Service Levels Agreements
- SLA performance: Productiv will track and perform to the below SLAs.
- Dock to Stock time will be less than 48 hours (2 business days) for each inbound shipment. Productiv will notify Client of any exceptions within 48 business hours.
- Cycle Count accuracy will be 99.0%. Productiv will perform cycle counts monthly at Productiv’s expense to maintain inventory accuracy. Productiv will count at least 2% of the locations occupied by the client in the warehouse with the goal of completing all location once per year. For avoidance of doubt, there is a product shrinkage allowance equal to 1.0% of the value of total Client inventory received (at replacement cost). Shrinkage is the difference between recorded inventory on Productiv WMS and actual physical inventory in the warehouse, due to loss, theft, or damage while at Warehouse Facility conducted annually and which will include the cumulative changes from the monthly cycle counts. Productiv will use the inbound paperwork during receiving as the basis for the recorded inventory into the WMS. Shrinkage does not include product never received by Productiv, product spoiled in transit, product in the warehouse but with expired shelf life, of product lost due to a Force Majeure Event. Productiv will track Cycle Count results when performing Cycle Counts, or when a discrepancy is noticed at picking. Productiv will perform an annual physical inventory invoiced at $35/hour that the shrinkage calculation will be based upon.
- On-time fulfillment will be 99.0%. This KPI is calculated monthly as: number of Client orders received and fulfilled “on time” divided by total number of Client orders received. B2C Orders received each day before the cut-off time are fulfilled “on time” only if they are prepared, ready to ship, and staged for carrier pickup the same day. Orders received after the cut-off time are fulfilled “on time” if they are prepared, ready to ship, and staged for carrier the next day. Cut-off time for same-day order processing is 12:00PM local for the Warehouse Facility. B2B orders received each day before the cut-off time are fulfilled “on time” only if they are prepared, ready to ship, and handed off to carrier within 5 business days. Cancelled or changed orders will be excluded from such calculations.
- Fulfillment accuracy will be 99.0%. This KPI is calculated monthly as: number of “accurately fulfilled” Client orders in the previous month divided by total number of Client orders shipped in the previous month. An order is considered “accurately fulfilled” if no complaints are reported by the Client for 1 month following the fulfillment date of the order. Productiv will re-fulfill inaccurate orders for no additional pick and pack charge. Productiv has one week from Client complaint date to investigate and provide documentation to refute complaint.
- Program Management Response Time: Productiv designated account manager will respond to inquiries within 2 business hours though Client recognizes that account manager may be in warehouse performing Warehouse Services at certain times and in those cases, will respond upon return.
- Reporting, QBRs and Peak Season Planning: Productiv and Client will schedule a QBR to review SLA performance.