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Outsourcing Order Processing for a Small E-Commerce Retailer with AI/ML Integration

Industry: E-commerce Retail

Region: North America

Lay of the land:

A small online retail business faced challenges managing increasing order volumes while maintaining customer satisfaction and operational efficiency. The owner was overwhelmed by day-to-day tasks including order validation, fulfillment, customer queries, refunds, and logistics coordination

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The Challenge

  • ​Inefficient manual order processing causing delays and errors

  • Limited capacity to handle surges in order volume

  • Difficulty maintaining real-time inventory and accurate order tracking

  • High operational costs and limited time to focus on business growth

Impact and Value delivered to the client:

By combining outsourcing with AI/ML and generative AI technologies, the small retailer transformed its order processing capabilities into a highly efficient, scalable operation. This allowed accelerated growth, better customer experiences, and cost savings—all while freeing the owner to focus on strategic business initiatives

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The TDIT Group continues to be a trusted partner for the client

The Solution

Transformation: Outsourced + AI/ML Integration

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The business outsourced its entire order processing function to the TDIT Group, who implemented an AI/ML-enhanced order management system:

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  • AI-Powered Order Validation: Machine learning algorithms automatically validated order details, detected anomalies, and flagged potential fraud, reducing manual checks

  • Generative AI for Customer Support: AI chatbots generated context-aware responses for routine order inquiries, refunds, and status updates, handling large volumes with minimal human intervention

  • Predictive Inventory Management: ML models forecasted inventory demand, enabling proactive stock allocation and reducing stockouts

  • Automated Workflow Automation: AI-driven automation streamlined order routing, supplier coordination, and exception handling, speeding up processing times

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The TDIT team worked closely with the AI tools, with humans overseeing complex exceptions and furthering continuous AI model training

KPIs Improved

  • Order Processing Time: Reduced by 35%, from manual bottlenecks to automated streamlined workflows

  • Order Accuracy: Improved by 28%, significantly minimizing errors and returns

  • Customer Satisfaction: Increased by 20%, attributed to faster response times and AI chatbot availability 24/7

  • Operational Costs: Lowered by 30% through AI-based efficiencies and outsourcing cost advantages

  • Scalability: Handled a 4x surge in order volume during peak seasons without reducing service quality

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