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Descartes Systems GroupProof of Value

Cutting Contract Processing from Hours to Minutes

Manual transcription of carrier buy contracts replaced with an AI extraction pipeline on Azure Document Intelligence and Azure OpenAI. Processing that took hours now completes in minutes, with an estimated 80% reduction in manual effort demonstrated in the proof of value.

80%reduction in manual contract-processing effort, demonstrated in the proof of value

The Challenge

Descartes Systems Group is a logistics and supply chain technology leader headquartered in Waterloo, Canada, with more than 1,800 employees and a history dating to 1981. Its Global Price Management (GPM) system runs on rate data extracted from buy contracts issued by Vessel Operating Common Carriers. Every one of those contracts had to pass through human hands before the pricing engine could use it.

  • Buy contracts arrived in highly varied formats: inconsistent tables, nested rows, scattered footnotes, and free-text sections, with no two carriers structuring them the same way

  • Each contract was transcribed by hand into standardized templates for the GPM system, a task measured in hours per contract

  • Manual transcription carried a high risk of misinterpreting the rate data that feeds pricing decisions

  • Ingestion delays slowed the pricing operations that depend on current contract data

  • Labour-intensive handling made contract volume a direct driver of cost, so growth meant more transcription, not more throughput

Approach

  • Built a modular extraction and template generation pipeline on Azure Document Intelligence and Azure OpenAI, structured as five core modules

  • Delivered a user interface for initiating contract uploads and tracking processing progress

  • Engineered a data extraction engine to parse both structured and unstructured contract content, paired with a data organization module that merges and classifies complex, nested table data

  • Added an interpretation layer for contextual analysis of paragraphs and footnotes, where rate exceptions and conditions typically hide

  • Generated standardized Rate, Origin Arbitration, and Destination Arbitration templates as output, integrated with the GPM backend

  • Designed the pipeline to absorb format variability across vendors and contract types, so new carriers do not require new manual handling

What Was Delivered

  • Estimated 80% reduction in manual contract-processing effort demonstrated in the proof of value

  • Contract processing that took hours per contract completed in minutes

  • 5 core modules delivered: upload and tracking interface, extraction engine, data organization, interpretation layer, and template generation

  • 3 standardized template types generated automatically: Rate, Origin Arbitration, and Destination Arbitration

  • Structured tables, nested rows, footnotes, and free text handled across varied carrier formats in a single pipeline

  • Output integrated directly with the GPM backend

Business Impact

  • Pricing operations will no longer wait on transcription. The proof of value showed contract data will reach the GPM system in minutes instead of hours.

  • Misinterpretation risk dropped at the source. Standardized, structured templates replaced hand-keyed data in the workflow the POC covered.

  • Contract volume decoupled from headcount. The pipeline was designed to absorb growth across vendors and contract types without additional manual effort.

  • Descartes now owns a validated pattern for AI-driven document ingestion, a starting point for broader automation across its pricing workflows.

This was a proof-of-value engagement. The outcomes here were demonstrated within the POC scope against real carrier contracts. Production savings will be measured once the pipeline runs against live contract volume.

Azure Document Intelligence - Azure OpenAI - Python - FastAPI - React - Chroma DB

Frequently asked questions

Can AI reliably read contracts that arrive in inconsistent formats?
Not with a single extraction pass. Carrier contracts mix structured tables, nested rows, footnotes, and free text, and a one-step approach fails on exactly the documents that matter most. The pattern that works separates the problem into stages: extract the raw content, organize and classify complex table data, then interpret paragraphs and footnotes in context. Each stage handles the variability the previous one exposes.
Why do footnotes and free text matter so much in contract automation?
Because that is where the exceptions live. Rate tables carry the headline numbers, but footnotes and free-text sections carry the conditions that change what those numbers mean. An ingestion pipeline that skips interpretation produces structured data that is confidently wrong. A dedicated interpretation layer is what makes the output safe to feed a pricing system.
Why start with a proof of value instead of a full build?
A proof of value puts a real workflow, real documents, and a measurable baseline in front of the decision before capital is committed. Descartes proved an 80% reduction in manual effort on its own carrier contracts before scaling the pattern. That sequence, baseline first, evidence second, commitment third, is how AI projects avoid becoming stalled pilots.

Next step

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