Automated Invoice Processing API for a Distribution Company

Project Overview

  • We helped a distribution company automate their manual invoice entry process by developing and integrating a custom AI-based automation workflow into their existing software. Their team previously spent countless hours reading supplier invoices and manually entering data into a web-based platform to manage their operations. With our solution, all they need to do now is upload the invoices, our solution does the rest.

Problem Statement

  • The company receives hundreds of invoices daily from multiple suppliers, each with different formats and layouts. This created a heavy workload for staff who had to manually extract and enter the required data into their internal system.
  • Key pain points included:
  • Time-consuming manual data entry from invoice documents
  • High risk of human error, especially with large volumes
  • Resource-intensive process that slowed down operations
  • Lack of standardization in invoice formats across suppliers

Solution

  • We built a custom API powered by state-of-the-art OCR models and fine-tuned LLMs, which was seamlessly integrated into their existing web application.
  • Core Features:
  • Users simply upload invoices into the existing platform
  • The AI workflow automatically extracts key data points such as:
  • – Product number
  • – Product name and description
  • - Quantity, unit, and pricing details
  • Standardizes and maps data regardless of invoice format
  • Automatically pushes structured data into their software’s database
  • Fast, accurate, and scalable for high-volume invoice handling

Process / Approach

  • N/A

Technical Workflow

  • Invoice Upload: Users upload supplier invoices (PDF or image) via the existing web application
  • AI-Powered Extraction: A custom workflow combines advanced OCR with large language models to accurately extract and interpret invoice data
  • Data Mapping & Structuring: Extracted fields are cleaned, validated, and mapped into predefined database fields
  • Seamless Integration: The structured data is automatically pushed into the company’s internal system via our integrated API

Challenges Faced

  • Dealing with inconsistent invoice layouts from different suppliers
  • Ensuring reliable extraction for edge cases and unusual formatting
  • Achieving high accuracy across various product categories and units
  • Integrating with the company’s existing system without disrupting workflows

Impact

  • Saved hundreds of hours in manual data entry per month

  • Increased accuracy and reduced human errors in invoice processing

  • Improved operational efficiency and faster turnaround on distribution tasks

  • Scalable solution that supports growing volumes without added resources

  • Seamlessly enhanced an existing system without requiring a full rebuild
Tags
  • Document Automation
  • DevOps/MLOps & Cloud Engineering
Industry
  • Wholesale Distribution
  • Retail
  • Supply Chain

Table of Contents

  • Project Overview
  • Problem Statement
  • Solution Approach
  • Technical Workflow
  • Challenges Faced
  • Impact