How much Manual Process in your Business costs?

How much Manual Process in your Business costs?

The demand to stop manual encoding and handling data increase rapidly as business advances. How much time do you consume on the manual process? If you think about your business and the cost behind, I am sure you will come up with a significant amount. After having that figure, think about the developing automation system where businesses grow systematically. Where do you think you will gain more? And cost less?

Demonstrating operating cash and organization productivity thrown away is one way to show the disadvantage of manual process.  A report using process execution metrics explains pauses that are unjustifiable. Like in invoice processing, significant gaps from top to bottom execution(in terms of pacing and cost) call firmly in favor of automation. Invoice processing is a section that continuously challenges innovations or modification like digital process automation (DPA), data consolidation, and cloud-based software solutions.

manual processes

Bottom performers cost eight times more than the top performers. They were calculated by dividing the total cost to complete the process by the number of sales orders assigned. 

The surprising gap in cost performance implies that this field needs to be reviewed. You need to examine which components you need to optimize. And the most vital cost driver is labor. Imagine the process that it needs, to gather the phone/fax orders, encode it to the system, launch the work-flows up to completion, and transmit the status to your buyer. Think about the time consumed and cost if you miss one of the steps in the process, errors during data encoding, or a revision or change request due to incorrect items received. Not to mention the possible cost of the work done repeatedly by your employees when they can allocate that time to a more valuable task.

Manual data entry is a typical process in growing businesses. Before, it is the norm and an easy solution where processes can be completed efficiently. Now, it becomes less adaptable and less cost-effective. 

The Cost of Business Process Automation:

Frustrations in Paper/Manual Processing

Now you know how much businesses pay by doing that first step of processing an order, your auditors might want to review its hidden drivers. With this said, companies who still use paper-based protocols have much higher costs than businesses who already switched to an automated system in order processing.

manual processes

This is calculated by matching the average cost per sales order for these two different channels. 


When you invest in training, payroll, facilities, equipment, and benefits, you’re paying employees to copy and paste data. Revisions and data re-entry because of manual errors can delay your work, leading you to hire more employees just to keep things moving. 

Paper-based and manual processes during the hiring process can cost up to 20 times more than computer-assisted electronic document processing.

manual processes

Lack of visibility to process

Manual processing is inconsistent and harder to track. Since you did not start having 100% accurate information, the understanding you get from manual handling will be inaccurate. Lack of visibility also affects customer service. It’s not easy to fix process bottlenecks and delays that disappoint customers if you can’t identify the problems.

45% of controllers surveyed identified a lack of visibility into invoices and payables information as their top payables challenge.

What is Robotic Process Automation?

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