Prioritize measurable KPIs and infrastructure alignment: on‑time fulfillment rates, average order cycle time, warehouse capacity and scalability, warehouse management system (WMS) compatibility, slotting and pick efficiency, security and compliance, and clear service level agreements covering lead times and penalties.

Closer proximity reduces drayage, shortens transit times, and increases carrier frequency, which lowers freight premiums and enables more competitive transit guarantees. It also allows better consolidation for inbound ocean/air freight and faster replenishment cycles for high‑turn SKUs.

Require a WMS with real‑time inventory tracking, API integrations for order management and carriers, EDI or modern REST endpoints, scan‑based receiving and cycle count routines, reporting dashboards, and exception management workflows to maintain accuracy and actionable visibility.

Negotiate clear fee structures for storage, fulfillment, receiving, and value‑added services; caps or volume discounts for peak seasons; minimum commitment terms; inventory ownership and insurance clauses; and transparent pass‑throughs for carrier and drayage charges to avoid hidden cost volatility.