Prioritize metrics that map to your service obligations: on-time-in-full (OTIF), order cycle time, picking accuracy, average handling time, and throughput capacity. Evaluate site criteria: dock and racking configuration, clear height, yard capacity, WMS integration, labor pool and peak-season scalability. Also verify carrier access and proximity to major demand corridors.

Location near highways, intermodal yards, and parcel hubs lowers last-mile and linehaul charges, reducing landed cost. Shorter transit times cut safety stock and inventory carrying costs. Assess carrier density, LTL lanes, and regional parcel consolidation options to model landed-cost impacts across SKUs and channels.

Require integrated WMS with real-time inventory visibility, OMS connectivity for order routing, reverse logistics processes for returns, and value-added services like kitting and light assembly. Confirm SLA definitions, EDI/API capabilities, and reporting cadence for inventory accuracy and order-level diagnostics.

Negotiate transparent unit rates (receiving, storage, picking, packing), peak-season clauses, minimums, and change-order fees. Include performance SLAs with financial remedies, inventory reconciliation cadence, and exit terms for inventory removal. Consider gainshare incentives for continuous process improvements.