Speaker 1: Welcome to the learning channel let's talk procurement and today our episode number is 27. In this episode we will discuss about the SLA. SLA stand for the service level agreement which are draft between the client and the suppliers. Let's try to understand the definition of the SLA which is a part of any contract and it could be defined that the services or services provider will provide and the required level a standard of the those services. So these are known as a service agreement and it has been drawn between the client and the suppliers. So SLA developed at the stage as a part of the contract documentation if you talk about the 13 13 stage of the procurement cycle this is exactly the part of the SLA which has been created or developed during the contract documentation when the buyer is going to draft the contract and agreed with any suppliers to provide the services. It is required to have a better understanding what is required and how it will be monitored and when they required and what kind of services will be required and what are the KPI of these services. So on base of that they will develop the mutual understanding. So to have the successful relationship and the completion of the project so client and suppliers are agreed on the certain SLA which has been drawn on the time of the documentation at the level of the contractual or the agreement point. After that they monitor closely and they review the SLA on certain period of time to see how it can be improved or how they can learn from the mistakes and how they can make the more progress in this one. So what are the components of the SLA or service level agreements it contain of the objective of the SLA what is the purpose of this service agreement why we are going to make an agreement what is required from the suppliers so they make a clear objective so they can if in case there is a dispute in the future so they can go back to the service agreement and discuss about this point. So description of the SLA what is required from the service provider to the suppliers so both are mutually agree on the certain services level and the quality and the certain period of time so validation of this service level so how they will execute the services in certain period of time so they clearly mention in the description. So what are the stakeholders involved in this SLA who are the stakeholders from the client level or buyer levels to the supplier side so supplier will assign their stakeholders who will provide the services and they will be linked and they will be mentioned in this agreement on base of that they will have a execution or commencement processes. The fourth is outline of the scope of the SLA what are the scope they will decide they will define the scope how they are going to meet the agreement how they will provide the services and what will the charges will be given to the suppliers on base of the services and duration of the SLA is very understandable that if they're going to make any agreements between the client and the suppliers they will decide the period of time for the year or for the three month or six month so this will be the duration of the SLA. So service management provision and premature terminations still they have the rights between the suppliers or the clients that they can go to terminate this service agreement on base of the failure in the services or the failure of the payment from the client side the both have this opportunity because this is not a legal agreement which could be disputed in the court. So period of notice period so there is a notice period for all the agreements of the contract which going to be signed between the client and suppliers so similarly the SLA also has this clause where they will give the notice period let's say it could be a one month or two month or three month notice period before going to terminate the services and they have to notify by official letter of official emails. So service scopes as we understand that if they're not meeting the scope of the services and this components play important role before going into the agreement or the contract so I hope you understand what is SLA and how it play the role in any organization between the buyer and the suppliers. So thank you for watching we have more more about about procurement and we will keep on