Prioritize WMS integration, inventory accuracy, pick-and-pack throughput, cross-dock capability, temperature-controlled storage where required, and last-mile connectivity. Also evaluate staffing stability, SLA guarantees, and reporting cadence to ensure the provider can scale with peak demand and returns.

Location affects access to primary road corridors, fuel and carrier rates, and last-mile distances. Sites nearer to arterial routes reduce transit time and carrier charges, while more remote facilities may offer lower rents but higher distribution costs—model landed cost versus rent and labor to decide.

Common drivers include storage-per-pallet or per-cubic-meter charges, pick/pack fees, inbound receiving costs, outbound documentation fees, minimum monthly volumes, and seasonal surcharges. Include clauses for SLA credits, volume discounts, and clear definitions of chargeable events.

Track KPIs such as on-time shipments, order accuracy, inventory accuracy, dock-to-ship cycle time, and return processing time. Regular cycle counts, exception reporting, automated data exchange (EDI/API), and quarterly operational reviews provide evidence of performance and continuous improvement.