SLA Credits Policy
How service credits are calculated and applied when Founders 3PL misses a performance target.
How SLA Credits Work
If Armbrust fails to meet any SLA target in a given week, the customer receives a 1% credit of that week's Fulfillment Fees for each distinct SLA category missed, up to a maximum of 10% total per week. Credits are not calculated per individual incident or order, but per SLA category.
Credits are calculated per SLA category, not per incident. Missing Pick & Pack accuracy once or five times in the same week results in the same 1% credit for that category.
SLA Categories
Each service area is a distinct SLA category. If Armbrust misses the target for a category during a given week, that category counts as one miss toward the weekly credit calculation.
| SLA Category | Target |
|---|---|
| Pick & Pack | 100% order accuracy; same-day ship for orders released by 2:00 PM CT |
| Receiving | 95% of inbound receipts available in WMS within 48 hours of appointment |
| Kitting / Assembly | Projects completed within 3 business days of materials receipt |
| Returns | Returned units processed within 2 business days of receipt |
| Reporting | Dashboard uptime at least 99.5% |
Credit Calculation
Credits are automatically applied to the following week's invoice. The maximum credit in any single week is 10% of that week's Fulfillment Fees, regardless of how many SLA categories are missed.
Example
A customer is billed $3,500 in Fulfillment Fees for the week. Armbrust fails to meet both the Pick & Pack SLA and the Kitting SLA during that same week. The customer receives a 2% credit ($70) applied to the next invoice. This applies whether each SLA was missed once or multiple times during the week.
Wrong Item Shipped
When Armbrust ships a wrong item, Armbrust takes full accountability. We cover FedEx 2-Day shipment of the correct replacement plus a $5 credit applied to the next week's invoice. This is in addition to any SLA category credit that may apply for the same week.
Exclusions
Service credits do not apply if the SLA failure results from any of the following:
- Inaccurate or incomplete data provided by the customer
- Late or missing inventory
- Force Majeure events as defined in the agreement
- Delays caused by or approved in writing by the customer
Chronic Failure
If Armbrust fails to meet an SLA in any two consecutive calendar months, the customer may terminate the affected service on ten days' notice without penalty.
Our SLA credits are not just promises — they are part of our guarantee. If we miss our mark, we own up and compensate.
Philip Quick, Founders 3PL