Revolutionizing Document Processing with AI: Streamlining the Certificate of Origin Process

The Certificate of Origin, or CoO, is one of the important documents utilized in international trade in the present world economic order. This document is critical not only in establishing the origin of products but also for companies that require looking up several guidelines regarding international commerce to ensure no regulations are breached and that there are no unnecessary holdups. At the same time, however, there are issues associated with the acquisition and the administration of Certificates of Origin including paperwork, delays in sign-offs, and lack of tracking of documents. As organizations look for ways to improve their results to remain relevant in an intense industry, addressing these issues is of utmost importance. This paper takes a step further into understanding the nuances of the CoO process. It describes how our approach, developed with insights from our GTS expert Robert Wieczorek and AI specialist Felix Aller , would optimize the document movement to create a better and compliant trade experience.

What is the Certificate of Origin???

A Certificate of Origin (CoO) is an important document in international trade since it serves as a declaration that confirms the place of origin of a product. This document is frequently required by importing countries' customs agencies to establish tariff treatment and ensure compliance with trade agreements. CoOs are classified into two types: preferential and non-preferential certificates, with each serving a different function based on trade legislation and agreements between countries. Preferred CoOs, for example, may give reduced tariffs or other benefits under specific trade agreements, whereas non-preferred certificates only certify the product's origin without providing preferential treatment. Understanding the subtleties of these certifications is vital for organizations engaged in international commerce. Inaccuracies or delays in getting a CoO can lead to hefty penalties and disruptions in the supply chain.?

Challenges in the CO process

Managing the Certificate of Origin (CoO) process poses several issues that might restrict the effectiveness of international commerce operations. One key challenge is the large human task necessary to manage the documentation, frequently resulting in errors and inconsistencies that impede compliance efforts. The demand for detailed documentation can overwhelm teams, diverting attention away from key efforts. Furthermore, the approval process for CoOs can be time-consuming, causing delays that affect shipment timetables and customer satisfaction. Many organizations also face a lack of visibility into the status of their CoO documents, making it difficult to follow development and fix concerns on time. Furthermore, existing systems frequently lack capabilities that enable better integration of suppliers into the CoO process, resulting in fragmented communication and inefficiencies. As regulations and trade agreements evolve, maintaining compliance becomes more difficult, raising the possibility of penalties for noncompliance. These problems highlight the critical need for improved processes and solutions to enable a seamless and efficient CoO workflow.

Technical Approach

Traditional document extraction methods, including those from major hyperscalers and SAP Business Technology Platform (BTP) own services, are effective for simple, structured formats. However, they struggle with real-world documents that feature complex layouts and inconsistent data. These methods often fail to understand the semantic content and relationships within the documents, making them unreliable for more intricate tasks. They work well for structured formats but fail with complex layouts, inconsistent data, and various formats within one document. They struggle with semantic content and can't reliably handle unpredictable layouts. Retraining a model for every document type and layout is not feasible.?

cbs's solution, enabled through generative AI models, tackles these shortfalls. The approach uses generative AI to create a digital twin of a PDF document in text using traditional OCR (object character recognition). This involves a unique and optimized markdown format, reducing overhead by 94% in token size compared to traditional JSON exports. Metadata such as page number, content type, and localization are extracted. Large language models interpret this OCR content, uncovering and mapping relationships to a target schema. Prompts to several large language models like GPT or Mistral resolve complex relationships, independent of the overall document layout.?

In practice, this technology is demonstrated through a dashboard where documents can be entered at scale. Multiple LLM agents interpret the document, with Mistral supervising the results and providing a feasibility score. For example, LTSD documents dealing with products of origin and preferential trade agreements are read by agents, extracting and categorizing information seamlessly. This works for tables and unstructured long text data formats. The extracted information is integrated with cbs's GTS backend for further processing.?

The overall architecture involves a CAP application within SAP BTP, storing files in an object store, tracking processing logic in HANA Cloud, and connecting to SAP AI Core. Custom OCR containers are hosted, leveraging various large language models for different tasks, ensuring cost efficiency. Vector embeddings are used for in-memory content similarity search, and the system connects to the GTS backend for supplier and material data integration.?

This technical approach ensures that cbs's solution is both scalable and cost-efficient, providing a robust framework for handling complex document processing tasks.

Why Our Approach is Revolutionizing

Conventional techniques often struggle with complex layouts, inconsistent data, and various formats within a single document. They typically fail to understand the semantic content and relationships within documents. In contrast, our solution can read and extract relevant information from any human-readable document, regardless of its format. This ensures high accuracy and efficiency, eliminating the need for manual data entry and significantly reducing errors.?

While our approach is particularly effective for the Certificate of Origin (CoO) process, it is not limited to this use case. Our AI-driven approach can be applied to any process requiring manual data extraction from documents. This versatility allows businesses to streamline document-intensive workflows, reduce operating expenses, and improve overall efficiency.?

Moreover, our solution fits seamlessly into existing system landscapes. It can be integrated with any backend system, whether SAP ECC, S/4HANA, or non-SAP systems, regardless of deployment options.?

cbs solution approach in a nutshell

Our innovative solution addresses the challenges of the Certificate of Origin (CoO) process, enhancing document management and operational efficiency. The key features of our solution include:?

1. Automation of CoO Management: Our solution automates the creation, tracking, and approval of CoO documents, significantly reducing manual workload and minimizing errors that can arise from handling large volumes of paperwork.?
2. AI-Driven Data Extraction: We’ve integrated advanced AI technology that can read any format of long-term supplier declarations, automatically extracting all relevant information from documents provided by suppliers. This feature not only increases accuracy but also accelerates the process of capturing vital data.?
3. Supplier Integration: A critical component of our solution is the ability to better integrate suppliers directly into the CoO process. We offer a dedicated platform that suppliers can use themselves, allowing businesses to shift part of the document management workload directly to their suppliers. By enabling suppliers to submit and manage their own declarations, companies can significantly reduce internal administrative burdens.?
4. Real-Time Tracking and Visibility: Our platform provides real-time tracking of CoO statuses, offering full visibility into the document flow. This allows for proactive management and rapid resolution of any issues that may arise during the CoO process.?
5. Compliance and Efficiency: Designed to ensure compliance with ever-evolving international trade regulations, our user-friendly interface helps businesses not only stay compliant but also optimize their CoO workflows to enhance overall trade efficiency.?

Businesses can use our technology to streamline their CoO process, lower operating expenses, and improve collaboration with suppliers, resulting in more effective and compliant international trade operations. For more details, check out our cbs AID solution.

Benefits of using our solution approach? ?

Implementing our solution for the Certificate of Origin (CoO) process provides several key benefits:?

1. Increased Efficiency: By automating document creation and approval, our solution significantly reduces processing times, enabling faster turnaround and minimizing bottlenecks in the workflow.?
2. Enhanced Accuracy: The AI-driven data extraction feature captures vital information from supplier declarations accurately, eliminating the need for manual data entry and reducing the risk of errors that can lead to compliance issues.?
3. Improved Collaboration: Our platform allows suppliers to engage directly in the CoO process, shifting part of the workload from internal teams to suppliers. This fosters better collaboration and communication, streamlining the overall process.?
4. Greater Visibility: With real-time tracking capabilities, businesses gain comprehensive visibility into their document flow, allowing for proactive management and quick resolution of any potential issues that may arise.?
5. Cost Savings: By reducing manual labor and enhancing operational efficiency, our solution contributes to significant cost savings, allowing companies to allocate resources more effectively.?
6. Enhanced Compliance: Our solution ensures adherence to evolving international trade regulations, reducing the risk of penalties and fostering trust with regulatory authorities.?

Businesses can enhance their CoO process, boost customer satisfaction, and adapt more quickly to the ever-changing international trade environment by utilizing these advantages.

Summary?

cbs's generative AI solution revolutionizes the processing of complex documents, offering significant time and cost savings while ensuring high accuracy and stability. This innovative approach not only addresses current challenges but also sets the stage for future advancements in document processing technology. The Certificate of Origin (CoO) process, a critical element of international trade, presents numerous challenges that can hinder efficiency and compliance. By adopting cbs's solution, businesses can streamline their CoO workflows, significantly reduce manual workloads, and enhance collaboration with suppliers. The integration of AI-driven data extraction and real-time tracking improves accuracy and visibility, empowering organizations to stay compliant with ever-evolving trade regulations. Ultimately, cbs's solution positions companies to optimize their international operations, reduce costs, and achieve greater success in the global marketplace. We invite you to explore how our offering can transform your CoO process and enhance your overall trade efficiency.