Evaluate location relative to customer clusters and carriers, tech compatibility (WMS/IMS/API), SLA performance, and pricing transparency. Assess value-added services (kitting, returns, QC), labor availability, and scalability for peak seasons. Request references and pilot metrics for order accuracy and lead times before committing.

Verify proximity to major highways, freight terminals, and any rail spurs; check local carrier partners and last-mile networks; confirm handling capacity for inbound consolidation; and review customs and cross-border facilitation if relevant. Infrastructure determines transit time consistency and carrier choice.

Lower rents and regional labor pools can reduce unit costs, but factor in productivity, automation needs, and occupancy density. Facilities with modern racking, temperature control, and mezzanines can improve throughput and reduce handling time — model all fixed and variable charges to understand true per-order cost.

Negotiate clear SLAs for order accuracy, on-time dispatch, and inventory reconciliation; define chargeback rules, minimums, and rate escalation clauses; require visibility (daily inventory, exception reporting) and audit rights; include contingency clauses for peak volumes and termination notice periods.