Require clear KPIs: order accuracy, pick-and-pack cycle time, on-time dispatch, inventory accuracy, and dock-to-delivery transit benchmarks. Validate facility specs (racking, mezzanine capacity, climate control), technology (WMS, EDI/API), security, SLA remedies, and value-added services such as kitting and returns management.

Location determines available carrier types and route efficiency. Proximity to arterial roads reduces overland transit, widens carrier options (regional trucking, bonded transport, feeder services), and lowers last-mile costs. Evaluate road quality, congestion patterns, and scheduled carrier departures when selecting a site.

Negotiate transparent pricing (storage tiers, pick/pack, handling fees), minimum throughput and surge clauses, SLAs with remedies, variable capacity options, and termination notice. Include performance review cadence, audit access, chargeback rules for damage or shrinkage, and defined responsibilities for inbound/outbound discrepancies.