Key evaluation points include: WMS integration and API connectivity, dock-door and racking capacity, bonded and customs handling, SLA metrics for order lead time, scalability of warehouse footprint, value-added services (kitting, returns), and carrier-neutral consolidation options. Prioritize providers with transparent KPIs and audit access.

Location drives distribution economics: proximity to ports and major highways lowers inbound transit and fuel costs; closeness to urban centers reduces last-mile transit and improves delivery windows; hub-adjacent sites offer broader carrier choices and frequency. Consider population density, traffic patterns, and freight lane density when modeling cost-to-serve.

Negotiate clear SLAs for order lead time, inventory accuracy, and on-time shipment rates. Define billing transparency (storage, pick/pack, receiving), minimum throughput or seasonality clauses, penalties for SLA misses, and responsibilities for damage/shortages. Include regular performance reviews and data access provisions.