Service Level Agreement (SLA)

A service level agreement (SLA) is a contractual agreement between a service provider and a customer, which defines the level of service that the provider is expected to deliver. It sets out the metrics that will be used to measure the provider’s performance, and the consequences if the service falls short of the agreed-upon standards. In the context of shipping, an SLA may specify transit times, delivery windows, and other service requirements that the shipping carrier must meet.