The logistics industry runs on documents, bills of lading, invoices, customs declarations, delivery receipts, and more. With global supply chains becoming increasingly complex and customer expectations for speed and transparency at an all-time high, manual document handling is no longer sustainable. Errors, delays, and inefficiencies stemming from paperwork aren’t just operational headaches, they're competitive disadvantages.
That’s where Optical Character Recognition (OCR) and Intelligent Document Processing (IDP) come in. These technologies transform scanned or unstructured documents into clean, usable data that can be immediately routed into transport management systems (TMS), ERPs, and other digital workflows. From accelerating customs clearance to reconciling freight charges or automating delivery proof, OCR and IDP are helping logistics firms unlock new levels of speed, accuracy, and automation across the entire shipment lifecycle.
The global market for Intelligent Document Processing (IDP) is experiencing rapid growth, with projections showing an increase from $860 million in 2021 to over $4.15 billion by 2026. This growth is being fueled by rising demand for automation in logistics operations and increasing pressure to comply with evolving regulatory standards around documentation and cross-border trade. Similarly, the Optical Character Recognition (OCR) market is expected to reach $29.54 billion by 2029, with a compound annual growth rate of 15.3%. Key drivers in the logistics sector include the need to process shipping labels, bills of lading, customs declarations, and delivery notes at scale. The widespread use of mobile OCR for scanning parcels in warehouses and last-mile delivery hubs, combined with advances in real-time document validation, is accelerating adoption. Broader trends like AI-powered automation, predictive analytics for demand planning, and the rise of cloud-native logistics platforms are pushing IDP and OCR to the forefront of digital transformation in the supply chain.
The Bill of Lading (BoL) is a foundational document in logistics, acting as a receipt, shipment contract, and title of goods. Yet, it's still common for BoLs to be submitted in scanned or handwritten formats, especially in international freight. Manually entering data from these documents into transport or ERP systems slows down operations and introduces the risk of human error particularly when handling varied document formats and layouts across carriers and jurisdictions.
By using OCR and IDP, logistics firms can automatically digitize and extract structured data from any BoL format, regardless of language or layout. Key fields such as shipper/consignee names, container numbers, cargo descriptions, and terms of carriage can be validated against order systems in real-time. This enables quicker handoffs, fewer shipment disputes, and faster customs clearance, significantly reducing processing delays and boosting supply chain transparency.
Deutsche Post DHL Group, one of the world’s largest logistics companies, successfully implemented Intelligent Document Processing (IDP) technology through a partnership with ABBYY to streamline its financial workflows. Specifically, DHL faced challenges processing remittance advices, which came in a variety of formats and were often incompatible with the company’s SAP system. By integrating ABBYY’s IDP solution, DHL was able to automate the extraction and validation of critical data from these documents. This led to a 70% increase in processing efficiency and significant reductions in transaction costs, as the solution enabled end-to-end standardization across global operations. Furthermore, the automation freed up finance and operations staff to focus on higher-value tasks, rather than routine document handling. This initiative illustrates how OCR and IDP technologies can deliver measurable ROI and drive digital transformation at scale within logistics.
Proof of Delivery (PoD) documents, whether signed delivery receipts or digital forms serve as essential records confirming that a shipment was received. In high-volume logistics environments, managing thousands of PoDs daily becomes a major bottleneck if handled manually. Paper-based signatures, scan inconsistencies, and missing reference numbers add to processing friction.
OCR and IDP technologies can automatically capture data from scanned delivery notes, extract signature timestamps, match reference numbers to delivery orders, and push the information directly into backend systems for reconciliation. This reduces back-office workload, accelerates invoicing, and enables real-time visibility into completed deliveries. For third-party logistics providers (3PLs), this automation also strengthens SLA compliance and helps resolve customer disputes faster.
Midwest Wheel Companies, a major distributor of truck parts and accessories, implemented Intelligent Document Processing (IDP) and Robotic Process Automation (RPA) to streamline its Proof of Delivery (PoD) workflow across nine locations. Previously, the company faced inefficiencies from manually managing large volumes of signed delivery and pick-up documents, which delayed invoicing and strained operational resources. By integrating Infor’s RPA and Document Processor with their existing ERP system (Infor CloudSuite Distribution), Midwest Wheel automated the capture, separation, and metadata extraction from scanned PoD documents. This data was then automatically routed into Infor Document Management (IDM) for efficient storage and retrieval. The implementation resulted in significantly reduced manual workload, faster invoicing cycles, improved data accuracy, and a better customer experience. According to the company’s Senior Vice President, Steve McEnany, the automation initiative was a “game changer,” accelerating digital transformation and enhancing customer responsiveness.
International shipping requires extensive customs paperwork—commercial invoices, packing lists, export declarations, and certificates of origin—all of which must meet regulatory standards. Manual inspection and re-entry of these documents not only create bottlenecks but also increase the likelihood of misfiling or delays at borders, risking penalties or shipment holds.
By implementing OCR and IDP, logistics firms can digitize and intelligently classify customs documents, extract key data like HS codes, tariff amounts, and country-of-origin declarations, and cross-reference them against shipping manifests and regulations. This not only ensures faster customs clearance but also helps companies stay audit-ready and compliant with changing international trade rules. Automation at this stage can save significant time and prevent costly customs infractions.
Sumitomo Warehouse Co., Ltd., a prominent Japanese logistics firm, faced challenges in streamlining its customs clearance operations, which traditionally involved manual verification and transcription of commercial invoices, a process that was both time-consuming and prone to errors. To address this, Sumitomo implemented ABBYY's Intelligent Document Processing (IDP) platform. This solution enabled the company to automatically extract and convert necessary data fields from diverse invoice formats into the required digital formats, significantly reducing manual effort.
The results were remarkable: the invoice processing time decreased from over 40 minutes to just 4 minutes per document, representing a 90% reduction in processing time. This automation not only expedited customs clearance but also minimized the risk of shipping delays due to fewer customs issues. By adopting ABBYY's IDP technology, Sumitomo enhanced its operational efficiency and strengthened its competitive advantage in the logistics industry.
Logistics companies handle a high volume of freight invoices from carriers, brokers, and customs agents. Manually verifying these invoices against contracted rates, shipment weights, or accessorial charges is both tedious and prone to costly mistakes. Overcharges and duplicate payments are common, especially when reconciling against multiple rate cards or fluctuating fuel surcharges.
With OCR and IDP, scanned freight invoices can be automatically read and matched against transport management system (TMS) data or predefined rate tables. These tools can flag discrepancies, overbilling, or missing service details, while routing exceptions to finance teams for review. The result is faster payment cycles, fewer billing disputes, and improved financial accuracy while freeing up staff from routine invoice handling.
AFS Logistics, a freight and logistics company, adopted ABBYY’s Intelligent Document Processing (IDP) solutions to automate the processing and reconciliation of freight invoices. Prior to automation, AFS Logistics faced challenges managing a high volume of invoices from multiple carriers, brokers, and customs agents, which were often in different formats and contained complex billing details like fuel surcharges and accessorial charges. Manual verification was slow and prone to errors, leading to delayed payments and occasional overcharges.
By implementing ABBYY’s IDP, AFS Logistics was able to automatically extract and validate invoice data against contracted rates and transport management system records. The system flagged discrepancies for review, which reduced errors and billing disputes significantly. This led to faster payment cycles, improved financial accuracy, and allowed staff to focus on higher-value tasks instead of manual invoice handling. Overall, the automation increased operational efficiency and reduced costs related to invoice processing.
In last-mile logistics and courier operations, packages and mail items often arrive with poorly printed, handwritten, or partially damaged labels. Manually sorting these items or relying solely on barcode scanning can introduce inefficiencies, especially when labels are unreadable or incorrectly placed.
Advanced OCR systems integrated with IDP can read addresses from even low-quality or hand-filled labels, extract and verify street-level details, and match them with customer databases or routing systems. This enables automated sorting and real-time route optimization, reducing sorting time, minimizing delivery errors, and lowering last-mile delivery costs. For companies like postal services or e-commerce delivery firms, this has a direct impact on throughput and customer satisfaction.
Earth Class Mail, a leading digital mailroom service provider, implemented OCR technology through a partnership with Filestack to improve the efficiency and accuracy of their mail processing operations. Faced with the challenge of handling a high volume of incoming mail often with handwritten or low-quality printed labels the company needed a solution that could automate the extraction of address and sender details. By integrating Filestack’s OCR API, they were able to automate approximately 70% of their mail processing tasks. This significantly reduced the manual effort required to sort and route envelopes and packages. The OCR system reliably extracted key data across varied formats, leading to faster processing, improved data accuracy, and a better overall customer experience. This transformation not only optimized operational workflows but also enhanced service reliability, demonstrating the value of OCR in modern mailroom and logistics environments.
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The logistics industry runs on documents, bills of lading, invoices, customs declarations, delivery receipts, and more. With global supply chains becoming increasingly complex and customer expectations for speed and transparency at an all-time high, manual document handling is no longer sustainable. Errors, delays, and inefficiencies stemming from paperwork aren’t just operational headaches, they're competitive ...
In the healthcare sector, vast volumes of paperwork ranging from patient records and insurance forms to lab reports and clinical trial data are generated daily. Managing this influx of unstructured documents has traditionally been a labor-intensive process, resulting in administrative bottlenecks, delays in patient care, and compliance challenges. Enter Optical Character Recognition (OCR) and Intelligent ...
Accounting teams deal with a constant flood of financial documents receipts, invoices, purchase orders, bank statements often in inconsistent formats and from multiple vendors. Manually processing these documents is time-consuming, error-prone, and difficult to scale. Even with digital systems, much of the input still arrives in scanned PDFs or image-based formats that require human review. This is where ...
The logistics industry runs on documents, bills of lading, invoices, customs declarations, delivery receipts, and more. With global supply chains becoming increasingly complex and customer expectations for speed and transparency at an all-time high, manual document handling is no longer sustainable. Errors, delays, and inefficiencies stemming from paperwork aren’t just operational headaches, they're competitive ...
In the healthcare sector, vast volumes of paperwork ranging from patient records and insurance forms to lab reports and clinical trial data are generated daily. Managing this influx of unstructured documents has traditionally been a labor-intensive process, resulting in administrative bottlenecks, delays in patient care, and compliance challenges. Enter Optical Character Recognition (OCR) and Intelligent ...
Accounting teams deal with a constant flood of financial documents receipts, invoices, purchase orders, bank statements often in inconsistent formats and from multiple vendors. Manually processing these documents is time-consuming, error-prone, and difficult to scale. Even with digital systems, much of the input still arrives in scanned PDFs or image-based formats that require human review. This is where ...
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