Prioritize measurable KPIs and infrastructure: WMS/ERP integrations, orders-per-hour throughput, picking accuracy, dock capacity, and peak labor scalability. Also evaluate value-added services (kitting, returns processing), SLA enforcement, insurance and contingency plans, and visibility tools for real-time inventory and shipment tracking.

Closer proximity reduces first-mile and line-haul time, lowers fuel and freight charges, and improves on-time rates. It enables more carrier options for service-level differentiation, faster regional distribution, and fewer transshipments—directly lowering delivery variability and inventory buffers needed to meet service targets.

Key elements include flexible slotting and racking, dedicated eCommerce pick lines, returns processing areas, temperature-controlled zones if needed, real-time WMS with API carrier connectivity, and scalable labor models. These features reduce order cycle time and support mixed B2B and B2C flows without excessive safety stock.

Focus on activity-based pricing (picks, pack, storage), minimums and chargebacks, peak-season uplift, inbound handling, and accessorial fees. Ask for transparency on labor assumptions, inventory holding charge calculations, SLA penalties, and any capital expenditures that may shift operating costs over the contract term.