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The Importance of Logistics SLA’s

LOGISTICS SERVICE LEVEL AGREEMENTS ARE ESSENTIAL TO MANAGING PERFORMANCE FOR LOGISTICS AND TRANSPORTATION PROVIDERS.

SLA’s outline the requirements service provider must meet for a customer.  Both parties can see if those provisions are being met. For example, if a retailer makes a promise of 24-hour delivery, this promise must be kept by the carriers. Key Performance Indicators (KPI’s) are core to managing SLA’s. KPI’s are the specific metrics to measure SLA performance. In transportation, common KPI’s used to measure performance include; shortages, on-time deliveries, damages, etc.

Logistics firms are challenged to capture the right data to make effective business decisions. However, ShipTrack provides solutions to better manage the various service types a logistics provider offers. Users can view which shipments are urgent, pick/up and delivery windows, and effective reporting for measurement.

Service Type Identification in Importance of Logistics SLA's

SERVICE TYPE IDENTIFICATION

ShipTrack uses colors to identify different service types. This provides dispatchers and drivers at-a-glance visibility of which deliveries are rush, same-day, next-day, etc. In other words, staff can easily see what is most urgent and can then prioritize their deliveries more effectively. Being able to identify which orders carry a higher priority supports better decision-making. Therefore, the ability to make key business decisions in the field results in more on-time deliveries.

ETA's in Importance of Logistics SLA's

ETA’S

ShipTrack can also set pickup and delivery thresholds for each service type. Rush deliveries may need to be picked up within an hour of creation and delivered within 24 hours. It is imperative that this SLA is met by the service provider. ShipTrack provides notifications to dispatcher and driver of a certain deadline for pickup, as well as for delivery. Therefore, as a pickup or delivery nears the threshold time, drivers and dispatchers are notified of any ETA change by color (green, to yellow, to red).

Performance Measurement in Importance of Logistics SLA's

PERFORMANCE MEASUREMENT

Capturing data/KPI’s for each shipment provides organizations with the ability to make key business decisions. The ShipTrack platform captures time, date, and GPS location of each update. This data generates reports for comparison of multiple carriers and drivers. ShipTrack users have the ability to view these reports on a daily to an annual basis. This data provides valuable insight into which carriers or drivers are delivering on-time.

Many logistics providers rely heavily on written SLA’s so that services for customers can be reviewed. This helps organizations make key business decisions and so improve overall performance.

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