Evaluate on racking and storage capacity, dock and yard layout, WMS integration, SLA for order accuracy and turnaround, and the provider’s experience with parcel carriers. Also assess scalability, security, and value-added services like returns handling and kitting.

Focus on space and handling rates, minimum inventory charges, billing granularity for pick-and-pack, inbound receiving costs, and short-term vs. long-term lease implications. Negotiate clear KPIs, volume tiers, and termination terms to control variable costs.

Prioritize providers with established carrier lanes to key distribution centers and major ports, reliable scheduled pickups, and transparent lead-time reporting. Assess seasonal road impacts and the 3PL’s ability to route urgent shipments via alternate carriers.

Track on-time shipment rate, order accuracy, inventory turn, average time-to-ship, and return processing time. Require regular reporting, API or EDI connectivity for live inventory, and periodic operational reviews to align performance with SLAs.

Confirm dock sequencing, throughput capacity, staging and staging-to-outbound flow, staffing patterns for peak hours, safety and compliance documentation, and rehearsed contingency plans for carrier disruptions and seasonal peaks.