Why are IDP solutions valuable for the logistics industry?

In the document-heavy logistics industry, IDP solutions are invaluable because they ensure data moves as fast as the physical cargo. The fast digitization of documents supports real-time visibility and accuracy to improve supply chain management and efficiency.

What are the documents that are processed with IDP in the logistics industry?

In the logistics industry, IDP solutions process a wide range of shipping, commercial, and regulatory documents, including Commercial Invoices, Packing Lists, and Bills of Lading (MBLs). They are also used to automate data extraction from Customs Declarations, Arrival Notices, and Delivery Orders.

What are the benefits of using IDP in the logistics industry?

Automating document processing with an IDP solution saves time and money by getting rid of manual data entry and reducing human errors. The increased efficiency can accelerate certain steps along the supply chain (e.g. cargo clearance or customs compliance), ensuring faster turnaround times. Most importantly, it frees your team to focus on high-value tasks and deliver the service quality your customers expect.

What are the types of logistics companies that use IDP?

IDP solutions are primarily used by freight forwarders, customs brokers, and TMS (Transport Management System) providers to handle high volumes of complex paperwork. They are also essential for 3PL/4PL providers and ocean or air carriers who need to digitize shipping instructions and manifest data instantly. By automating these workflows, these companies can scale their operations without significantly increasing their administrative headcount.

AI for logistics

Faster logistics document processing with IDP

Leverage Intelligent Document Processing (IDP) to free up your teams and improve efficiency

1

IDP: The essentials

Understand what IDP stands for, how the technology functions, who it serves, and how pricing works.

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2

A history of IDP

Trace the evolution of document processing from early OCR digitization to the modern era of AI.

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3

How IDP solutions work

Explore the five-step journey from document ingestion & classification to data extraction & validation.

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4

IDP in logistics

Learn why specialized automation is critical, covering key use cases, document types, and benefits.

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5

Logistics IDP: LumoDoc

Discover the power of LumoDoc, see the platform in action, and explore leading accuracy rates.

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6

ROI & savings calculator

Quantify the impact of automation by calculating your potential time and cost savings.

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1 – IDP: The essentials

Answers to some of the most common questions on IDP technology and solutions.

2 – A quick history on Intelligent Document Processing

1980s-1990s: Dawn of digitization

Commercial OCR technology moves from specialized hardware to mainstream software, enabling machines to read printed text and convert it into digital files.

While the dream of the paperless office begins, most industries still rely heavily on analog workflows and manual data entry to bridge the gap between paper and screen.

2000s-2010s: Rule-based automation

Digitization becomes the corporate norm. Companies adopt rule-based systems and fuzzy logic to enhance OCR, moving beyond simple reading to basic data extraction.

While more efficient, these tools are often template-heavy, requiring rigid document layouts and significant human oversight to handle any variations or errors.

Today: Era of cognitive understanding

The rise of LLMs and generative AI has transformed IDP from simple extraction to understanding context. AI-native tools like LumoDoc now lead the way in specialized sectors like logistics, using machine learning to process complex, unstructured documents with high accuracy and minimal human intervention, regardless of the document’s format.

3 – How IDP solutions work

The input phase

IDP tools do not only process files, they can also collect them across different sources.

Documents can arrive in real-time or via batch uploads. Depending on the tools you use, the accepted sources and document formats can differ.

Examples of document sources:
Emails, folders, APIs, scanners, and mobile uploads
Examples of document formats:
PDFs, JPEGs, TIFFs, and even handwritten notes

Identifying the document type

Before extracting data, the AI needs to understand what it is looking at.

An AI-powered sorting algorithm, often using machine learning technology, distinguishes between document types – for example separating a Packing List from a Bill of Lading.

In case multiple documents, the tool can also take care of document splitting. It identifies page breaks to separate them into distinct files.

Turning pixels into data

This is the core of IDP. The solution transforms unstructured content into high-quality, structured data using a stack of advanced technologies:

OCR & ICR: Transforms printed and hand-written text into digital characters
NLP (Natural Language Processing): Provides the context so the tool understands the relationship between words
Key-Value Mapping: Pulls specific data points like names, dates, amounts, and complex line items

The quality safety net

To ensure 100% data integrity, IDP solutions employ a multi-layered verification process:

Automated logic:
Cross-referencing extracted data against an existing database (e.g., matching an invoice to a specific Purchase Order) improves accuracy
Human-in-the-Loop (HITL):
Results with lower confidence scores are flagged for human review, providing an additional check

Closing the loop

This final step makes the data actionable and delivers it where you need it.

Downstream delivery:
Pushing structured data into ERP, CRM, or RPA workflows.
Format transformation:
Converting the data into formats like JSON, XML, or CSV for easy upload into other systems

4 – IDP solutions in the logistics industry

Automating document processing with an IDP solution saves time and money by getting rid of manual data entry and reducing human errors. The increased efficiency can accelerate certain steps along the supply chain (e.g. cargo clearance or customs compliance), ensuring faster turnaround times. Most importantly, it frees your team to focus on high-value tasks and deliver the service quality your customers expect.
IDP solutions are primarily used by freight forwarders, customs brokers, and TMS (Transport Management System) providers to handle high volumes of complex paperwork. They are also essential for 3PL/4PL providers and ocean or air carriers who need to digitize shipping instructions and manifest data instantly. By automating these workflows, these companies can scale their operations without significantly increasing their administrative headcount.

5 – Logistics IDP: Meet LumoDoc

The AI-native document processor by FortoLabs. Built for logistics and trained on millions of industry-specific data points to make you save time and money.

Request a demo →

AI-native and from the logistics industry

Built from the ground up with the latest LLMs and trained on vast logistics datasets for accuracy that generic IDPs can't match.
Seamless UI and HITL workflow

An intuitive interface designed for humans. Our Human-in-the-Loop process eliminates friction, making verification fast and foolproof.
Technology that adapts to your needs

We know no two supply chains are the same. LumoDoc adapts to your specific document types and internal workflows.

document types

from the logistics space

0 %

data accuracy

across all document types

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potential efficiency gain

depending on your use case

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See LumoDoc in action

Automate your document workflow. Discover how LumoDoc processes complex logistics paperwork in seconds with industry-leading accuracy.

Free your team from manual entry and let them focus on what moves your business forward.

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6 – Calculate your potential time and cost savings

See the impact of AI-native automation on your bottom line. Input your current workflow details to discover how much time and budget your team could reclaim with LumoDoc.

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Faster logistics document processing with IDP

Table of Contents

IDP: The essentials

A history of IDP

How IDP solutions work

IDP in logistics

Logistics IDP: LumoDoc

ROI & savings calculator