Assess facility footprint, racking and clear height, SKU storage density, and picking configurations. Evaluate technology stack (WMS, EDI/API), inbound/outbound transit times, labor models, and scalability. Also verify value-added services (kitting, returns processing) and nearby carrier options to ensure omnichannel coverage.

Prioritize proximity to primary roads and regional distribution corridors, loading bay count, yard depth for trailer marshaling, and night-handling capacity. Confirm local carrier networks for LTL and TL, intermodal links if available, and typical transit times to your major customer clusters.

Compare landed cost drivers: per-pallet storage rates, pick-and-pack fees, inbound receiving charges, handling labor productivity, and accessorials. Factor in transportation savings from reduced transit distances and potential inventory carrying reductions enabled by faster replenishment cycles.

Include measurable SLAs for order accuracy, on-time shipments, dock-to-stock cycle time, and inventory reconciliation frequency. Define charge-back terms, KPIs for pick rates and returns processing, and escalation procedures. Consider periodic business reviews to align capacity, seasonal demand, and continuous improvement.