The idea of a fourth supplier (4PL) was originally characterized by Andersen Consulting (now Accenture) as an integrator that brings together the assets, organization of the skills and innovations of its own association and various associations of configuration, construction and operation of branch network agreements. Although an external logistics service provider (3PL) focuses on individual capacity, a 4PL aims to manage the entire process. Some have presented a 4PL as a general temporary worker who monitors different 3PLs, truckers, transporters, custom house operators and others, in fact assume responsibility for a whole procedure for the customer. There are many other KPIs that can be added to this basic SLA agreement. The more KPIs there are, the more difficult the negotiation process is. It can take months for a complex SLA/KPI document to be negotiated while you go back and forth with your logistics provider, so that the document becomes a “win-win” for both parties. After the ALS/KPI is a document approved by both the customer and the logistics provider, this document and its contents must first be audited monthly and then quarterly. Both parties will know how the partnership will develop if the objectives of the SLA/KPI document are achieved. Without SLA/KPI, there is no way to measure the performance of both parties. Don`t be surprised if a logistics provider doesn`t jump on an ALS/KPI with a “Let It Happen” statement. Always use some kind of basic ALS/KPI to protect yourself while you relocate your logistics department.
The service level agreement should be detailed with key performance indicators (KPIs). These KPIs differ for each customer service provider agreement. Negotiations on these agreements can take three (3) to six (6) months, depending on their complexity. Each team member must submit their specific requirements for measuring the service/logistics provider while you are doing business with them. To be effective, an agreement on the level of service must include two sets of elements: service elements and management elements. Service elements clarify services for example.B.: Disposal`s Logistics service has as its basic capacity to reduce logistics costs and improve the services identified with the transfer of waste generated in the course of running a business.