Prioritize transit time to core markets, carrier neutrality, WMS/API integration, inventory visibility, SLA compliance, and the provider’s ability to scale labor and slots during peaks. Also evaluate value-added services (kitting, returns), security, and reporting capabilities to support omnichannel strategies.

Location affects last-mile distance, fuel and carrier surcharge exposure, and access to regional freight lanes. Proximity to highways and major carriers shortens transit times and reduces LTL complexity, while local lease and labor rates directly influence per-unit warehousing costs.

Look for real-time WMS with API connectivity to your OMS/platform, EDI or modern API support for carriers, inventory visibility, automated pick/pack logic, and reporting dashboards. Seamless integrations reduce manual touchpoints and improve order-to-shipment velocity.

Negotiate clear billing models (storage tiers, pick fees, minimums), SLAs for order accuracy and transit times, shrinkage and liability terms, performance-based rebates, and regular KPI reviews covering OTIF, accuracy, dock-to-ship time, and inventory turns.