Prioritize systems compatibility (WMS/ERP APIs), pick-and-pack productivity, returns processing capability, and scalable labor pools. Evaluate SLA performance, carrier integrations for last-mile options, and value-added services such as kitting or personalization that align with your product mix and seasonal variability.

Location determines access to trunk highways and rail spurs, which directly impacts transit distance and freight rates. Warehouses near major corridors reduce linehaul time and costs, while proximity to carrier consolidation hubs improves daily pickup frequency and shortens final-mile delivery windows.

Look for modern racked storage, cross-dock lanes, segregation for hazardous or temperature-controlled goods if needed, capacity for automation, and dedicated packaging/returns areas. On-site yard space and dock density are critical to maintain throughput during peak periods.

Negotiate transparent chargeable event definitions, minimum handling rates, and surge labor provisions. Set KPIs for order accuracy, on-time shipments, inventory reconciliation, and cycle-count variance. Include service credits tied to measurable SLA breaches and regular business reviews to adjust scope and pricing.