Prioritize total cost-to-serve: storage per pallet, pick-and-pack labor rates, inbound receiving fees, and outbound parcel discounts. Operational KPIs should include order accuracy, on-time shipment rate, average pick cycle time, and dock-to-delivery lead time. Also evaluate value-added service fees for kitting, returns, and EDI/API connectivity.

Close port and air links plus highway and rail options shorten transit windows and expand carrier choices. This enables zone-skipping, consolidated LTL lanes, and faster replenishment. Assess local carrier density, frequency of sailings/air lifts, and last-mile networks to align warehouse location with your primary delivery lanes and service promises.

Confirm available square footage and clear heights for pallet flow, racking configurations, dock and trailer capacity, temperature control ranges, bonded/secure storage if required, and cross-dock capabilities. Verify scalability for peak seasons and SLA terms covering throughput, hold times, and contingency capacity.

Technology is critical for visibility and cost control. Due diligence should check WMS capabilities (lot/serial tracing, batch picking), API/EDI connectivity for order sync, reporting and BI exports, and integration timelines. Also test sandbox integrations, incident escalation processes, and performance SLAs prior to go-live.

A typical onboarding runs 8–16 weeks depending on complexity: site selection and contract (2–4 weeks), systems integration and testing (3–6 weeks), process mapping and SOP development (2–4 weeks), pilot shipments and volume ramp (1–2 weeks). Allow buffer for regulatory checks, customs setup, and seasonal load adjustments.