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Re: RE: Third Party Logistics (3PL)
Dwight,
A contract is not worth what the are written either then. Anything can be
argued by lawyers, there are just way to many of them that have nothing else
to do. If your SLA is part of your contract with the 3PL, it provides you
an out. If you SLA is just an agreement not referenced in your contract
term then it may be worth nothing. Though it still gives you something to
measure the 3PL or as a 3PL your customer.
As far as your 7.2 hour, I hope your company has develop some contingency to
ensure if this happens. Like I think I referenced in my original mail,
issues will come up your goal should be to understand them and limit you
exposure to them. If you have no SLA or no understanding of what a vendors
performance needs to be then I wish you the best of luck. I can't imagine
your software support contract or VAN contracts do not mentions some service
level expectations.
Most of the time 3PL contracts will not go deep enough into the IT functions
the 3PL performing and put performance metrics on against them. My cautions
to folks is to make sure you look at what you are asking them to do and
ensure that this new extension of you company lives up to the standards of
the rest of your company.
John
----- Original Message -----
From: "Dwight Andrews" <
To: <
Sent: Tuesday, December 30, 2003 10:39 PM
Subject: RE: RE: [EDI-L] Third Party Logistics (3PL)
> Ahhhhh....
>
> SLA's. Are they worth the paper they are written on. If you agree that
> there are approximatly 720 hours in a month, a network that is up 99% of
the
> time still has 7.2 hours of downtime each month. Most EDI networks (and
> private companies) take their networks down for weekly maintenance for a
> number of hours. So, most networks (private and public) could not meet
that
> standard. There are of course exceptions.
>
> Now, assuming that the 7.2 hours that are allowed each month happens to
> occur during a time when your company needs to provide "big retailer" with
> 856's or be penalized. What good is your SLA?
>
> Next issue with SLA's is one that Jim raises below. All you need is a
bunch
> of lawyers fighting over what is downtime and what is not. If you connect
> to a trading partner via AS2 and their AS2 software or hardware has an
> issue, but dial-up communication is still available, is that an outage?
>
> Could go on and on....
>
> Just my 2 cents.....
>
> Dwight
>
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