Assess infrastructure (dock count, racking, cold storage), IT integrations (WMS, EDI/API), SLA performance for picking/packing, carrier network coverage, and labor reliability. Also review scalability options, security protocols, and value-added services like kitting or returns processing.

Shorter transit times reduce buffer inventory and expedite replenishment, lowering inventory carrying costs. Broad carrier access enables competitive shipping rates and routing flexibility, improving on-time delivery and reducing failed-delivery penalties.

Common levers include lower real estate and labor rates, consolidated region-wide distribution to reduce multi-leg freight, volume-based pricing, cross-docking to minimize storage days, and negotiated carrier discounts passed through by the 3PL.

Look for robust WMS with real-time inventory visibility, API/EDI connectivity to eCommerce platforms and carriers, order management for split shipments, and reporting/BI tools for SLAs, inventory turns, and cost analytics.

Define pick/pack accuracy, order lead times, on-time shipment rates, inventory reconciliation frequency, damage/theft thresholds, and chargeback terms. Include penalty and remediation clauses and scheduled performance reviews tied to growth milestones.