Glossary

Service Level Agreement (SLA)

What is SLA in pharmaceuticals?

Service level agreement (SLA) in the pharmaceuticals industry is a contract between a drug manufacturer and a customer, typically a retailer or distributor, that outlines the terms and conditions of the sale and supply of pharmaceutical products. It specifies the obligations of both parties, including the quality and quantity of the products to be supplied, the delivery schedule, and the terms of payment. SLAs also often include provisions for resolving disputes and terminating the agreement if necessary.

What are the benefits of using SLA in pharma?

Using Service Level Agreements (SLAs) in the pharmaceutical industry offers several advantages for both service providers and their clients:

  • Risk Management: SLAs help identify and allocate risks between the parties. By outlining the circumstances under which the service provider is not liable, the agreement provides clarity and protects the service provider from unreasonable claims.
  • Flexibility and Adaptability: SLAs are dynamic documents that can be tailored to the specific needs of the pharmaceutical company and the PV service provider. They can be revised and updated as necessary to accommodate changing business requirements, regulatory standards, or technological advancements.
  • Regulatory Compliance: SLAs support regulatory compliance by ensuring that services are delivered in accordance with industry standards and guidelines. They provide a framework for monitoring and evaluating performance, helping pharmaceutical companies adhere to safety, efficacy, and quality standards set by regulatory authorities.
  • Cost Efficiency: By clearly defining the services and expectations, SLAs help optimize costs. The agreement ensures that the client pays for the specified services, and the service provider can plan and allocate resources efficiently, reducing unnecessary expenditures.

What are the different types of SLAs in pharma?

In the pharmaceutical industry, there are several types of Service Level Agreements (SLAs) that can be utilized, depending on the specific needs and context of the agreement between the service provider and the pharmaceutical company. While the terminology may vary, here are a few common types of SLAs:

  • Service-based SLA: This type of SLA focuses on a specific service or product offered by the PV service provider. It outlines the regular and additional services provided, along with the expected level of service for each. For example, an SLA with a PV call centre may detail the response time, issue resolution process, and reporting procedures for adverse event reports.
  • Customer-based SLA (or Client-based SLA): This agreement is tailored to the individual needs of a specific client. It covers all relevant PV services that the client may require under a single contract. A customer-based SLA defines the type and quality of service agreed upon, ensuring that the services provided are customized to the client’s unique requirements.
  • Multi-level or Hierarchical SLA: This type of SLA involves multiple levels of services. It establishes different service levels or standards for various aspects of PV services. For instance, an SLA might define different response times or reporting procedures based on the gravity of adverse events or the specific regulatory requirements of different markets.