The customer is responsible for providing a detailed bill of lading of all items provided for transport. A Service Level Agreement (SLA) is a contract between a logistics service provider and a customer that generally measurably determines the services that the logistics service provider will provide. Many logistics service providers make ALS available to their customers. More recently, the logistics services of large companies have taken on the idea of writing a service level agreement in order to measure, justify and perhaps compare the services provided to their customers (users in other services within the company). Some basic metrics or key performance indicators (KPIs) that can specify SLS include: There are many other KPIs that can be added to the 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. PandaTip: This area of the transportation agreement model defines your responsibilities as a carrier.
Directly below, the „Customer Responsibility“ section defines your client`s responsibilities in relation to this model of transport service agreement. PandaTip: This section of the model protects you from liability in case of shipping delay for any of the reasons listed. It also protects your customer in case he is forced to violate this transport contract for reasons beyond his control. The customer reserves the right to terminate this contract at any time with prior written notification. In such a resignation. Unless the termination is due to a carrier violation of this agreement, the customer bears the fee per tonne up to the termination location to the service provider. If delivery is delayed due to the service provider`s fault or gross negligence, the service provider is granted 48 hours until full delivery. If the supplier is unable to resolve the issue on time, the customer reserves the right to charge the carrier the delay of $20.00 per tonne per day for each day the convoy/truck is 48 hours late.
In addition, the customer reserves the right to use another supplier to complete the delivery of delayed shipments. There should also be a QBR or quarterly Business Review on the carrier you choose. It should also be a contract with agreements and milestones. A specific SLA/KPI document follows. This comprehensive document must be presented in phases, as it is broad and has been agreed as a win-win document. Important comment: Always use cooperation and trust your relationship with a logistics provider. Not everything is a cost or price discussion. Let the logistics provider show you that they are working as a professional in this win-win partnership.
You and your logistics partner should be the theme: what is measured is achieved. If not, why? What experiences do you have in service logistics level agreements or slas in each sector? Were they effective? What KPIs do you want to see? The customer pays for transportation costs, such as toll roads, gymnasiums or unforeseen road taxes.