Evaluate core capabilities: inventory accuracy, order cycle times, returns processing and WMS/API interoperability. Also assess physical infrastructure—dock count, staging, racking—and carrier connectivity for last‑mile. Require SLA metrics (OTIF, order accuracy) and a clear escalation process to align on performance and integration timelines.

Key cost drivers include storage per pallet/cubic meter, inbound/outbound handling, labour rates, and transportation to end customers. To optimize, consolidate SKUs, negotiate volume tiers, use cross-dock to reduce storage days, and compare multi-client versus dedicated options to balance fixed and variable costs.

Carrier access and predictable transit windows determine safety stock and replenishment frequency. Strong road connectivity enables shorter lead times and smaller order cycles; limited lanes require consolidation strategies and buffer inventory. Design network flows around primary carrier schedules to minimize expedited freight and reduce overall logistics spend.