ANNEX 4
附件 4
SERVICE LEVEL REQUIREMENTS (SLRs)
服務級別要求 (SLR)
In the event of an inconsistency between this Service Level Requirement and the body of the Agreement, the requirements set forth in this Service Level Requirement shall control.
如果本服務水準要求與協定正文不一致,應以本服務水準要求中規定的要求為準。
SLRs shall be deemed effective 30 days after outbound steady state which is defined as when Warehouse is processing the volumes as defined in this Annex 4. Warehouse and Depositor shall work in good faith to achieve desired SLR performance during the start-up period.
SLR 應在出庫穩定狀態后 30 天(定義為倉庫處理本附件 4 中定義的數量時)視為有效。Warehouse 和 Depositor 應真誠地工作,以在啟動期間實現理想的 SLR 性能。
SLRs apply for all orders that have complete address details, have stock available for their fulfilment, and have complete paperwork (e.g. Commercial Invoice for customs clearance purposes).
SLR 適用於具有完整地址詳情、有庫存可供配送且具有完整文書工作(例如用於清關目的的商業發票)的所有訂單。
SLRs will start measuring from the 1st day of orders fulfilment and shipping.
SLR 將從訂單配送和發貨的第 1 天開始測量。
In the event that Party B fails to meet certain SLRs within the first 2 months after initiating fulfilment and shipping, no penalties (Credits) will be issued by Party A towards Party B
如果 B 方在開始配送和發貨後的前 2 個月內未能滿足某些 SLR,則 A 方不會向 B 方發放罰款(信用額度).
In the event that Credits need to be requested for the stock differences/discrepancies, it will be issued by Party A upon completing the Yearly Stock Count (W2W) that has been approved by both Parties.
如果需要為庫存差異/差異申請積分,甲方將在完成雙方批准的年度庫存盤點 (W2W) 后發放積分。
Category | Receiving and put away timeliness |
SLR | 99.5% of Goods received and put-away within 24 hours excluding weekends and bank holidays |
Assumptions | Goods are compliant (i.e. in the sales unit of measure, properly labeled, no kitting or unit level inspection required); Complete electronic Advance Shipping Notice (ASN) received minimum 2 working days prior to physical delivery; Expected inbound volumes per the assumptions listed in Schedule 1 to Annex A; Depositor to provide monthly inbound forecast at least three business days prior to the first of each month. Depositor shall provide forecast updates, as required, throughout the month. Inbound activity not to exceed 125% of forecast. Forecast must specify day of delivery and number of pallets delivered on this day. Goods cannot be damaged. If goods are damaged that delivery is excluded from KPI. One BOX can include only one SKU and must be sealed properly. Each box must be marked properly or its receipt will be excluded from KPI. Delivery of goods must be coordinated between Parties. Truck must show up on time. In exceptional circumstances if the whole delivery cannot be received within 24h, it’s allowed that Party B will receive the delivery according to following schedule: a. SKU’s missing on stock, or SKU’s with low stock, or other urgent SKU’s indicated by Party A – to be received within 24h b. remaining SKU’s from the delivery – within 48h |
Calculation | Goods received on-time during period / Total Goods received during period. Receipt starts from the moment truck is unloaded. |
Calculation & Reporting Frequency | Monthly KPI will not be measured before first full shipping day. Otherwise it will not be effective. |
Calculation Example | During the month of January, Warehouse received 50,000 units of which 48,500 were received within a 24 business hour period. 48,500 / 50,000 = 97% received on-time |
Damages | In the event Warehouse fails to meet this SLR and Depositor incurs additional costs because of Warehouse failure(s), Warehouse shall be responsible for Depositor’s reasonable costs including, but not limited to, increased shipping costs. Depositor shall request credit(s) within 30 days of service failure and Warehouse shall credit Depositor for undisputed claims within 30 days of Depositor’s written request. |
Category | Receiving and put away accuracy |
SLR | 99.5% of Goods shall be received accurately (system receipt matches physical receipt) |
Assumptions | Complete electronic Advance Shipping Notice (ASN) received prior to physical delivery; Expected inbound volumes per the assumptions listed in Schedule 1 to Annex A; Inbound quantity verification at the pallet or case unit of measure. Warehouse is not required to open every master case and verify unit count; All boxes must be marked and sealed properly. Any box can contain only one SKU. Delivery cannot be damaged. No vendor concealed shortage. To provide KTJ unified date form of inbound list with same classification 3 days in advance. |
Calculation | Goods received accurately during period / Total Goods received during period |
Calculation & Reporting Frequency | Monthly |
Calculation Example | During a standard cycle count, Warehouse identifies a storage location is physically short 500 units compared to the system on-hand quantity. After researching the issue, Warehouse determines Goods were “over-received” on a system ASN two months prior. Assuming 74,000 units were received during the month in question and 500 units were over-received, the calculation would be as follows: 73,500 / 74,000 = 99.3% received and put-away accurately |
Damages | If Warehouse receiving accuracy falls below 99.5% in a calendar month, Warehouse will be liable for actual financial loss and/or damage to Goods. Depositor shall request credit(s) within 30 days of service failure and Warehouse shall credit Depositor for undisputed claims within 30 days of Depositor’s written request. Depositor shall not be required to provide written notice to cure to receive damages described herein. |
Category | Inventory Management (standard Goods & high-value Goods) |
SLR | 99.5% of Goods physically match the system on-hand quantity (By storage location) 99.8% of high-value Goods, as defined in Annex 4, physically match the system on-hand quantity |
Assumptions | Warehouse and Depositor to establish a formal daily cycle count program; Packing and printed material shall not be subject to the Inventory Management SLR; No vendor concealed shortage; Depositor is responsible for updating, in writing, the list of High Value Goods, as defined in Annex 4; Depositor shall provide, in writing and on a quarterly basis, updated cost of good information for all Goods. |
Calculation | Physical Inventory / System Inventory Physical Inventory = Actual physical on-hand inventory for a particular SKU at the beginning of the month, plus inventory of the same SKU received during the month, less inventory of the same SKU, shipped during the month System Inventory = The amount of inventory for a particular SKU, as reported by the system |
Calculation & Reporting Frequency | Monthly |
Calculation Example | Starting inventory of 4,000 units of 15ml peppermint at the beginning of a month; Depositor sends Warehouse 2,000 units of 15ml peppermint; Warehouse ships 1,749 units of 15ml peppermint; Based on cycle counts, Warehouse identifies a physical inventory shortage of 82 units. (4,000 + 2,000 – 1,749 – 82) / (4,000 + 2,000 – 1,749) = 98.07% |
Damages | Number of units below the SLR, by SKU, multiplied by the unit cost of goods Depositor shall request credit(s) within 30 days of service failure and Warehouse shall credit Depositor for undisputed claims within 30 days of Depositor’s written request. |
Category | Shipping on-time performance |
SLR | 99.8% of orders received by 10am Local time (“Order Cut-Off”) tendered to shipping carrier within same day Party B will be allowed a SLR of 99.3% in this category for only the first 2 months from the first shipping day. |
Assumptions | Goods are available to ship; Expected outbound volumes per the assumptions listed in Annex A; Depositor provides a monthly forecast with daily volume projections at least three days prior to the start of a new month. Depositor to update projections as needed; Volumes don’t exceed 120% of forecast; Depositor shall transmit 80% of daily order volume to Warehouse by 9am Local time. Remaining 20% of orders shall be transmitted in regular intervals to be determined by Depositor and Warehouse Only orders with complete correct address are included in KPI. Only orders with correct data transmission are included in KPI. Only orders with correct invoice on time are included in KPI in case of export. Big carton package, temporary set, pcs>7 per carton are exclude in KPI. dōTERRA ask to postpone shipping date are exclude in KPI. Activities are exclude in KPI. Orders more than 2,500/day are exclude in KPI. Any shortage of goods include consumable material, filler kraft paper, invoice are exclude in KPI. Force Majeure (include epidemic, power failure, internet failure etc that couldn’t controlled by KTJ) are exclude in KPI. Mechanic issue ( failure of invoice machine, filler kraft paper machine) are exclude in KPI. |
Calculation | Total Shipped Orders within 2 days / Total Orders Received before Order Cut-Off day. |
Calculation & Reporting Frequency | Monthly Whenever there is unexpected electricity break down this KPI is excluded. Which cannot occur more than 2 times per year, with maximum outage of 24h per occurrence |
Calculation Example | Warehouse receives 250,000 orders from Depositor in a particular month before the 10am cut-off. Warehouse tenders 249,000 shipments to carriers within 2 business day and 1,000 orders are not tendered within 2 business day. 249,000 / 250,000 = 99.6% |
Damages | Warehouse will reimburse Depositor for upgraded shipping, which is understood as express or overnight service, if required, for priority orders that fall below the 95% shipping SLR. Depositor shall request credit(s) within 30 days of service failure and Warehouse shall credit Depositor for undisputed claims within 30 days of Depositor’s written request. |
Category | Shipping accuracy |
SLR | Order accuracy of 99.7% or greater |
Assumptions | Warehouse and Depositor will track and attempt to validate reported errors when feasible, including: Depositor customer service tracking of complaints to identify potential abuse; Warehouse to cycle count specific SKUs in response to mis-shipment complaints; Warehouse to conduct parcel weight checks to validate reported errors. Force Majeure refer to contract 18 Excluding changing address, unable to contact receiver, no one at home, receiver reject, receiver ask for retrieve from station, national holidays, remote areas, offshore islands, special circumstances such as epidemics, etc. |
Calculation | Total outbound orders during period – Validated Errors / Total outbound orders during period |
Calculation & Reporting Frequency | Monthly |
Calculation Example | Depositor receives 3,218 validated order accuracy complaints in a calendar month in which Warehouse shipped 890,750 total units. 890,750 - 3,218 / 890,750 = 99.64% |
Damages | Should order accuracy fall below the SLR, Warehouse shall be responsible for reasonable costs incurred by Depositor, including lost Goods (at cost of goods), fulfillment fees and freight costs related to error rectification. Depositor shall request credit(s) within 30 days of service failure and Warehouse shall credit Depositor for undisputed claims within 30 days of Depositor’s written request. |