Conversational AI for Order Management: Why Your OMS Needs an AI Chatbot

Updated: Jul 8

Orai's blog on Order management automation
Order Management Automation

With digital transactions increasing nowadays, businesses are facing significant challenges in managing orders. From order placement to its delivery, an organization can’t afford to make any mistake or dissatisfy a customer in any way.

As customer expectations and order quantities increase, businesses look for a reliable way to automate their order management system (OMS). Conversational AI for order management appears to be the right automation approach:

What is Conversational AI for Order Management?

Conversational AI makes AI-powered virtual assistants available to handle conversations that usually go to human agents. Businesses get to scale up the same level of personalized interactions over text or chat across multiple platforms.

Also, there are various repetitive tasks associated with order management that can be automated successfully with AI chatbots. The power of Machine Learning (ML) and Natural Language Processing (NLP) is integrated with your ERP and/or CRM. This allows AI to capture and automatically utilize product names, order numbers, give order status, send receipts, provide confirmations, and more.

Major Challenges Faced in Order Management

Several challenges make smooth order management difficult for enterprises:

1. High volumes of inquiries and queries

When your business expands, the numbers of inquiries and queries increase accordingly. If all those conversations are handled manually by live agents, you end up investing more than the necessary cost and time.

At the same time, live agents struggle with repetitive queries and can’t prioritize processes and conversations that actually require human intervention.

On the other hand, customers have to wait for a long time to get in touch with agents regarding their orders.

2. Human errors in processing data

Manual data processing can lead to wrong updates or duplication due to human errors. The chances of errors increase when orders start coming from multiple offline and online channels. Human agents feel unable to accurately track all those orders and process data accordingly.

3. Bulk order execution

Bulk orders make things more complex because they involve multiple marketplaces, various internal system updates, label printing, invoice creation and arrangements, and tracking of all shipped orders.

4. Difficulty in inventory planning

Customers feel satisfied when they receive their orders on-time and as per their expectations. You can achieve this only by smartly planning your inventory. Going out-of-stock frequently can cost your business so many customers.

Similarly, excessive stocking can also lead to losing money because of dead stock and wastage. Hence, it is imperative for a business to have a real-time view of the stock levels in the inventory. Businesses often struggle to keep a comparative eye on the demand, supply, and inventory. Hence, systematic inventory planning becomes difficult for businesses.

5. Manually handled order management system

When you are using an isolated, manual order management system, it doesn’t help to manage all sales orders coming from multiple channels. Hence, your team finds several hurdles in the process of managing orders.

Use Cases of Conversational AI for Order Management

Various redundant tasks get automated with the power of artificial intelligence:

  • Order placement: AI chatbots can help customers place orders on multiple channels such as websites, WhatsApp, social media, and others.

  • Confirmation receipt: Automatically distribute confirmation receipt to customers with accurate details of order at any scale.