Focus on measurable KPIs: pick-and-pack accuracy, average outbound transit times to your customer base, dock-to-stock lead times, and order cycle times. Evaluate the provider's TMS/WMS integration options, inbound cutoffs, carrier partnerships, and labor-rate structures to align service levels with your target delivery windows and cost-to-serve.

Conduct site surveys to confirm clear-span racking, dock height and number, available cross-dock lanes, refrigeration capacity if needed, and material-handling equipment mix. Verify labor availability models and the provider's contingency plans for peak throughput to ensure scalable performance without service degradation.

Require real-time WMS inventory visibility, API or EDI connectivity for order exchange, support for batch and ASN workflows, and reporting on SLA metrics. Confirm the provider can handle multi-channel routing rules, returns processing, and has secure access controls for data exchange and audit trails.

Lower local labor and facility costs can reduce per-pick and storage charges, but assess carrier density and transit lanes—limited carrier competition can increase outbound freight rates. Model landed cost combining handling fees, average outbound distances, and frequency of shipments to determine true cost impact.