Key evaluation metrics: order accuracy, on-time shipments, inventory accuracy, pick/pack cycles per hour, and dock-to-delivery transit times. Also compare SLA terms, chargeback policies, scalability options, and visibility tools (WMS/API integration) to ensure alignment with channel-specific service expectations.

Location impacts freight miles, carrier options, and transit windows to major markets. Warehouses near primary corridors reduce fuel and linehaul costs, improve carrier scheduling, and shorten delivery lead times—translating into lower landed costs and improved customer experience.

Prioritize WMS capability and integration, racked storage density, cross-dock capacity, climate-controlled areas if needed, and value-added capabilities like kitting, returns processing, and labeling. Confirm labor availability and equipment standards to meet throughput targets.

Include clear SLA metrics, chargeback and penalty clauses, inventory liability limits, termination and transition assistance, data access and security expectations, and contingency plans for capacity spikes or transport disruptions. Ensure audit and performance review cadence is defined.