Service levels need to be monitored in real time to avoid degradation in service quality and customer goodwill. A number of software providers offer tools that connect to the service provider’s computers (and the enterprise customer’s) that measure performance against the contractual specifications.
SLM tools are increasingly important for end-to-end supply chain management to identify bottlenecks in processes that may traverse an in-house user, an external service provider and another in-house user.
Service level agreements require “service level management” (“SLM”) to compare actual performance to the mandates of the contract. SLM software and services are available to facilitate effective management of individual outsourcing contracts.
In-Sourcing vs. Outsourcing
SLM tools enable procurement department managers to resolve the Sourcing Dilemma.
Service Catalogs
When combined in a concerted management process of managing all SLA’s of all service providers across all relevant service “silos,” SLM can be used as an effective tool for creating a catalogue of services and service levels that an enterprise offers to its departments internally and its customers externally.
Supply Chain Management
SLM methodology applies to all services capable of being measured against defined performance criteria. SLM therefore supports an enterprise in the marketplace by beyond merely enabling it to ensure compliance by its suppliers with contractual service levels. In the hands of an enterprise customer that sees its supplier’s services as integrated with its own and that may “private-label” its services with those of outsourcers under a “OEM” (original equipment manufacturer) product development strategy, SLM tools empower the global enterprise to expand its services, broaden its markets, gain market share in ancillary markets without investment in capital, technology or personnel.