Prioritize: proximity to major carrier terminals and highways; WMS/TMS integration and visibility; automation levels for throughput and accuracy; labor availability and scalability for peaks; and commercial terms that align incentives (billing structure, minimums, SLA penalties). Model these against your expected order profile to quantify impact on lead time and cost-per-order.

Build a TCO model that includes: storage fees, receiving and handling, pick/pack labor, packing materials, outbound freight differentials, cross-dock or transload costs, inventory carrying, chargebacks, and potential SLA penalties. Include scenario runs for seasonality and returns to compare realistic per-order and per-SKU costs across providers.

Key capabilities: real-time inventory visibility and distributed inventory strategies; same-day or next-day picking and cutoffs; efficient returns processing and disposition workflows; cross-dock and consolidation services; and tight integration with carrier networks for flexible last‑mile options. These reduce lead times, lower returns cost, and improve customer experience.