Operations Service Level Agreement (SLA) with Logistics

Between [Your Company Name] and Logistics Partner

Effective Date: [Month, Day, Year]

This Service Level Agreement (SLA) is made by and between [Your Company Name] (hereinafter referred to as "Client") and [Logistics Partner Name] (hereinafter referred to as "Service Provider") to define the quality and performance criteria for logistics services provided.

1. Service Scope

The Service Provider agrees to provide logistics services, including transportation, warehousing, and inventory management, to support the Client's operations as per the terms and conditions stated herein.

2. Service Performance Metrics

The Service Provider's performance will be assessed based on the following metrics:

Delivery Accuracy: 98% of all orders must be delivered to the correct location within the agreed timeframe.
Damage Rate: Less than 1% of delivered items should be damaged or defective upon arrival.
Order Fulfillment Time: 95% of all orders must be dispatched from the warehouse within 24 hours of order placement.
Customer Service Response Time: Customer inquiries must receive a response within 4 business hours.

3. Reporting and Review

Monthly Reports: The Service Provider will submit detailed performance reports by the 5th of each month, covering the previous month's activities.
Quarterly Reviews: The Client and Service Provider will conduct quarterly performance reviews to assess service levels and identify improvement areas.

4. Remedies for Non-Performance

Failure to meet the agreed performance metrics will result in the following remedies:

Credit System: The Service Provider will issue credits to the Client for future services based on the severity and frequency of service level failures.
Performance Improvement Plan: For repeated failures, the Service Provider will submit a performance improvement plan detailing the actions to be taken to address deficiencies.

5. Term and Termination

5.1 Term

This Service Level Agreement will commence on [Month, Day, Year] and will remain in full force and effect for a period of [Term, e.g., 12 months], unless extended by mutual written agreement of both parties or terminated earlier in accordance with the provisions of this SLA.

5.2 Termination for Cause

Either party may terminate this agreement with immediate effect by delivering written notice to the other party, if:

The other party commits a material breach of any of its obligations under this SLA which is not remedied within [Number of Days] days after receiving written notice of such breach.
The other party becomes insolvent, declares bankruptcy, is dissolved or liquidated, or takes any corporate action towards its dissolution or liquidation.

5.3 Termination for Convenience

Either party may terminate this agreement for any reason upon providing [Notice Period, e.g., 30 days'] written notice to the other party.

5.4 Effects of Termination

Upon termination or expiration of this SLA, the Service Provider shall return all Client data, documents, and materials of any nature that are in its possession or control. Any provisions of this SLA that by their nature should survive termination will remain in effect after termination, including, but not limited to, confidentiality obligations and limitation of liability.

6. Confidentiality

6.1 Obligation of Confidentiality

Each party agrees to retain in confidence all information and data relating to the other party's products, business affairs, marketing and promotion plans or other operations and its associated companies that are disclosed during the performance of this SLA, and to use such information only for the purposes of performing under this SLA.

6.2 Exceptions

The confidentiality obligations set forth herein shall not apply to any information that:

Is or becomes publicly known through no act or omission of the receiving party;
Was in the receiving party's lawful possession prior to the disclosure;
Is lawfully disclosed to the receiving party by a third party without restriction on disclosure;
Is independently developed by the receiving party.

6.3 Return of Confidential Information

Upon the termination of this SLA, each party shall return or destroy all confidential information of the other party, and certify to the other party its compliance with this provision.

7. Limitation of Liability

7.1 Limitation on Direct Damages

Except for breaches of confidentiality or obligations under the Intellectual Property Rights, neither party shall be liable to the other for any indirect, special, incidental, or consequential damages arising out of or related to this SLA, even if the party has been advised of the possibility of such damages.

7.2 Cap on Liability

In no event shall the Service Provider's aggregate liability exceed the total amount actually paid by the Client to the Service Provider under this SLA during the twelve (12) months prior to the claim.

8. Governing Law and Dispute Resolution

8.1 Governing Law

This SLA and any disputes arising out of or related hereto shall be governed by and construed in accordance with the laws of [Jurisdiction], without giving effect to any choice or conflict of law provision or rule.

8.2 Dispute Resolution

Any disputes between the parties related to this SLA shall be resolved first through good faith negotiations. If the dispute cannot be resolved through negotiation, the parties agree to submit the dispute to binding arbitration under the rules of [Arbitration Association] in [Location]. The decision of the arbitrator shall be final and binding on the parties.

9. Signatures

This SLA is entered into and becomes effective as of the Effective Date by and between the Client and the Service Provider. By signing below, the duly authorized representatives of the Client and the Service Provider agree to the terms and conditions outlined in this SLA.

[Your Company Name]:

Signature:

Name: [Your Name]

Title: [Job Title]

Date: [Month, Day, Year]

[Logistics Partner Name]:

Signature:

Name: [Name]

Title: [Job Title]

Date: [Month, Day, Year]