How Logistics Companies Can Reduce Manual Errors with Container OCR

Introduction

Precision is considered paramount in the logistics sector. But the irony is– errors in container management, data entry and inventory tracking still post significant challenges to the industry. A study has shown that 30% of data loss track back to human errors in data entry. Such errors cause costly delays in handling containers and misplacement of shipments, leading to irritated customers. As per an estimate, these errors can cost millions to businesses annually.

The logistics industry has long been demanding efficiency and accuracy. It led to the introduction of an established technology in the industry – Optical Character Recognition (OCR). Termed as Container OCR for the sector, the technology is reshaping the core of logistics.

Container OCR solutions can reduce manual errors by up to 52% by automating the data capture and processing. It not only enhances data accuracy, but it also enables real-time tracking capabilities for streamlining operations and cost savings up to 70%.

In this blog, we’ll explore how logistics giants are utilizing OCR for logistics to transform their processes and enhance their services.

Challenges of Manual Data Entry in Logistics

Logistics companies face a number of challenges stemming from manual data entry. Three of the most prevalent issues that impact the operations are:

• Misreading container numbers
  Inaccurate interpretation of container IDs can lead to incorrect shipments, which in turn causes products to be sent to the wrong locations.
• Delays in processing shipments
  Manual data entry slows down operations. More so during peak times, when it can cause backlogs and increased waiting times for shipments.
• Peak operational periods errors
  Error rates can get even higher during busy periods due to the rush. It compounds the existing issues and causes even more disruptions.

These errors don’t create only logistical challenges, but also bring financial repercussions, damage to the company’s reputation and unhappy customers with them.

What is Container OCR Technology?

Container OCR solutions enable logistics companies to automate the process of reading and interpreting container numbers, labels and vehicle details. Using cameras and sophisticated software for data entry, you can reduce manual errors with OCR.

Key Features

• Real-time data capture
  It lets the logistics companies track shipments and manage the inventory in real time.
• Integration with logistics software
  There are APIs that facilitate the integration of Container OCR with management software for streamlined operations.
• AI-powered recognition
  The power of AI helps Container OCR adapt and improve its recognition capabilities with time, for improved accuracy.

As Container OCR is gaining traction globally, it’s playing an invaluable role in automating operations and improving efficiency in logistics management. Let’s see some examples.

How Companies Can Utilize OCR for Logistics

Most logistics companies face challenges due to manual entry. By adopting container OCR solutions at their key entry points in ports and warehouse, they can reduce manual errors. Meaning, shipments that previously took hours to process could now move through the entry points in a matter of minutes. This remarkably enhances the operations efficiency and customer satisfaction.

This technology would change the process of how containers are processed upon arrival. With the use of high-resolutions cameras, the containers would be scanned, and details would be extracted. This will lead to faster turnaround times and increased throughput. The elimination of manual intervention and increased accuracy would lead to better inventory management and service delivery.

Key Benefits of Container OCR for Logistics Giants

Container OCR technology comes with several advantages for logistics companies.

• Reduced manual errors
  Like discussed, Container OCR effectively removes the risk of human-led errors in container identification and processing.
• Improved efficiency
  With automation in place, it becomes easy to process large volumes of information, reduce waiting time and streamline workflows.
• Cost savings
  Reduced errors, minimized shipment delays and faster processing directly lead to saving costs and improve their bottom line.
• Enhanced accuracy
  With Container OCR, you get real-time updates on inventory management for informed decision-making and better resource allocation.

OCR Integration with Existing Systems

Integrating Container OCR into the existing systems is definitely a game-changer. Let’s take a look at how integrating it into Terminal Operating Systems (TOS) and Warehouse Management Systems (WMS) can bring about a transformation.

Integration with TOS and WMS

Container OCR technology comes with several advantages for logistics companies.

• Streamlined data entry
  By automating the data entry process for critical shipping documents, companies save a lot of time and eliminate errors.
• Inter-department communication
  Different departments are able to operate cohesively with instantly available crucial information.
• Enhanced document management
  Digitizing documents leads to simpler document management practices with reduced clutter and improved workflows.

The Role of APIs

Integration of Container tracking OCR with the existing management systems is done through APIs. They facilitate smooth movement of data from OCR systems to the existing logistics platform. The automated movement of data enhances accuracy and efficiency. The data is uploaded in real-time and contributes to fast responses to supply chain disruptions. Additionally, APIs let you tailor the integration to support the operational needs and scalability.

Conclusion

Implementing Container OCR has proven to be transformative for many logistics companies. The automation introduced by Container tracking OCR reduces errors, enhances accuracy, streamlines operations and boosts efficiency. There have been companies who have seen more than 50% reduction in manual errors with OCR.

WebOccult provides Container OCR solutions tailored to businesses of different sizes and varied needs. Get in touch to experience firsthand how Container OCR can transform data management.