Understanding Order KPIs

Introduction

Key Performance Indicators (KPIs) provide critical insights into your organization's order management performance. ARMOR's Order Management system tracks multiple metrics that help administrators monitor order volume, approval efficiency, notification success rates, and vendor utilization. Understanding these KPIs enables data-driven decision-making, helps identify process bottlenecks, and ensures your order management workflow operates efficiently.

This comprehensive guide covers all order-related KPIs available in ARMOR, including how they're calculated, what they indicate about system health, and how to interpret them for operational improvements. It's important to note that ARMOR's Order Management system focuses on order creation, approval, and vendor notification—it does not track fulfillment status, delivery times, or completion of work by vendors.

KPI Overview Table

KPI Category	Metrics Included	Primary Use Case
Volume Metrics	Total orders, orders per day/week/month, order type distribution	Understanding workload, capacity planning, trend analysis
Status Metrics	Pending count, approved count, rejected count, sent count, failed count	Workflow health, bottleneck identification, process efficiency
Approval Metrics	Approval rate, rejection rate, average approval time, pending approval age	Approval process efficiency, approver responsiveness, policy compliance
Notification Metrics	Send success rate, failed notification count, notification failure reasons	Email delivery health, vendor contact validation, system reliability
Vendor Metrics	Orders per vendor, vendor utilization percentage, vendor assignment success	Vendor relationship management, workload distribution, automation effectiveness

Total Orders KPI

The Total Orders KPI represents the complete count of orders created in your ARMOR system over a specified time period. This foundational metric provides context for all other KPIs and helps administrators understand overall order management workload.

Calculation Method

Total Orders = COUNT(all orders where creation_date within time period)

This includes orders in all statuses: Pending, Approved, Rejected, Sent, Failed, and Cancelled. The metric counts each order once regardless of subsequent status changes.

Time Period Variations

Time Period	Use Case	Interpretation Considerations
Daily	Monitoring real-time workload; identifying unusual activity spikes	High day-to-day variability is normal; look for multi-day trends
Weekly	Understanding operational patterns; comparing week-over-week performance	Business cycles may show consistent weekly patterns (e.g., Monday spikes)
Monthly	Strategic planning; budget forecasting; seasonal analysis	Most stable period for trend analysis; reduces day-to-day noise
Quarterly	Long-term trend identification; annual planning; resource allocation	Reveals seasonal patterns; useful for comparing year-over-year growth
Annual	Executive reporting; multi-year trend analysis; strategic planning	Highest-level view; smooths out seasonal variations

What Total Orders Tells You

• Workload Volume: Indicates overall demand on order management system and staff
• Growth Trajectory: Increasing totals suggest growing asset portfolio or increased maintenance activity
• Seasonal Patterns: Recurring annual patterns (e.g., higher in summer for HVAC, lower during holidays)
• System Utilization: Helps assess whether system capacity is adequate for current/projected volumes
• Resource Planning: Informs staffing needs for order processing and approval workflows

Example Interpretation

Data: October 2024: 450 orders | October 2023: 380 orders | Average monthly orders (2024): 425
Interpretation: October 2024 shows 18% year-over-year growth and is slightly above the 2024 monthly average. This suggests healthy growth in order activity, possibly driven by asset portfolio expansion or increased maintenance frequency. The slight above-average October performance may indicate pre-winter maintenance preparation for equipment.

Pending Orders Count

The Pending Orders Count KPI tracks orders awaiting approval. This metric is critical for identifying approval bottlenecks and ensuring timely order processing.

Calculation Method

Pending Orders Count = COUNT(orders where current_status = 'Pending')

This is a point-in-time metric representing the current count of orders in pending status, not a historical count over a time period.

Key Considerations

Aspect	Details	Action Threshold
Healthy Range	Depends on organization size and order volume; typically 5-15% of monthly order volume	If pending count exceeds 20% of monthly average, investigate approval delays
Age Distribution	Not just total count matters, but how long orders have been pending	Orders pending >72 hours should be reviewed for approval issues
Approver Workload	High pending count may indicate approver capacity constraints	Consider additional approvers or approval delegation if consistently high
Order Type Split	Parts vs. Service orders may have different approval patterns	Analyze pending count by order type to identify specific bottlenecks

Common Causes of High Pending Count

• Approver Availability: Approver on vacation, out sick, or otherwise unavailable to review orders
• Approval Notification Issues: Approver not receiving email notifications about pending orders
• Complexity Delays: Orders require additional information or clarification before approval decision
• Policy Ambiguity: Unclear approval criteria causing approver hesitation
• Volume Spike: Temporary increase in order creation overwhelming normal approval capacity
• Workflow Misconfiguration: Orders incorrectly routed to wrong approver or approval not required but set

Monitoring Best Practices

1. Daily Check: Review pending count each business day to catch approval delays early
2. Age Analysis: Sort pending orders by creation date; prioritize oldest orders for investigation
3. Approver Communication: If pending count grows, proactively contact approvers to ensure awareness
4. Trend Tracking: Monitor whether pending count is growing, shrinking, or stable over time
5. Backup Planning: Establish backup approval processes for when primary approvers are unavailable

Approval Rate KPI

The Approval Rate KPI measures the percentage of orders that are approved versus rejected. This metric provides insights into order quality, policy effectiveness, and approval process health.

Calculation Method

Approval Rate = (Approved Orders ÷ Total Orders with Approval Decision) × 100

Where Total Orders with Approval Decision = Approved Orders + Rejected Orders

Note: Pending orders and cancelled orders are excluded from this calculation as they haven't received approval decisions.

Interpreting Approval Rates

Approval Rate	Interpretation	Recommended Actions
95-100%	Excellent: Orders are high quality and well-justified; approval process functioning smoothly	Maintain current practices; consider if approval step is necessary for all order types
85-94%	Good: Most orders approved but some rejections occurring; normal operational range	Review rejected orders for common patterns; provide feedback to order creators
70-84%	Moderate: Significant rejection rate; potential issues with order creation or approval criteria	Analyze rejection reasons; clarify approval policies; provide order creator training
<70%	Concerning: High rejection rate indicates systemic issues requiring immediate attention	Urgent review of approval criteria, order creation process, and communication gaps

Common Rejection Reasons

• Insufficient Information: Order description doesn't provide enough detail for approval decision
• Budget Constraints: Requested work exceeds available budget or requires additional authorization
• Wrong Vendor: Approver believes different vendor should be used for the work
• Duplicate Order: Order duplicates existing order or recently completed work
• Premature Request: Order submitted before proper diagnostic or assessment completed
• Policy Violation: Order doesn't comply with organizational procurement or maintenance policies
• Deferred Maintenance: Work can be delayed to future period for budget or operational reasons

Improving Approval Rates

Strategy	Implementation	Expected Impact
Order Creator Training	Provide clear guidelines on order description requirements, photo standards, and justification expectations	Reduce rejections due to insufficient information by 40-60%
Approval Criteria Documentation	Document and communicate specific approval criteria; make criteria accessible during order creation	Reduce policy-related rejections by 30-50%
Pre-Approval Consultation	For high-value or complex orders, encourage creators to consult approver before submission	Reduce rejections on complex orders by 50-70%
Order Templates	Create templates for common order types with pre-filled information and guidance	Reduce rejections on routine orders by 30-40%
Rejection Feedback Loop	Ensure approvers provide detailed rejection reasons; share learnings with order creators	Continuous improvement; gradual reduction in repeat rejection types

Send Success Rate KPI

The Send Success Rate KPI measures the percentage of approved orders that are successfully sent to vendors via email notification. This metric is critical for ensuring vendors receive orders and can begin work.

Calculation Method

Send Success Rate = (Successfully Sent Orders ÷ Total Approved Orders) × 100

Where:

• Successfully Sent Orders = Orders with status = 'Sent'
• Total Approved Orders = Approved Orders + Sent Orders + Failed Orders

Target Benchmarks

Send Success Rate	System Health	Action Required
98-100%	Excellent: Vendor contact information well-maintained; notification system reliable	Continue standard vendor profile maintenance practices
95-97%	Good: Minor occasional failures; within acceptable operational range	Monitor failed notifications; address vendor contact issues as they arise
90-94%	Fair: Notable failure rate requiring attention; potential vendor profile issues	Review and update vendor contact information; investigate notification service health
<90%	Poor: Significant failures impacting vendor communication; urgent action needed	Immediate vendor contact audit; escalate notification service issues to IT

Common Causes of Failed Notifications

Failure Cause	Symptoms	Resolution
Invalid Email Address	Email bounce messages; immediate send failure	Update vendor profile with correct email address; verify with vendor
Email Server Issues	Multiple vendors affected simultaneously; intermittent failures	Check ARMOR notification service status; contact support if persistent
Vendor Email Full/Disabled	Email accepted but delivery fails; quota exceeded messages	Contact vendor to resolve their email issues; use alternate contact if available
Spam Filtering	Email appears sent but vendor doesn't receive; no bounce message	Request vendor whitelist ARMOR email domain; verify spam folder
Network Issues	Timeout errors; delayed failures; affects multiple orders	Check network connectivity; retry sending after network restoration
Missing Email Address	Immediate failure with missing contact information error	Add email address to vendor profile before attempting send

Monitoring and Improvement

1. Daily Failed Order Review: Check for failed notifications each day; retry or address issues promptly
2. Quarterly Vendor Contact Audit: Verify all vendor email addresses are current and valid
3. Notification Service Monitoring: Track notification service uptime and performance metrics
4. Vendor Communication: Ensure vendors know to expect email notifications and check spam folders
5. Retry Mechanisms: Implement automatic retry for transient failures; manual retry for persistent issues
6. Alternative Contact Methods: Maintain phone numbers or alternate emails for critical vendors

Failed Notification Count

The Failed Notification Count KPI tracks the absolute number of orders that failed to send to vendors. While related to Send Success Rate, the absolute count provides different insights about system health and workload.

Calculation Method

Failed Notification Count = COUNT(orders where status = 'Failed' AND failure_date within time period)

Why Absolute Count Matters

Send Success Rate percentage can mask the scale of problems. For example:

• Scenario A: 100 orders, 2 failures = 98% success rate, 2 failed notifications
• Scenario B: 1000 orders, 20 failures = 98% success rate, 20 failed notifications

Both scenarios have the same success rate, but Scenario B requires significantly more administrative effort to resolve 10x more failed notifications. The absolute count helps administrators understand the actual workload impact.

Failure Count Management

Daily Failed Count	Workload Impact	Management Approach
0-1	Minimal: Occasional failures easily handled in normal workflow	Address as part of routine daily order review
2-5	Low: Manageable with standard processes; monitor for patterns	Daily review of failures; track if specific vendors or issues recurring
6-10	Moderate: Requires dedicated time for resolution; indicates potential systemic issue	Prioritized failure investigation; may require vendor contact updates or IT support
>10	High: Significant administrative burden; likely systemic issue requiring urgent attention	Escalate to IT for notification service investigation; suspend orders if critical

Failure Triage and Resolution Priority

1. Critical Orders First: Emergency or safety-related orders should be resolved immediately (phone vendor if needed)
2. High-Value Orders: Orders above certain dollar threshold or involving critical assets get priority
3. Oldest Failures: Address long-standing failures before recent ones to prevent SLA violations
4. Bulk Issues: If multiple failures have same cause (e.g., email service outage), resolve root cause first
5. Individual Issues: Address one-off failures (e.g., typo in email) after resolving bulk issues

Order Status Breakdown

The Order Status Breakdown KPI provides a comprehensive view of order distribution across all status categories. This multi-dimensional metric helps administrators understand overall system health and identify workflow issues.

Status Categories

Status	Meaning	Typical Percentage	Concern Threshold
Pending	Awaiting approval decision	5-15% of monthly total	>20% suggests approval bottleneck
Approved	Approved but not yet sent to vendor	1-5% of monthly total	>10% suggests sending delay issues
Rejected	Not approved; will not be sent to vendor	2-10% of monthly total	>15% suggests order quality issues
Sent	Successfully notified to vendor	70-85% of monthly total	<60% suggests workflow problems
Failed	Attempted send to vendor failed	1-5% of monthly total	>10% suggests contact data or system issues
Cancelled	Order cancelled before completion	2-8% of monthly total	>15% may indicate premature order creation

Healthy Status Distribution Example

Organization with 500 monthly orders:

• Pending: 50 orders (10%)
• Approved: 15 orders (3%)
• Rejected: 25 orders (5%)
• Sent: 390 orders (78%)
• Failed: 10 orders (2%)
• Cancelled: 10 orders (2%)

Analysis: This distribution is healthy. Most orders (78%) successfully sent to vendors, rejection rate is low (5%), pending queue is manageable (10%), and failures are minimal (2%). The organization should continue current practices while monitoring for changes in these percentages.

Concerning Status Distribution Example

Organization with 500 monthly orders:

• Pending: 125 orders (25%)
• Approved: 50 orders (10%)
• Rejected: 75 orders (15%)
• Sent: 225 orders (45%)
• Failed: 20 orders (4%)
• Cancelled: 5 orders (1%)

Analysis: This distribution indicates multiple issues: high pending percentage suggests approval bottlenecks, elevated approved-not-sent percentage indicates sending delays, high rejection rate suggests order quality or policy clarity problems, and low sent percentage means vendors aren't receiving orders promptly. Immediate action needed on approval workflow, order creator training, and sending process investigation.

Order Type Distribution

The Order Type Distribution KPI breaks down orders by type: Parts Orders vs. Service Orders. This metric helps administrators understand maintenance patterns and resource allocation needs.

Calculation Method

Parts Order Percentage = (Parts Orders ÷ Total Orders) × 100
Service Order Percentage = (Service Orders ÷ Total Orders) × 100

Distribution Patterns and Implications

Distribution Pattern	Typical Scenarios	Management Considerations
Heavy Parts (70-80% Parts)	Organizations with in-house maintenance staff; vendors primarily supply parts	Focus on parts inventory optimization; vendor part availability important
Balanced (45-55% each)	Mixed maintenance approach; combination of internal staff and vendor services	Maintain relationships with both parts suppliers and service vendors
Heavy Service (70-80% Service)	Organizations outsourcing most maintenance; limited internal staff	Focus on vendor service quality and capacity; approval for services may be more critical
Extreme Parts (>85% Parts)	Highly specialized internal team; vendors only for parts supply	Consider parts vendor consolidation; optimize ordering processes
Extreme Service (>85% Service)	Fully outsourced maintenance model; minimal internal maintenance capability	Ensure sufficient vendor capacity; develop strong vendor relationships

Seasonal Variations in Order Type

Order type distribution may vary seasonally based on equipment and climate:

• Summer: Higher service orders for HVAC maintenance and cooling equipment
• Winter: Increased service orders for heating systems and generator maintenance
• Spring/Fall: More parts orders as organizations perform preventive maintenance and prepare for seasonal changes
• Budget Cycle: Parts orders may spike at fiscal year-end to utilize remaining budget

Vendor Utilization Metrics

Vendor utilization metrics track how orders are distributed across your vendor portfolio. These metrics help ensure balanced vendor relationships and identify over-reliance on specific vendors.

Key Vendor Metrics

Metric	Calculation	What It Reveals
Orders Per Vendor	COUNT(orders) grouped by vendor	Absolute workload assigned to each vendor
Vendor Utilization %	(Vendor's Orders ÷ Total Orders) × 100	Vendor's share of total order volume; indicates concentration
Active Vendor Count	COUNT(distinct vendors receiving orders in period)	Breadth of vendor usage; diversification level
Vendor Assignment Success	(Auto-assigned Orders ÷ Total Orders) × 100	Effectiveness of automation rules at selecting vendors
Manual Selection Rate	(Manually Selected Orders ÷ Total Orders) × 100	How often automation is overridden; may indicate rule gaps

Vendor Concentration Analysis

Top Vendor Concentration: Percentage of orders handled by top 3 vendors

Concentration Level	Interpretation	Recommended Action
30-50%	Good diversification: Risk spread across multiple vendors; no single point of failure	Maintain current vendor portfolio; continue balanced approach
51-70%	Moderate concentration: Some vendor dependence but manageable	Monitor top vendors for capacity and performance; consider developing alternates
71-85%	High concentration: Significant dependence on few vendors; risk exposure	Actively develop additional vendor relationships to reduce concentration
>85%	Excessive concentration: Vulnerability to vendor disruption; limited alternatives	Urgent vendor diversification needed; consider vendor capacity constraints

Example Vendor Utilization Report

Monthly Order Volume: 500 orders

Vendor	Orders	Utilization %
ABC Mechanical	125	25%
XYZ Equipment Services	100	20%
Parts Pro Supply	80	16%
CAT Authorized Dealer	60	12%
Cummins Service	50	10%
HVAC Specialists Inc	40	8%
Others (4 vendors)	45	9%

Analysis: Top 3 vendors handle 61% of orders (moderate concentration). Total of 10 active vendors provides reasonable diversification. ABC Mechanical at 25% is largest vendor but not overly dominant. Distribution appears healthy with good balance across vendor portfolio.

Time-to-Approval Metrics

Time-to-approval metrics measure how quickly orders move through the approval process. These metrics help identify approval workflow efficiency and bottlenecks.

Key Time Metrics

Metric	Calculation	Benchmark Target
Average Time to Approval	AVG(approval_timestamp - creation_timestamp) for approved orders	<24 hours for routine orders; <4 hours for urgent orders
Median Time to Approval	MEDIAN(approval_timestamp - creation_timestamp)	Often lower than average; indicates typical approval speed
Pending Order Age	Current_timestamp - creation_timestamp for orders still pending	Max age should be <72 hours; investigate orders older than this
Approval SLA Compliance	(Orders approved within SLA ÷ Total approved orders) × 100	>95% compliance with defined SLA (e.g., 24-hour approval)

Factors Affecting Approval Time

• Order Complexity: High-value or complex orders naturally take longer to approve
• Approver Availability: Approval times slower when approver has limited availability
• Order Quality: Well-documented orders with clear descriptions approve faster
• Approval Threshold: Orders above certain dollar amounts may require additional review
• Time of Submission: Orders submitted at end of day or before weekends may wait longer
• Notification Delivery: Delayed approval notifications slow the process

Improving Approval Times

1. Clear Documentation Standards: Provide templates and guidelines for order descriptions to reduce approver clarification needs
2. Approval Delegation: Empower backup approvers during primary approver absences
3. Automated Reminders: Send reminder notifications for pending approvals after 24-48 hours
4. Mobile Approval: Enable approvers to review and approve orders from mobile devices
5. Tiered Approval: Route low-value routine orders to faster approval track
6. Pre-Approved Categories: For recurring routine orders, consider pre-approval or auto-approval within limits

System Limitations: What ARMOR Does NOT Track

It's critical to understand that ARMOR's Order Management system tracks orders through creation, approval, and vendor notification—but does not track fulfillment or completion status. This limitation affects what KPIs are available and how to interpret metrics.

Not Tracked in ARMOR Order Management

Not Available	Why It Matters	Alternative Tracking
Vendor Fulfillment Status	Cannot track if vendor has started work, completed work, or delivered parts	Maintain separate fulfillment tracking system or spreadsheet
Time to Completion	Cannot measure how long vendors take to complete work after receiving order	Manual tracking of completion dates; vendor performance logs
Parts Delivery Dates	Cannot track when ordered parts arrive at site	Receiving logs; inventory system integration
Vendor Response Time	Cannot track how quickly vendor acknowledges or responds to order	Manual logging of vendor responses; email tracking
Work Quality Ratings	Cannot capture post-completion satisfaction or quality metrics	Separate vendor performance evaluation system
Actual Costs	Cannot track final invoice amounts or compare to estimated costs	Accounting system integration; invoice tracking

Implications for KPI Interpretation

Because fulfillment isn't tracked, ARMOR order KPIs focus on:

• Internal Process Efficiency: How well your organization creates, approves, and communicates orders
• System Health: Whether orders are flowing through the workflow as expected
• Communication Success: Whether vendors are successfully notified about work requests

KPIs do NOT measure:

• Vendor service quality or speed
• Whether work is actually completed
• Overall maintenance effectiveness
• Total cost of work performed

A high "send success rate" means orders are successfully communicated to vendors—it does NOT mean the work is being completed satisfactorily. Administrators must track fulfillment separately if that data is needed.

Dashboard and Reporting Access

ARMOR provides multiple ways to access order KPIs and metrics:

Built-in Reporting Features

• Order Dashboard: Real-time view of current order status breakdown and pending counts
• Analytics Tab: Historical trends, approval rates, vendor utilization charts
• Order List Filters: Filter and count orders by status, type, date range, vendor
• Vendor Performance View: Orders per vendor, send success rates by vendor
• Export Functions: Download order data to Excel/CSV for custom analysis

Creating Custom KPI Reports

For KPIs not built into ARMOR dashboards:

1. Export Order Data: Download complete order list with all fields
2. Calculate Metrics in Excel: Use pivot tables and formulas to calculate custom KPIs
3. Create Visualizations: Build charts and graphs to visualize trends
4. Schedule Regular Exports: Set reminders to export data monthly/quarterly for trend analysis
5. Share with Stakeholders: Distribute custom reports to management and relevant teams

Using KPIs for Continuous Improvement

KPIs are most valuable when used to drive operational improvements:

Monthly KPI Review Process

1. Collect Current Month Data: Gather all relevant KPIs for the completed month
2. Compare to Baselines: Compare current metrics to historical averages and targets
3. Identify Trends: Look for metrics improving, declining, or remaining stable
4. Investigate Anomalies: Dig into any unusual spikes, drops, or patterns
5. Document Insights: Record findings, root causes, and contributing factors
6. Develop Action Plans: Create specific actions to address declining metrics or leverage improvements
7. Implement Changes: Execute action plans; adjust processes, provide training, or modify rules
8. Monitor Impact: Track whether changes result in expected KPI improvements

KPI-Driven Improvement Examples

Example 1: Declining Approval Rate
Data: Approval rate dropped from 92% to 78% over three months
Investigation: Analysis reveals 60% of rejections due to "insufficient information"
Action: Create order description template with required fields; train order creators on documentation standards
Result: Approval rate recovers to 88% within two months; rejection rate for insufficient information drops to 15%

Example 2: High Failed Notification Count
Data: Failed notifications increased from 2% to 8% suddenly
Investigation: Most failures concentrated with 3 vendors; all have same email domain
Action: Contact vendor organization; discover email server migration caused whitelist issue
Result: Vendor whitelists ARMOR email domain; failure rate returns to normal 2% within days

Related Articles

• 7/30-Day Trend Reports: Detailed analysis of trend reporting and period comparison
• Vendor Performance Analytics: Deep dive into vendor-specific metrics and evaluation
• Common Order Dashboards Explained: Guide to built-in ARMOR order dashboards and views
• Orders Not Sending to Vendor: Troubleshooting guide for failed notification issues
• Approval Emails Not Received: Resolving approval workflow communication problems

Summary

Understanding order KPIs is essential for effective order management administration. Key takeaways:

• Volume metrics (total orders, orders per period) indicate workload and growth trends
• Status metrics (pending count, status breakdown) reveal workflow health and bottlenecks
• Approval metrics (approval rate, time-to-approval) measure approval process efficiency
• Notification metrics (send success rate, failed count) track vendor communication effectiveness
• Vendor metrics (utilization, concentration) ensure balanced vendor relationships
• ARMOR does NOT track fulfillment, completion, or vendor performance after notification
• Regular KPI review and analysis drives continuous process improvement
• Combine multiple KPIs for comprehensive system health assessment

By monitoring these KPIs consistently and taking action on insights, administrators ensure their order management system operates efficiently and supports organizational maintenance objectives.

Tags: orders, analytics, kpis, reporting, metrics, performance, dashboards, status, approval, vendors