Prioritize service reliability, inventory visibility, and cost transparency. Key checks include WMS functionality, SLA terms (picks/hour, order cutoffs), handling capabilities (temperature control, kitting), inbound/outbound carrier access, and scalability of labor and storage. Consider integration readiness for your OMS and marketplace APIs.

Closer proximity reduces drayage and linehaul stages, shortens transit windows, and lowers exposure to variable carrier surcharges. It also enables more consistent LTL and regional trunking schedules, improving predictability for carrier-led delivery SLAs and reducing average landed cost per order.

Negotiate clear KPIs and remedies: order accuracy, on-time shipment rate, inventory accuracy, receiving turnaround, and chargeback thresholds. Typical protections include service credits tied to SLA misses, defined inventory reconciliation cadence, minimum notice for rate changes, and exit/transition terms to protect continuity.

Request demonstrations of the WMS, API/EDI capabilities, real-time inventory dashboards, and sample integration flows. Validate reporting cadence, exception workflows, and mobile scanning processes. Where useful, run a pilot SKU set to confirm cycle-count accuracy, pick accuracy, and latency on order acknowledgements.

Model fixed and variable components: storage per pallet/cubic meter, receiving and putaway, pick-and-pack per order or line, packing materials, kitting/setup fees, outbound freight assumptions, returns handling, and any minimum monthly activity charges. Include onboarding, system integration, and projected labor surcharges for peak periods.