Key information extraction is a foundational AI capability that transforms unstructured data, like invoices, into actionable insights. In logistics, this ability is critical for improving efficiency and accuracy in handling large volumes of operational data. Let’s explore how Bear Cognition applied this AI technique to solve a 3PL company's invoice processing challenges, related to their prospects RFQs (Request for Quote).
The AI Capability: Key Information Extraction
Key information extraction relies on technologies like Optical Character Recognition (OCR) and Natural Language Processing (NLP). OCR reads text from documents like PDFs, images, and more, while NLP interprets the context to extract specific data points - such as invoice numbers, amounts, and payment terms. These processes involve supervised machine learning models trained on historical documents to improve model accuracy over time. Collectively, this process is known as Intelligent Document Processing (IDP). Imagine having a tireless assistant who handles repetitive tasks with near perfection, 24/7.
The Process
The project began by analyzing the client's workflow, which involved their extensive sales team processing thousands of invoices weekly. The AI-powered system was designed to:
Ingest Documents: IDP extracted data from invoices in various formats.
Interpret Context: NLP identified and categorized key fields, like vendor details, charges, and shipping characteristics.
Validate Data: Cross-referenced extracted data against historical patterns to detect errors.
Advanced Analysis: Intelligent pricing engines proposed the best pricing program, mitigating margin-loss and increasing win-rates.
The extracted data was then fed into a custom model for generating detailed cost analysis and proposals, saving hours of manual data entry each week.
Outcome & Capabilities
The implementation reduced processing time from an average of nine hours per individual to around 15 minutes per invoice batch, freeing up sales teams to focus on strategic tasks and more revenue-generating activities. Beyond efficiency, the system enabled better data-driven decisions through accurate and timely information retrieval. Overall, margins also increased 31% through better pricing and bid strategies.
Conclusion
Key information extraction exemplifies how AI transforms manual processes into streamlined workflows, enabling businesses to operate with greater speed, accuracy, and scalability. By leveraging advanced technologies like IDP, logistics companies can automate time-consuming tasks such as invoice processing, reduce human error, and free up valuable resources for more strategic initiatives.
Beyond the immediate efficiency gains, this capability lays the foundation for smarter operational decisions by providing timely, accurate, and actionable insights. These insights enable companies to optimize pricing strategies, improve margin performance, and adapt quickly to market changes.
For logistics businesses navigating an increasingly competitive landscape, adopting AI-powered key information extraction isn't just an operational upgrade—it's a strategic necessity. With proven results like 97% accuracy and the ability to reduce processing times from hours to minutes, Bear Cognition’s solutions showcase the transformative potential of Intelligent Document Processing.
The future of logistics belongs to organizations that harness the power of AI to drive innovation, streamline workflows, and deliver superior value to their customers. Are you ready to join them?
Curious how AI can simplify your processes and save you time? Let’s talk.