Prioritize SLA performance, carrier mix (parcel, LTL, TL), and transit coverage. Evaluate warehouse slotting practices, automation level, WMS integration, and returns handling. Consider labor stability and real estate costs, plus value-add services like kitting and temperature control to align cost-to-serve with promised delivery windows.

Closer proximity typically lowers dray and intermodal fees, shortens lead times, and reduces safety stock needs. That improves inventory turns and lowers working capital. Also benefits replenishment cadence for retail and wholesale channels by enabling more frequent, smaller shipments and reducing expedite spend.

• WMS functionality, EDI/API integrations, and reporting transparency
• Material handling equipment and automation for pick/pack efficiency
• Storage density, racking, and ceiling heights to support your cube
• Security, compliance (bonded/FTZ if needed), and QA processes

Negotiate tiered rate cards for pick/pack and storage, volume discounts, and peak capacity clauses. Seek caps on accessorials, defined SLA credits, and clear demurrage/detention responsibilities. Include quarterly reviews and exit conditions tied to performance metrics to manage cost volatility.

Measure pre- and post-migration KPIs: order-to-delivery lead time, on-time-in-full (OTIF), shipping cost per order, and inventory days on hand. Monitor carrier transit times to core zip clusters and returns processing time. Use A/B tests by SKUs or regions to isolate impact on last-mile performance.