Prioritize on-time order fill, order cycle time, inventory accuracy, cost per order (including receiving, storage, picking, packing and returns), dock-to-stock time, and chargeback incidence. Include carrier transit-time variance and system uptime for WMS integrations when evaluating SLAs.

Map order density and transit-time requirements, then model inventory split between fulfillment nodes to balance delivery speed and inventory carrying cost. Factor in last‑mile carrier reach, returns flows, seasonal peaks, and scalability of racked versus bulk storage to match SKU velocity.

Look for modern racking, temperature control where needed, sufficient dock capacity, cross-dock areas, and segregation for hazardous or regulated goods. Technology should include a robust WMS with API EDI connectivity, barcode/scan validation, real-time inventory visibility and reporting.

Negotiate clear SLAs with financial remedies for missed KPIs, transparent tariff and surcharge structures, minimum service terms with exit provisions, inventory liability and insurance limits, and data access rights for reporting and audits to ensure operational alignment.