Tracking Vendor Performance With Service Level Agreements
A vendor contract is an important document that defines the duties and responsibilities of both parties. But how do you make sure the vendor’s performance is consistent and meets your expectations?
Organizations generally use a few different terms when referring to a vendor’s performance. Key performance indicators (KPIs) are metrics that are defined by an organization and used to guide a vendor’s efficiency and success. Service level agreements (SLAs) establish firm, legally binding commitments between the organization and the vendor to provide a specified level of service.