Prioritize measurable cost-to-serve, service-level agreements (cut-off times, order accuracy), technology compatibility (WMS/API integration), layout and throughput capacity, value-added capabilities (kitting, returns), and proximity to key carrier lanes. Model landed cost and transit windows to primary SKUs and markets before selecting a partner.

Key factors include distance to intermodal terminals and major highways, density of parcel and LTL carriers in the facility, dock capacity and cross-dock capabilities, and local last-mile carrier aggregation. These elements drive transit reliability, split-shipment risk, and per-order transportation cost.

Labor availability and wage trends determine labor-driven per-order costs, while property rates and utility expenses set fixed cost baselines. Local tax or incentive programs can lower occupancy costs. Evaluate these against automation investment needs and expected volume seasonality to price multi-year contracts.

Require order accuracy (≥99% target for most SKUs), on-time shipments relative to cut-off, average fulfillment lead time, inventory accuracy, return processing time, and dock-to-stock cycle. Include escalation SLAs, capacity surge terms, and regular operational reviews to ensure scalability.