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
- 01
Parties
Who the agreement is between and what it covers.
- 02
Service levels
Measurable targets for fill rate, on-time-in-full delivery and lead times.
- 03
Substitutions
When the supplier may substitute an item, and what needs your approval.
- 04
Price freeze
How long prices are fixed, and the index-linked cap on any increase after that.
- 05
Service credits
Tiered credits when a target is missed.
- 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.
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
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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Free tools
Calculators and document builders for organisations that buy across many sites.
Runs in your browser
I. Spend & Leakage
II. Purchasing Documents
III. Inventory & Stock
IV. Governance & Controls
Free tools, no sign-up. Your figures are processed in your browser and are not uploaded to a server unless you ask us to email you a result. Results are estimates for planning and do not constitute financial, legal or tax advice.