Identifying and Evaluating Suppliers of Protective Gear in Vietnam and Bangladesh
The client, one of Europe’s leading players within the healthcare sector, considered changing some of their Chinese suppliers of protection clothing to suppliers in other parts of Asia. Therefore, they needed to conduct a search for qualitative suppliers in the area and reached out to Asia Perspective to investigate the possibilities in Vietnam and Bangladesh.
The aim of the project was to help the client identify the most suitable supplier alternatives of the requested products.
The report involved a high-level overview of the supplier market of protection clothing in the selected countries, as well as an in-depth evaluation of new potential suppliers. The report (and on-going support) helped the client select the best-fitted suppliers.
As of today, the client has experience with Chinese suppliers, but felt the need to diversify their purchasing origin. Vietnam and Bangladesh are the two largest garment producers in Asia behind China, but both hold big cost advantages in comparison.
In Vietnam, the supply chain for the client’s requested products are already well-established and different types of material can be sourced locally at competitive prices. Vietnam’s free trade agreement with the EU, which has been in effect from 1st August 2020, also eliminates the import and export tariffs between the two regions, making the country a highly lucrative sourcing market for European companies.
Asia Perspective conducted the project both by extensive desk research, as well as on-site visits at different supplier locations.
The project included:
- Supply market research and supplier identification based on both internal and external information sources.
- Initial evaluation of the suppliers based on the agreed review criteria.
- In-depth evaluation of technical, business and regulatory aspects.
- On-site visits at selected supplier factories to verify information and evaluate aspects such as production capability, quality and CSR compliance.
- Arranging sample shipments and testing between the selected suppliers and the client.
Asia Perspective provided the client with a comprehensive report of the supplier markets in Vietnam and Bangladesh, recommendations on the most suitable suppliers in these countries, as well as on-going support when proceeding with selected suppliers.
Vietnam was identified as the best destination for the client’s diversifying strategy. With a complete supply chain in the industry, low labor cost and substantial experience of manufacturing similar products, Vietnamese suppliers have the ability to offer a competitive price while still maintaining the client’s high quality standards.