The Bill of Lading (BOL) is a significant document in the logistics and trade game—it tracks the movement of goods, almost like the travel log of a shipment. The carrier hands it over to the vendor, and it serves as both a receipt and a legal contract that follows the goods along the way. But here’s the thing: dealing with these documents manually can be tedious. It takes time, and, let’s be real, there’s always the chance of error.
That’s where Optical Character Recognition (OCR) comes in. OCR is a kind of secret weapon that pulls key info from BOLs with impressive accuracy. Everything from printed text to scribbled notes. Thanks to technologies like machine learning and natural language processing, this software doesn’t just read words—it gets the context, so it knows what details matter most. OCR can speed up the whole process, making it much easier for businesses to grab the shipment info they need, cut down on mistakes, and save some serious time and money. Let’s discover how OCR is a lifesaver in modern logistics.
What Is BOL?
A bill of lading (BOL) is basically a legal document that the carrier gives to the shipper when they receive goods for shipping. It’s a necessity to confirm that the carrier has accepted the shipment. Not only does it serve as proof of receipt, but it also lays out the terms for how the goods will be transported and can act as a document of ownership.
Types of BOL
There are different types of bills of lading (BOL), each serving its own purpose depending on the situation.
- A Straight BOL is a non-negotiable document, typically used when the consignee has already paid for the goods in advance. This one is for goods that are fully paid for and shipped directly to the consignee.
- An Order BOL, on the other hand, is negotiable. This means it can be transferred to another party if needed.
- Then there’s the Sea Waybill, which is a type of BOL commonly used for international shipments by sea.
- Electronic BOL (or eBOL) is becoming more popular because it can be sent and received electronically, streamlining processes.
- The Air Waybill (AWB) is used for air shipments. It’s a non-negotiable BOL issued when goods are shipped by air. Once the cargo lands at the destination airport, it’s handed over to the consignee or their customs broker.
- A Claused BOL is used when there’s an issue with the shipment, like if it’s damaged or incomplete. It’s also sometimes called a dirty or soiled BOL.
- Finally, a Clean BOL indicates that the shipment arrived in good condition—no issues at all.
What Is the Use of OCR in BOL?
For a long time, processing bills of lading (BL) in logistics has been a manual and time-consuming job. But PackageX makes it all easier. The process works by using OCR technology to scan or take a photo of the bill of lading (BOL), reading the text and numbers on it, and converting that into a digital format. The extracted OCR data is then organized neatly and structured, making it easy for businesses like shipping companies, freight forwarders, logistics providers, and customs departments to use. Here’s how OCR is making a difference:
Going paperless and organizing BOLs
OCR allows carriers to ditch the paper trail by turning physical or scanned bills of lading into digital text. Once the documents are scanned, the bill of lading data can be easily integrated into systems like CRMs, ERPs, or other logistics tools. Digitizing everything makes it much quicker to access shipment details without hunting through piles of paperwork.
Pulling out important details
OCR technology is great at identifying and extracting key information from bills of lading. With OCR, employees can quickly pull up essential data like shipment dates, addresses, and other details without any hassle. The software ensures the data is captured correctly, reducing the chances of mistakes.
Automating repetitive work
OCR systems are also fantastic at automating the boring stuff, like entering data and sorting documents. Instead of manually typing out info from each BOL, using OCR software for data entry can handle hundreds of documents in no time. This helps businesses save both time and money, allowing employees to focus on more important tasks.
Bill of Lading Data Fields OCR Can Extract
Let’s take a look at some data fields that BOL OCR can extract:
- Shipper/Exporter Information:
- Shipper Name
- Shipper Address
- Shipper Phone
- Shipper Fax
- Consignee Information:
- Consignee Name
- Consignee Address
- Bill of Lading Number & Date:
- Bill of Lading Number
- Date of Issue (Shipment Date)
- Freight Charges:
- Freight Charges
- Container Details
- Goods Description:
- Item Description
- Item Price
- Quantity
- Weight
- Measurements
- Shipping Vessel & Voyage Number:
- Ship Name
- Voyage Number
- Marks & Numbers of Packages:
- Package Identifiers
- Package Count
- Port Details:
- Port of Loading
- Port of Receipt
- Item Details:
- Item Description
- Item Price
- Shipping Date
- Commodity Description:
- Description of the goods
- Shipment Details:
- Order Number
- Package Count
- Quantity
- Weight
How to Read a Bill of Lading With OCR
Here's how OCR works to extract data from bills of lading (BOL):
Step 1: Upload the Document
You start by uploading the bill of lading. You can do this directly through the OCR tool’s app, via email, or by integrating with your document management system.
Step 2: OCR Scans the Document
The OCR software automatically scans the BOL. It reads both the printed text and numerical data on the document, including details like shipper/consignee information, shipment dates, and freight charges.
Step 3: Data Extraction and Categorization
Once the document is scanned, the OCR software processes and extracts key information, labeling and categorizing the data accordingly. This includes important fields such as the Bill of Lading number, consignee details, cargo descriptions, and more.
Step 4: Export and Integration
The extracted data is then exported in a structured format, which can easily be integrated into your logistics system or any other business platform, helping you streamline workflows.
Step 5: Customization
If needed, you can work with a team to customize the OCR tool to fit your specific business requirements, ensuring it integrates smoothly with your existing processes and systems.
Benefits of OCR in BOL
Thinking about implementing OCR for your BOL data? Here are a few ways it can transform your business and make the investment totally worth it:
Faster Document Processing
PackageX’s OCR extracts important details like consignee information, shipment descriptions, and transport terms from bills of lading in seconds. OCR automated data entry makes it easier for operations teams to boost workflow efficiency. By reducing manual data entry, shipments can be processed much faster, helping goods move through the supply chain without unnecessary holdups.
Cost Savings
By using OCR for data entry, businesses can save on labor costs and reduce the need for rework. Additionally, digital BOL helps save on physical storage space and materials, further cutting costs.
Improved Compliance
Accurate processing and storage of BOL data are essential for meeting regulatory and compliance requirements. OCR ensures that BOLs are processed correctly and stored for easy access, making it easier to stay compliant with industry standards and legal obligations.
Accelerated Decision-Making
With OCR, businesses gain immediate access to critical BOL information. This makes decision-making faster and more informed, helping teams quickly adjust routes, negotiate with vendors, or address potential issues to avoid delays and keep the supply chain moving.
Streamlined Claims Processing
When it comes to claims, accuracy is everything. OCR ensures that all BOL data is captured accurately and made available quickly, which streamlines claims processing and helps resolve issues faster. This leads to higher customer satisfaction and a stronger business reputation.
Seamless Integration with Existing Systems
OCR systems, like Mindee’s, can be easily integrated into existing logistics, warehouse management, and ERP systems. This allows businesses to automate their BOL processing without disrupting current workflows, ensuring consistent data flow across departments and reducing bottlenecks.
Real-Time Data Access and Tracking
With OCR, businesses gain real-time access to the extracted data from BOLs. This enables better tracking of shipments and inventory management, allowing operations teams to make informed decisions and address issues before they cause delays. The result is improved transparency and smoother operations.
Use Cases of OCR in Shipping
These industries are optimizing their BOL data extraction process with OCR:
- Freight Forwarding and Logistics Companies: OCR helps freight forwarders automate the extraction of shipment details, increasing processing speed and accuracy while reducing manual labor and operational costs.
- Shipping Carriers and Port Authorities: Smart lading OCR streamlines document handling at ports by quickly extracting data from bills of lading, improving efficiency and reducing delays in cargo movement.
- Customs and Regulatory Agencies: OCR accelerates the extraction of compliance-related information, enabling faster cargo clearance and reducing the risk of errors or delays at ports.
- Trade Finance and Insurance Providers: OCR ensures precise data extraction for trade finance and insurance teams, speeding up transaction verification, risk assessments, and claims processing.
What Sets PackageX’s Bill of Lading OCR Software Apart
PackageX's OCR technology, particularly for Bill of Lading processing, offers some special features that make it a powerful tool:
- Speed: The system processes documents incredibly fast—cloud models take just 2-3 seconds, while on-device models work in under 200 milliseconds.
- High Accuracy: With an impressive accuracy rate of over 95%, PackageX ranks among the top 1% of OCR solutions.
- Precision and Recall Balance: The technology is finely tuned to not only extract information accurately (precision) but also capture all essential details (recall), ensuring reliable data extraction.
The system is powered by advanced machine learning models, trained on vast amounts of logistics document data, enabling it to extract and interpret important information with high precision. Simplify your Bill of Lading Processing today.
FAQs
What is data extraction from bill of lading?
Bill of Lading data extraction is the process of pulling key information from a BoL and saving it into a system for further handling. Since the Bill of Lading is a legally important document, it’s crucial to enter all details accurately to avoid any mistakes. There are two main methods for recording this data: manual and automated.
What is OCR in shipping?
OCR, which stands for optical character recognition, is a technology that enables computers to read and pull text from bill-of-lading images. In freight forwarding, OCR is super helpful for automating various tasks related to managing shipments and cargo, making the whole process faster and more efficient.
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