Prioritize carrier network integration, transit times to major delivery zones, warehouse technology (WMS, barcode/RFID), handling capabilities for your SKU profile, and cost structure (storage vs throughput). Also assess scalability, SLA terms for order accuracy and lead times, and contingency plans for peak seasons or supply disruptions.

Closer proximity lowers inbound consolidation and last-mile transport costs, shortens transit times, and reduces fuel and driver costs. It also enables faster cross-dock operations and more flexible routing for same-day or next-day deliveries, improving customer service metrics and lowering inventory carrying requirements.

Key capabilities include flexible racking and ambient/temperature-controlled storage, real-time WMS integration with marketplaces, pick-and-pack optimization, returns processing, and scalable labor pools. Evaluate onsite value-adds such as kitting, labeling, and light assembly to support promotions and multichannel fulfillment.

Major drivers are storage density and pricing, per-order pick/pack fees, inbound handling and receiving charges, minimums or tiered labor rates, and fuel or delivery surcharges. Contract flexibility, rebate structures for volume, and transparent reporting also materially affect true cost-to-serve.