4 Reasons to Adopt No Touch Order Processing
The global supply chain management software market is poised to grow by $9.5 billion between 2020 and 2024. Whether it leverages machine learning, the Internet of Things or another emerging innovation, the best software in this space is all aimed at producing a touchless supply chain. No touch order processing plays a key role in this modernizing trend.
A touchless supply chain means human oversight or intervention is minimized. Humans do not need to get hands-on with any element of the supply chain because logistics and internal operations are optimized. Automation takes care of formerly manual business processes – in the exact same way that is has taken care of tasks on the factory floor for decades.
A central link in the touchless supply chain is no touch order processing. Touchless order processing converts the steady stream of purchase orders that manufacturers and distributors receive into a stack of flawless sales orders – all without any human input. From PO to SO, in the blink of an eye. With this approach to sales order processing, enterprises can realize four key benefits:
1. Creating More Selling Time
Manual order processing is an enormous waste of time. The average CSR spends two to three hours of every single day manually rekeying purchase orders, expending an average of 30 minutes on each order. CSRs are highly skilled staff members with deep company and product knowledge, and their salaries are usually be commensurate with their specialized skills. But instead of dedicating those skills to revenue-generating tasks, or genuine, hands-on customer support, they spend hours on dated, manual processes.
At Conexiom, we see how no touch order processing liberates CSRs from this daily drudgery. The average touchless order processes in under two minutes, without a CSR needing to intervene manually. Every year, the elimination of manual processing frees up hundreds of hours of staff time. Companies can then redeploy these hours into revenue-generating activities.
2. Reducing Human Error
Humans are brilliant. But we make mistakes. Purchase orders can run to hundreds of lines, and incorrectly entering the wrong digit or character on a single line can have enormous consequences on that customer’s order. Even with semi-automated sales order processing tools that leverage OCR, it is almost possible to truly eliminate errors. Why? Because with OCR and similar technologies, the data capture is imperfect, meaning customer service representatives still have to jump in on every order.
No touch order processing removes the need for human touchpoints across the order cycle, eliminating errors. Moreover, sales order automation technology can recognize and decipher incoming order information, verify its accuracy, and input it directly into the business’ and customer’s ERP systems – flawlessly.
An enterprise can establish an error-free order to cash cycle to make everything happen more smoothly. Human errors can interrupt the order process, but touchless orders cycles process instantly so CSRs don’t waste time on mundane tasks. Customers get more accurate fulfillment for their orders and this consistently results in a more positive buyer experience, which strengthens customer loyalty.
3. Upgrading Customer Experience
No touch order processing is a technology experience that the customers of wholesale manufacturers and distributors universally value. In the modern world; expectations around technology are advancing fast. We are used to automated digital processes throughout the supply chain that don’t require human intervention. Increasingly, customer preference is for the automated way of doing things. Within the next few years, any PO that doesn’t turn into a SO within minutes will seem like an anachronism.
Touchless order processing improves customer experience in a more direct way, too. Because it frees up hours in the typical CSR workday, these skilled workers can turn their attention to delivering the very best customer service they can. They can take their time over complex orders, and go in-depth on customer enquiries and challenges. Touchless purchase orders process in the background, which leaves CSRs free to dedicate themselves to customer interaction. Companies can upgrade the valuable CSR touchpoints of upselling, problem-solving, and delivering valuable product recommendations throughout the process. And this adds value for both business and customer.
4. Improving the Bottom Line
Our internal research shows that no touch order processing reduces cost per order from $4.50 to $.96.
This is because touchless order processing immediately confers a reduced need for labor requirements, and streamlines employee tasks. Companies can immediately do more with less. CSRs are freed up to help drive growth. And so customers are happier, and commit more deeply to their supplier relationships. Furthermore, adecline in processing errors means that resources are not squandered correcting human mistakes.
Financially, modernizing sales order management is all upside. The tech is up and running within 30 days, with no burden to IT, and the bottom line benefits emerge immediately.
IMF: Variants Can Still Hurt Manufacturing Recovery
After a year of on-and-off manufacturing in the US, UK, and the eurozone, demand for goods surged early last week. Factories set growth records in April and May, suppliers started to recover, and US crude hit its highest price point since pre-COVID. As vaccination efforts immunise much of the US and UK populations, manufacturers are now able to fully ramp up their supply chains. In fact, GDP growth could approach double-digits by 2022.
Now, the ISM productivity measure has surpassed the 50-point mark that separates industry expansion from contraction. Since U.S. president Biden passed his US$1.9tn stimulus package and the UK purchasing managers index (PMI) increased to 65.6, both sides of the Atlantic are facing a much-welcomed manufacturing recovery.
Lingering Concerns Over COVID
Even as Spain, France, Italy, and Germany race to catch up, and mining companies pushed the FTSE 100 index of list shares to a monthly high of 7,129, some say that UK and US markets still suffer from a lack of confidence in raw material supplies. Yes, the Dow Jones has made up its 19,173-point crash of March 2020, and MSCI’s global stock index is at an all-time high.
Yet manufacturers around the world realise that these wins will be short-lived until pandemic supply chain bottlenecks are solved. If we keep the status quo, consumers will pay the price. In April, inflation in Germany reached 2.4%, and across the EU’s 19 member countries, overall prices have increased at an unusual pace. Some ask: Is this true recovery?
IMF: Current Boom Could Falter
Even as Elon Musk tweeted about chip shortages forcing Tesla to raise its prices, UK mining demand skyrocketed; housing markets lifted; and the pound sterling gained value. The International Monetary Fund (IMF), however, cautioned that manufacturing recovery won’t last long if COVID mutates into forms our vaccinations can’t touch. Kristalina Georgieva, Washington’s IMF director, noted that fewer than 1% of African citizens have been vaccinated: “Worldwide access to vaccines offers the best hope for stopping the coronavirus pandemic, saving lives, and securing a broad-based economic recovery”.
Across the globe, manufacturing companies are keeping a watchful eye on new developments in the spread of COVID. Though US FDA officials don’t think we’ll have to “start at square one” with new vaccines, the March 2021 World Economic Outlook states that “high uncertainty” surrounds the projected 6% global growth. Continued manufacturing success will in large part depend on “the path of the pandemic, the effectiveness of policy support, and the evolution of financial conditions”.
Mathias Cormann, secretary-general of the Organisation for Economic Co-Operation and Development (OECD) concurred—without global immunisation, the estimated economic boom expected by 2025 could go kaput. “We need to...pursue an all-out effort to reach the entire world population”, Australia’s finance minister added. US$50bn to end COVID across the world, they imply, is a small investment to restart our economies.