Order Automation is becoming more common as accounting system technology is updated and improved. This means that companies are able to become more efficient when processing purchase orders and invoices for customers. Manual order processing wastes countless hours and money. Automating orders provides multiple benefits beyond cost savings. Below are five benefits of order automation worth considering.
Manually processing purchase orders, a repetitive and time-consuming task, is typically performed by a team of customer service representatives. Automating purchase orders allows those employees to focus on tasks that are not as easily automated, such as opening a new account for a customer, upselling clients, or clearing the backlog. Touchless order processing can eliminate 95% of data entry.
Manual order entry is prone to errors. Adding an extra zero to the end of a price or order quantity can cause major aggravation, time consuming back-billing and correction, loss of revenue or out-of-pocket costs to vendors. Even if error rates are low (> 1-2%), how much is that costing your business? Automation can increase data entry accuracy up to 99%. Don’t let errors cost you more than you realize.
Automation increases the speed with which orders and invoices can be processed, providing quicker access to reporting for managers. Quicker delivery of information provides your team with the ability to spot trends in a timely fashion, monitor product and account performance and attend to problems or opportunities as they arise.
Customer service representatives will have more time to focus on priority orders or those A-accounts that need a little more attention. Less time spent on order entry will offer CSR’s more time to attend to customers. You should expect decreased call times regarding orders and more time spent on other client services.
Costs can rack up quickly when you look closely at how much a supplier spends to process a single order: from entering a purchase order, to providing advanced shipping notifications and sending out paper invoices. Most suppliers are accumulating a cost of $6-$8 per manually processed order. This cost is attributed to the time spent by a CSR and the respective wages needed to compensate that time. Costs associated with order entry errors, employee benefits, and revenue lost due to slower order cycles are not calculated into this average per order fee. The end cost for a supplier could be as much as $20 per order.