SLA (Service Level Agreement) is a formal document that defines the expected quality, timing, and responsibilities in a business relationship between a service provider and their client. Think of it as a promise or guarantee about service performance. For example, a company might promise to deliver products within 24 hours or resolve customer issues within 4 hours. In supply chain and consulting roles, professionals often work with SLAs to ensure suppliers and partners meet agreed-upon standards. Similar terms include Performance Agreements, Service Contracts, or Operating Level Agreements.
Developed and monitored SLA compliance for major retail clients
Improved SLA performance from 85% to 98% across distribution network
Negotiated SLA terms with international logistics providers
Managed team performance against Service Level Agreement metrics
Typical job title: "Supply Chain Consultants"
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Q: How would you develop and implement a new SLA framework for a global supply chain operation?
Expected Answer: A strong answer should include discussing stakeholder consultation, setting realistic performance targets, considering regional differences, monitoring systems, and implementation strategies. They should mention experience with similar projects.
Q: How do you handle situations where SLA targets are consistently being missed?
Expected Answer: Should demonstrate problem-solving approach: analyzing root causes, developing action plans, engaging with stakeholders, implementing corrective measures, and monitoring improvements. Should provide specific examples from experience.
Q: What key metrics would you include in a supply chain SLA?
Expected Answer: Should mention delivery time, order accuracy, inventory levels, response times, quality standards, and cost targets. Should explain why these metrics matter to business performance.
Q: How do you monitor and report SLA compliance?
Expected Answer: Should discuss tracking systems, regular reporting methods, dashboard creation, stakeholder communications, and ways to present data clearly to different audiences.
Q: What is an SLA and why is it important in supply chain management?
Expected Answer: Should explain that SLAs are agreements that set performance expectations and explain how they help maintain service quality and accountability between partners.
Q: What actions would you take if you notice an SLA breach?
Expected Answer: Should describe basic problem-solving steps: documenting the issue, notifying relevant parties, investigating causes, and escalating when necessary.