Success Stories Manufacturing

AI-Powered Contract & PO Automation for Manufacturing

A 150-employee industrial parts manufacturer was drowning in paperwork. Their procurement team spent 60% of their time manually processing contracts and purchase orders, leading to delays, errors, and missed early-payment discounts. We automated their document workflow with AI, freeing their team to focus on vendor relationships instead of data entry.

Client
Regional Industrial Parts Manufacturer
Industry
Manufacturing
Duration
3 months
Year
2025
82%

Faster Processing

1.8%

Error Rate (was 12%)

$95K

Captured Discounts

20 hrs/wk

Time Saved

01

The Challenge

Mid-sized manufacturers often run lean operations where the same people handle purchasing, vendor management, and contract administration. This client's manual process for reviewing contracts and creating POs took 3-4 days per order cycle and resulted in a 12% error rate that caused production delays and strained supplier relationships.

02

The Solution

We deployed an AI-powered document processing system that extracts key terms from contracts, auto-generates purchase orders, validates pricing against agreements, and flags exceptions for human review. The system integrates with their existing ERP and reduces the order cycle from days to hours.

What we set out to achieve
Reduce PO processing time by 75%
Cut data entry errors to under 2%
Capture early-payment discounts currently being missed
Integrate with existing ERP without disruption
Our approach

How We Did It

Step 01 Starting point

Document Intelligence

Trained AI models to extract key terms, pricing, and conditions from their varied contract formats — including handwritten notes and legacy documents.

Step 02

ERP Integration

Built seamless connectors to their existing ERP system, automatically populating POs and validating against master data without manual re-entry.

Step 03

Exception Handling

Created smart routing for edge cases, ensuring humans review what matters while routine orders flow through automatically.

"We went from drowning in paperwork to having a system that tells us exactly what needs attention. The ROI was obvious within the first month."
— VP of Operations
Insights

What We Learned

Messy Data Is Normal

Real manufacturing documents are messy — handwritten changes, faxed copies, inconsistent formats. Our AI was trained on their actual documents, not clean samples.

Trust Through Transparency

Showing the procurement team exactly why the AI made each decision built confidence. They went from skeptical to enthusiastic within the first month.

Technology

Built With

Cloud Platform
Microsoft AzureAzure Logic AppsAzure Blob Storage
AI & Document Processing
Azure AI Document IntelligenceAzure OpenAICustom NLP Models
Integration
SAP ConnectorREST APIsAzure Service Bus

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