Service Level Agreement (SLA)

A Service Level Agreement (SLA) in logistics is a type of contract between a client and a logistics service provider that clearly details the standard and scope of services to be delivered. It is a useful tool in establishing mutual understandings concerning services and setting clear-cut performance measures or Key Performance Indicators (KPIs) such as uptime, responsiveness, and quality. While KPIs can be instrumental in cementing a comprehensive agreement, both parties often need to engage in extensive exchange in order to ensure that the SLA benefits both parties equitably.