Gartner Research

How to Construct an SLA for a Third-Party Logistics Service Provider

Published: 05 February 2014

ID: G00259016

Analyst(s): David Gonzalez

Summary

Twenty-five multinational organizations shared their individual approaches to develop a robust and effective logistics SLA. Gartner aggregated their input to provide logistics professionals with a best-practice guide on how to build an SLA that improves outcomes and fosters long-term relationships.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Specify the Service That the 3PL Will Provide
  • Define the Period of Engagement
  • Align Performance Obligations to Key Performance Indicators
  • Agree on Responsibilities Around Physical Assets and Subcontracting
  • Outline the Terms of the Commercial Arrangement
  • Enable Change and Change Control Rights
  • Ask HR to Review Any Relevant Clauses in the SLA
  • Include the Terms of Terminating the Agreement
  • Incorporate Terms Around Competition and Assignment
  • Specify the Covenants that Apply to Your Organization

Evidence

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