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When a customer and a supplier agree to do business, it is important to define expectations. This is the purpose of a Service Level Agreement (SLA). A SLA is a contract between a supplier and a customer who defines the minimally acceptable level of the delivered service.
This Agreement may be a formal negotiated contract or an informal understanding of between two parties. Some are extensive arrangements that contain many power metrics while other simple one-term measurements are.
In its most fundamental form, a service-level agreement attaches a minimum performance level, which the customer obliges to obtain, maintain, and the supplier agrees to that.
If you have delivered a pizza every Friday night from the same delivery to your home, you may have an implied SLA with this person. You pass a generous tip to deliver the pizza hot, and a less generous tip when he arrives cold. If it comes to cold too often, the SLA will be canceled and you move your business to a rival pizza place.
In this simple example, the key elements of a Service Level Agreement are:
If you subscribe to cable TV, you have a more complex SLA. It covers more than one item and is a formal written document enforceable in a court.
In contrast to the agreement with their pizza delivery, the SLA was not negotiable with the cable company. The cable provider published them as part of his terms and conditions. Your only alternative is to log in with another cable provider, provided that an alternative is available.Among other things, this SLA is the availability of cable service, the time in which the cable company must respond to requests for information or services, and the time in which the company has to repair or replace defective equipment. The SLA sets penalties to the cable company if he does not meet the conditions of part of the SLA. For example, if no cable channel is available more than four hours in one day, your account can be credited to the costs of a total daily service.
An proactive customer may complain about a SLA injury, and some companies can react with a bonus, eg. B. a credit balance for a complete service. This is a customer satisfaction practice, no part of the SLA.
A SLA attaches minimum, but the provider is always free to exceed the minimum. The buyer has the right to enforce the SLA penalties in full trains (or not to be communicated).
A more complex SLA can specify the responsibilities for both parties in the agreement.For example, we say that the company X signs a Service Level Agreement with the company Z. Companies X, undertakes to host a website for company z on Company X server. The two companies are negotiating, which will fall from the agreement how long the agreement will come into force how much company z will pay for the service on the level specified in the SLA and what the penalties will be when the company does not deliver x In accordance with the SLA.
The agreement can specify that the company's website will be 99% of the time available to a minimum.(The company could have received availability of 99.9% at a higher price.) The SLA also states that the company can process x 2,000 orders per minute and that the screen detection of an order does not last longer than three seconds.
Company X is appropriate to provide contacts for the Company Z to contact us at any time with which the website is not available. The SLA also contains an escalation path up to the CTO of X, if service breakdowns are not resolved within the specified time frame.Finally, the SLA indicates that financial sanctions are determined X. The company Z must, if the SLA is not met. The penalties differ for the availability measurement and for the two order settlement measures.
A service level agreement enables the provider and a buyer to make a minimum of customer satisfaction. There are the basic requirements and the options that the buyer has when the SLA is not satisfied. If certain standards and behaviors are important to the part of a supplier for the success of your company, take into account a service-level agreement to minimize the risk of your company.
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