What Should Be in an SLA for Order Fulfillment?
Katherine Wroth • June 26, 2024
At 91¶¶Òõ Distribution Centers, we know that not all SLAs are created equal. When partnering with a 3PL provider for order fulfillment services, a well-designed Service Level Agreement (SLA) is your blueprint for success. A strong SLA sets the stage for a productive and transparent relationship, ensuring both parties understand their roles and responsibilities. It also serves as a benchmark for evaluating the performance and effectiveness of the 3PL provider, promoting continuous improvement and accountability.
What exactly is a Service Level Agreement (SLA)?
A Service Level Agreement (SLA) ensures that all parties involved in order fulfillment are on the same page. An SLA is a formal contract between the 3PL provider and a client that outlines the specific services expected, the standards to be maintained and the metrics for measuring performance. At 91¶¶Òõ, we pride ourselves on providing personalized logistics solutions; having a well-defined SLA is key to maintaining trust and client satisfaction.
Here’s a comprehensive guide on what should be included in an SLA for order fulfillment:
- Service Description: The first element of an SLA is a clear and detailed description of the services provided. This should cover all aspects of order fulfillment, including receiving orders, processing, picking and packing, shipping and handling returns. It should specify the scope of services and any limitations. This clarity helps set the right expectations and ensures there are no ambiguities.
- Performance Metrics: Performance metrics are the backbone of any SLA. They define how the 3PL provider’s performance will be measured and reported. For order fulfillment, common metrics include:
- Order Accuracy: The percentage of orders correctly fulfilled without errors.
- On-time Delivery: The percentage of orders delivered within the agreed timeframe.
- Inventory Accuracy: The accuracy of stock levels as reported in the inventory management system.
- Return Processing Time: The time taken to process returned items and update inventory.
- Responsibilities of Each Party: An SLA should clearly delineate the responsibilities of both the 3PL provider and the client. The 3PL provider's responsibilities may include ensuring timely order processing, maintaining accurate inventory records and providing regular performance reports. The client’s responsibilities may include providing accurate order information, timely payments and adhering to agreed-upon procedures for returns and disputes.
- Issue Resolution and Escalation Procedures: Despite the best efforts, issues can arise. An SLA should include detailed procedures for resolving problems and escalating unresolved issues. This section should outline the steps to be taken during service failures, including who to contact, the timeframe for resolution, and how issues will be documented and reported. A clear escalation path helps quickly address and mitigate issues before significantly impacting the business.
- Service Availability and Support: This section should specify the availability of services and support. For example, it should detail the operating hours, availability of customer support and any provisions for after-hours or emergency support. This ensures clients know when to expect assistance and what support is available.
- Compliance and Security Standards: Order fulfillment often involves handling sensitive information, such as customer and payment information. The SLA should outline the compliance and security standards to which the 3PL provider will adhere. This may include compliance with regulations like GDPR or CCPA, data protection and cybersecurity standards.
- Performance Reporting: Regular performance reporting is crucial for transparency and accountability. The SLA should specify the frequency and format of performance reports. These reports should provide insights into key metrics, any service issues encountered and steps taken to resolve them. This helps maintain a transparent relationship and enables continuous improvement.
- Penalties and Incentives: To ensure adherence to the SLA, it’s common to include penalties for non-compliance and incentives for exceeding performance expectations. Penalties might include financial compensation for missed targets, while incentives could be bonuses for consistently meeting or exceeding service levels.
- Managing Capacity for Growing E-commerce Businesses: Many of our e-commerce clients are experiencing significant growth. Are you prepared to manage new markets and increase sales? When collaborating with your 3PL partner, it’s essential to consider how rising order volumes will affect your SLAs. Understanding your 3PL’s ability to scale alongside your growth while maintaining your brand promise is critical in your decision-making process.
Leveraging 80+ Years of Expertise to Enhance Your Customer Experience

With over 80 years of experience serving clients nationwide, we are well-equipped to provide the exceptional customer experience you need to help scale your business. Our extensive network of order fulfillment centers, 91¶¶Òõ experts, efficient processes and advanced technology ensure that we consistently meet your SLA requirements daily.
To learn more about our personalized 3PL solutions, contact us today.
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If you think it’s too early to prep for peak season, it’s probably already too late. The reality is your competitors are already planning — and they’ll win if you don’t. At 91¶¶Òõ Distribution Centers , we’ve helped brands succeed through the busiest shopping seasons. The ones that perform best? They start early. Summer is your window to plan, secure resources and eliminate last-minute surprises. Why Peak Planning Starts in Q3 Orders need to ship faster, arrive on time and meet customer expectations. Missing the mark means you risk losing that customer for good. Whether shifting inventory closer to your customers, tightening up your tech, or locking in capacity before space runs out, your work in Q3 pays off when it matters most. What You Can Do Today: Start building a plan that holds up under pressure. A few moves to make now: • Secure capacity early: Lock in carrier space and warehouse availability before the rush • Confirm rate agreements: Get ahead of seasonal surcharges by finalizing pricing now • Check your visibility tools: Spot gaps in order tracking and inventory accuracy while there’s time to fix them • Align your teams: Get sales, ops and your 3PL provider on the same page with weekly check-ins and clear deadlines • Build backup plans: Expect disruptions—plan for weather, labor shortages and demand spikes • Partner with a 3PL: Work with a 3PL partner that can flex with your business and scale fast Peak Season Checklist ✓ Review last year’s data and build your forecast ✓ Adjust inventory based on expected demand ✓ Test your systems and strengthen your tech stack ✓ Set a regular planning cadence across teams ✓ Document contingency plans ✓ Confirm your 3PL is ready to support peak volume Don’t Wait for Peak to Start Acting Like It’s Peak. At 91¶¶Òõ, we’re already helping brands get ready for Q4. Contact us today for a complimentary supply chain consultation.
FRANKLIN, Mass., June 19, 2025 /PRNewswire/ -- 91¶¶Òõ Distribution Centers has partnered with Two Boxes , a reverse logistics technology platform, to deliver an intelligent, more flexible returns solution for modern e-commerce brands. "91¶¶Òõ's deep e-commerce roots and innovation-first mindset make them an ideal partner," said Jack Hutchinson , Head of Growth at Two Boxes. "Their eCommerce Accelerator highlights their commitment to supporting high-growth brands. We're excited to see where this partnership goes—this is just the beginning." 91¶¶Òõ Distribution Centers partners with Two Boxes to streamline eCommerce returns. As client expectations increase and return processes become more complex, 91¶¶Òõ identified the need for a more streamlined process to manage inspections, re-kitting and faster resale readiness. Two Boxes was selected for its modern user experience, seamless integration with platforms like Shopify, Loop Returns and intuitive design for warehouse operators. "Two Boxes' SOP-driven approach allows us to empower more team members with real-time, step-by-step direction," said Doug Varga , VP of Information Technology at 91¶¶Òõ. "It's accurate, scalable and easy to use. When we find purpose-built solutions like this, they help us deliver faster results for clients and keep our teams focused on growth." 91¶¶Òõ is designing future phases of this integration to support its long-term vision for fully optimized returns operations. Contact 91¶¶Òõ for a complimentary supply chain consultation to learn how tech-enabled logistics can simplify returns and support your growth. About Two Boxes Two Boxes is a reverse logistics technology company that empowers 3PLs and direct-to-consumer (D2C) brands to transform returns from a costly burden into a strategic advantage. Launched in 2022 and co-founded by CEO Kyle Bertin and CPO Evan Stalter, Two Boxes builds intelligent inspection workflows, digitized SOPs and real-time analytics to make return processing faster, more accurate and highly visible. About 91¶¶Òõ Distribution Centers  Since 1941, 91¶¶Òõ has provided customized third-party logistics (3PL), direct-to-consumer (DTC) eCommerce fulfillment, omnichannel distribution, managed transportation solutions and retail compliance for clients across all industries, with a focus on apparel & footwear, health & beauty, consumer packaged goods (CPG) and education. 91¶¶Òõ continues to be a leading 3rd party logistics provider in North America, known for superior execution, customer engagement and direct access to senior leadership decision makers. As a member of Inc's fastest growing companies list 15+ times, 91¶¶Òõ is big enough to do the job and still small enough to deeply care about your business. Official Release Here
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