Require OTIF and order accuracy, inventory accuracy, average pick/pack time, dock-to-delivery transit days, cost per order and per pick, return processing time, and system uptime/API responsiveness. Compare these KPIs by SKU density and outbound parcel vs. LTL volume to assess true geographic fit.

Closer proximity reduces zone counts and LTL mileage, lowering freight spend and transit days. It improves last-mile scheduling, enables more pick-up windows, and increases carrier competition. For B2B shipments, this often translates to better lead times, lower expedite fees, and simpler consolidation options.

Prioritize dock door quantity, staged loading areas, pallet racking density, mezzanine options, temperature control, and security. Also verify WMS capabilities, parcel sortation interfaces, staffing flexibility, and temporary storage capacity to handle peaks without service degradation.

Negotiate clear SLAs for order accuracy, lead times, inventory reconciliation cadence, and OTIF with defined remedies. Include transparent fee schedules, chargeback policies, minimums, capacity notice periods, audit rights, and a reasonable termination clause tied to performance metrics.