5 Common Mistakes When Choosing a 3PL Company and Solutions

1. Misjudging Operational Needs

One of the biggest mistakes businesses make when choosing a 3PL partner is failing to clearly define their needs and expectations from the start. This often results in mismatched capabilities, conflicts, and even the need to switch providers — disrupting operations and damaging customer experience.

Today, there are dozens of reputable 3PL providers in Vietnam, each with unique strengths. In reality, there’s no “best” 3PL for everyone — only the one that best fits a company’s specific operational model and goals.

Assess your needs before partnering with a 3PL provider

To choose the right one, sellers should clarify key criteria such as:

Average and peak order volume (daily and during sales campaigns).
Required fulfillment speed (same-day packing, 2-hour, or 4-hour delivery, etc.).
Product characteristics (fragile items, temperature-sensitive goods, short shelf life, etc.).
Additional services (custom branding, reporting, analytics, etc.).
Scalability as the business grows.

Sellers should also prioritize 3PLs experienced in managing similar product categories. Once you fully understand your operational needs, finding a long-term, compatible 3PL partner becomes much easier.

2. Choosing a Fulfillment Partner Based Solely on “Low Price”

Many businesses make the mistake of choosing a 3PL provider simply because it offers the lowest price. While this might reduce short-term operating costs, it often leads to serious long-term risks.

Why “cheap” can be costly:

Poor infrastructure and manual operations with little to no technological support.
High error rates in inventory management and order processing.
Slow deliveries that fail to meet platform SLAs, leading to penalties and lower product visibility.
Hidden costs such as return handling, damage compensation, or complaint resolution.
Negative impact on brand reputation and customer retention.

Price is important — but it should never be the only deciding factor. Sellers should evaluate total value, including:

Operational capability and technology platform.
Transparent service quality commitments.
Flexibility and responsiveness of the operations team.

Balancing cost and quality helps businesses save in the long run, maintain stability, and minimize risks.

👉 Read more: What’s the difference between 3PL, 1PL, 2PL, 4PL, and 5PL?

3. Lack of Clear Contractual Terms

Another common mistake when working with a 3PL provider is relying on verbal agreements or general quotations without clear contractual terms. The clearer and more detailed the contract, the smoother the partnership. Without it, disputes, blame-shifting, and accountability gaps are inevitable.

For example:

When an order is delayed, damaged, or lost, there’s no legal basis to request compensation.
Extra fees (for storage, returns, or high-season logistics) may arise unexpectedly, exceeding initial cost estimates.

To avoid these issues, ensure your contract includes:

Transparent pricing structure for all potential fees (storage, peak-season surcharges, return processing, packaging materials, etc.).
Service-level commitments (SLA) and acceptable error rates.
Complaint-handling and compensation procedures for damaged or lost goods.
Payment and reporting timelines, such as COD settlements and periodic reports.
System access permissions to monitor real-time inventory and order status for transparency.

If possible, start with a short-term pilot contract before signing a long-term one. A clear, detailed agreement builds trust and fosters a sustainable partnership.

4. Overlooking the End-Customer Experience

Many businesses focus solely on costs, logistics efficiency, and internal gains — forgetting that customer experience is the ultimate measure of success.

A reliable 3PL should enhance both seller efficiency and buyer satisfaction. Common issues include: poorly packaged items, missing gifts, non-branded packaging, or inconsistent presentation across channels.

When choosing a 3PL, prioritize partners with:

Professional and consistent packaging standards for all orders.
Custom branding options such as logo printing, gift wrapping, vouchers, and thank-you notes.
Technology-enabled quality control — barcode scanning, CCTV monitoring during packaging, etc.
Responsive customer service to resolve issues promptly before customers complain.

A trusted 3PL should act as your brand representative, not just a logistics provider — ensuring your customers always receive a satisfying and consistent brand experience.

5. Failing to Regularly Evaluate Performance

Many businesses assume that once a contract is signed, the 3PL partner will automatically meet expectations. Without ongoing performance tracking, however, issues can go unnoticed until they cause real damage.

As a result, sellers often lack insight into whether service levels match contractual terms, leading to cost discrepancies, inefficiencies, and missed opportunities for improvement.

Businesses should require their 3PL partners to:

Provide regular performance reports (weekly, monthly, quarterly) covering SLA rates, error ratios, return causes, and cost metrics.
Offer real-time operational dashboards for transparent, accurate monitoring.
Proactively suggest improvements when inefficiencies or risks are detected.

These are the most common mistakes businesses make when selecting a 3PL provider. Avoiding them will help ensure smoother operations, stronger partnerships, and better customer satisfaction.

👉 Read more: 5 key considerations for choosing a reliable 3PL partner

N&H Fulfillment Centers

An Phu Dong Fulfillment Warehouse:
An Phu Dong 13 Street, An Phu Dong Ward, Ho Chi Minh City, Vietnam.
Long Bien Fulfillment Warehouse:
No. 1 Huynh Tan Phat Street, Sai Dong B Industrial Zone, Long Bien District, Hanoi, Vietnam.

📞 Contact N&H Fulfillment today for detailed consultation and tailored logistics solutions.