Start by mapping customer delivery targets and SKU velocity to transit time windows from candidate sites. Compare carrier access (parcel hubs, LTL lanes), facility capabilities (dock doors, clear height, automation), and unit economics including per-pick, storage, and inbound handling to determine true cost-to-serve.

Key attributes include dock density and staging area, clear height for racking density, available short‑term surge space, WMS integration capabilities, and local labor flexibility. These determine throughput capacity and ability to scale during peak seasons.

Require on-time shipment rates, order accuracy, average pick/pack times, return processing SLAs, inventory accuracy, and carrier on‑time performance. Also review technology integrations (API, EDI), outage history, and contingency plans for peak events.

Automation and a modern WMS improve labor productivity, reduce error rates, and enable faster throughput, which lowers per-unit costs as volume grows. Assess integration maturity, scalability, and how automation supports SKU complexity and order profiles.

Negotiate scalable rate tiers, guaranteed service levels, defined surge capacity, clear SLAs for returns and reverse logistics, inventory reconciliation cadence, and termination/transition terms. Include penalties or credits tied to OTIF and accuracy metrics.