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Supplier SLA Generator

Most supply agreements say “timely delivery” and “competitive pricing”, which can’t be measured or enforced. Build a schedule with measurable service levels, substitution rules, an index-linked price freeze and tiered service credits, and download it for your next negotiation.

  • Six-step wizard
  • Live preview
  • PDF + Word
  • No sign-up

Step by step

How to write a supplier SLA

  1. 01

    Parties

    Who the agreement is between and what it covers.

  2. 02

    Service levels

    Measurable targets for fill rate, on-time-in-full delivery and lead times.

  3. 03

    Substitutions

    When the supplier may substitute an item, and what needs your approval.

  4. 04

    Price freeze

    How long prices are fixed, and the index-linked cap on any increase after that.

  5. 05

    Service credits

    Tiered credits when a target is missed.

  6. 06

    Governance

    Whose records measure performance and how often it is reviewed. Then download the schedule as PDF or Word.

Method

What makes service levels enforceable

Each service level has a definition (what is counted), a target and a data source. Without all three, missed targets turn into arguments.

Price freezes need an end date, a named index for later adjustments, a cap and a notice period. Increases invoiced without notice are credited.

Service credits are tiered by how far performance falls short, added across measures and capped as a share of monthly spend.

Read the guide: Supplier SLAs: the service levels, price terms and credits a multi-site buyer should agree

From one site to every site

Agreeing an SLA is only half the work. You also have to measure it.

Bollard calculates every supplier’s fill rate, OTIF, lead time and price accuracy from real orders, receipts and invoices, by site, and shows the service credits you are owed under each agreement.

  • Supplier scorecards from real receipts
  • Price-freeze and cap enforcement on invoices
  • Service credits calculated each month
  • Evidence for supplier reviews
See Bollard in action

Questions

Frequently asked

What should a supplier SLA include?+

Measurable service levels (fill rate, on-time-in-full, lead time and price accuracy), rules for substitutions and shortages, how prices can change, service credits for missed targets, how performance is measured and reported, and what happens after persistent failure.

What is a good fill rate and OTIF target?+

For core foodservice and medical supply categories, buyers commonly ask for a fill rate of 97 to 99 percent and OTIF of 95 percent or more. Set targets your supplier can realistically meet, then use service credits to make misses cost something.

How does a price freeze with an escalation cap work?+

Prices are fixed for an initial period. After that they can move once a year in line with an agreed index, such as CPI or a commodity PPI, but never by more than the cap, and only with advance written notice. Decreases are passed on.

Are service credits enforceable?+

They are a common commercial mechanism, usually written as a pre-agreed price adjustment rather than a penalty, and capped as a share of monthly spend. Enforceability depends on your jurisdiction and contract, so have counsel review the draft.

Is this legal advice?+

No. It produces a well-structured draft for negotiation. Have your legal counsel review it before signing.

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