchange purchase orders, invoices and advance shipping notices via EDI systems. But there are many others, such as bill of lading, customs documents, inventory documents, shipping status documents and payment documents. 

    What EDI standards are there?

    There are several EDI standards in use today, including ANSI, EDIFACT, TRADACOMS and ebXML. Furthermore, there are many different versions for each standard, such as ANSI 5010 or EDIFACT version D12, Release A. 

    Why are EDI standards needed?

    Unlike humans, computers are not very good at reading between the lines. Therefore, business partners must adopt a standard format to allow the receiving computer to understand the documents. A typical standard format describes each piece of information and in what format (e.g. integer, decimal, mm-dd-yy). 

    How does EDI work?

    Sending EDI documents involves three steps:  

    Step 1: Prepare the document 

    • Collect and organise the data.  
    • The system creates an electronic file with the necessary information to build an EDI document. 

    Step 2: Translate the document into EDI format 

    • Feed electronic data through a translator software to convert your internal data format into the EDI standard format using the appropriate segments and data elements.  
    • You can purchase an EDI translation software that you manage and maintain yourself.  
    • Alternatively, you can use the translation services of an EDI service provider. 

    Step 3: Connect and transmit your EDI document to your business partner 

    • To transmit your EDI document, you need to decide how you will connect to each of your partners.  
    • Option 1: connect directly using AS2 or another secure internet protocol.  
    • Option 2: connect to an EDI network provider using your preferred communications protocol and rely on the network provider to connect to your business partners using whatever communications protocol your partners prefer.  
    • Option 3: use a combination of both, depending on the particular partner and the volume of transactions you expect to exchange.

    What are the benefits of EDI?

    • Processing speed is increased  
    • Errors are reduced  
    • Efficiency is increased  

    What are the disadvantages of EDI?

    • When two businesses decide to exchange EDI documents, they must agree on the specific EDI standard and version.  
    • Another disadvantage of EDI is that these standards are highly rigorous.  
    • You could end up maintaining several different EDI connections to various business partners using different standards and formats.  
    • Using ED software is expensive for you and your business partners.  
    • For many suppliers, EDI is too complex and too expensive.  
    • You may also have to sponsor the cost of implementation for your trading partners, to lower their barriers to connecting.   
    • 100% supplier connection of EDI is almost unattainable. 
    • For suppliers and other business partners, onboarding to EDI systems is typically painful, laborious and disruptive.  
    • From a technical point of view, EDI is very complex.  
    • For EDI projects, in-house IT needs to be involved.   
    • EDI projects are time-consuming and costly to set up.   
    • Initial capital investment is needed (e.g. for EDI software, communications software, mapping and translation software, and EDI and mapping specialists).

    Conclusion

    EDI is a powerful but also expensive solution. One main disadvantage of EDI is that it is mainly based on restrictions and narrowing specifications. Documents are processed according to different rules for different business partners, which causes EDI to lack flexibility. This type of solution is typically slow and expensive to connect with business partners, and many suppliers and business partners cannot be connected electronically.   

    While EDI certainly offers advantages and benefits to manual data processing and optimises the document and data exchange, it also comes with many disadvantages. For example, EDI often means accepting restrictive standards and formats, long project times, and barriers. In addition, many business partners will be excluded from a digital B2B connection because EDI is too complex and expensive.   

    However, seamless B2B workflows, automated exchange of data and documents and the electronic connection of all significant business partners along the supply chain are the pillars of modern procurement.   

    So is there an alternative?

    The Netfira Platform offers a unique alternative to EDI solutions for automating B2B purchasing processes. 

    Whitepaper: A unique alternative to EDI and OCR


    Read now

    Netfira's whitepaper: A unique alternative to EDI and OCR

    Whitepaper: Eine einzigartige Alternative zu EDI und OCR


    Jetzt lesen

    Netfiras Whitepaper: Eine einzigartige Alternative zu EDI and OCR

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  • Reducing paper workload in purchasing – is OCR the right solution?

    Reducing paper workload in purchasing – is OCR the right solution?

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    Reducing paper workload in purchasing – is OCR the right solution?

    Optical Character Recognition (OCR) is used to enable electronic B2B communication. The software converts documents into a digital format by scanning and digitising information from printed documents, images or handwritten text. Below we explore the features of OCR, how it works and assess the software’s suitability for reducing paper workload by processing documents automatically in an ever-changing business world.   

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    What is OCR used for?

    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 machine-readable data. For example, 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, buyers mainly use OCR for scanning and digitising information from, for example, printed invoices or purchase order confirmations. After capturing the documents, buyers  incorporate the data into the downstream systems. 

    How does OCR work?

    Using OCR software involves three steps:  

    Step 1: Pre-processing the document image 

    • The programme pre-processes images to improve the chances of successful recognition 
    • Aim of image pre-processing: improvement of the actual image data 
    • The programme suppresses unwanted distortions and enhances specific image features 

    Step 2: Character Recognition  

    • The programme analyses the structure of the document image
    • The page is divided into elements such as blocks of texts, tables, images, etc.  
    • The lines are divided into words and then into characters 
    • The recognised characters are compared with a set of pattern images 
    • The programme advances numerous hypotheses regarding the character and then presents the recognised text 

    Step 3: Post-processing the document image 

    • Error correction that aims for high accuracy 
    • The programme converts the data into standalone documents (for example, text or PDF files) or exports it for use in other software 

    What are the advantages of OCR?

    • A paper-based document can be turned into an electronic document 
    • Paper workload is reduced 
    • Fast processing of OCR information  
    • Large quantities of text can be input quickly  
    • OCR makes scanned documents editable 

    What are the disadvantages of OCR?

    OCR systems are generally quite expensive due to the need for scanning software, training, materials and ongoing staffing costs. Further, the technology is typically inaccurate, and mistakes are common.  

    Images produced by a scanner consume significant amounts of memory space, leading to an increase in recurring fees. Further, these images lose quality during the scanning and digitising process. This loss of image quality contributes to some of the common errors that occur during OCR, including: 

    • misreading letters 
    • skipping over unreadable letters 
    • mixing text from adjacent columns or image captions 

    Read here about the importance of data quality in procurement.

    As a result, all documents need to be checked carefully by a human and then manually corrected. This labour-intensive process takes valuable time away from team members. 

     Modern enterprises benefit from an extensive network of business partners. Typically, these business partners use unique formatting for their documents, and OCR systems are limited in their ability to handle these deviations. In addition, infrequently made purchases generate documents that the system can’t process since those business partners are often not familiar with the requirements of the document recognition system.   

    Conclusion

    OCR is an expensive software solution that helps to reduce the paper workload. However, it lacks the data quality, flexibility and reliability of more sophisticated technologies. While OCR certainly offers advantages to manual data entry, the disadvantages often outweigh the benefits. Since OCR is highly limited in its use, it can increase manual workload to check and solve errors.  

    However, seamless B2B workflows, automated exchange of data and documents and digitised document flows are the pillars of modern procurement.  

     So is there an alternative? 

     The Netfira Platform offers a unique alternative to ORC solutions for automating B2B purchasing processes and digitising document flows.  

    Whitepaper: A unique alternative to EDI and OCR


    Download here

    Netfira's whitepaper: A unique alternative to EDI and OCR

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  • Why process automation in procurement leads to success in Industry 4.0

    Why process automation in procurement leads to success in Industry 4.0

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    Why process automation in procurement leads to success in Industry 4.0

    Industry 4.0, the comprehensive digitisation of industrial production, leads to increasingly complex digitised business processes and an enormous data volume. Procurement should focus on process automation through digital automation tools to be a successful part of Industry 4.0. Innovative cloud-based software solutions like the Netfira Platform automate and streamline processes through automated document exchange and Artificial Intelligence while increasing data quality.  

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    What is Industry 4.0.?

    Digitalisation, automation and optimisation have increasingly become disruptors in today’s industry. As a result, a new technological age, which many consider to be the 4th industrial revolution, has dawned. Experts refer to this development as Industry 4.0. Industry 4.0 means the comprehensive digitisation of industrial production and the intelligent networking of machines, systems and processes. Consequently, businesses must adapt their processes, approaches and business models to remain future-proof and competitive in the modern technological business world. 

    What does Industry 4.0 mean for procurement?

    The 4th industrial revolution and digital transformation are of great importance for purchasing teams. The future complexity of digitised business processes and the resulting data volume require intelligent approaches. Initially, digitisation meant the conversion of analog formats into digital data to be processed with the aid of computers. Today, digitisation also means the digital networking of processes and products in real-time with the growing size and complexity of data structures. This data offers the potential for new business models. For Industry 4.0, process automation through digital automation tools is the key to successful modern procurement.  

    Process automation in procurement through automated document exchange

    Outdated ways of working often characterise purchasing departments. The duties of buyers include manually requesting, checking and comparing documents such as purchase order confirmations and invoices. These activities are time-consuming, error-prone and prevent them from focusing on more important or urgent tasks. This is where the Netfira Platform brings noticeable relief. The cloud-based platform automates document processing and enables a digital bidirectional exchange of documents and data between purchasing and its business partners without media disruptions. At the same time, Netfira allows an uncomplicated and fast electronic supplier connection. 

    Artificial Intelligence as the basis for process automation in procurement

    AI is another vital factor for automating processes and workflows in procurement. Read more on how AI revolutionises operational procurement. Used correctly, AI brings enormous added value – because it leads to automation, simplification and acceleration in B2B communication. It can support the exchange of information and relate content at the same time. During processing, it imitates the human behaviour of those involved in the process. In operational purchasing, this applies to the extraction of data, the validation of information, the comparison of data and information, and the further processing or transfer of the correct information to the downstream company systems. The Netfira Platform, which works with innovative AI and state-of-the-art app technologies, offers intelligent approaches to setting up and expanding digitised business processes and managing large amounts of data. For example, orders, order confirmations, delivery schedules, invoices, and other documents can be automatically exchanged and processed with AI by procurement and its business partners. 

    Process automation in procurement for better data quality

    Clean data is an essential prerequisite for the successful digitisation of business processes. Despite this, many procurement teams are held back by poor data quality. The Netfira Platform solves this problem by automating the manual processes where data originates. Automated document processing with the cloud-hosted Netfira Platform leads to an increased quality of master data. Thanks to Netfira, the automation and standardisation of business processes and the cleaning of master data go hand in hand. Find out more how the automation of document processing increases data quality for a competitive edge in procurement.

    Conclusion

    For purchasing, Industry 4.0 means driving forward the digitisation and automation of processes and workflows. The Netfira Platform enables a quick and uncomplicated entry into the automation of B2B document exchange processes. AI and automated document processing allow purchasing to automate its workflows and to improve its data quality. Only then can purchasing benefit from Big Data and new digital business models.  

    Netfira e-Book

    How intelligent automation tools and innovative technologies can optimize operational purchasing.

    Download e-book Netfira ebook: smart purchasing, smart buyers Return to blog

  • What is OCR?

    Trending articles

    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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  • 3 ways to ensure digitally connected business partners

    3 ways to ensure digitally connected business partners

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    3 ways to ensure digitally connected business partners

    Despite advancements in digital technologies, connecting business partners digitally still poses challenges for purchasing. EDI and OCR solutions do not prove to be suitable options for supplier connectivity. Instead, purchasing must find a digital tool that offers benefits for buyers as well as suppliers. The Netfira Platform connects all significant business partners easily, quickly and cost-effectively. 

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    Most business partners are not connected digitally

    In procurement, process optimisation through automation tools has become a critical factor. Nevertheless, the issue of supplier connection prevents processes from running smoothly and efficiently. In many purchasing departments, business partners such as suppliers are still not connected electronically, leading to interface problems, media disruptions and unhappy business partners. Many customers mean many different customer systems for suppliers, but they can’t adapt to all systems. Suppliers are usually reluctant or even refuse to cooperate when it comes to changing their processes for customers. There are several reasons for this reluctance: adapting to many different systems is too expensive and time-consuming, and suppliers often lack technical requirements and financial resources. 

    However, purchasing can only be future-proof if processes are automated, document flows are digitised, and, if possible, all important business partners are connected electronically. So how can purchasing achieve a digital supplier connection?   

    1. Digitally connected business partners through EDI

    Traditional software solutions do not bring the desired success. EDI (Electronic Data Interchange) is the technique that has long been touted as one of the most promising solutions. For sure, these techniques are much more efficient than manual transactions between suppliers and customers. However, despite EDI, many business partners are not connected digitally. Moreover, EDI is too complex and too expensive, especially for small and medium-sized enterprises. 

    2. Digitally connected business partners through OCR

    Many companies have introduced an OCR (Optical Character Recognition) system to scan and extract data from invoices. However, manual work is still necessary to correctly interpret and analyse the documents content so that the data can be passed on to connected systems. Another disadvantage is that OCR cannot be used for other document flows. Furthermore, OCR is unsuitable for a bidirectional digital exchange of data and documents with business partners.  

    Why digitally connecting business partners is vital

    The most important thing to begin with: driving forward digitisation in purchasing goes hand in hand with supplier connectivity. To optimise processes and workflows, as many suppliers as possible must connect digitally with purchasing. Digitised procurement is the entry into the digitisation of the entire company – and successful digitised procurement starts with the electronic connection of all business partners. Therefore, procurement must find a digital tool that offers advantages for both buyers and business partners.  

    3. Digitally connected business partners through the Netfira Platform

    With the Netfira Platform, purchasing can connect all significant business partners easily, quickly and cost-effectively. The unique onboarding app allows buyers to connect with their business partners without burdening the IT team. Unlike OCR, data and document flows can be exchanged seamlessly and bidirectionally. And unlike EDI, business partners are quick to adopt a digital connection because they do not have to change their systems, do not need any training and do not incur any additional costs. In addition, the Netfira Platform flexibly connects with all ERP customer systems and integrates into existing ERP and accounting systems and IT systems.  

    Advantages for procurement through electronic supplier connection

    The digitalisation of purchasing and the connection of all relevant business partners allows a significant optimisation of the purchasing processes. The Netfira Platform enables organisations to automate document processing tasks and free employees of manual, repetitive and error-prone activities. As a result, buyers are afforded more time for more intensive contacts with business partners and more flexible handling of special requests. On top of that, the digitalisation of the entire supply chain leads to shorter response times, high process reliability, full transparency for purchasing and improved data quality. Read here how to increase data quality in procurement through digital automation tools. The optimisation of purchasing thus results in the optimisation of the entire organisation. 

    Whitepaper

    Discover the Netfira Platform as a unique alternative to EDI and OCR


    Read now

    Netfira's whitepaper: A unique alternative to EDI and OCR

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  • How digital automation tools future-proof the procurement manager’s role

    How digital automation tools future-proof the procurement manager’s role

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    How digital transformation tools future-proof the procurement manager’s role

    Digitisation transforms the buyer into a digital procurement manager. Traditionally, buyers must devote a significant amount of time to manual and error-prone activities such as checking and comparing documents. Digital automation tools, however, modernise the buyer’s job and future-proof their tasks and role. The key to a smooth digital transformation of the purchasing department lies in the automation of B2B processes. With digital automation tools, buyers can become successful digital procurement managers.  

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    The traditional buyer

    There are various reasons why an outdated and labour-intensive way of working characterises purchasing. For example, it is common for buyers and suppliers to use different ERP systems, leading to media disruptions and interface problems between business partners. In addition, time-intensive tasks like manually checking items and prices on order confirmations and other documents prevent buyers from focusing on more important activities such as relationship management and supplier evaluation. Moreover, manual document processing leads to errors and deviations, causing unclean data, which stifles the purchasing team’s productivity. 

    The tasks of the digital procurement manager

    The modern buyer is a digital buyer. Nowadays, the tasks of the modern buyer encompass more than basic procurement activities. The three pillars of modern purchasing are internal and external networking, production and value creation, and new digital business models. Making use of digital automation tools, the digital procurement manager combines four main functions:  

    1. As a networked value creation manager, the modern buyer is responsible for establishing partnerships and collaborations for strategic network management.   
    2. As a digital process and data manager, the modern buyer optimises procurement processes and workflows through digitisation and automation. In order to optimise procurement processes, high data quality is necessary. Find out how the automation of document processing leads to higher data quality. 
    3. As a technology and innovation manager, the modern buyer strives to turn purchasing into a growth driver by creating technological innovation partnerships. Read here how procurement teams are driving innovation through process automation.  
    4. As a quality manager, the digital procurement manager uses digital automation tools to ensure high data quality along with transparent and reliable risk management. 

    The changing role of the digital procurement manager

    Through the digitisation of purchasing processes, the role of the modern buyer and its image change. Purchasing increasingly acts as a moderator at the interfaces to internal partners – such as controlling and accounting – and external partners – for example, suppliers – and enables new significant contributions along the value chain. As a digital procurement manager, the modern buyer establishes themself as a resilient business partner both inside and outside the company. Consequently, the digitisation of purchasing leads to a new image for the buyer.  

    How can the traditional buyer then become a modern digital procurement manager?

    How automation tools future-proof the procurement manager’s role

    The key to a successful transformation lies in the digitisation and automation of purchasing processes. By using automation tools, procurement can optimise its processes, increase efficiency and reduce costs. The Netfira Platform allows enterprises to automate document processing tasks and free employees of manual, repetitive and error-prone activities. The artificially intelligent cloud solution turns unstructured data into structured data while allowing a fast, uncomplicated and cost-efficient electronic supplier connection with all significant suppliers. In doing so, the Netfira Platform guarantees a bidirectional digital exchange of data and documents with business partners regardless of their processes and ERP systems. As a result, buyers have more time for strategic and value-adding activities and can plan beyond day-to-day business. Digital automation tools thus future-proof the procurement manager’s role. Furthermore, with the help of an individual digitisation roadmap, buyers have the necessary tools to actively shape digital transformation processes within the company and succeed as a digital procurement manager. 

    Pfleiderer Case Study

    Learn how Pfleiderer successfully digitised its procurement through process automation.

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  • How to increase data quality for a competitive edge in procurement

    How to increase data quality for a competitive edge in procurement

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    How to increase data quality for a competitive edge in procurement

    Any company can increase its data quality in purchasing through the automation of document processing. AI and Big Data are undoubtedly game-changers for establishing new digitised business models. Although good data quality is crucial for successful operational processes, purchasing departments struggle with poor data quality. The Netfira Platform can solve this problem by automating the manual processes where data originates. 

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    What is data quality?

    Data quality is the key to the digitisation of processes and workflows in companies. In this context, data quality is the evaluation of data stocks concerning their suitability for fulfilling a specific purpose. The criteria to evaluate data quality include: correctness, relevance, reliability and its suitability for various systems.  

    The role of data quality in purchasing

    Good data quality is crucial for successful operational processes. The increase in productivity of purchasing teams thanks to good data quality has become a decisive competitive factor. Moreover, clean data helps to make informed decisions and increases the accuracy of forecasting.  

    Reasons for poor data quality

    Too often procurement teams are held back by poor data quality. In many cases, suppliers identify product data quality as an unnecessary cost factor and afford it a low priority. On the other hand, the manual input and comparison of data in operational procurement leads to slow and error-prone processes.

    Obstacles to benefitting from Big Data

    Procurement departments collect vast amounts of data every day. However, having Big Data at their disposal does not necessarily mean that they are able to use it profitably. Benefits of Big Data include gaining deep insights and a basis for decision-making and process automation. That is why it is necessary to start where data originates. 

    The Netfira Platform increases data quality in purchasing

    The stream of data can be made controllable and usable by replacing the laborious and error-prone manual interface at the data creation process with an automated one. The Netfira Platform can capture, correlate, validate and process the typically unstructured data from suppliers with almost one hundred per cent accuracy and turn it into structured data.The automation of manual document processing with the cloud-hosted Netfira Platform also leads to a cleansing of master data. For purchasing, this means a high level of accuracy, a considerable increase in speed, and thus more time for value-creating activities. These are all prerequisites for purchasing to position itself for the future within the framework of Industry 4.0. 

    Conclusion

    Data quality is a vital competitive factor. The structuring of data is crucial to overcome poor data quality issues in purchasing and benefit from the vast amount of data collected every day. The Netfira Platform remedies the problem of unstructured data as automating document processing goes hand in hand with cleaning data. The automation of operational processes, which leads to drastically reduced manual, time-consuming and error-prone work, has to be a priority. With this, data quality will automatically increase and only then can Big Data be used profitably.

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  • Pfleiderer case study

    Pfleiderer case study

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    Modern Operational Purchasing at Pfleiderer

    Pfleiderer – a specialist in wood-based materials – now generates around 1 billion euros per year despite a turbulent history. Digitisation of business processes has backed Pfleiderer’s recent focus on value-adding product categories. As part of this digitisation, it was necessary to modernise the operational purchasing accordingly. Since 2018, the Netfira Platform has afforded the purchasing team at Pfleiderer tremendous freedom and supported strategic processes. Flexible document recognition through solution modules, automated document flows, and digital supplier connectivity are just some of the benefits afforded by the Netfira Platform. 

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  • International coffee chats

    International coffee chats

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    International Coffee Chats – How we stay in touch as a global team during the Corona pandemic

    At Netfira, we pride ourselves on creating innovative solutions that are built by people, for people. While great effort is put to placing our customers’ needs at the heart of our research and development, we are also committed to nurturing a sense of connection within our global team. Shared team activities, considered initiatives, and a dedication to professional development are always a top priority for us. Like most teams worldwide, the Covid-19 pandemic caused great disruption to the way we go about our day-to-day work. In response to this we launched the Netfira Coffee Chat to support team members to stay connected around the world despite lockdowns, working from home and isolation. 

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    Looking back

    Pre Covid-19: Shared lunch and coffee breaks, an after-work beer with colleagues, Christmas and summer parties all contributed to an enjoyable work life at Netfira. 

    2020: The Corona pandemic changes the world. Netfira’s commitment to placing the health of its employees above all else leads to teams working from the safety of their home. Everyday office life as we know it is shifted to the virtual world.  

    Now: The Covid-19 pandemic continues. Social distancing and working from home have become the new normal. Companies must support employees to remain connected through this challenging and unpredictable time.  

    International cooperation at Netfira

    Faced with the question of how to stay in touch virtually as a team despite the “new normal” in the working world, we were able to build off our experience in working as an international team. We are proud of the collaboration between our Australian and German teams and the “new normal” presented an opportunity for us to take this collaboration and communication to the next level. You can read more about this in our International Collaboration blog post.  

    Weekly coffee chats at Netfira

    The most important consideration for smooth digital collaboration between international teams and varying time zones is the use of digital communication tools to keep in touch and hold virtual meetings. For this reason, we have launched a weekly Coffee Chat initiative. Once a week, we meet around morning tea in random groups of 3 to 4 people to chat, catch up with colleagues in other teams and share a laugh. This virtual meeting offers us a great opportunity to take a break from our daily work routine, connect with our colleagues on a personal level and learn something new. For new colleagues, the international coffee chats provide a great opportunity to get to know the Netfira team in an informal atmosphere. Australian colleagues have even shared stories of seeing snow for the first time thanks to their coffee chat.  

    Time and cultural differences – no problem for the Netfira team

    Due to the significant time difference between Germany and Australia, the term “coffee chat” is not to be taken too literally. While coffee is indeed an important part of the break for our German team, Australian colleagues often prefer a “good night” tea in the early evening (or a well-deserved “Feierabendbier”). 

    Cultural differences and idiosyncrasies are a part of everyday working life for international teams. Language barriers are not a cause for concern at Netfira, although the Australian slang can present some funny pitfalls. For example, the expression “I’m fine” might seem like a straightforward response to “how are you?” However, in Australia, it is often used sarcastically when you are anything but fine which has led to some confusion from our new Australian colleagues. Thanks to modern communication tools and a commitment to developing and nurturing the Netfira Family we are able to creatively deal with the challenges that a global team in pandemic times.  

    We value the diversity of our team and are proud of our international corporate culture. In these challenging times, it is even more important to take short breaks to stay in touch with colleagues and exchange ideas. This also helps us to work together successfully as a global team and to put our customers at the centre of everything we do. 

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