Prioritize throughput capacity, accuracy SLAs, inventory visibility (real-time WMS), integration with your ERP/platform, value-added service capabilities (kitting, returns), and scalable labor. Validate performance with KPIs such as OTIF, pick accuracy, and average order cycle time, and confirm carrier lane coverage for your key customer regions.

Location affects drive times to parcel hubs and regional distribution centers, LTL and FTL lane efficiency, and last-mile density. A centrally sited warehouse reduces zone counts and average transit days, enabling zone-skipping and consolidated freight to lower per-unit shipping costs and improve delivery consistency.

Require a WMS with real-time inventory, API integrations, support for batch and wave picking, RF scanning, and options for automation or semi-automated workflows. Also confirm climate control if needed, secure racking, cross-dock capability, and processes for returns and value-added services to maintain throughput during peak demand.

Pricing typically includes storage (pallet or bin), receiving and putaway, pick-and-pack by line or piece, outbound handling, and value-added services, plus freight. Reduce costs by optimizing slotting, consolidating orders, negotiating minimums and volume tiers, improving forecast accuracy to lower safety stock, and leveraging carrier contracts for better freight rates.