Prioritize multimodal access: proximity to expressways and intercity rail for regional lanes, yard capacity for trailers, and established carrier contracts for last-mile coverage. Evaluate WMS integration, cross-dock capability, and SLA clarity for pick & pack and returns handling to ensure consistent delivery windows and visibility.

Lower land and labor costs reduce fixed warehousing spend, which can justify larger regional buffers and lower stockouts. Factor in handling rates, local tax incentives, and overtime during peaks—these variables affect cost-per-order and should be modeled against service-level targets and lead-time variability.

Look for documented processes and capacity for returns sorting, inspection, refurb, and restock. Confirm cross-dock throughput, SKU-level traceability in the WMS, and dedicated zones for value‑added work like kitting or labeling. Service-level KPIs and proof-of-performance are essential.

Negotiate clear KPIs, chargeback rules, and volume-tier pricing. Include clauses for inventory accuracy, damage liability, and termination notice. Consider service credits for SLA breaches and review minimum commitment periods; a transparent cost-to-serve model helps align commercial terms with operational realities.