Assess WMS functionality, inventory accuracy (cycle count results), SLA performance for pick-pack-ship, carrier integrations (mass rating/EDI), value-added services (kitting/returns), and physical infrastructure such as pallet racking and dock capacity. Also review peak-season scalability and contingency plans for transport disruptions.

Closer proximity reduces drayage and inland transit times, lowering fuel and labor costs and improving delivery windows. Shorter lanes also decrease dwell time and inventory buffer needs, enabling leaner safety stock and faster order-to-delivery cycles.

Look for a WMS with real-time inventory, barcode scanning, ASN processing, and API/EDI connectivity to carriers and your eCommerce platforms. Standard reports should include stock aging, fill rate, order cycle times, and exception dashboards to drive continuous improvement.

Negotiate clear terms for storage rate tiers, pick/pack labor bands, inbound receiving charges, minimum monthly handling volumes, demurrage/detention exposure, and last-mile surcharges. Require transparent billing examples and a defined change-management process for rate adjustments.

Verify the provider's returns workflow, inspection and grading policies, refurbishment or disposal options, and integration with your returns portal. Check SLA for returns processing and disposition, and ask for KPIs like return-to-stock time and cost per return to measure performance.