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. 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? What irritates people the most is the breakdown of the service: the buses are cancelled or just don`t appear (imagine if this is your last bus to get home); Lines that are removed or arbitrarily modified after a few weeks delays resulting from a previous incident. 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.