+91 93118 47248sales@prozo.com

Supply Chain Technology

The 6 service levels to put in every 3PL contract

Which metrics to contract with a 3PL, how each should be measured, and what should happen when one is missed.

The short answer

A 3PL contract should name each metric, the system that measures it, and what happens on a miss. Six cover most of the risk: same-day dispatch, SKU-level inventory accuracy, pick accuracy, first-attempt delivery, NDRs closed within 24 hours and COD ageing.

At a glance

  • Contract metrics that cover both the warehouse and the delivery.
  • Name the system that measures each one, and reconcile it with yours.
  • Agree the escalation path before the first miss.

1. Same-day dispatch

The share of orders dispatched on the day they are received, before the agreed cut-off. Measure it from the dispatch scan, not from a manual report. At Prozo, ProWMS records the dispatch scan for every order.

2. Inventory accuracy at SKU level

Whether the system stock matches what is physically on the shelf, SKU by SKU. Ask how often it is counted and how fast variances are closed. Prozo runs daily cycle counts in ProWMS, closes every variance within 24 hours and holds 99.5% accuracy at SKU level.

3. Pick accuracy

Whether the right item and quantity went into the box. Measure it at the pack station with a scan against the order line, so a short or wrong pick is caught before the manifest closes.

4. First-attempt delivery

The share of parcels delivered on the first attempt. It depends on address quality and courier choice as much as on the courier. Prozo measures it from the carrier feed in ProShip, scores addresses before dispatch and uses AI-PACE to pick the courier most likely to deliver first time.

5. NDRs closed within 24 hours

How quickly each non-delivery report is resolved: reattempted, re-addressed or held. Prozo flags each NDR within minutes, contacts the buyer on WhatsApp and by phone in the regional language, and makes 3 attempts before any RTO.

6. COD ageing

How long cash-on-delivery money takes to reach you after delivery, measured in days outstanding. Prozo tracks it in its finance module against each shipment.

Make the metrics enforceable

Agree the target for each metric per account, and reconcile Prozo’s numbers with your own ERP, OMS or WMS. Agree the escalation path in advance. At Prozo, an order at risk moves up a ladder: operations team, shift supervisor, facility manager, regional leadership, then senior operations, who tell you before the deadline passes. Each account also gets a monthly business review with a named owner and a response clock.

Related questions

Which service levels can I contract with Prozo?

Prozo contracts 6 metrics: same-day dispatch, SKU-level inventory accuracy, pick accuracy, first-attempt delivery, NDRs closed in 24 hours and COD ageing. Each is measured in a named Prozo system and reconciled with your ERP, OMS or WMS. Levels are agreed per account.

Answer & related reading
What should a supply chain control tower help a team do?

It should show every order and handover against its committed service level, put exceptions first, and give each escalation a named owner. Prozo’s Control Tower runs 17 modules in production across service levels, scale and governance, and cost, and each client gets its own login.

Answer & related reading
How accurate is inventory at Prozo’s warehouses?

Prozo runs 99.5% inventory accuracy at SKU level, measured in ProWMS. Daily cycle counts cover every location on a fixed cycle, every pallet and carton carries a scannable ID, and every variance is investigated and closed within 24 hours. Clients see accuracy on the Control Tower daily.

Answer & related reading

Sources & service information

Related guides

Dr. Ashvini Jakhar

Founder and CEO, Prozo

Dr. Ashvini Jakhar founded Prozo in July 2014 and has led it as Founder and CEO since. Before Prozo, Dr. Jakhar served as a surgeon in the Indian Navy, retiring as a Lieutenant Commander, and worked as a strategy consultant at McKinsey. Dr. Jakhar studied medicine at AFMC Pune and business at HEC Paris and ISB.

Explore this topic

Supply Chain Technology

Talk to Prozo

Need help with Supply Chain Technology?

Share your products, channels and order volumes. Prozo’s team will suggest the right setup for your business.

Get in touch

Scaling across channels? Let’s plan your supply chain.

Tell us your products, channels and order volumes. Prozo will suggest the right warehousing, shipping and tech setup.

  • 50+ warehouses in 17 cities across 9 states
  • 30+ courier partners on one contract
  • One platform: ProOMS, ProWMS, ProShip and the Control Tower