Focus on throughput (orders/hour), dock turns, on-time shipping percentage, inventory accuracy, pick/pack error rate, and average lead time. Also assess peak-season scalability, SLA remedies, yard capacity, and carrier integrations in the 3PL’s TMS to align performance with cost-to-serve objectives.

Closer proximity shortens dray times, reduces fuel and ground transport costs, and lowers customs dwell. It enables tighter cutoffs for same/next-day fulfillment and better control of inbound schedules, which collectively reduce inventory days and expedite customer delivery windows.

Prioritize dock density and cross-dock capability, racked vs. bulk storage mix, automation for high-SKU picks, real-time WMS integration, and dedicated returns processing. Combined, these reduce handling steps, shrink labor hours per order, and improve fulfillment accuracy.

Validate API compatibility with your OMS/platform, real-time inventory visibility, EDI or API order flows, reporting cadence, and exception workflows. Request sandbox access, run an integration pilot, and verify data accuracy and latency metrics before go-live.

Negotiate clear SLAs with measurable KPIs, fee schedules for volume variance, liability and insurance limits, termination and transition timelines, and contingency clauses for peak season. Include performance credits, audit rights, and detailed onboarding/exit plans to limit operational risk.