Key factors include landed cost (storage + handling + transport), SLA commitments for pick-and-pack and dispatch, inbound receiving throughput, labor availability and seasonal flexibility, WMS and EDI/API integration, and access to bonded/customs services. Compare minimums, surge pricing, and value-added service rates to estimate true cost-to-serve.

Closer proximity shortens drayage and inbound transit, enabling faster replenishment and lower carriage costs. It also expands carrier options for FTL/LTL and intermodal services, reduces buffer stock needs, and improves predictability for cutoffs and same-day/next-day regional deliveries—particularly important for omnichannel and time-sensitive B2B orders.

Require WMS with real-time inventory, API/EDI connectivity for order flows, and reporting dashboards. KPIs should include pick accuracy, order cycle time, on-time dispatch rate, dock-to-stock time, inventory accuracy, and cost-per-order. Ensure visibility into exceptions and carrier tracking for customer-facing SLA adherence.

Run a total cost model including rent, labor, utilities, handling fees, inbound/outbound transport, duties and bonded storage, and expected shrink/obsolescence. Model service-level scenarios (faster transit vs lower inventory) to compare safety stock needs and working capital impacts; validate with pilot volumes and 3PL-provided throughput data.