The Logistics Service Level Agreement serves as a crucial document for businesses operating in Indonesia's logistics sector, establishing clear performance metrics and service standards between logistics service providers and their clients. This agreement type is essential when companies need to formalize their logistics arrangements and ensure consistent service quality in accordance with Indonesian regulations. The document addresses key aspects of logistics operations including transportation, warehousing, delivery schedules, and performance measurements, while incorporating relevant Indonesian legal requirements such as those from Law No. 38/2009 on Postal Services and Minister of Transportation regulations. It's particularly relevant in today's fast-paced business environment where reliable logistics services are critical for business success, and where clear service level metrics need to be established and monitored.
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1. Parties: Identification of the logistics service provider and the customer, including their complete legal names, registration numbers, and addresses
2. Background: Context of the agreement, brief description of the parties' business relationship, and purpose of the SLA
3. Definitions: Detailed definitions of technical terms, industry-specific terminology, and key concepts used throughout the agreement
4. Scope of Services: Comprehensive description of logistics services to be provided, including transportation, warehousing, and handling requirements
5. Service Levels and KPIs: Specific, measurable performance metrics and standards that the service provider must meet
6. Operating Procedures: Detailed procedures for day-to-day operations, including ordering, delivery, tracking, and reporting
7. Pricing and Payment Terms: Service fees, payment schedule, invoicing procedures, and any variable cost components
8. Term and Termination: Duration of the agreement, renewal terms, and conditions for termination
9. Liability and Insurance: Allocation of risks, liability limitations, and required insurance coverage
10. Confidentiality: Protection of confidential information and trade secrets
11. Force Majeure: Circumstances beyond parties' control and their impact on service obligations
12. Dispute Resolution: Procedures for handling disputes, including jurisdiction and governing law provisions
13. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment rights
1. Customs and International Shipping: Include when services involve cross-border logistics operations
2. Dangerous Goods Handling: Include when transportation of hazardous materials is part of the services
3. Temperature-Controlled Logistics: Include for cold chain or temperature-sensitive cargo handling
4. Value-Added Services: Include when additional services like packaging, labeling, or assembly are provided
5. IT Systems and Integration: Include when specific technology platforms or system integration is required
6. Sustainability Requirements: Include when environmental compliance and sustainable practices are key requirements
7. Security Requirements: Include when handling high-value or sensitive cargo requiring special security measures
8. Subcontracting: Include when the service provider may need to engage third-party service providers
1. Schedule A - Service Specifications: Detailed technical specifications of all logistics services
2. Schedule B - Key Performance Indicators: Comprehensive list of KPIs, measurement methods, and reporting requirements
3. Schedule C - Pricing Schedule: Detailed breakdown of all fees, charges, and pricing mechanisms
4. Schedule D - Operating Locations: List of warehouses, distribution centers, and service coverage areas
5. Schedule E - Equipment and Resources: Specifications of vehicles, handling equipment, and other resources
6. Schedule F - Contact Details: Key personnel and escalation matrix for both parties
7. Schedule G - Standard Operating Procedures: Detailed operational procedures and workflows
8. Schedule H - Service Level Credits: Calculation and application of penalties for service level failures
9. Appendix 1 - Insurance Requirements: Detailed insurance coverage requirements and minimum limits
10. Appendix 2 - Compliance Requirements: Specific regulatory and compliance requirements applicable to the services
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