Evaluate SLA targets (order lead time, pick accuracy), cost-per-order and cost-per-pallet, minimum throughput requirements, inbound/outbound cut-off times, insurance and indemnity clauses, and the 3PL’s scalability for peak seasons. Include KPIs and penalties in the contract to align performance and expectations.

Proximity to main highways and port links reduces truck miles and transit time, lowering transport costs and improving delivery windows. Warehouses closer to regional carrier hubs enable more pickup options and lower LTL rates; locations farther from nodes typically incur higher drayage and longer lead times.

Prioritize certified temperature-controlled storage with zoned refrigeration, monitored HVAC systems, redundant power and generator capacity, documented cold-chain handling SOPs, real-time temperature monitoring, and validated carrier refrigerated transport options to ensure integrity and regulatory compliance.

Primary drivers include warehousing rent per pallet position, labor rates and productivity, inbound/outbound handling fees, transportation/drayage, and value-added service charges. Model total cost by combining storage, pick/pack, fulfillment labor, outbound freight, and returns handling against projected order profiles and seasonality.

Assess WMS functionality (real-time inventory, lot/serial traceability), EDI/API integration with your order management and carriers, reporting and KPI dashboards, barcode and scanning workflows, and the provider’s capability for custom workflows or automation to support omnichannel order routing and returns.