Prioritize facility footprint and layout, automation and WMS capability, SLA track record, cost-to-serve analysis, and carrier connectivity. Also evaluate value-added services (kitting, returns), scalability for peak seasons, security, and compliance with local customs procedures.

Location drives first- and last-mile efficiency: proximity to arterial roads and border crossings reduces transit hours and fuel costs. A centrally positioned facility lowers multi-stop routing and enables more consistent carrier schedules, improving on-time delivery and lowering dwell time.

Look for a WMS with real-time inventory, robust API or EDI integrations to your eCommerce and ERP systems, inbound/outbound visibility, barcode/RFID support, and reporting for inventory turns and SLA compliance. Integration reduces errors and accelerates order-to-ship cycles.

Negotiate clear SLAs for order accuracy, cut-off times, and transit windows; define billing granularity (storage, pick/pack, receiving); include capacity and surge clauses; set KPIs with penalties or credits; and specify inventory audit and security obligations.

Optimize SKU velocity by consolidating slow movers, buy-in shared storage to reduce fixed costs, negotiate tiered pricing for volumes, use zonal fulfillment to cut parcel costs, and collaborate on demand forecasts to reduce safety stock and demurrage.