Prioritize transit‑time to major customer zones, carrier density (parcel and LTL), multimodal connectivity, available facility types (bonded, cold chain), labor pool and wage trends, and the 3PL’s technology stack for inventory visibility and order orchestration. Also evaluate SLA flexibility, cost per pick metrics and experience with your SKU profile.

Use a total landed cost model: balance lower real estate and labor costs against increased transit expenses. Select locations offering the right labor skill mix for your ops (e.g., pick/pack vs. automated systems). Factor in regional wage trends, incentive programs and the 3PL’s ability to scale labor seasonally without compromising service levels.

Require real‑time inventory integration (WMS/API), scalable pick‑and‑pack labor, automation readiness, value‑add services (kitting, labeling), robust returns processing, and flexible SLA tiers. Ensure the provider can support rapid scale‑up, peak labor management and accurate forecasting to maintain delivery windows during surges.

Set up EDI/API integration, defined SLAs for on‑time fulfillment and accuracy, KPIs (OTD, perfect order, inventory accuracy, cost per order), regular business reviews, and clear chargeback rules. Include onboarding timelines, testing windows, escalation paths and data access for ongoing analytics and continuous improvement.