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A service-level agreement (SLA) is a contract between a logistics service provider and a customer that specifies, usually in measurable terms, what services the logistics service provider will furnish. Many logistics service providers will provide their customers with an SLA. More recently, logistics departments in major companies have adopted the idea of writing a service level agreement so that services for their customers (users in other departments within the company) can be measured, justified, and perhaps compared with those of outsourcing network providers. Some basic metrics or Key Performance Indicators (KPIs) that SLAs may specify include:
Writing Service Level Agreements
To write a service level agreement, SLA, start by reviewing templates for the type of product or service you're using. Few products exist for which an SLA has yet to be written, and many examples are online or available from vendors you may know. This gives you an idea of the variables you need to decide upon, such as downtime response, bug fix frequency, allotted amount of enhancements, monetary penalties for downtime and duration of contract.