Prioritize facility proximity to major roads and ports, available berth or feeder access, racking and throughput capacity, IT integration (WMS/APIs), SLA for order turnaround, and experience with last-mile carriers in the region. Also assess labor skill, security, and contingency plans for power and fuel.

A warehouse in the state reduces coastal feeder transit and overland mileage to nearby consumer markets, lowering lead times and variable trucking costs. Lower land and labor rates can reduce fixed warehousing expense, improving per-unit fulfillment costs when volumes are consolidated.

Confirm pick-and-pack throughput, SKU slotting strategy, returns processing, inventory accuracy SLAs, packaging options, and scalability. Verify technology compatibility (WMS, EDI/API), security controls, and proof-of-delivery processes to ensure reliable omnichannel performance.

Negotiate clear SLAs for inventory accuracy, order lead times, liability and insurance limits, and exit terms. Include penalties for service lapses, audit rights, and data access. Mitigate operational risks with staged onboarding, performance milestones, and contingency carriers for peak seasons.