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Which Automation Technology Is Better for Your Operations: RPA or IDP?

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Which Automation Technology Is Better for Your Operations: RPA or IDP?

Processing transactional documents is an integral part of business operations. These operational tasks must be completed efficiently so that employees have enough time for value-adding tasks. There are many different automation solutions on the market which rely on cutting-edge technologies such as artificial intelligence (AI), Optical Character Recognition (OCR), Electronic Data Interchange (EDI), Robotic Process Automation (RPA) or Intelligent Document Processing (IDP). This blog article will focus on two prominent technologies utilised to achieve process optimisation and efficiency in the processing of transactional documents: Robotic Process Automation and Intelligent Document Processing. Intelligent automation solutions relying on RPA or IDP technology are often used for the same goals, but their fields of application, strengths and weaknesses differ significantly. The question is: Which automation technology is better suited for the needs of your business operations: RPA or IDP?  

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Managing Transactional Documents

Transactional documents are essential pieces of information recording a business transaction between two parties. In procurement, for example, these transactions are mostly made between buyers and suppliers; in sales departments, they take place between a sales rep and a customer or another business partner. Managing transactional documents, such as invoices, shipping documents, purchase order confirmations, and customer orders, involves repetitive and time-consuming manual tasks. Intelligent automation solutions can help streamline the processing of these documents by automatically extracting and processing data, reducing processing times and errors. By automating these tasks, teams can free up valuable time to focus on more strategic activities.

Which Automation Technology Is the Better Choice for Your Operations: RPA or IDP?

Robotic Process Automation (RPA) is a technology that uses software robots, also called bots, to automate repetitive, rule-based tasks in business processes. RPA mimics human actions and interactions with computer systems to execute tasks such as data entry, data processing, and communication with other systems without human intervention.

Intelligent Document Processing (IDP) refers to the automation of data extraction from complex semi-structured or unstructured documents and converting it into structured usable data. IDP automation solutions automate all steps of document processing from document pre-processing, document classification, data extraction, data validation, and export to downstream systems.

Advantages of Robotic Process Automation

1. Powerful solution for automating rule-based tasks

RPA is suitable for automating repetitive, rule-based tasks such as data entry and invoice processing. For instance, RPA bots can open and flag emails with attached documents, key in documents into systems and extract data from transactional documents.

2. Cost reduction

In the long run, RPA can significantly reduce operational costs by automating repetitive and manual tasks, thereby reducing the need for manual work.

3. Faster processing times

RPA solutions can execute tasks around the clock, leading to faster processing times and improved turnaround times for various processes.

Disadvantages of Robotic Process Automation

1. Limited scope of use

RPA software can only be used where processes are already digitised. The software robots cannot work with ambiguous documents either. Consequently, they can currently only be used for structured processes and documents as well as routine activities.

2. Lack of flexibility

Software robots are very inflexible. The platforms on which RPA interacts change frequently, and the required flexibility often cannot be configured. Software robots cannot react flexibly to deviations or variants, for example, when data is not structured, or decisions within the process are complex and non-linear. Changing regulations or updates that require minimal changes to an input screen can set back an RPA project by months.   

3. Difficult scalability

The more applications a software robot serves, the more challenging scalability becomes.

4. Monitoring for possible errors is necessary

Employees must check that the RPA software robot does not make any mistakes. For example, if OCR (Optical Character Recognition) is used to read PDF files, the reading process can be faulty. Since RPA technology cannot recognise errors or check data readouts for plausibility, these errors could then be transferred unnoticed to a database. 

5. RPA requires clean data

RPA software requires a particular data quality. The effort required for its preparation and cleansing is often underestimated. However, good data quality is a mandatory prerequisite for the successful digitisation of business processes and the automation of workflows.   

6. High costs

According to Deloitte, robotic process automation costs for a single software bot may range from 5,000 to 15,000 dollars. Most of the time, costs of RPA tools comprise and depend on: RPA vendor pricing, the number and complexity of bots that constitute the RPA deployment, the initial process analysis, RPA consulting, and engineering costs, the cost of third-party robotic process automation integrations, and finally maintenance, support, and RPA scaling costs.

Advantages of Intelligent Document Processing

1. Orchestration of workflows

IDP offers more than just automating isolated tasks. IDP solutions transform the handling of transactional documents, such as advanced shipping notices, purchase order confirmations, quotes or invoices, from a manual and error-prone process into a seamless and automated workflow. Orchestrating the flow of multiple tasks, IDP solutions cover the extraction, processing and exporting of document data in downstream systems.

2. Use of Artificial intelligence

IDP software solutions employ a range of sophisticated technologies, including AI, OCR and machine learning, to accurately extract data from all kinds of documents thus guaranteeing high data quality.

3. High flexibility

IDP automation technology is very flexible. IDP solutions can extract data with a very high accuracy regardless of the format and complexity. Intelligent Document Processing can automate complex processes lacking simple rules. It can be used in many ways, reacts flexibly to variants, exceptions and deviations; updates and adjustments to the application systems are no problem.

4. Short implementation time and easy scalability

IDP cloud solutions combine the benefits of IDP with the benefits of cloud computing. IDP solutions which are not implemented as on-premise solutions but which operate in the cloud can unlock their full potential. Cloud-based IDP solutions offer a short implementation time of just a few weeks and easy scalability.

5. IDP can understand and relate content

The flexibility of Intelligent Document Processing systems directly stems from their ability to analyse and relate content and to understand the business context. Unlike RPA technology, IDP solutions are not inflexible and rigid systems but are adaptable. Accounting for different document types, formats and supplier-specific rules, IDP solutions can offer customisable workflows tailored to business’ needs. Processing transactional documents, this applies to the extraction of data, the comparison of data across various data sets, the validation of information, and the further processing or transfer of the correct information to downstream company systems. 

6. Powerful exception management

In document processing, exceptions are an expected part of the process. IDP solutions are well-equipped for reliably and efficiently spotting and handling exceptions and edge cases in document processing. This functionality ensures business continuity and transparent processes, boosts operational resilience, and reduces the need of manual intervention or IT support. 

7. IPD solutions improve over time

In contrast to RPA, IDP can process unstructured data in free texts as well as complex documents such as order confirmations and customer orders. Deviating terms in supplier documents, ambiguous units of measurement, or various languages are no longer a problem because – unlike RPA – IDP learns continuously. When IDP solutions employ human-in-the-loop automation for managing exceptions, errors and edge cases, the system allows users to intervene and handle exceptions when necessary. By interacting with the system through human input, the software learns and improves proportionally with the volume of data fed into it.

Disadvantages of Intelligent Document Processing

Even though there are no real disadvantages or limitations of Intelligent Document Processing solutions, the costs of IDP solutions need to be considered as they can range in price from a few hundred dollars to a few thousand dollars.

In case organisations only want to automate isolated and repetitive tasks, RPA is better suited. In general, businesses need to individually evaluate which automation solution fits their budget, meets their needs and is best suited for fulfilling their automation goals.

Conclusion: Which Technology is Better: RPA or IDP?

If businesses seek to perform rule-based, simple and repetitive tasks in document processing automatically, they can easily rely on RPA technology. However, its scope of application is highly limited: bots are only good for executing a task that will always be the same, such as pulling a PDF from an email. An IDP solution, on the other hand, provides an end-to-end solution that gives enterprises control and flexibility over the entire process including the extraction of document data, the processing and interpretation of data as well as the export and archiving of information. Thus, in comparison to the flexibility, scalability and accuracy of IDP solutions, the limitations of RPA tools outweigh the benefits and often fall short of what is now possible in automated document processing.

Explore the differences between RPA and IDP technology based on a real-life use case in our next blog article Automated Invoice Processing: Comparing RPA and IDP Solutions.

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October 2, 2024
Intelligent Document Processing for Automated 3-Way and 2-Way Matching

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Intelligent Document Processing for Automated 3-Way and 2-Way Matching

In accounts payable, ensuring accuracy and transparency in the payment processes is crucial.  Accounts payable (AP) departments in organisations are responsible for processing invoices and ensuring that payments are made to business partners accurately and in a timely manner. One of the most important tasks in accounts payable is matching invoices to purchase orders (PO) and receiving reports to verify that all goods or services have been received and are correct. This process is known as matching and is typically done in either a 3-way match or a 2-way match. Intelligent Document Processing can automate and optimise this process.

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What Is a 2-Way Match in Accounts Payable?

The basic terms of an order are documented in the purchase order. The purchase order shows important information such as quantity, price, description and payment terms. On the invoice, the payment information for the goods or services outlined in the purchase order is shown. A two-way match involves comparing the data on the purchase order to the invoice data.

What Is a 3-Way Match in Accounts Payable?

For a 3-way match in accounts payable, there are three key documents – the purchase order, the invoice, and the receiving report. The purchase order details the goods or services ordered, the invoice represents the amount to be paid, and the receiving report confirms that the goods or services were indeed received. A 3-way match involves comparing the invoice to the purchase order and the receiving report. This ensures that all three documents match and that the goods or services have been received before payment is made.

Pros and Cons of 2-Way Matching

While a 2-way matching is faster, it leaves room for errors because the packing slips and receiving reports are not included in the process.

Pros and Cons of 3-Way Matching

In most instances, 3-way matching is preferred to ensure the company does not pay invalid invoices. The primary reason for 3-way matching is to prevent inaccurate or fraudulent invoice payments by resolving mismatches before processing payments. The 3-way match saves companies from overspending, paying for something not received, and helps to detect potential fraud.

At the same time, providing this extra layer of verification means comparing another set of documents. If the matching is done manually, it takes even more time to validate an invoice.

In general, both ways of matching have their merits depending on the company, its size and systems, and its business relationships.

Accounts Payable Automation: Simplifying 3-Way and 2-Way Matching

Manual tasks in accounts payable, such as data entry, manual matching and verification, are time-consuming and prone to errors. This is why accounts payable automation is becoming increasingly important among enterprises looking to streamline their AP processes and increase efficiency. Automation can simplify and optimise 3-way and 2-way matching by automatically matching invoices to purchase orders and receiving reports, flagging any discrepancies for review by the accounts payable team.

Intelligent Document Processing: Automation of 3-Way and 2-Way Matching

Intelligent Document Processing (IDP) solutions for procurement, specifically for AP departments, leverage advanced technologies like artificial intelligence (AI), natural language processing and Machine Learning (ML) to automate invoice processing.

IDP mimics human abilities for identifying, contextualising, processing and matching documents like invoices and purchase orders. It uses AI, ML and human-in-the-loop automation to convert unstructured data into structured and actionable data. Relying on orchestration, IDP can automate 2-way and 3-way matching in accounts payable.

The Role of Orchestration in Automating the Matching and Processing of Documents

The Netfira Platform leverages IDP capabilities and orchestration to automate the matching and processing of documents. By orchestrating the entire document processing process from connecting business partners, extracting and processing data to exporting it to downstream systems, the Netfira Platform streamlines all steps of the P2P process.

When it comes to invoice processing, the Netfira Platform extracts data from invoices, processes it according to customisable workflows and rules, and matches it with corresponding details in another set of documents like purchase orders or receiving reports before structured data is ready for export to an ERP system or any other connected system and the original document is archived automatically.

By coordinating and connecting the various tasks, workflows and systems involved in matching and processing documents, organisations can ensure smooth and efficient operations, reduce manual work, and avoid costly errors with the Netfira Platform.

Beyond Invoice Matching: Document Processing and Matching with the Netfira Platform

The Netfira Platform enables the automated processing of all kinds of transactional documents – be it structured documents like invoices or unstructured documents like purchase order confirmations. Offering customisable workflows for the processing of various document types which can be tailored to business’ individual needs allows efficient and accurate document management along the P2P process. Designed to flexibly adapt to business’ processing rules and requirements, the Netfira Platform transcends the automatic 2-way or 3-way matching of invoices. Its flexible and customisable functionalities can be leveraged to match any kind of document with another set of documents such as a purchase order confirmation with a purchase order and an advanced shipping notice.

Intelligent 2-Way and 3-Way Matching and AP Automation through IDP

In summary, 3-way and 2-way matching in accounts payable are essential tasks that ensure accurate and timely payments to suppliers. While manual matching is time-consuming and error-prone, automation solutions using the IDP approach like the Netfira Platform can simplify and optimise the matching process. Orchestrating the various tasks involved in matching and processing invoices, businesses can streamline their accounts payable processes and improve efficiency.

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June 20, 2024
How Intelligent Document Processing Optimises Procurement Engineers’ Work

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How Intelligent Document Processing Optimises Procurement Engineers’ Work

The field of mechanical engineering relies heavily on efficient procurement processes to acquire the necessary materials and equipment for project implementation. Procurement engineers play a vital role in streamlining the procurement process, ensuring that companies get the best deals while maintaining high-quality standards. However, their work often involves handling mountains of paperwork, which can be time-consuming and prone to errors. This is where intelligent document processing (IDP) comes into play, transforming the way procurement engineers operate and greatly enhancing their work. In this article, we will explore the role of procurement in mechanical engineering, the significance of procurement engineers, the challenges they face, and how IDP can optimise their work.

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The Role of Procurement in Mechanical Engineering

Procurement plays a crucial role in the success of mechanical engineering projects. It involves the acquisition of necessary materials, components, and services required to design, construct, and maintain mechanical systems. Accurate and timely procurement ensures projects adhere to budgets, deadlines, and quality standards. It also involves fostering supplier relationships to ensure reliable and timely delivery of materials.

Understanding the Important Role of Procurement Engineers

Since procurement engineers use the technical knowledge of their industry like mechanical engineering to order equipment such as hardware and machinery parts for a company, they hold a special position as experts in organisations. As buyers with a strong technical background, they are often responsible for managing the procurement process in mechanical engineering projects. Possessing a deep understanding of materials, suppliers, and industry-specific procurement protocols, procurement engineers are instrumental in ensuring that project requirements are met promptly, cost-effectively, and in compliance with quality regulations. By leveraging their expertise, procurement engineers thus contribute significantly to project success and cost-effectiveness.

Challenges Procurement Engineers Face

The procurement process in mechanical engineering comes with several challenges.

Manual and time-consuming processes

Manually processing and managing procurement documents such as order confirmations, shipping notices or invoices, numerous paperwork, regulatory compliance, and vendor screening processes create heavy administrative burdens, hindering effective procurement.

Inaccurate and incomplete documentation

The risk of human error in documentation can lead to inappropriate material selection or unnecessary delays in the procurement process and hurt the overall data quality.

Dynamic supply chains

Mechanical engineering projects often require specific materials that are subject to frequent market fluctuations. Keeping up with changing availability and pricing can be challenging.

Intelligent Document Processing: Empowering Procurement Engineers

IDP combines advanced technologies such as machine learning, natural language processing, and optical character recognition to automate and streamline the processing of documents. By using these capabilities, procurement engineers can focus on more strategic activities instead of spending valuable time on repetitive manual tasks

How the Netfira Platform Supports Procurement Engineers

As a cloud-based IDP solution, the Netfira Platform automatically extracts data from any document, processes, compares and validates the information then seamlessly exports it into any downstream system. With the Netfira Platform, procurement engineers can automate various tasks to streamline their work.

Automated data extraction

Using AI, the Netfira Platform extracts data from all types of documents and all formats with the highest accuracy.

Document classification and sorting

Netfira’s AI-powered platform automatically categorises different types of procurement documents such as order confirmations, invoices, shipping notices and supplier contracts.

Automated document processing

IDP solutions process data by analysing, comparing and validating it against predefined rules. The Netfira Platform offers customisable workflows tailored to the needs of procurement engineers allowing data processing with intelligent classification, rule-based validation and automated workflow integration.

For instance: The purchase order states that 200 pieces are ordered and the purchase order confirmation confirms two packets. The Netfira Platform understands that one packet contains 100 pieces and approves the document.

Utilising human-in-the-loop automation, the Netfira Platform furthermore reliably flags and handles edge cases and deviations. This way, it ensures that procurement engineers are only alerted when human intervention is needed.

Automated Data Export

The Netfira Platform offers flexible integration capabilities, connecting seamlessly with existing CRM, ERP, supply chain or any other downstream systems. With the Netfira Platform, data can be exported in any format. Whether it is standard formats like XML, EDI, and CSV, or more specialised formats, the platform ensures that data is readily available in the format required by systems and workflows. This way, procurement engineers can benefit from smooth data flow, make informed data-driven decisions, and enhance operational efficiency.

Benefits of IDP for Procurement Engineers

Increased Efficiency

One of the primary advantages of intelligent document automation is the ability to process and analyse large volumes of documents at a fraction of the time it would take manually. This increased efficiency allows procurement engineers to handle higher workloads and devote more time to strategic decision-making, supplier relationship management, and cost optimisation.

Enhanced Accuracy

By automating data extraction and analysis, IDP solutions like the Netfira Platform significantly reduce the risk of human error. They eliminate data entry mistakes that can occur when manually transferring information from physical or digital documents into procurement systems. As a result, procurement engineers can confidently rely on accurate data for their procurement decisions, reducing potential financial risks.

Streamlined Approval Processes

Document automation enables intelligent routing and workflow automation, making it easier to manage approval processes efficiently. With predetermined rules and criteria, documents can be automatically directed to the relevant stakeholders for review and approval. This not only saves time but also eliminates bottlenecks and ensures that the process adheres to company policies and industry standards.

Improved Compliance

Compliance with regulations, contracts, and internal policies is a fundamental aspect of procurement. IDP can help ensure compliance by automatically cross-referencing information against established guidelines. It can flag any potential anomalies or discrepancies, allowing procurement engineers to address them promptly and mitigate legal and reputational risks.

Conclusion

Procurement engineers play a vital role in ensuring the smooth functioning and success of mechanical engineering projects. By adopting intelligent document processing software, like the Netfira Platform, procurement processes in mechanical engineering can be optimised, leading to improved efficiency, reduced costs, and better resource utilisation. Intelligent document automation empowers procurement engineers to focus on strategic initiatives, supplier relationships, and cost optimisation while reducing time-consuming manual tasks and potential errors. By embracing IDP, businesses can unlock the full potential of their procurement teams, leading to increased efficiency, accuracy, compliance, and ultimately, improved bottom-line results.

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April 5, 2024
Document Automation in Mechanical Engineering: Streamlining Efficiency and Productivity

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Document Automation in Mechanical Engineering: Streamlining Efficiency and Productivity

In the mechanical engineering and manufacturing industries, managing a wide range of documents is an indispensable task. Traditionally, procurement, sales and industry-specific documents have been processed manually, which is highly time-consuming and error-prone. However, with sophisticated document automation technology, the mechanical engineering and manufacturing sector can benefit from advancements in efficiency, accuracy, and collaboration.

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Which Documents Are Typically Processed in Mechanical Engineering Companies?

The documents that are processed in the mechanical engineering sector range from sales and procurement documents such as customers orders, order confirmations, and invoices to documents specific to the daily work of manufacturing and engineering enterprises. These include technical drawings, specifications, design blueprints, manufacturing schedules, quality assurance reports, project plans, equipment manuals, and test reports. Each document serves a crucial purpose in different stages of a project, capturing critical information and guidelines for design, production, installation, and maintenance. In such a multidisciplinary field, the ability to process, manage and track these documents effectively becomes paramount.

The Importance of Recognising the Unique Characteristics of Mechanical Engineering Documents

One essential aspect of document automation lies in understanding the idiosyncrasies of documents specific to the mechanical engineering industry. These documents often contain complex technical data, including drawings, calculations, and precise specifications. To automatically process these documents, software solutions are required that can handle file formats such as AutoCAD drawings or engineering software outputs. Recognising the unique characteristics and requirements of mechanical engineering documents is crucial in choosing and implementing the right automation tools.

The Benefits of Document Automation in Mechanical Engineering

Enhancing Efficiency

Automating document processing in the mechanical engineering industry provides a myriad of benefits, addressing the drawbacks of manual handling. Firstly, one of the primary reasons for adopting document automation solutions is the significant improvement in efficiency. By eliminating the need for manual data entry, filing, and searching, engineers and other professionals can focus more on core tasks, leading to increased productivity and faster project completion. Moreover, automation greatly reduces the chances of errors or inconsistencies, ensuring better quality control and compliance with regulations.

Streamlining Collaboration and Productivity

By leveraging document automation tools, teams can streamline their workflows, improve communication and collaboration, and reduce the risk of errors or miscommunication. Engineers can access up-to-date documentation at any time, from any location, ensuring everyone is working with the most recent version of a document. Furthermore, automated document processing allows for seamless retrieval and sharing of information, enhancing cross-team collaboration and making project management more efficient.

The Key to Successful Document Automation in Mechanical Engineering: Seamless Integration

Integrating automation solutions into existing workflows, systems like ERP, CRM and supply chain management, and collaboration tools can be complex, sometimes requiring meticulous planning, training, and change management efforts. Ensuring compatibility between existing document management systems and new automation software is crucial to avoid disruptions and data loss. The full potential of document automation solutions can only be realised if they can be seamlessly and easily integrated into the existing IT and system landscape. If mechanical engineering and manufacturing companies want to fully benefit from document automation software, choosing a solution which does not interrupt existing processes or burdens IT teams is key.

The Future of Document Processing in Mechanical Engineering Is Automated

Document automation in mechanical engineering and manufacturing is revolutionising the way professionals handle and manage critical documents. By eliminating manual processing, teams can realise higher productivity, better accuracy, and enhanced collaboration. Embracing intelligent software solutions and understanding the unique characteristics of mechanical engineering documents will enable the industry to meet the challenges head-on and leverage the immense benefits that automation brings. As technology continues to advance, the future of document management in mechanical engineering looks increasingly automated, efficient, and productive.

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March 15, 2024
Unlocking Operational Excellence: The Crucial Role of Smooth Integration in Document Automation

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Unlocking Operational Excellence: The Crucial Role of Smooth Integration in Document Automation

The seamless integration of new technological solutions into pre-existing business frameworks is critical for the success of each software project. This integration is particularly vital in document processing automation, where the aim is to augment efficiency, accuracy, and swiftness without placing additional strain on IT resources or disrupting ongoing operations.

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The Integration Challenge in Document Automation

Integrating new document automation solutions into established business systems presents a unique set of challenges. These obstacles often stem from the inherent complexity of existing IT infrastructures, which can vary widely between organisations, and the diverse range of document formats and standards that businesses handle daily. Achieving seamless integration requires not only technical compatibility but also the flexibility to adapt to specific operational workflows and data formats. Without careful consideration, businesses risk introducing disruptions that can impede workflow efficiency and data integrity. Recognising these challenges is the first step towards implementing a solution that enhances rather than complicates the existing processes.

The Significance of Smooth Integration

Effortless integration is fundamental to the success of automation initiatives. It guarantees that new solutions can effectively communicate with existing systems, like ERP (Enterprise Resource Planning) and CRM (Customer Relationship Management) software, without necessitating extensive bespoke development or manual meddling. This interoperability is key to upholding data uniformity, minimising errors, and optimising workflow efficacy across departments.

Furthermore, the significance of alleviating the IT burden is important. IT departments, often already operating at full capacity maintaining current systems whilst deploying new technologies, benefit immensely from solutions that require minimal IT oversight for integration. This reduction in IT demand not only expedites deployment but also significantly lowers the total cost of ownership and hastens the return on investment.

The Netfira Platform: The Epitome of Integration Simplicity

Netfira’s innovative approach to document processing automation exemplifies how solutions can be powerful yet effortlessly integrable. Recognising the varied and complex needs of modern businesses, Netfira delivers a cloud-based platform that seamlessly integrates with any existing IT landscape.

Plug-and-Play Functionality: Designed for immediate integration, Netfira offers plug-and-play capabilities that circumvent the usual complexities of new software setup, substantially lightening the load on IT departments for a smoother transition and quicker uptake.

Universal Compatibility: The Netfira Platform’s adaptable architecture guarantees compatibility, automating document processing without the headache of system mismatches, whether it’s integrating with SAP and non-SAP systems, CRMs, or bespoke platforms.

User-Centric Design: The Netfira Platform reduces reliance on IT through its intuitive, no-code interface, empowering non-technical users to configure, modify, and oversee workflows, further diminishing the IT dependency.

Adaptable Data Export: Netfira supports exporting data in any format, facilitating seamless data flow via API or SFTP transfer to any downstream system, enhancing operational efficiency without the need for manual data re-entry or conversion.

Ongoing Support and Evolution: Netfira provides continuous support and periodic system updates, ensuring that as business processes and systems evolve, Netfira remains synchronised with the company’s evolving requirements.

Conclusion

Integrating new technologies into existing business systems is a balancing act of enhancing capabilities without introducing undue complexity. Netfira’s document processing automation platform meets this challenge by offering a solution that caters to immediate business needs and anticipates future demands. By prioritising easy integration, minimising IT workload, focusing on user empowerment, and ensuring flexible data export, Netfira redefines the expectations for automation solutions. Thus, it addresses not only the current challenges but also paves the way for a more adaptable and resilient technological future.

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February 28, 2024
Automate to Innovate: Automating Incoming Goods in Pharmaceutical Procurement

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Automate to Innovate: Automating Incoming Goods in Pharmaceutical Procurement

Following our previous discussion in “Unpacking the Complex World of Pharmaceutical Procurement,” this piece explores the transformative impact of automation on pharmaceutical procurement. We delve into how automating the handling of incoming goods is not just a solution to current challenges but a significant step towards innovative procurement processes in the pharmaceutical industry.

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Revisiting the Main Pharmaceutical Procurement Challenges

Pharmaceutical procurement, especially concerning hazardous or critical goods, demands stringent adherence to quality and safety standards. Like in other industries, such as the chemicals and materials industry or the engineering and manufacturing sector, this necessitates detailed information and documentation management and processing of various documents, including certificates, delivery notes, and goods records. Due to these distinct characteristics and requirements of pharmaceutical procurement, procurement managers are confronted with significant challenges: efficiently managing vast information databases, swiftly processing critical documents, overcoming the hurdles of manual data entry, and time-consuming data archiving, all of which divert focus from other tasks.

Pharmaceutical Procurement Automation: Why Pharma Procurement Needs Transformation

Over the last few years, the expectations placed on pharma procurement departments to meet requirements and quality standards while controlling costs and managing volatile supply chains have risen and are expected to rise further. These teams face a dual challenge: driving value creation and innovation while ensuring transparent and stable processes. Unfortunately, manual tasks often hinder their efficiency. To remain agile and future-ready, transforming pharmaceutical procurement through automation is not just beneficial but essential.

Reasons for Automating Incoming Goods

In pharmaceutical procurement, it is essential for procurement teams to plan ahead and maintain stable, uninterrupted workflows. The daily influx of raw materials, medical products, ampoules, and packaging necessitates well-organised and clear documentation. Automating these processes not only alleviates the burden on procurement teams but also enhances speed and accuracy. This automation extends to the processing of certificates and delivery notes, ensuring a seamless integration into the procurement system.

Automating Certificates and Delivery Notes in Pharmaceutical Procurement

In pharmaceutical procurement, hazardous goods are sent with a certificate. As these goods are mostly shipped in batches, each batch is delivered with a certificate. Consequently, when one order is delivered in 20 batches, 20 certificates need to be processed. Processing these certificates and delivery notes manually not only increases workload but is prone to errors.

Automated processing of delivery notes enhances the efficiency of incoming goods management, allowing for advanced knowledge of batch details and necessary storage conditions. This comprehensive automation ensures that procurement teams have access to vital information, facilitating informed decision-making and swift response to changes.

The Benefits of Automated Archiving

Document archiving, a critical component of the pharmaceutical P2P process, can be a daunting and monotonous task, if performed manually. Implementing automation solutions transforms this essential function by enabling rapid and accurate archiving of vital documents like certificates and records. Automated extraction, processing, and archiving of information ensure that documents are always readily accessible, significantly boosting efficiency and reliability in the procurement process.

The Benefits of Automating Incoming Goods and Archiving

Automating incoming goods and archiving offers numerous benefits to overcome challenges of pharmaceutical procurement. It minimises manual labor, significantly saving time and reducing errors. This shift allows staff to allocate their focus to other critical areas. Automated processes ensure streamlined operations, enhanced data quality, and consistent transparency, with reliable information readily available. The resulting structured data empowers teams to make informed decisions, plan, react to unforeseen changes, adapt to requirements and adhere to quality standards.

Choosing Wisely: Finding the Perfect Automation Software for Pharmaceutical Procurement Automation

For pharmaceutical procurement automation to be successful, it is vital to choose the right automation solution. When automating incoming goods and document processing, choosing a sophisticated, intelligent automation solution is paramount. Cloud-based Intelligent Document Processing (IDP) platforms, such as the Netfira Platform, are adept at accurately extracting and validating data from documents, thus ensuring high-quality data. Further, integration with existing systems, like ERP and CRM, is essential for seamless data flow and efficient archiving. On top of that, the scalability of cloud-based IDP solutions allows for the expansion of automation to other areas like invoice processing, further enhancing the procurement process.

Pharmaceutical Procurement Automation: Automating Incoming Goods Processes

The automation of incoming goods is a cornerstone of pharmaceutical procurement automation. By automating the processing of documents such as certificates and delivery notes, pharmaceutical procurement teams are relieved of time-consuming and error-prone manual activities. This automation facilitates faster and more efficient workflows, significantly enhancing decision-making and planning capabilities. Advanced Intelligent Document Processing solutions, such as the Netfira Platform, are exceptionally equipped to meet the rigorous demands of pharmaceutical procurement. Thanks to their extraordinary precision in data extraction and validation, they provide the necessary data quality, process stability and transparency to make procurement in the pharmaceutical industry competitive and future-proof.

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January 19, 2024
Unpacking the Complex World of Pharmaceutical Procurement

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Unpacking the Complex World of Pharmaceutical Procurement

In the pharmaceutical industry, procurement plays an increasingly important role. At the same time, pharmaceutical procurement teams are faced with a variety of challenges. This blog post delves into the intricate world of pharmaceutical procurement, highlighting its pivotal role and outlining the major hurdles encountered in the process. Discover how technological enhancements, particularly in automation, are revolutionsing this field.

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Pharmaceutical Procurement Unveiled  

Pharmaceutical procurement is the process of acquiring pharmaceuticals and medical devices by a company or organisation. It encompasses the identification of needs, evaluation of options, supplier selection, contract negotiations, and product delivery, demanding resources like medical expertise, technology, and robust infrastructure.

The Pillars of Procurement in Pharmaceuticals

Pharmaceutical procurement can be divided into three categories: direct procurement, indirect procurement, and contract procurement. 

Direct Procurement

Involves purchasing directly from a single source, often under bulk or military contracts.

Indirect Procurement

Entails buying from multiple sources, useful for creating custom pharmaceutical blends.

Contract Procurement

Outsourcing procurement to a third party, often utilised for exploring new product options.

The Significance of Procurement in the Pharma Industry

In an industry where innovation and cost control are paramount, procurement is increasingly recognised as a critical driver. Procurement teams are being seen as value creators, contributing to innovation and collaboration, and taking centre stage in strategic planning and management. 

Pharma companies are focusing on transforming procurement by aligning procurement objectives with wider business areas to enable growth and cost reduction, establishing a preferred supplier programme to integrate suppliers, and leveraging technologies to facilitate better decision making.

Pharma’s Unique P2P Dynamics 

The end use of procured goods by patients adds layers of complexity to the pharmaceutical P2P process, necessitating stringent quality standards and compliance with numerous regulations.

Supplier Relations

Compared to other industries, like mechanical engineering or construction, pharmaceutical companies tend to work with less suppliers. Many collaborate with only a few big suppliers as stringent quality and supply chain transparency requirements make supplier selection a meticulous and vital process.

Navigating the Procurement of Dangerous Goods

Handling dangerous substances is an inherent part of pharmaceutical procurement. Those dangerous goods, potentially lethal substances and medications along with ampoules, other items and packages often come in batches. These batches must meet strict requirements and standards to make sure that only safe medication is procured and sold. As a result, transparency, reliability, and clean data on the procured goods are at the heart of a functioning P2P process in pharmaceuticals.

Overcoming Pharmaceutical Procurement Challenges

The challenges in pharmaceutical procurement are manifold, but with the integration of intelligent automation technologies, these hurdles can be transformed into opportunities for efficiency, innovation, and safety.

Data Management

A key challenge lies in gathering and storing vast amounts of information, which must be readily accessible when needed. This includes data from certificates, documentation, information about raw materials, and risk assessments. Crucial documents in the pharmaceutical P2P process, such as certificates, delivery notes, and documentation of incoming goods, often in multiple batches, as well as sample documentation, must be meticulously managed.

Document Processing

Swift and efficient document processing is essential to maintain flexibility and agility. Implementing operational processes that ensure both transparency and stability, while also allowing for planning and adaptation to unforeseen changes, is vital.

Data Quality

Teams often grapple with manual data entry, where even minor details on certificates, orders, and other documents can significantly impact workflows. Thus, data quality becomes paramount. Utilising automated data entry solutions can help minimise human error, enhancing accuracy.

Archiving

In pharmaceutical procurement, archiving data is crucial but can be extremely time-consuming when performed manually. As a result, procurement teams may find their time for other tasks limited. Adopting cloud-based storage solutions can offer a secure and accessible means to improve the archiving process.

Discover in our blog article “Automate to Innovate: Automating Incoming Goods in Pharmaceutical Procurement” how automation helps procurement teams in the pharmaceutical industry to overcome challenges and to make their operational processes reliable, transparent and efficient.  

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January 19, 2024
Accounts Payable Whitepaper: From Manual Handling to Intelligent Automation

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Elevating Accounts Payable: From Manual Handling to Intelligent Automation

As businesses continue to scale and evolve, the accounts payable (AP) department faces increasing complexities in managing an ever-growing volume of invoices, purchase orders, and payment documents. While traditional automation solutions have provided some relief by streamlining certain aspects of the AP process, they often fall short in today’s fast-paced, data-intensive business landscape. With the advent of more sophisticated technologies, there is a compelling need to go beyond basic automation to more intelligent, integrated solutions that can adapt to the nuanced demands of modern accounts payable operations.

As we navigate through the intricacies of document processing, this whitepaper will shed light on the limitations of traditional automation solutions, and how they often fail to meet expectations. We will then introduce Intelligent Document Processing (IDP) as a game-changing solution, illustrating how it combines the power of artificial intelligence (AI) and orchestration to dramatically improve
efficiency and accuracy. Discover how the Netfira Platform can transform accounts payable from manual handling to intelligent automation.

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January 17, 2024
The Benefits of a SaaS IDP Solution for Procurement

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The Benefits of a SaaS IDP Solution for Procurement

Advancements in technologies, such as IDP cloud solutions, continue to change the B2B world profoundly. In our last blog article, we showed how IDP cloud solutions combine the best of intelligent document processing (IDP) with the best of cloud computing. Cloud computing comprises a wide range of services that aim to meet various IT needs of an organisation. One service model that operates in the cloud is Software-as-a-Service (SaaS). Procurement departments relying on the power of intelligent document processing can benefit immensely from document automation in the cloud. Procurement software needs to be efficient, future-proof, and agile, which are distinct advantages of a SaaS IDP solution. 

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7 Main Advantages of SaaS IDP solutions for Procurement

1. Easy configuration

Unlike on-premise IDP solutions, SaaS IDP solutions allow users to connect to a ready-to-use system. As a result, companies do not require internal server infrastructure and implementation times are drastically reduced.   

2. No maintenance

The SaaS provider is responsible for maintenance and security-related aspects of the software, reducing the pressure on IT departments and providing users with peace of mind. 

3. Low costs

Companies do not have to install and run applications on their systems. This eliminates the need to invest in hardware and licensees and reduces the costs associated with maintenance and support. Users only pay for what they need and use. The initial setup costs for IDP SaaS solutions are also low, and implementation time is far quicker than for on-premise systems. 

4. High flexibility

IDP SaaS solutions afford users more flexibility than on-premise systems. For example, companies can subscribe to SaaS offers as required instead of purchasing licenses and installing the software on internal computers. In addition, SaaS IDP applications are provided over the web, which means users can access the software from any device or location, pending relevant permissions.

5. Easy scalability

Organisations can make greater use of individual services or functions if necessary. This is particularly important for companies growing rapidly or needing larger capacities for seasonal reasons. In addition, the Netfira Platform offers operational improvements along the P2P process, and users can easily configure more document types as the need arises.   

6. Work within a familiar environment

Teams can work within their familiar environment. There is no need to make disruptive changes to processes or systems as the system can adapt to the relevant requirements of the business. 

7. Relieve IT departments

As SaaS is web-based, users benefit from service providers updating the software automatically – often weekly or monthly. There is no ongoing requirement on IT to implement new releases or patches. Cloud-based document automation software means the IT department has an effortless involvement in the digitisation project, allowing them to focus on other tasks and duties.   

The Power of Intelligent Document Processing SaaS Solutions for Procurement

IDP cloud solutions – and above all IDP SaaS solutions – provide procurement with future-proof technology that enables the efficient automation of operational activities and processing of unstructured documents. Modern technologies and the demands of companies are changing rapidly. This unpredictability makes SaaS IDP solutions the right choice thanks to a higher flexibility and low costs compared to on-premise solutions. Considering all the advantages, SaaS IDP solutions prove to be a powerful alternative to on-premise solutions. Moreover, by automating procurement with a SaaS IDP solution, companies can concentrate on strategic business activities and achieve sustainable increases in operational efficiency.

Internal IT requirements of the Netfira Platform

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December 5, 2023
IDP Cloud Solutions – Combining the Best of Two Worlds

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IDP Cloud Solutions – Combining the Best of Two Worlds

In B2B organisations, almost every operational process produces documents. Teams use documents to order goods or services and pay for them, sell and ship goods, file claims and account for things. Finally, documents are needed to report on the ordering, paying, shipping and accounting of goods or services. Procurement and sales departments, in particular, need to handle a vast array of document formats such as paper document, scanned documents, PDFs and images. Traditional automation solutions relying on OCR or EDI help procurement departments to stay on top of processing all the B2B documents but both technologies come with limitations and disadvantages.

The good news is: Intelligent Document Processing (IDP) can overcome the limitations of traditional automation solutions. IDP solutions can not only identify but also interpret and analyse the data extracted from documents. IDP goes beyond simple automated data extraction to identify and understand key data points and classify the document type. It can then apply business rules to the extracted information, verify it and automatically export it into downstream systems.

Even better news: The strengths of IDP solutions can be brought to the next level if they are not implemented as on-premise solutions but as cloud solutions. Operated in the cloud, IDP can unlock its full potential and innovate the way companies process documents. Read on to discover how choosing an IDP cloud solution means combining the best of two worlds.

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What Is Intelligent Document Processing?

Intelligent Document Processing (IDP) is based on advanced technology to digitise and automate unstructured data from B2B documents. Because it combines artificial intelligence (AI), machine learning (ML) and natural language processing, IDP can mimic human abilities when it comes to identifying, contextualising and processing documents. IDP uses AI, ML and human-in-the-loop automation to convert unstructured data into structured and actionable data. By relying on orchestration, the coordination of single automated tasks into a seamless and unified workflow, intelligent document processing takes automation to the next level.  

Intelligent Document Processing in the Cloud

Intelligent Document Processing is a powerful approach for automating B2B document flows. The IDP solutions’ strengths are brought to the fore even more when they are operated in the cloud. In contrast to on-premise IDP solutions, cloud IDP solutions prove to be more agile, flexible and simple. Therefore, intelligent document processing in the cloud is going to reshape the automation of documents and B2B communication.

The Power of Cloud Solutions

Cloud computing is one of the most impactful technological advancements in corporate IT. Put simply, cloud computing refers to the availability of computing services over the internet. IDP solutions that operate in a cloud allow companies to lower operating costs, scale usage as required and reduce the need for IT teams to maintain software. Moreover, users benefit from customisation and flexibility as well as a high standard of security.  . 

The concept of cloud computing

Customisation: What Can Be Defined in the Cloud

The size:

Depending on current needs and the market situation, users can adjust storage capacities and computing power effortlessly at any time. As an advantage, companies do not have to invest in local IT infrastructure. One of the main benefits of a cloud-based solution is its high flexibility. Changes can be made at any time with the push of a button.

The content:

The content of the cloud can be defined individually. Users decide which data is in the cloud.

Control access and expand collaboration:

Procurement needs to collaborate with business partners and suppliers. The cloud allows users to determine which content suppliers, partners and employees can access.

The Cloud and Security

Cloud providers are responsible for security. The systems’ structures, resources and capacities are specifically designed for these requirements, making cloud-based solutions very secure and reliable. When choosing a service provider, it is essential to ensure that ISO guidelines are adhered to. Standardised norms such as ISO 27001, ISO 27017 and ISO 27018 define the handling and processing of highly sensitive data.

Service Models of Cloud Computing

The term ‘cloud computing’ is not just about one offer but comprises a wide range of services that aim to meet various IT needs of an organisation. Some companies provide customers with a cloud, while others, like Netfira, provide a service model that operates in a cloud. The three main service models are Infrastructure-as-a-Service, Platform-as-a-Service and Software-as-a-Service. 

Infrastructure-as-a-Service (IaaS):

The service involves the provision of data centre infrastructure by a cloud provider. The resources are accessed via private or public networks. The components of the infrastructure provided include, for example, servers, computing and network capacities, communication devices such as routers or firewalls, storage space and systems for archiving and securing data. 

Platform-as-a-Service (PaaS):

This can be understood as a link between classic infrastructure services (Infrastructure-as-a-Service, IaaS) and application software from the cloud (Software-as-a-Service, SaaS). Cloud providers provide customers with a platform on which they can develop, operate and manage applications without worrying about the necessary infrastructure.  

Software-as-a-Service (SaaS):

Customers can access offerings hosted by a service provider over the internet. Users access the applications via a browser. Companies that use SaaS applications can change the configuration settings and adapt the software to their specific requirements within certain parameters. Like with other cloud services, organisations typically pay a monthly or yearly fee for SaaS applications. SaaS providers usually bill applications based on specific usage parameters, such as the number of people using the applications or the number of transactions. The Netfira Platform, which automates procurement and sales processes, is offered as a SaaS solution. 

IDP Cloud Solutions: The Dream Team for Procurement

IDP works best when operated in the cloud. Combined with the flexibility, scalability and customisation options of cloud solutions, IDP can turn simple automation into intelligent automation and process structured as well as unstructured document reliably and quickly. Read more about intelligent document processing in the cloud and discover the 7 benefits of a SaaS IDP solution for procurement in our next blog post.

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November 30, 2023