Assess inventory management (WMS), pick-and-pack technology, throughput and velocity handling, labor model flexibility, temperature-controlled capacity if needed, reverse-logistics processes, and multi-carrier integration. Verify API/EDI connectivity, reporting cadence, and contingency plans for peak seasons and network disruptions.

Proximity to highways and rail yards shortens haul distances to major consumption centers and reduces fuel and line-haul costs. Sites near consolidation hubs increase access to LTL and express services, improving routing options and delivery windows; inner-city locations can improve last-mile speed but may increase facility rents.

Negotiate billing model (storage per pallet vs. bin), variable throughput fees, minimums, accessorial charges, inventory holding rates, and chargeback rules. Include performance-based SLAs (order accuracy, lead time), indexing for fuel or labor, liability/insurance terms, and clear exit/transition conditions to limit unexpected costs.

Define KPIs such as OTIF, order and inventory accuracy, picking productivity, dock-to-ship lead time, and claims rate. Set regular reporting cadence, require automated dashboard access or EDI/API feeds, schedule quarterly business reviews, and use scorecards to trigger remediation plans for SLA breaches.