The Hidden Costs of PDFs in the Supply Chain?

PDFs have become an inescapable tool in business; quick and easy to create, universally compatible, easy to store, sent as a simple attachment via email. They are a cheap and efficient way to transmit information across the supply chain. 

Or are they? Is this seemingly innocent and convenient tool perhaps masking a significant underlying problem, contributing to rising overheads, the need for paid APIs, reliance on third-party data entry, and the development of expensive bespoke software solutions?  The core problem lies in the static nature of PDF data. 

A PDF presents information visually, but that data isn’t machine-readable or transferable without API or manual re-keying. Whether that is applying for certificates, booking transportation, or submitting customs clearance entries, the information contained within a PDF needs to be extracted and re-entered into various systems and platforms.

This repetitive data handling creates inefficiencies and risks:

• Increased Costs: Each instance of manual data entry translates directly into labor costs. Businesses either pay for software, dedicate internal staff, or outsource it to third-party providers, incurring additional fees. These costs quickly accumulate, turning the “cheap” PDF into a surprisingly expensive proposition.
• Prone to Errors and Abuse: Human data entry is inherently susceptible to mistakes. A simple typo can lead to significant delays, incorrect orders, or even compliance issues. Furthermore, the manual handling of sensitive information increases the risk of data abuse or misinterpretation.
• Reduced Speed and Transparency: The need for intervention at each juncture slows down the entire supply chain process. Transactions become bogged down by the time it takes to re-key and verify data.
• Dependency on Bespoke Solutions and APIs: To mitigate the re-keying burden, some businesses invest in bespoke software to automate certain aspects or purchase APIs to connect disparate systems. While these offer some relief, they are often reactive solutions to an underlying data problem.

True Digitalisation: A Single Data Point

Solutions to these challenges are starting to emerge from the advances in AI and digitalisation, helped by the passing of the Electronic Trade Documents Act 2023, which granted legal status to certain documents, the same as their current paper equivalent. The vision is that a piece of data can remain digital throughout its journey. 

Imagine a scenario where the seller initiates one single, machine-readable piece of data at the very beginning of the supply chain. Just like the revered PDF, this digital data point could effortlessly travel through all relevant supply chain platforms, but with a crucial difference: it does so automatically.

This paradigm shift offers transformative benefits:

• No More Re-keying Required: Data is entered once and then automatically flows between systems, eliminating the need for manual transcription at any point.
• Enhanced Accuracy: By removing human intervention in data transfer, the risk of input errors is drastically reduced, leading to significantly improved data integrity.
• Accelerated Transactions: Processes that once took hours or days due to manual handling can be completed in minutes, drastically improving the speed of transactions.
• Increased Transparency: Real-time data flow provides unprecedented visibility into the entire supply chain, allowing for better tracking, monitoring, and decision-making.
• Significantly Reduced Costs: By eliminating the need for manual data entry, third-party services, and reactive software development, businesses can achieve substantial cost savings.

Accessing Digital Technology as an SME

SMEs, having navigated a gauntlet of recent disruptions from Covid to Brexit and the new GPSR regulations, are understandably wary of yet another change, especially one that carries the perceived burden of significant implementation costs for digitalization. 

Fortunately, while the UK government’s ambitious Single Trade Window (STW) initiative currently remains “on the shelf” with its development paused, commercial providers are stepping up. They recognise the immense opportunity to offer a cost-effective solution to the UK’s 5.8 million businesses. These emerging platforms leverage the power of a single data input: the original data, once entered, seamlessly populates every necessary export form, from customs declarations and insurance to even facilitating payment. Smart “triggers” then securely transmit information down the supply chain, ensuring only authorised parties access relevant data at the valid moment.

The technological capability for this level of digitalization is not a distant dream. We already have robust, real-time data submission systems in place, such as HMRC’s PAYE and Making Tax Digital. HMRC is already benefiting from the accuracy and efficiency these systems provide, demonstrating that the underlying technology is mature and proven.

The time is now ripe for the UK’s 5.8 million SMEs to embrace this shift. Access to export markets should be easy, professional, and transparent for all. And a truly digital solution unlocks that, with unparalleled efficiency, accuracy, and substantial cost reductions across the entire supply chain.

What proactive steps are you taking to transition from static, inefficient PDFs to dynamic, automated data flows?

Jane Smith – Director Global Commerce Navigators