Require measurable KPIs: order cycle time, pick-and-pack accuracy, on-time-in-full (OTIF), inventory accuracy, and returns turnaround. Also evaluate reporting cadence, SLA credits for missed targets, sample audit processes, system integration (WMS/ERP/API) and escalation procedures to maintain visibility and service predictability.

Location affects fuel, transit time, and carrier selection. Closer proximity to major highways and dense carrier networks reduces LTL and last-mile costs, enables more consolidation opportunities, and shortens transit windows—lowering safety stock, reducing working capital, and improving customer lead times.

Expect a modern WMS with real-time inventory, API integrations, RF scanning, zone/priority picking, and automation options (conveyors, pick-to-light, ASRS). Also assess labor scalability, seasonal workforce plans, overflow capacity, and rapid onboarding procedures for peak volumes.

Negotiate transparent unit rates, tiered storage, clear definitions for accessorials, minimums, volume discounts, service credits, termination notice, and audit rights. Include ramp-up schedules, capacity guarantees for peak seasons, and defined integration and onboarding milestones to limit unexpected cost exposure.