You’ve successfully navigated production and your goods have passed a quality inspection. The final hurdle is logistics—getting your products from the factory in Vietnam to your warehouse. This final stage is filled with potential pitfalls that can lead to costly delays, unexpected fees, and damaged goods.
Here are the top 5 logistics mistakes that can erode your profits and how to avoid them.
1. Not Choosing the Right Incoterm
As we’ve discussed, simply choosing the “easiest” Incoterm like CIF (Cost, Insurance, and Freight) can be a costly error. You lose control of the shipment and can be hit with high destination charges.
- How to avoid: For most SMEs, FOB (Free On Board) is the best choice. It allows you to control the main freight cost by using your own freight forwarder, giving you transparency and control.
2. Inaccurate or Incomplete Paperwork
Customs clearance in both Vietnam and your home country relies on perfect paperwork. A small error on the Commercial Invoice, Packing List, or Bill of Lading—like a wrong HS code or a mismatched quantity—can cause your shipment to be held for days or even weeks.
- How to avoid: Double-check (and have your supplier double-check) every detail on all shipping documents before the vessel departs. Ensure the information is consistent across all forms.
3. Not Properly Insuring Your Cargo
“But the carrier already has insurance!” This is a common misconception. The carrier’s liability is extremely limited and will not cover the full value of your goods in case of loss or damage at sea.
- How to avoid: Always purchase separate cargo insurance. The cost is a very small percentage of your goods’ value and provides essential peace of mind. Your freight forwarder can easily arrange this for you.
4. Poorly Packaged Goods
Your products will travel thousands of miles on a turbulent ocean journey. Inadequate packaging—weak cartons, not enough padding, or improper palletizing—is a leading cause of product damage.
- How to avoid: Be extremely specific with your supplier about your packaging requirements in your contract. Define the carton thickness (e.g., 5-ply), any required inner protection, and how the cartons should be stacked and wrapped on pallets.
Logistics involves coordinating multiple parties: the factory, the trucker, the shipping line, and customs. This complexity is often where a sourcing agent adds significant value, acting as a single point of communication to ensure all parts move in sync and paperwork is flawless.
5. Not Accounting for Lead Times and Delays
First-time importers often underestimate the total transit time. A 25-day ocean journey doesn’t account for potential delays at the port, customs holds, or inland transit.
- How to avoid: Build a buffer into your timeline. For a typical sea freight shipment from Vietnam to the US or Europe, budget at least 40-50 days from the ex-factory date to the day it arrives at your warehouse. Always plan for the unexpected.
Proactive Planning is Key to Smooth Shipping
Logistics should not be an afterthought. By planning proactively, choosing the right partners, and paying close attention to documentation and packaging, you can avoid these common mistakes. A smooth logistics process is the final, essential step to ensuring your sourcing venture is a profitable one.
Struggling to manage your Vietnam logistics? EQSource offers end-to-end shipping coordination services. We handle the paperwork and the partners, so you can focus on selling. Contact us for a shipping quote.
