Enterprise resource planning (ERP) is a system that is employed by organizations to control the crucial aspects of their business which include human resources, finance, production, supply chain, and other services by combining all the processes into a single system. The OCR (Optical Character Recognition) is a system that is used to differentiate between printed or handwritten text from pictures or documents and change them into encoded text.
The process involves examining the text of a document and translating the characters into code that can be used in data processing. When OCR is Integrated into the ERP it helps to reduce the tedious nature of work. It automates the whole process by scanning documents, selecting relevant information, and transferring it to the ERP hence removing the manual components and reducing the amount of time it takes to process documents.
Benefits of OCR Integration ERP
OCR integration in ERP helps to improve the workflow of businesses. Some of the ways it does this are listed below.
Reduced Operations Cost
Because of the high efficiency and accuracy of the OCR, the cost of operations is greatly reduced. The wastage that comes from errors made by humans is removed from the equation and also the money spent to pay labor is eliminated. It also assists in reducing the space used for storage of the documents on papers thereby helping to manage resources efficiently.
The percentage for errors is greatly reduced because the manual process and human nature are nonexistent. After all, mistakes that could occur from tiredness which reduces efficiency are minimized thereby increasing the level of accuracy.
Production is increased because of the processing power and capacity of the ORC system. Because of this automation, the process is seamless, fast, and accurate, ultimately increasing work productivity.
Since all information obtained by the OCR is stored in the ERP in a centralized location it makes accessing information easy. All information is indexed and ready for authorized users.
In summary, OCR is essential for ERP as it helps in improving the workflow of any business by reducing cost while increasing efficiency and accuracy through its automated process.