Complying with SLAs: Choose the Right e-Commerce Order Fulfillment System

Running an e-commerce business is not for the faint of heart. It’s easy to start, but difficult to master. Behind every clean storefront is a web of complex logistics that demands constant attention.

The best way to simplify this complexity? A solid Service Level Agreement (SLA).
An SLA cuts through the noise. It sets a clear, non-negotiable standard for what your customers can expect. Once those expectations are set, your operations team can stop guessing and start executing, ensuring you have the right resources in the right place to get the job done.

This blog explains the role of SLAs in managing e-commerce fulfillment system complexity and outlines how businesses can deploy them successfully.

What Is a Service Level Agreement (SLA) in e-Commerce Management and how does it work?

As the name suggests, a service level agreement or SLA outlines the details of the agreement between a customer and a supplier.  

For instance, if your e-commerce brand produces hand-illustrated t-shirts, there must be a supplier from whom you get the t-shirts. It can contain details like how many pieces you order monthly and at what unit price.  

Basically, the importance of SLA in e-commerce is that it clearly outlines what service you are providing to your customers and what standards they can expect from your company. 

There are two different types of SLAs — customer-focused and service-focused.  
1. Customer focused SLA 
Customer-focused SLAs can be altered and customized according to the requirements of the client. They are made-to-order and can include a lot of details. 

For instance, if your e-commerce brand provides something exclusive like bridal wear or customized art pieces, a customer-focused SLA can be the right option for you. The importance of SLA in e-commerce, particularly in this case, is that it allows you to set specific targets and incorporate custom performance standards for that specific project. 

2. Service focused SLA 
On the other hand, service-focused SLAs outline a blanket of services that are offered equally to all customers. It includes generic terms and conditions and cannot be altered for individual clients.

If your e-commerce brand creates consumer products like casual apparel or accessories, then you will be well suited for a service-focused SLA. It will allow you to keep things simple and set achievable targets for your own success. 

Importance of SLAs in E-Commerce Order Management Systems

One of the things that helps a business earn its customers’ trust is transparency. And that’s only logical. 
After all, your customers don’t come to your workplace or your factory to see how things are going. The only thing that they can see is the products that you list on your website. 

Still, this information is not sufficient to earn customer trust.
If you really want your customers to connect with your brand and start nurturing a community of users, a detailed SLA is a good place to start. Showing your customers that you stick to your words and to the promises that you make will go a long way in building trust. That is the importance of SLA in e-commerce Management. 

For example, if you promise express delivery in special cases, you need to ensure that the products are indeed delivered in express time.  

Now, because you’re an e-commerce brand, your customer SLA will include two main components — product quality and order fulfilment. The former will depend on your abilities. As for the latter, you can outsource that entirely to an e-commerce inventory management and order fulfilment service. 

Why Is It Important to Choose the Right Order Fulfillment Method?

Order fulfilment system includes everything that happens from the moment an order is placed till the moment the order is delivered to the customer.  

In most cases, the order will be sent to a warehouse based on the customer’s location. The product inventory will be updated, and the product will be packed and made ready for dispatch. Then, the logistics personnel will pick up the order from the warehouse and complete the delivery process.

Your order fulfilment and logistics process forms the backbone of your e-commerce operations. The importance of SLA in e-commerce will go out the window if you don’t optimize this process.

There are two main ways through which you can fulfil orders. 
  In-house fulfilment 
As the name suggests, you do the entire thing on your own in this case. You can set up a logistics department inside your own company and complete the entire process in-house. This will give you more control, of course, but it is very difficult to implement.

  Third-party logistics (3PL) providers 
Here, you outsource the entire process to external service providers. There are many end-to-end e-commerce inventory management and order fulfilment platforms like Ordazzle which can help you manage multiple shipping partners and view your shipping and fulfilment activities in real time.  

Best Practices for Compliance with e-Commerce SLAs Using e-Commerce Solutions

• The importance of an SLA in e-commerce Management  is paramount. 
• Compliance with customer SLAs is dependent on finding the most effective way to fulfil orders. The right 3PL provider can be the solution. 
• Some of the things that you should consider ensuring compliance with your customer SLAs are as follows. 

• Inventory management 

3PL providers have in-built stock management and inventory control features that can automate your inventory updating process. No more manual inventory updates mean no delays in displaying the correct products on your website. 

• Real-time tracking and visibility 

This will give your customers more control over the order fulfilment process. Being able to track their orders in real time will ensure the fact that you are actively working on delivering their order.  

Full-service order fulfilment platforms will auto-update all the tracking links on your website and send delivery updates on a periodic basis.

• Efficient packaging and shipping 

Little touches like these ensure care and attention. But they can take up a lot of time if you’re doing it manually. If you use a good 3PL provider, these things will be taken care of automatically. 

• Communication and transparency with customers 

You need a good customer support system. Not only is it important to keep customers informed about the delivery process, but you also need to provide ways of reaching out in case of any difficulty.

Many e-commerce brands provide chat support and helpline numbers. One way to stay connected with customers and provide them with support is to introduce chatbots through your 3PL platform.  

Don’t underestimate the importance of SLA in e-commerce solutions. It can ensure customer retention for your brand and help scale your business easily. You can use an integrated logistics management platform like Ordazzle to ensure SLA compliance with ease! 

Speak to our experts to know how Ordazzle can add great value to your order fulfilment processes through greater efficiency, accuracy, and cost savings Book a Demo.