Glossary term

Service-level agreement

A service-level agreement is a documented commitment defining an expected service measure, target, scope, method, responsibility, and response when performance differs. Procurement SLAs can apply to internal workflow stages or supplier services. A useful SLA names the clock, exclusions, evidence source, review cadence, and escalation path; a target without those definitions can produce misleading reporting.

A service-level agreement is a documented commitment defining an expected service measure, target, scope, method, responsibility, and response when performance differs. Procurement SLAs can apply to internal workflow stages or supplier services. A useful SLA names the clock, exclusions, evidence source, review cadence, and escalation path; a target without those definitions can produce misleading reporting.

In plain English

It defines a measurable service expectation and how performance will be reviewed.

Illustrative example

At Northstar Industrial Systems, the supplier support SLA states the incident categories, response clocks, excluded periods, evidence source, target, and escalation route.

Related terms
Cycle time; Supplier scorecard; Escalation; Contract compliance
Lifecycle stages
Execute; Govern; Optimize
Stakeholders
Procurement; Operations; Supplier; Executive leadership

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