Evaluate location relative to supply and demand nodes, carrier connectivity, multimodal access, handling equipment, temperature control, WMS capability and integration, SLA and KPI definitions (pick accuracy, OTIF, lead time), security and customs competence, and total cost-to-serve including inbound/outbound transport.

Bonded storage can defer duties and consolidate cross-border shipments, lowering landed cost and simplifying distribution. However, it requires compliant documentation, reliable customs agents, and clear inventory reconciliation processes. Assess a 3PL’s experience with customs clearance and bonded operations before committing stock.

Primary considerations are road condition to provincial hubs, frequency of carrier services, proximity to river ports for multimodal transfers, availability of local trucking partners, and transit time variability. Confirm scheduled departures, carrier SLAs, and contingency routing to manage service consistency.

Require pick-and-pack accuracy guarantees, configurable kitting and labeling, returns handling workflows, temperature-controlled options if needed, cycle-count frequency, real-time inventory reporting, and clearly defined SLA penalties for OTIF, accuracy, and damage rates to align incentives.

Lower rents and labor rates reduce unit storage and processing costs, benefiting slow-moving or bulk inventory. Offset this by modeling increased outbound transit times and possible higher last-mile costs. Use cost-to-serve analysis to balance storage savings against transport and service-level impacts for each channel and SKU.