For those who have already implemented, or those who are looking to implement, an AP Automation solution can find themselves troubled with the cost and complexity of traditional Optical Character Recognition (OCR) software solutions. OCR technology has come a long way from the days of scanning sample pages and highlighting X/Y coordinates on a document then hoping for the best. Technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI) has made the implementation of the traditional OCR software much faster and reliable. However, OCR implementations are still more of an ‘art’ than a ‘science’ and 100% accuracy on document verification is rare. There is still a significant investment an organization needs to make in an OCR software solution plus the need to hire, train or reassign people to manage the implementation. The chances are the organizations volume has increased due to business growth or client demands, which is why an AP Automation solution is considered in the first place. As that growth occurs, additional resources or users need to be hired and trained on the OCR functions and process to perform the required tasks. Like the advancements with RPA and AI, the traditional OCR software deliverable is going through a transition. Managed Outsourced OCR, affectionally referred by some as ’MOO’, is another option available that is often overlooked. In this article we will be highlighting 5 reasons why an organization would implement Managed Outsourced OCR.
#1 Better OCR accuracy
Most Outsourced OCR services, such as PICS, use the ‘double key and verify’ method to process invoices. With this method 2 individuals are reviewing and indexing the document at the same time. Next, the results of the OCR process from the 2 individuals are digitally compared for each field. If they match, then the document is approved and processed. If they don’t match, the document is forwarded to a supervisor for review. The supervisor updates the value and approves the document. Imagine 3 people reviewing each document when needed as opposed to an OCR solution rendering the document then a single person verifying the results. OCR accuracy increases without a further investment by the company.
# 2 No touch processing
In the early stages of an AP Automation implementation, most users focus on exceptions and how the new solution can handle and streamline exception processing. As time goes on exceptions become less frequent due to the fact the user can focus on addressing the core issue of the exception instead of manually processing every invoice. It is at this point the expected Return on Investment (ROI) really increases seeing there are no exceptions, therefore, no human needs to review or process the invoice. Imagine nearly 100% of your supplier invoices flowing through an AP Automation solution where the solution checks and validates the invoice to make sure there are no duplicates, price differences, etc. If these exceptions do not exist, then the solution creates a transaction in your ERP solution. The supplier gets paid on time at the right price, there are no double-paying of duplicate invoices or any other exception you wish the solution to highlight. In this scenario, no human in your company had to touch, review, approve or process the invoice.
#3 Faster processing time
As a standard offering, most Managed OCR firms offer 24-hour turnaround of documents (invoices) submitted to them. This seems to be more than acceptable for most AP Automation implementations. If 24 hours is not fast enough, most firms offer 1-3 hour turnaround at an additional fee. As your company grows and you process more and more documents, without Managed Outsourced OCR, you are looking at hiring additional people, training these people etc. just to keep pace. With Outsourced OCR, the service scales as you grow eliminating the headache of new hires.
#4 Line Level OCR
OCR is not just for AP Invoices anymore. Many companies have expanded their implementation of an AP Automation solution to processing customer purchase orders. When processing customer purchase orders, each line item along with the quantity, unit of measure and price needs to be indexed. With traditional OCR software solutions this means the purchase and implementation of high-end software to be able to read, render, index and process each line item. With Managed Outsourced OCR this is handled for you using double key and verify and fast turnaround regardless of the format of the purchase order. Again, there is no need to purchase additional software, hire and train new employees. For a low cost per document, Managed Outsourced OCR handles this for you.
#5 Cost Savings
Last but certainly not least is the cost savings. In a Managed Outsourced OCR model, customers pay a small fee by the document compared to a perpetual license fee & maintenance or monthly subscription fee for OCR software. Also, Outsourced OCR provides excellent cost savings not only in the day to day operations but eliminates the need to build definitions for new documents. There is also no need to train your employees to verify documents or to create new templates. All of this is included by signing up for Managed Outsourced OCR.
How DocLib Can Help
DocLib Managed Outsourced OCR (MOO) eliminates the need for document verification, user training, testing and setup of the overall implementation of an OCR solution. New DocLib Users can benefit from a reduced project implementation timeline and existing users can quickly upgrade to Outsourced OCR Services without missing a beat with current processing.
To learn more about DocLib’s Managed Outsourced OCR and how it can work within your business, contact DocLib today at 609-702-3900.