Prioritize measurable KPIs and system compatibility: transit-time maps, carrier density, WMS/API integration, dock throughput, order accuracy, pick-and-pack cost per order, and peak staffing plans. Confirm SLA terms for cut-off times, claims handling, and inventory reconciliation to match your service model and SKU velocity.

Closer proximity reduces regional last-mile miles and can lower LTL and parcel costs for nearby customers, improving transit predictability. Trade-offs include fewer direct TL lanes or linehaul density than major hubs; evaluate transit-time maps and carrier contracts to ensure coverage for target delivery windows.

Look for flexible storage (buffering), scalable pick-and-pack labor, cross-dock capacity, dynamic slotting, and reliable reporting. Require SLAs on order accuracy, on-time shipment, and expedited handling, plus capacity planning clauses for predictable peak surges and contingency staffing.

Evaluate landed-cost modeling that includes transportation, duty, and inventory carrying costs. Assess regional rent trends, labor availability, utility reliability, and proximity to primary customers and carriers. Model scenarios for different SKU velocities to identify the warehouse location that minimizes total cost to serve while meeting target service levels.