Prioritize multimodal connectivity (highway, rail, port proximity), average transit times to your customer base, WMS and API integrations, SLAs for order cycle time, and value-added services such as kitting and returns handling. Also evaluate labor availability, peak-season scalability, and clarity of billing (storage, pick/pack, and inbound charges).

Primary cost drivers are storage density (racked vs bulk), pick/pack labor rates, inbound consolidation fees, and outbound carrier selection. Optimize by designing SKU slotting for velocity, negotiating carrier contracts, using cross-dock where possible, and selecting providers with transparent costing and frequent reporting to control detention and accessorials.

Closer proximity to major carrier hubs and highways reduces transit windows and variability, enabling smaller safety stock and faster delivery promises. Use transit-time analysis to site inventory across regional nodes, prioritize next-day lanes for high-velocity SKUs, and implement batch cut-off timings aligned to carrier schedules to minimize delays.

Require a modern WMS with real-time inventory, open APIs or EDI for order flow, carrier rate-shopping or TMS connectivity, and reporting dashboards for SLA monitoring. Confirm support for ASN, lot/serial tracking, reverse logistics workflows, and integration testing plans to ensure reliable cutover and ongoing visibility.