Backoffice AI | Blog

The Costs of Manual Order Entry and the Advantages of Automating the Process

Written by Neil Smith | May 11, 2024 12:21:31 AM

In today's fast-paced business environment, efficiency and accuracy are paramount. For manufacturers and distributors, the method of order entry can significantly impact these factors. Many businesses still rely on manual order entry from emails, a process that has considerable drawbacks. At Backoffice AI we are eliminating the need for manual order entry from emails.

Drawbacks of Manual Order Entry

1. Time-Consuming: Manual order entry is inherently time-consuming. Employees must read each email, extract order details, and then enter them into a system. This repetitive task can take up considerable time, reducing productivity. As businesses scale, the volume of orders increases, exacerbating the problem and requiring more resources dedicated to order entry.

2. Prone to Errors: Human error is a significant risk in manual data entry. Misinterpretations of handwritten emails, typos, and accidental omissions can lead to incorrect orders, which not only frustrate customers but also require additional time and resources to correct. 

3. Slower Turnaround Time: The manual process delays the progression from order receipt to fulfillment. Each step that requires human intervention can introduce delays—waiting for an employee to process an email, enter the data, and then initiate the order can extend turnaround times. Nobody wants to wait for their orders.

These challenges contribute to a less efficient operation, potentially harming a business's reputation and its bottom line.

Advantages of Automating Order Entry

Recognizing the inefficiencies of manual order entry, more businesses are turning to AI based automation as a solution. By transforming order emails into entries within an online order system (e.g. eCommerce system, ERP or OMS) automatically, companies can significantly streamline their operations.

1. Immediate Order Processing: AI based automation allows for the immediate conversion of order emails into order entries in the system. This rapid processing accelerates order fulfillment, enhancing customer satisfaction with quicker service.

2. Reduced Errors: Automated systems minimize human error by directly transferring customer-provided data into the order system. This precision ensures orders are processed accurately, reducing the costs and time associated with correcting errors.

3. Increased Productivity: By automating the initial order entry, staff can redirect their focus from tedious data entry to more value-added activities such as customer service and strategic planning. This shift can lead to better use of human resources and greater overall productivity.

4. Enhanced Customer Experience: Automation facilitates faster order confirmations, updates on shipment statuses, and more transparent communication. Customers benefit from the reassurance that their orders are being handled promptly and accurately, which can foster loyalty and encourage repeat business.

5. Driving eCommerce Adoption: When manufacturers and distributors provide a seamless, efficient ordering experience that accepts clients emailed orders, they encourage customers to adopt their online customer portals for other transactions like checking order status information, pricing and invoicing. This shift not only reduces the company's reliance on manual processes but also lowers the cost to serve customers.

Conclusion

The transition from manual order entry to AI based systems, like those provided by Backoffice AI, is not just a technological upgrade but a strategic move to enhance operational efficiency, reduce errors, and improve customer satisfaction. For manufacturers and distributors looking to stay competitive and meet the evolving expectations of their clients, investing in AI automation technology is a step towards higher customer satisfaction and higher profits.