Require a modern WMS with real‑time inventory APIs, robust EDI or API integrations for order flow, support for batch and zone picking, returns processing, and visibility tools for customers. Confirm SLA definitions for cutoffs, peak‑season surge capacity, and proof‑of‑delivery/traceability features.

Compare total landed cost (storage + pick/pack + freight) across volume tiers and lanes. Model dimensional pricing, minimums, chargebacks, and value‑added service fees. Validate service windows, on‑time performance guarantees, and how surge pricing is applied during peaks.

Key factors include distance to port and intermodal terminals, access to primary highways, urban congestion patterns, and local carrier density. Sites closer to major courier hubs reduce parcel costs and transit times; proximity to LTL terminals reduces regional freight legs.

Use multiple sites when you need reduced transit times to multiple demand clusters, improved service levels for same‑day or next‑day delivery, or to mitigate disruption risks. Balance incremental inventory carrying cost against freight savings and improved customer experience.

Require OTIF and order accuracy, inventory accuracy, dock‑to‑stock cycle time, order cycle time, return processing time, claim rate, and system uptime. Establish regular performance reviews, root‑cause reports, and continuous improvement plans tied to contractual incentives.