Prioritize measurable service-level metrics and infrastructure: average dock turns, inbound/outbound yard capacity, automation level (WMS, pick-to-light), accuracy rates, and carrier connectivity. Also evaluate billing transparency, chargeback policies, and scalability for peak seasons to ensure total cost of fulfillment aligns with your demand profile.

Closer proximity reduces carriage miles and carrier surcharges, shortens transit times, and increases delivery window options. It also lowers fuel and linehaul costs, improves on-time performance metrics, and can reduce safety stock. Assess actual weighted transit times to your top ZIP codes rather than distance alone.

Key systems include a robust WMS with real-time inventory sync, order management that supports split shipments and returns, parcel carrier APIs for label and rate shopping, and visibility dashboards. Integration with your ERP and marketplace channels is essential to prevent oversells and to automate carrier selection and tracking.

Negotiate clear definitions for billing units (per pallet, per pick, per box), capped accessorials, minimums, notice periods for rate changes, SLA deductions for performance misses, and scalable capacity clauses for seasonality. Include audit rights, data access, and a defined offboarding plan to protect continuity if you change providers.