The recent outbreaks of the COVID-19 Delta variant in Vietnam and other parts of Asia that are largely unvaccinated are once again exposing the need for supply chain diversification. Although Vietnam only suffered 81 deaths from the virus in the first 14 months of the pandemic, increasing numbers of cases and deaths have pushed the government to shut down factories and impose strict new measures. 

The shutdown of factories due to the Delta variant has thrown an unexpected wrench in many companies’ supply chains and contributed to rising consumer prices. The Wall Street Journal delved into the supply chain disruption that companies relying on Vietnamese manufacturing are already experiencing, stating that, “The outbreaks in Vietnam and elsewhere add to a long list of challenges—including outbreaks at ports, freight-container shortages and rising raw-material prices—that companies face in delivering goods at low cost and on time ahead of the holiday season.

Vietnam’s government has ordered factories to adopt strict measures in an effort to maintain production, which includes a “three-in-one-place” policy that requires employees in some highly affected regions to eat, sleep and work in the workplace to avoid infection. Despite these efforts, some companies are searching for alternative suppliers elsewhere, even going so far as to pay for expensive air freight to move goods to Western markets to make up for any production delays. 

It’s situations like these that make the need for supplier diversification even more apparent, especially in the healthcare space. While commitment is important in the IDN-supplier relationship, having access to an alternative supplier provides a host of benefits — particularly in a crisis. 

At ASP Global, we offer health systems greater control over their supply chain with custom direct sourcing solutions. By diversifying your supply chain, we help mitigate risk from ongoing pandemic disruptions. ASP Global wants to partner with you and your facility to ensure you are better equipped to handle any current and future disruptions in the supply process.

Contact us today to learn how.