What is a service level agreement (SLA)?

A service level agreement (SLA) is fundamentally a contract that establishes the expected level of service between a service provider and a client. It outlines specific metrics for service delivery, including criteria such as quality, availability, and responsibilities. By clearly defining what services will be provided and the standards that need to be met, SLAs help ensure accountability and transparency in the relationship between parties.

This contractual element is essential for managing expectations and facilitating communication regarding both service delivery and any potential issues that may arise. It serves as a reference point for both parties, which can help in dispute resolution and performance monitoring. In this way, SLAs are critical components of managing supply chain relationships and ensuring that both procurement and service delivery meet ethical and operational standards.

Other options describe different types of agreements or reports that do not capture the specific features and formal nature of SLAs. For example, a guideline for employee behavior is more about internal policies rather than a contractual agreement with defined service parameters. Similarly, a report on service performance may summarize how well services have been delivered but lacks the proactive, contractual nature of an SLA. An informal agreement between employees doesn't encompass the formalities and specificities inherent to SLAs, which are typically legally binding documents between organizations.