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An SLA-based performance monitoring mechanism for 3PL business process

: Qi, Fangzhong; Zhou, Gengui; Holtkamp, Bernhard

Journal of residuals science & technology 13 (2016), Nr.6, S.51.1-51.6
ISSN: 1544-8053
ISSN: 2376-578X
Fraunhofer ISST ()
web service; quality of service; Service Level Agreement; third party logistic

Asymmetric information between logistics service demanders and logistics service providers may lead to poor service or high service price, and thus cause losses for logistics service demanders. However, a logistics contract is difficult to monitor as a service process in real time. In this paper, SLA management is introduced into business process management of third-party logistics services. Measurement methods for SLA metrics in logistics are analyzed and a monitoring mechanism is proposed as a control program whose main task is to realize the instantiation of SLA metrics. The mechanism is demonstrated by a typical transportation service process of a third party logistics service provider. The measurement process of an SLA metric is then described in detail and the compliance of the logistics SLA is also analyzed and discussed. In the end, the delivery process of a logistics SLA report is given. The proposed monitoring mechanism is an effective method for the monitoring of service level parameters to deliver a proper level of logistics service based on customer requirements. Quality of service can be monitored in real time.