Prioritize location (proximity to customers and carriers), technology (WMS, real-time inventory, API/EDI), labor availability, equipment (automation, temperature control), SLA guarantees, security, and certifications. Match service capabilities—kitting, returns, cross-dock—to SKU velocity and channel mix when modeling total cost and performance.

Model landed costs including transit time, freight rates, inventory carrying cost, and handling fees. Assess carrier pools for last-mile reach and zone-skipping, evaluate cross-dock options for fast movers, and test quoted SLAs against historical transit performance to balance speed and cost.

Require OTIF, order cycle time, pick and inventory accuracy, and returns turnaround SLAs. Insist on WMS with real-time inventory, API/EDI connectivity to your storefront and TMS, automated reporting, and documented processes for reverse logistics and international compliance to protect margins and customer experience.