Artificial Intelligence in Order Processing

As we have talked about in our previous blogs, there is a lot of pressure on businesses today to meet the demands of customers according to their ever increasing expectations. One of the ways that firms are using technology to improve their speed and accuracy of filling orders is to make their order processing systems more efficient, and they are doing this by using artificial intelligence. Artificial intelligence however, like many technologies being implemented in businesses today, will have major impacts on jobs, especially in the logistics industry.

The best way for firm’s to take advantage of the powerful tools that artificial intelligence can provide is in assisting their order processing systems. Order processing performance can be a huge separation factor for companies in highly competitive markets where their orders are constantly being received, and when they are extremely time sensitive. According to a research study from the Hackett Group 2017, companies that perform in the top quartile of worldwide businesses automate their orders 1.5X more often than other companies. These companies also complete orders in a third of the amount of time, and with 50% fewer errors (http://www.digitalistmag.com/finance/2017/08/07/digital-tools-can-close-the-order-management-performance-gap-05254118). These top performing businesses have implemented order processing and management systems with top-of-the-line technology, often including artificial intelligence. Firms that receive orders in multiple forms are the ones that stand to benefit the most from an artificial intelligence assisted order processing system, because of AI’s ability to communicate with other operating systems that firm’s are already using, and because of it’s flexibility when it comes to receiving information. For example, if a firm usually receives it’s orders online, but sometimes receives them via email, fax, or telephone, those other types of orders would have to be manually entered into the order management system, a process that can often take as long as ten minutes to complete. With artificial intelligence assisting a firm’s order management system, these orders that come in from email or fax can be quickly scanned, and the order information can be shared with the order management system instantly. 

Artificial intelligence has been a hot topic in business technology for several years now, and one of the reasons is because of it’s potential threat to kill jobs. This has also been a topic of discussion in the logistics industry for several years because many of the low level jobs in logistics are threatened by automation. However, these jobs are mostly threatened by other technology, not artificial intelligence. Artificial intelligence will change the roles of many jobs, especially in management. Order process managers and warehouse managers will have to adapt to the surge of technology, like artificial intelligence, that will be implemented as firms try to gain an edge on their competitors (https://www.logisticshandling.com/articles/2017/10/17/how-will-automation-impact-warehouse-operations-and-management/). 

Overall, firms will have to adopt technology like artificial intelligence to keep up with their competitors, especially in the highly competitive logistics industry. The use of artificial intelligence will have tremendous benefits for firms, especially in their order processing and management systems. It will be a struggle for some employees to adapt to such high level technology, and many management jobs will have to become much more analytical, and some jobs will be lost to artificial intelligence and other technology. How will firms balance their need to quickly implement disruptive technology like artificial intelligence, while still being responsible employers with the jobs that will be replaced or drastically changed as this technology is implemented?