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How a Pharma Group Reduced Purchase Order Processing Time from 2 Hours to 5 Minutes with AI-Powered Entry

How a Pharma Group Reduced Purchase Order Processing Time from 2 Hours to 5 Minutes with AI-Powered Entry

Project Background

East China Pharmaceutical Group, a leading domestic pharmaceutical manufacturer, manages annual procurement exceeding RMB 5 billion, generating a massive volume of daily purchase documents. All procurement data relied on manual recognition from PDFs/images and manual entry into the SAP ERP system, followed by approval workflows initiated via DingTalk. The lack of data integration between the two systems led to duplicate data entry, information delays, and approval bottlenecks.

Core Pain Points

  • Low Manual Entry Efficiency: Each purchase order required 2 hours of manual entry; even with 8 procurement clerks, processing could not keep up.
  • High Data Error Rate: Manual entry errors reached 8%, causing frequent returns, reconciliation disputes, and financial discrepancies.
  • System Data Silos: No integration between SAP ERP and DingTalk approval systems forced duplicate entry into both platforms.
  • Slow Approval Turnaround: Average time from entry to approval completion was 3 business days, impairing supply chain responsiveness.
  • Solution

    AI Intelligent Recognition and Automatic Entry

    Deployed an OCR+LLM dual-engine purchase order recognition system supporting intelligent parsing of multiple formats including PDFs, images, and scanned copies. The system automatically extracts key fields such as supplier information, material codes, quantities, and prices, and auto-fills them according to SAP field mapping rules.

    ERP-DingTalk Data Integration

    Developed a standard API integration middleware between SAP ERP and DingTalk to enable bidirectional procurement data synchronization. Once data enters ERP, an approval workflow is automatically triggered in DingTalk; approval results are written back to ERP in real time, eliminating duplicate entries.

    Intelligent Anomaly Alerts

    Built a procurement anomaly detection model based on historical data to automatically identify and alert on risks such as price deviations, quantity abnormalities, and duplicate orders.

    Results Data

    MetricBeforeAfterImprovement
    PO Entry Time2 hrs/PO5 mins/PO↓96%
    Entry Error Rate8%0.5%↓94%
    Procurement Team Size8 persons3 persons↓63%
    Approval Completion Time3 business days0.5 business days↓83%

    > Quantitative Summary: PO entry time reduced by 96% to 5 minutes per order, error rate lowered by 94% to 0.5%, procurement team downsized from 8 to 3 people, and approval completion time shortened by 83% to 0.5 business days.

    Technology Stack

    SAP ERP, DingTalk Open Platform, OCR Engine, Qwen Large Language Model, Node.js Middleware, PostgreSQL

    FAQ

    How is the OCR+LLM dual engine better than pure OCR?

    Pure OCR achieves about 80%-85% recognition accuracy for complex formats (handwriting, stamp overlays, non-standard templates). With LLM, semantic understanding fills in missed or misrecognized fields, boosting overall recognition accuracy to over 99%. In this case, the error rate dropped from 8% (manual) to 0.5% (AI entry).

    Does the AI intelligent entry support multiple purchase order formats?

    Yes. The OCR+LLM dual engine supports PDFs, images, scans, faxes, and more, without requiring predefined templates. The LLM automatically understands the structure of purchase orders from different suppliers, extracts key fields, and maps them to standard SAP fields.

    How much manual intervention is needed post-deployment?

    Only 3 procurement clerks (down from 8) handle exception documents where AI confidence is low, accounting for about 5% of total documents. 95% of purchase orders now flow through fully automated entry → approval → archiving without any manual intervention.

    AI-powered entry has completely freed up the procurement team. Previously 8 people were overwhelmed; now 3 handle it with ease.