Prioritize facility layout and racking, average order processing times, inventory accuracy (cycle count cadence), IT integrations (WMS/API), and carrier partnerships. Also evaluate value-added services such as kitting, returns handling, and cold storage if required, plus scalability for peak seasons.

Closer proximity shortens transit times and reduces fuel and driver cost components, lowering landed cost. Higher carrier density improves LTL options and frequency, enabling tighter delivery windows and better negotiated rates—especially important for omnichannel and time-sensitive shipments.

Negotiate storage tiers (pallet vs bin), volume-based pick/pack rates, fixed vs variable handling fees, inbound appointment policies, and minimum monthly throughput. Seek transparent chargebacks for exceptions and defined SLA credits for service lapses to align cost with performance.

Verify dedicated returns zones, inspection and refurbishment workflows, reverse-logistics routing, integrated RMA tracking in the WMS, and cross-dock capability for rapid reship. Confirm API connectivity for real-time order sync across sales channels.

Review the provider's contingency plans: alternative sites, surge capacity, disaster recovery for WMS, backup carrier relationships, and SLAs for recovery time. Ask for historical performance during peak seasons and documented business continuity procedures.