Focus on order accuracy, on-time shipment rate, inventory accuracy, pick-and-pack throughput (orders/hour), dock-to-stock cycle, and return-processing speed. Review SLA terms and penalties, OTIF metrics, and visibility capabilities (real-time inventory and shipment tracking) to align 3PL performance with your service and cost targets.

Closer proximity reduces line-haul miles and last-mile zone charges, increases carrier density (more competitive rates), and shortens transit times. Access to intermodal terminals supports backhaul optimization and LTL consolidation—collectively lowering freight spend and improving delivery windows for both B2B and consumer orders.

Look for a modern WMS with OMS and carrier integrations, scalable labor models, automated picking or sortation where appropriate, dedicated returns processing workflows, slotting flexibility, and real-time reporting. These elements reduce cycle times, improve accuracy, and allow rapid scaling during peak demand.

Model total landed cost (storage, handling, inbound/outbound freight, and stock buffer). Assess minimums, lead times, and the 3PL’s ability to meet service SLAs. Prioritize predictability for critical customers and consider phased trials to validate costs and operational fit before committing to long-term rates.