Evaluate SLA compliance (OTIF), order accuracy, pick/pack throughput, inventory turnover, and return processing speed. Confirm WMS and OMS integrations, EDI/API connectivity, visibility tools, slotting and kitting capabilities, and capacity flex for peak periods. Also review contingency plans, security, and audit trails.

Access to major highways, intermodal yards, and regional carriers reduces dray times and LTL legs, lowering costs and variability. Choose warehouses near carrier hubs to cut transit zones, enable same/next‑day options, and leverage pooled distribution. Assess carrier density, daytime delivery windows, and hub cutoffs.

Optimize cubic utilization with racking and slotting, balance manual labor with pick-to-light/AS/RS where SKU velocity justifies capital, and size docks for cross-dock flows. Consider local wage rates, workforce seasonality, and available labor pool when forecasting headcount and productivity metrics.

Negotiate flexible capacity clauses, clear KPIs with financial remedies, transparent chargeable activity rates, and volume tiers. Include minimum notice for staffing changes, contingency plans for disruptions, inventory insurance terms, and regular performance reviews to align incentives and control costs.