Prioritize facility type (racked, ambient, cross‑dock), WMS and API/EDI integrations, proximity to main road corridors and port/airport gateways, carrier density for last‑mile options, labor availability, SLA guarantees, and flexible pricing or lease terms that support seasonal volume changes.

Closer proximity to distribution corridors and port/airport access reduces drayage and road miles, lowering transport costs and transit times. High carrier connectivity enables consolidated pickups, better service density, and improved delivery windows, while modern WMS reduces handling errors and dwell time.

Top providers offer pick & pack, kitting, returns management, cross‑docking, inventory forecasting support, and configurable SLAs. They should provide WMS visibility, integrations for marketplaces/carriers, customizable packaging, and reporting for KPIs like OTIF, order cycle time, and inventory accuracy.

Key drivers are rent, labor, handling rates, transportation, and inventory carrying. Optimize by right‑sizing storage (racked vs bulk), consolidating inbound shipments, implementing slotting and batch pick strategies, negotiating carrier contracts, and using data from your 3PL’s WMS to reduce excess inventory.