Evaluate multimodal connectivity (road and rail links), available throughput and racking density, WMS/IT integration, SLA history, labor availability and peak-season scalability. Also review value-added capabilities (kitting, returns, cold chain), insurance and contingency plans to ensure the provider supports your target lead times and inventory turns.

Expect lower real-estate and labor costs which can reduce storage and handling rates, plus shorter inland transit to central and western customers. Ocean and air connectivity depends on intermodal links to coastal ports or regional airports, so balance inbound routing costs against savings on last-mile delivery and inventory carrying.

Prioritize a modern WMS with real-time inventory, seamless OMS/API integrations, reliable pick-and-pack processes, returns management, batch and lot tracking, and the ability to support promotions, bundling and light assembly. Visibility and reporting for SLA compliance are essential for omnichannel fulfillment.

Negotiate clear SLA metrics (OTD, accuracy), volume-based pricing tiers, labor pass-through clauses, minimum-term commitments, ramp-up provisions, early-termination rights, storage density assumptions and transparency on surcharges. Also confirm disaster recovery, security, and insurance terms tied to inventory value.