An SLA, or service level agreement, is a written commitment that something will happen within a defined time. It has three parts that all have to be present: the thing being promised, the time window, and what happens if the window is missed. A commitment with no consequence attached is an intention, and gets treated as one.
In more detail
Small stores meet SLAs from two directions. Externally, they are what your 3PL, suppliers and carriers commit to, and what you commit to customers. Internally, they are the response times your own team works to.
The third part is the one that gets dropped. Most internal SLAs are written as the first two parts only, which produces a number everyone knows and nobody is accountable to. The consequence does not have to be punitive: an escalation path is a consequence, and usually the right one.
An SLA you cannot meet is worse than no SLA, because it converts a vague expectation into a specific broken promise. Set one you hit comfortably, then tighten it.
The three parts
| Part | Example | What breaks without it |
|---|---|---|
| The promise | Flagged orders get reviewed | Nobody knows what was committed to |
| The window | Within 2 working hours | Everyone assumes a different speed |
| The consequence | Escalates to the manager | It becomes a target and is treated as one |
Where people get it wrong
- Writing the time without the consequence. That is a target, not an agreement.
- Measuring in calendar hours when you do not work at weekends, which makes every Monday look like a failure.
- Setting it aspirationally. An SLA is a floor you commit to, not a stretch goal.
- Never checking it. An SLA nobody measures is a sentence in a document.
Internal SLAs worth having
Most small stores need very few. The ones that earn their place are on events where delay has a measurable cost: reviewing a flagged order before it ships, dispatching against your stated promise, and first reply to a customer enquiry.
Beyond a handful, none of them gets watched, and an unwatched SLA is indistinguishable from not having one. Start with the smallest set you would genuinely check every week, and add only when one proves useful.
Common questions
What makes an SLA different from a target?
The consequence. An SLA states what happens when the window is missed, usually an escalation. Without that it is a target, and targets are treated as aspirations.
Should a small store have internal SLAs?
A few, on the things where delay actually costs something: response to a flagged order, dispatch time, reply to a customer enquiry. More than a handful and none of them gets watched.
How should SLA time be measured?
In working hours, against your own stated commitments. Calendar-hour measurement generates false failures for any store that does not operate at weekends.