The image of a fairly traditional Dutch construction sector is rapidly shifting to a sector that is innovating and digitalizing. Under the pressure of changing regulations regarding nitrogen and sustainability, rising procurement costs that are more and more difficult to pass on, and a shortage of skilled labour, the sector is now developing quickly.

Hi automation supports companies in the construction sector in various ways to rapidly improve their operational and financial performance. In this article, we focus on just one element of that: efficiently navigating through and processing information from the many documents that inevitably come with the activities in this sector.

The sector is inundated with documents

We are talking about tender documents, contracts, drawings, invoices, various personnel-related documents, safety reports, and compliance documents. These are just a few of the many documents this sector has to deal with. Navigating through and processing the crucial content of all these documents quickly, efficiently, and accurately is a significant challenge. The risk of errors is ever-present, especially since people are often involved. The consequences of mistakes can be significant: delays, fines, and margin losses due to failure costs. Although there is a shift towards digital document management, its implementation and maintenance remain an administrative challenge. Intelligent Document Processing (IDP) offers the solution.

What is Intelligent Document Processing (IDP)?

IDP is software that opens your document, regardless of the format (PDF, Word, hard copy, etc.), reads the content, extracts the crucial information, and potentially edits it before processing it into the various systems you use.**
A document is opened and then made accessible using OCR (Optical Character Recognition). The content is read using NLP (Natural Language Processing). Then, ML (Machine Learning) is used to understand the text and recognize the important information. Finally, this information is extracted and transported to the next step. This step can be processing into systems or a series of operations followed by processing into systems.
It does not matter if the provided documents are clearly and consistently organized (structured data) or free text (unstructured data).

The benefits are evident

Improved quality: Data processing by humans inevitably means errors, even if they are just typos. IDP does not make these mistakes.
Speed: Absorbing information, extracting the important details, and further processing takes time. IDP is many times faster than a human, with all the associated benefits for the execution of the tasks that generate the company’s revenue.
Better compliance: Compliance means working precisely according to the rules without errors or free interpretation. IDP always works precisely according to the rules and does not make mistakes, resulting in high compliance or flagging of non-compliance.
Better data analysis: Because data is processed quickly, consistently, and error-free, the basis for data analysis is of high quality, as are the insights that the analysis provides, thereby enhancing the quality of your decision-making.
Reduced employee stress: Not to be overlooked is the reduced pressure on your employees, their increased productivity, and improved job satisfaction. The work that must be done before they can start their actual tasks is taken off their hands. Your people are not only more productive but also enjoy their work more.

Customized Solutions and Seamless Integration

IDP is not a “one size fits all” solution. The Intelligent Document Processing system is fully configured for your specific situation, tailored to the types of documents you deal with and the workflows you use.
IDP integrates seamlessly with the software you currently use, such as your ERP system and project management tools. IDP automatically feeds your systems without the need for them to be adjusted. Implementing IDP ensures data the all-important consistency across various systems and departments.

What makes an implementation successful

The number one determining factor is your people. It’s important that they feel co-ownership of the change and have confidence that they can adapt to it. Four elements are crucial in this regard: (1) Understanding the reason for the change. (2) Being involved from the start. (3) Proper training so your team is proficient in using IDP technologies. (4) Establishing a “community of practice” – an environment where users share experiences and tips and tricks, and stay informed about new features and capabilities through up-to-date training materials.
The second determining factor is continuous support and maintenance. Regular updates and maintenance checks can prevent downtime and ensure the system continues to operate efficiently.
The third factor is, of course, data security. Given the sensitive nature of the documents, implementing robust security measures in your IDP system is paramount. Ensure the system complies with industry standards for data protection, so your data is safeguarded against unauthorized access and breaches.
Finally, continuous monitoring and evaluation of the IDP system’s performance are important to understand its impact on operations. Use metrics such as processing time, error rates, and user satisfaction to gauge effectiveness and identify areas for improvement. Regular assessments will help you optimize the system over time and ensure it continues to meet the evolving needs of your business.

Perhaps you already know enough to further explore the implementation of IDP in your company with us. Maybe you would like to gain some more inspiration through a few application examples. You can find these below.

 

How companies deploy IDP – some examples

 

1. Receiving, Reviewing, and Processing Invoices

Contractors and industrial companies generally work with a (large) number of subcontractors. This results in a continuous stream of work orders, assignments, purchase orders, and invoices.
Challenge:
This stream quickly becomes very large and often does not flow continuously; it proceeds in fits and starts. The effort required to handle this stream correctly quickly overwhelms the administrative department.
Consequences:
The consequences range from annoying (corrections to already made payments) to very troublesome (fines, lawsuits, subcontractors unwilling to work for the client, reputational damage).
Solution:
Intelligent Document Processing (IDP) opens incoming invoices, reads and checks the contents for completeness, and handles the reconciliation. This process is incredibly fast. When everything is complete and correct, IDP can prepare the payment order. When there are discrepancies, IDP will present them to the administration for further action.
Result:
The administration focuses on tasks that require their expertise, payments are accurate and neither late nor early, and there are no fines or lawsuits. The impact on the quality of collaboration and reputation is evident.

2. Management of Change (MOC)

Wherever work is performed, changes are implemented. Prevention is better than cure (managing the consequences of changes), but changes are also not always avoidable. This ranges from a change in scope in its most extensive form to additional or reduced work during execution.
Challenge:
MOC is highly complex and thus very prone to errors. This is because a change impacts multiple areas: from drawings and the bill of materials to the content of a job description.
Consequences:
The consequences range from substantial delays in execution, cost overruns, drawings and technical specifications that no longer match the “as-built” situation, and discrepancies between invoices and purchase orders.
Solution:
Intelligent Document Processing (IDP) supports the fast and accurate recording and processing of changes across the entire workflow.
Result:
No misunderstandings, miscommunications, unnecessary cost overruns, unnecessary delays, or incorrect settlements resulting from implemented changes.

3. Automatic Processing of Bills of Lading and Purchase Orders

Goods are delivered daily to project and task locations, accompanied by necessary paperwork such as bills of lading and purchase orders.
Challenge:
There can be a substantial influx of incoming goods, but also a substantial outgoing flow such as (contaminated) waste and equipment that requires cleaning. Traditional manual methods of receiving registration, matching with orders, and recording and following up on discrepancies can sometimes get bogged down.
Consequences:
Manual processing can lead to delays and incorrect registrations, which can result in unnecessary searches for goods that are recorded as delivered but actually were not, as well as erroneous settlements.
Solution:
Intelligent Document Processing (IDP) automates the data extraction from bills of lading and purchase orders. This ensures that all details are quickly and accurately recorded and integrated into the project’s or task’s workflow.
Result:
It becomes immediately clear whether the ordered goods have been delivered, in what quantities, and what the discrepancies are. Delays in incoming and outgoing goods flows disappear, and financial processing runs smoothly, all without the need for various corrections afterwards.

4. Automatic Processing of Invoices for Rental Equipment

Every activity within the contractor sector involves rental equipment of all types and sizes: cranes, temporary power supplies, hoses, specialized hand tools, scaffolding, lighting, and more. Often, different parties rent equipment, including the client, the main contractor, and subcontractors. Sometimes the client negotiates special contracts with rental equipment suppliers that the (sub)contractors must use and properly account for.
Challenge:
Invoices can arrive through various channels such as on paper, via email, embedded in other invoices, etc. Given the volume of invoices and the variety of conditions, administrative processing can quickly go wrong.
Consequences:
Due to the complexity, errors can easily occur: invoices are booked and paid incorrectly, special conditions are not honoured, discrepancies between rental periods and charges arise, and more.
Solution:
Intelligent Document Processing (IDP) also automates the administrative handling of rental equipment, doing so quickly and accurately. IDP ensures careful verification, prepares payments for what is correct, and flags areas where additional checks are necessary.
Result:
The use of IDP not only increases the productivity of the Administration but also enhances job satisfaction by reducing pressure and allowing time for tasks that require their expertise. Invoices are paid correctly, neither too early nor too late, resulting in good supplier satisfaction and a solid basis for potentially further improving rental conditions.

5. Accelerating Supplier, Partner and Employee Onboarding

The construction sector relies on networks and temporary relationships. Quickly integrating new suppliers, partners, and employees, and possibly later parting ways with them, is therefore crucial.
Challenge:
The initial integration of parties involves a lot of work. A manual approach is time-consuming and prone to errors.
Consequences:
If the initial integration is not done correctly, it will have lasting negative effects on mutual settlements, disruptions, and delays.
Solution:
Intelligent Document Processing (IDP) equipped with Intelligent Character Recognition (ICR) significantly improves the onboarding process for new suppliers, partners, and employees. IDP automates the extraction of essential data from documents such as invoices, contracts, and timesheets, and correctly processes this data into various systems. The technology quickly adapts to different document formats and layouts without manual configurations, ensuring seamless integration.
Result:
Fast and accurate onboarding of parties through error-free extraction and processing of essential data. This forms a foundation for productive collaboration with fewer misunderstandings, miscommunications, incorrect settlements, and delays.

 

Conclusion

The application of Intelligent Document Processing (IDP) not only enables faster, more efficient, and error-free work, but also facilitates a different way of working. IDP is one of the building blocks of a (more) autonomous operating model. The cases above represent only a fraction of what is possible. These applications have a direct impact and are ideal for becoming more familiar with the technology and expanding your imagination regarding its potential. Given the broader economic and societal developments that the sector is in the midst of, further exploration of this technology is considered to be no longer optional.