This agreement may be a formal contract or an informal agreement between two parties. For some, these are important chords that cover many performance metrics, while others are simple measures of individual time. With SLA reports, you get a quick, high-level perspective on your logistics performance beyond the selected timelines. Perfect for management presentations or reports or a drilldown in the specific metric for more detailed analysis. Feel free to experiment with different combinations of tables and diagrams to see what works for you! A courier company may try to sell its services based on the time it takes for them to retrieve a program. A guaranteed pickup in 20 minutes is great. However, due to the way courier companies optimize their fleets, a quick pickup time is not equal to a fast delivery time. In its most basic form, a service level contract defines a minimum level of performance that the customer admits and the supplier accepts. There are many other KPIs that can be added to this basic SLA agreement.
The more KPIs there are, the more difficult the negotiation process is. It can take months for a complex SLA/KPI document to be negotiated while you go back and forth with your logistics provider, so that the document becomes a „win-win“ for both parties. After the ALS/KPI is a document approved by both the customer and the logistics provider, this document and its contents must first be audited monthly and then quarterly. Both parties will know how the partnership will develop if the objectives of the SLA/KPI document are achieved. Without SLA/KPI, there is no way to measure the performance of both parties. Don`t be surprised if a logistics provider doesn`t jump on an ALS/KPI with a „Let It Happen“ statement. Always use some kind of basic ALS/KPI to protect yourself while you relocate your logistics department. Gregory Hoy, managing director of London express delivery company Excel Group Services Limited, suggests that companies should be more demanding with their UK courier company in the past 12 months.
Major suppliers have adopted new business models. Multinational transport companies and private equity firms have borrowed millions of pounds to support struggling cash flows or to finance major mergers. And for a number of companies, the introduction of new diversified services is now more important and takes more management time than sameday delivery. SLA compliance monitoring provides organizations with quantifiable metrics to measure the success with which specific services are delivered. In this transit agreement, we, ours and Prolog Services Inc. refer to PSI Global Logistics, its subsidiary and its subsidiaries.