Evaluate transit time to primary markets, carrier connectivity, warehouse layout and racking options, WMS/API capabilities, SLAs for pick/pack and returns, labor availability and costs, expansion flexibility, and any value‑add services like kitting or light assembly. Score providers by how they impact total landed cost and customer delivery windows.

Carrier density and access to arterial highways and rail reduce linehaul rates and handling time. Close proximity to consolidation points lowers LTL costs and enables more reliable cutoffs for next‑day delivery. Improved connectivity also reduces dwell and buffer stock requirements, lowering overall inventory carrying cost.

Common models include pallet or cubic storage, per‑pick fees, inbound receiving charges, and throughput‑based discounts. Negotiate minimums, sunset clauses, capacity add‑ons, and performance metrics (OTD, accuracy). Opt for hybrid agreements that convert fixed costs to variable fees as volume scales to protect cash flow.

Request system demos and sample EDI/API integrations, review KPI and exception reporting, confirm audit trails and cycle count processes, check data security and GDPR/compliance records, and run a pilot SKU set or parallel operations to validate accuracy, latency, and exception handling before full migration.