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AI Agents simplify delivery note processing in regulated manufacturing

Context

Managing a global food and beverage production operation with 10,000 employees and extensive distribution networks demands streamlined processes. In a regulated industry, efficiently handling countless purchase orders while ensuring compliance is essential for maintaining quality, safety, and production readiness.

Challenge

Operating on a global scale with over 10,000 employees and a vast distribution network, our client - a leader in food production - faced significant challenges in managing delivery notes for thousands of transactions.

Their manual processes for handling batch numbers, production dates, and expiration dates often led to errors and inefficiencies. These inconsistencies generated huge losses, like throwing away entire batches due to expired materials used in production, just because the MRP lacked real-time data. Even worse, these data gaps sometimes resulted in product recalls, putting the company in a difficult position with retailers and exposing end-customers to serious health risks.

Discrepancies between delivery notes, purchase orders, order confirmations and open orders required extensive manual reconciliation, adding to the workload and increasing the likelihood of errors. Addressing these inefficiencies was essential to maintaining their operational standards and ensuring product safety.

Solutions

Nordoon deployed an AI-driven solution that automated the processing of delivery notes, analyzing them against order confirmations and purchase orders, and integrating crucial data such as batch numbers and expiration dates for products and raw materials into the client’s ERP. The ultimate goal was to enable the client’s MRP and APS systems to rely on accurate, actionable data related to raw material procurement, production scheduling and constraints, as well as inventory control.

Agent communication

The AI Agents responsible for managing order confirmations and delivery notes communicated to create a context-aware process flow. This ensured delivery notes were validated against confirmed orders, flagging and resolving discrepancies at an early stage.

 

Automatic reconciliation of variations

The AI Agents automatically compared delivery notes against the purchase orders, order confirmations, open orders, and other changes that occurred prior to the delivery of raw materials. With the help of Large Language Models (LLMs), which retrieve contextual data, the Agents reconciled any differences automatically and updated the delivery notes with the latest insights without requiring manual intervention.

End-to-end automation

Critical data such as batch numbers, production dates, and expiration dates were verified and processed automatically. This ensured accurate, up-to-date information was available before materials entered production, reducing delays and improving readiness.

Results

Improved production, reduced scrap

Accurate integration of batch and expiration data allowed MRP and APS systems to account for expiration constraints, reducing scrap and ensuring materials were ready for production.

Enhanced safety & compliance

Precise management of expiration data minimized the risk of using expired materials, avoiding recalls, reputational harm, and legal liabilities.

Reduced manual intervention

Real-time validation and reconciliation automated workflows cut down on manual workload and enabled faster, more reliable production readiness.

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