User's Blog!

Tag: OCR

  • Whitepaper: A unique alternative to EDI and OCR

    Whitepaper: A unique alternative to EDI and OCR

    Trending articles

    Whitepaper: A unique alternative to EDI and OCR

    Optical Character Recognition (OCR) and Electronic Data Interchange (EDI) are two well-known solutions for making data available  for digital use in purchasing and sales. While both technologies have advantages, they fail in crucial areas such as data extraction accuracy and business-partner connections. Therefore, companies must carefully access both the advantages and disadvantages of these technologies to find a solution that works for them. This whitepaper will examine both OCR and EDI before presenting a unique alternative in the Netfira Platform.

    Share:

    Download the whitepaper

    Please fill out the form below to receive the whitepaper. 


    Return to blog

  • The Netfira Platform – unique alternative to OCR

    The Netfira Platform – unique alternative to OCR

    Trending articles

    The Netfira Platform – a unique alternative to traditional OCR solutions

    Extracting, processing and exporting data is a central task in procurement. Documents like purchase order confirmations or invoices need to be processed digitally. OCR is often used to convert documents into a digital format. For many businesses, however, OCR is not the right solution as it is too inaccurate and inflexible. For purchasing, there are innovative alternatives to the classic OCR solutions. The Netfira Platform enables automated document processing by providing a cloud-based SaaS solution that processes documents and data quickly, efficiently and accurately. 

    Share:

    Download the information sheet

    Please fill out the form below to receive the Netfira vs OCR information sheet.


    Return to blog

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

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

    Trending articles

    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.   

    Share:

    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

    Return to blog

  • 3 ways to ensure digitally connected business partners

    3 ways to ensure digitally connected business partners

    Trending articles

    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. 

    Share:

    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

    Return to blog