International Trade Document Processing: Is Automation Possible?

While some logistics companies work manually, others have begun to automate their international trade document processing.

But how feasible is automation? Can logistics companies really automate their trade document processing systems? Should those that rely on manual data-entry take the time to digitize?

This article will provide answers to these questions and explain how automation plays into logistics’ companies digital transformation. In addition, the sections below will describe what trade documentation processing automation looks like—and outline the benefits of automating.

Document Processing: A Definition

Document processing consists of capturing data and converting it into a spreadsheet or internal system.

Logistics teams must process a number of documents with every shipment, from commercial invoices and customs forms, to packing lists and bills of ladling.

These documents are often processed manually. Manual processing, however, is prone to a number of risks and challenges—many of which can be addressed with automation.

Digital Transformation for Logistics Companies

It’s a common scenario: A company that once relied on paper-based processes hopes to move into the future. To save time and better serve customers, business leaders decide to adopt digital, paperless solutions.

The logistics space is no exception to the digital transformation rule. Now more than ever, companies are striving for a complete offline-to-online transformation solution. For teams in our industry, this will largely rely on automation: automated customs forms, PDF generation, content tracking, and more.

The overarching goal is for logistics companies to work more efficiently. As we enter an increasingly globalized society, businesses can expedite their international transportation, export and import procedures, customs clearance, and more with automation.

The Challenges of Manual Trade Document Processing

Logistics companies that still work manually may encounter a number of trade document processing roadblocks. These include:

• Time-consuming filing

Manual paperwork takes a great deal of time to complete and file, creating a backlog for logistics workers. It is also more prone to human error than automated alternatives.

• Data storage issues

Another challenge is manually storing order and shipping trade documentation. By automating their document storage, companies can take a more streamlined approach and conserve team resources.

• Lack of a technical background

Most trade documents are government-issued. Without an internal IT team or an expert third-party tech vendor, however, logistics companies may struggle to comply with different countries’ requirements.

Logistics teams today can save time and focus on their core business by automating their trade document processing, shipping requirement verification, and order storage information. This will reduce the risk of shipping delays, compliance violations, and more.

The Benefits of Automated Trade Document Processing

Logistics automation will help companies track the movement of their goods more effectively. These are just some of the benefits of automating your international trade document processing:

• Real-time data access

Trade document processing automation allows companies to load and analyze their data in real time. By running reports in just a few clicks, logistics teams can make better business decisions—elevating their inventory management and processing invoices more seamlessly.

• Greater efficiency

Speed and scalability are integral role to logistics companies’ trade document processing abilities. With automation software, the solution will automatically input data into the correct system when a new order comes in, and then consolidate customs documentation accordingly.

• Better use of employee time

With an automated trade document processing solution, team members who once focused on data entry can take on more impactful, client-facing work. This will improve staff retention and job satisfaction—without compromising the quality of your team’s trade documents.

• Error prevention

While errors are far from the norm where logistics companies’ manual processes are concerned, they do happen from time to time. By automating your international trade document processing, your organization can prevent errors from occurring in the first place.

• Cost savings

Mistakes cost businesses not only time, but money. Problems may result in higher shipping expenses, inventory excess, planning and coordination issues, and documentation-error penalties. Our AI powered intelligent document processing software has a proven ROI by helping to keep these expenses down.

• Accessibility

Cloud-based automation solutions are accessible from anywhere. With enterprise-level security and unprecedented reliability, many logistics companies appreciate the ease automation software brings. Trade document processing automation is truly an integral part of logistics teams’ digital transformation.

These are just some of the reasons logistics companies are moving toward trade document automation. The next section will list some of the documents that can be processed automatically.

Which International Trade Documents Can Be Processed Automatically?

Many logistics documents can be automated. Global logistics teams may choose to automate the processing of the following documents:

• Commercial invoices

The right solution will extract invoice data and automatically export it to your logistics company’s internal systems. This will make commercial invoicing easier—and faster—than ever.

• Customs documents

Automated customs document processing allows goods to clear customs more efficiently. An automated system will sort and process declaration forms quickly and securely.

• Packing lists

Included in every shipment, packing lists describe the type and quantity of goods being delivered. Artificial intelligence lets teams capture and export this data in real time.

• Certificates of analysis

Attesting that your goods have undergone the required testing can be tedious. So can proving that you’ve achieved the necessary results. Again, this is where automation may come in.

• Bills of ladling

These documents describe what goods are being shipped and serve as a receipt for the consignee. Since bills of ladling increase transparency, the data should be readily-available.

Again, this is where automation comes in.

How Does Automated Trade Document Processing Work?

We’ve discussed the benefits of digital transformation and described the types of trade documents that can be automated.

This section will define the stages involved in international trade document processing automation. A brief overview: Document automation software classifies documents by grouping them into the right category, and then pulling and storing data as needed.

These are the steps that make up automated trade document processing:

• Document classification

Here machine learning models interpret information and patterns from logistics documents. Then, these same models classify the documents by type.

• Data extraction

Once the document is classified, the machine learning models extract the data from the document by interpreting the context of the file and content.

• Data exceptions

Sometimes machine learning models might pick up on an extraction exception. Users will then be directed to parts of the document where changes need to be made.

• Data release

At this point, the data will move from the documents received into the relevant account record. Approved users will be notified once the document has been processed.

To summarize, document automation software extracts data from international trade documents, interprets the data, and syncs the data with logistics company systems. This results in cost savings of more than 80%—saving teams time and freeing them up to focus on more meaningful work.

Embrace Logistics Automation with Mely AI

Logistics teams can leverage automation to increase visibility into their data, make better decisions, reduce errors, and save time and money. The benefits of automating your international trade document processing are truly expansive.

Here’s the bottom line: Document processing automation is well within reach. The right software will help you transform your manual document processing solution from a slow, error-prone system into a fast, automated alternative. We’re confident you’ll never look back.

Interested in getting started? Book your free demo with Mely AI to learn more.