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Manual order entry costs Manufacturers $500,000/Year: Survey reveals

In the fast-paced world of manufacturing, operational and sales teams are the linchpin for success. Efficient order management is paramount to meeting customer demands and delivering exceptional experiences. Yet, within the seemingly routine task of manual order entry, a substantial challenge is lurking - one that could significantly impact efficiency and overall success.

The Hidden Costs of Manual Order Entry

Recent surveys have illuminated a significant issue faced by manufacturers and their operational and sales teams - manual errors in order entry. These seemingly minor errors, averaging between 3% and 5%, accumulate quickly. The financial repercussions are profound, with manufacturers experiencing an average annual loss of millions of dollars due to these inaccuracies. Moreover, rectifying these errors, including processing returns or refunds, further erodes profitability.

The Impact on Operational Efficiency

For operation and sales managers overseeing order management in the manufacturing sector, the ramifications of manual entry extend beyond the financial sphere. Data entry errors lead to labor-intensive manual order processing, causing delays in order fulfillment and shipping. These inefficiencies not only hinder customer satisfaction but also lead to missed sales opportunities and frustrated clients. The inability to process orders promptly and accurately can leave a lasting negative impression on customers and tarnish the brand's reputation.

Research Findings

Our survey aimed to delve into the challenges faced by manufacturing companies related to manual order entry. We sought insights into error prevalence, its impact on operational efficiency, and the potential for adopting AI-driven solutions. The survey spanned a wide range of manufacturers, from small to large enterprises.

1. Error Rates in Manual Order Entry:

  • 82% of the respondents reported experiencing manual errors in their order entry processes.

  • On average, respondents estimated the error rate to be around 4.2%, with some suppliers reporting error rates as high as 7%.

2. Impact on Operational Efficiency:

  • 67% of suppliers acknowledged that manual order entry resulted in delays in processing and shipping.

  • Over 50% of the respondents stated that these delays have led to missed sales opportunities and customer dissatisfaction.

3. Financial Implications:

  • Nearly 65% of suppliers reported financial losses due to manual order entry errors.

  • On average, suppliers estimated losses of approximately $500,000 per year.

4. Challenges Faced:

  • The most common challenges cited by respondents were data entry errors, difficulty in handling non-standard forms, and lack of real-time processing capabilities.

  • 76% of suppliers stated that they struggled with handling email or low-quality order forms.

5. Awareness of AI-Powered Solutions:

  • 55% of the respondents were aware of AI-powered order management systems.

  • Among those aware, 81% expressed interest in exploring AI-based solutions to automate order entry.

The survey findings underscore the prevalence of challenges faced by manufacturing companies, particularly in the realm of manual order entry. The impacts on efficiency, customer satisfaction, and financial losses are substantial. However, there is growing awareness and interest in leveraging AI-powered solutions to address these inefficiencies.

AI or OCR systems?

In the pursuit of automated order processing, many manufacturing teams have turned to Optical Character Recognition (OCR) systems. While OCR solutions can be effective in converting scanned documents into digital text, they often fall short in complex order management scenarios.

AI-powered order management systems, like Doosty, offer several advantages over traditional OCR solutions:

  • Accuracy: AI algorithms can handle unstructured data, such as emails, text messages, or handwritten forms, with exceptional accuracy, minimizing errors and reducing the need for manual intervention.

  • Real-time Integration: Unlike OCR systems, which may require additional manual data processing, AI can integrate seamlessly with existing ERP and CRM systems, providing real-time updates and order processing.

  • Adaptability: AI continuously learns from data and adapts to new patterns, ensuring that it can handle diverse order formats and complexities as businesses evolve.

Introducing Doosty: AI-Assistant for Operations Teams

Amid a landscape of AI-driven solutions, Doosty emerges as a powerful ally for manufacturing teams across various industries. With a deep understanding of the challenges faced by manufacturers, Doosty is designed to tackle inefficiencies head-on.

Doosty seamlessly integrates with existing systems, autonomously detecting and submitting AI-processed orders to the ERP or CRM system. Regardless of the order channel - whether it's email, text messages, faxes, or PDFs - the system accurately extracts and matches products, processes orders, and updates records with near-zero error rates, effectively eliminating manual errors and enhancing operational efficiency.

Example of Doosty AI: Automated Order Entry System

Conclusion: Embrace the AI Automated Order Entry

The manufacturing landscape is evolving rapidly, and embracing AI in order management is essential for sustained success. The findings from our survey emphasize the urgency of addressing manual entry challenges and exploring AI-powered solutions.

By seamlessly integrating Doosty into your order management process, you can unlock the full potential of AI, streamlining operations, minimizing errors, and enhancing customer satisfaction. Embrace the advantages of AI and lead your manufacturing team toward a future of unparalleled efficiency and success.


Pedram Vahabi

I'm a seasoned tech professional and CEO & Co-founder of Doosty AI, revolutionizing the industry with Automated Order Entry powered by AI. With 10+ years' experience at Amazon, Google Launchpad, and Founders Factory London, I'm passionate about bringing cutting-edge solutions to businesses and sharing my expertise through this blog. Schedule a call now and let's take your business to new heights!


Disclaimer: The survey findings presented in this article are based on research conducted with 200 manufacturing companies across various industries and are for informational purposes only. The results may not represent the entire manufacturing industry.


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