Same Day Shipping not happening and Daily Sales Outstanding is high?

Introduction

For centuries, enterprises have relied on skilled humans to process customer purchase orders so that they can be shipped the same day or quickly. In today's fast-paced business environment Chief Revenue Officers (CROs), Chief Financial Officers (CFOs), and Chief Information Officers (CIOs) are continuously seeking ways to enhance customer relationships, improve operational efficiency, and reduce costs. Over recent decades, business growth and increasing supply chain complexities have added layers of exceptions and special arrangements for order management. This complexity is tested when customer purchase orders, in various formats (PDF, HTML, free flow text) and languages, enter systems globally via sales portals, emails, fax, and other channels. The goal is often to achieve same-day shipping, which necessitates the quick and accurate entry of transactional data from customer purchase orders into Enterprise Resource Planning (ERP) systems while managing exceptions and special arrangements.

When it comes to processing customer purchase orders and converting them into sales orders, businesses have several options: Traditional Document Management Solutions (DMS) with Optical Character Recognition (OCR), generic robots leveraging Robotic Process Automation (RPA), and the latest Generative AI solutions. While traditional DMS technology and RPA have been useful, Generative AI offers a powerful and comprehensive alternative for sales order automation.

Understanding DMS-OCR Technology, RPA, and Generative AI for Sales Order Management

Document Management Solutions (DMS) with OCR Technology

DMS relies on OCR technology to convert printed or handwritten text into machine-readable data, reducing manual data entry. However, traditional OCR systems often require significant manual oversight, setup of rules, and template creation, making them less efficient for handling complex and varied documents. These systems are prone to errors, particularly with handwritten texts or poor-quality images, and require manual corrections that can be time-consuming and costly . When customer orders change, these solutions often fail, necessitating costly custom development and additional software integrations.

Robotic Process Automation (RPA)

RPA automates standard repetitive tasks by training robots, offering a quick automation solution. However, these bots need constant maintenance and support from technical teams. Changes in customer purchase orders or variations in enterprise system resolutions can cause bots to fail, slowing down the entire process even with automation. Consequently, achieving same-day shipping with RPA can be challenging.

Generative AI Solutions

Generative AI technology, though recently popularized by models like ChatGPT, has shown significant potential for sales order automation. This technology can handle ongoing changes in customer purchase orders, regardless of format or language, and accommodate numerous unique exceptions and arrangements. Generative AI solutions provide the agility needed for same-day shipping and can significantly reduce Days Sales Outstanding (DSO).

The Advantages of AI-Powered Order Management

• Accuracy and Efficiency: AI-powered systems understand the context and make intelligent decisions, achieving up to 99% accuracy and reducing the need for manual intervention. This precision is crucial for maintaining data integrity and streamlining workflows .
• Cost Savings: AI-driven automation processes documents at a fraction of the cost of traditional OCR. For example, while processing sales orders manually costs around $13 and $4 with traditional OCR, AI systems can reduce this to less than $1 per order, sometimes as low as $0.05, resulting in substantial savings for businesses handling large volumes of documents .
• Scalability and Flexibility: AI systems are highly scalable and adaptable to various document formats without extensive reconfiguration. They handle complex layouts, recognize different languages, and process handwritten notes more effectively than OCR .
• Enhanced Productivity: Automating repetitive tasks allows employees to focus on strategic activities, boosting productivity and improving employee satisfaction. Studies show that 60% of occupations could save 30% of their time with automation, leading to more efficient operations .
• Intelligent Decision Making: AI systems analyze data and provide insights beyond traditional OCR capabilities, including predicting trends, flagging anomalies, and making data-driven decisions, enhancing overall decision-making within the organization .

Real-World Applications and Statistics

• Error Reduction: AI automation reduces errors by up to 34%, ensuring more accurate data processing .
• Time Savings: AI-driven systems reduce data processing time by 93% compared to manual methods .
• Cost Efficiency: Businesses using AI for order processing report an 86% cost reduction .
• Improved Customer Service: Automation improves resource allocation, leading to enhanced customer service and support .

Conclusion

Generative AI order management automation significantly upgrades over generic robots (RPA) and traditional DMS with OCR technology, providing enhanced accuracy, cost savings, scalability, and intelligent decision-making capabilities. By adopting AI-powered solutions, CROs, CFOs, and CIOs can ensure their operations are more efficient, cost-effective, and ready to meet the demands of the modern business landscape.?

For more details on how AI solutions can transform your order management processes, visit www.vao.world.

Sources:

• Folio3.ai
• Capacity.com
• Paperform.co
• Coursera.org
• www.vao.world