New International Label Reader from Prime Vision increases efficiency in sorting centres for Cross-border parcels at lower cost
Benefits of the Prime Vision International
• Intelligent OCR system
• Increased automation rate in automatic sorting
• Less manual sorting needed
• More efficient and effective sorting and registration of customs data
• Cost efficient investment with quick ROI
• Usable as stand-alone solution or connected to your existing OCR readers
• Automated collection of CN 22/23 label information saves time in customs declarations
Postal & Parcel Distribution centres face 2 new challenges with Cross-Border Parcel Import and new EU regulations
With the increasing number of parcels sent from China new challenges arise for Postal and Parcel companies. In 2019 more than 60 billion! parcels have their origin from Chinese import. Good for companies like Alibaba, AliExpress, Wish and JD.com. But is it also good for your organization?
A large part of these parcels is shipped to Europe and the US and delivered by 100’s of courier companies. Before delivery in the last mile takes place, a complex process of handling, sorting and customs clearing is needed. To efficiently sort the shipment to its final destination, determine customs duties and taxes, most of the information printed on the labels of the parcel needs to be processed.
Consequences for your organization
1st – Postal and Parcel distribution centres often run into challenges with these parcels. Sorting and delivery are delayed because of poor quality of the address labels on the parcels. Many of the labels are incorrectly formatted, in illogical order and/or miss critical information.
Most installed older OCR readers in distribution centres are unable to correctly recognize and process address and CN 22/23 labels. Automatic sorting of these parcels therefore fails frequently. As a result more manual sorting effort is needed in the distribution centres. This leads to increased cost of sorting and possible delays in delivery due to necessary manual handling of the parcel. That may even lead to possible reputation damage for your organization and claims from customers.
2nd – With the new EU regulation as of Jan 1st, 2021 all cross-border parcels independent of the value need to be declared to customs. That means information from all CN 22/23 labels on cross-border parcels require registration, not just parcels with the current threshold value of € 22.
Manual registration of this information will certainly have a huge impact on your organisation and increase work load.
Negative effects for your organization:
• Delay in delivery of cross-border parcels to end destination
• Higher cost for sorting due to increased human effort
• Lower profit margins
• Risk of staff shortage
• Claims from customers
• Company reputation damage
The International Label Reader solves these two challenges
Prime Vision recognized and addressed this challenge for the Postal and Parcel industry. They recently developed the new International Label Reader. Before delivery to the client, the International Label Reader solution is fed with thousands of previously unfathomable addresses of individual countries on the neural network, the solution was able to learn the formats, regularity and connections within the address formats. Thus lowering the failure rate in scanning the labels and sorting the parcels. Parcels can now be sorted faster and more accurate at lower cost. During the scanning process of the address labels, the information from the CN 22/23 label is also collected and stored to use for declaring the parcels with customs.
Prime Vision received the Parcel and Postal Technology International Award 2019 in category Sorting and Fulfilment technology for their International Label Reader solution.
The International Label Reader improves the efficiency in the sorting phase of the delivery process and saves much time and effort in customs declarations by collecting and registering the information on the CN 22/23 labels. Cutting cost of manual labour and speeding up delivery of cross-border parcels to their end destination.
The challenges of
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Technology is advancing at such a rate that we can’t predict where we will be in a decade. For now, our industry’s vision is based on artificial intelligence. While the speculation of what’s possible is endless, developers have to translate all this potential, invention and innovation into realistic solutions. While it’s great to let the imagination fly, we have to balance indulgence against purpose and benefit.
Michiel de Rijcke has led the research and development department of Prime Vision since 2001. With a solid background in computer vision and a PhD and cum laude graduation in mathematics, Michiel’s ingenuity brings applied research to innovation.