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If there is an open hole, then the pup might not survive. Often if the hole is too large, the intestines will start to work their way into that opening. The opening will also allow bacteria to enter the body which will lead to infection. I've been in a similar situation and euthanasia was recommended. Even if they can close the opening up, a newborn pup may still expire from the infection. If you keep the pup with the mother, then she may lick and worry the umbilical area so much as to open the whole even larger until the intestines are on the outside and then the chance of survival is poor even if they are disinfected and replaced.
If the pup is to have a chance of survival with an open wound at the umbilical site, you would need to have the pup seen as soon as possible and likley have it surgically closed. You would then need to watch the pup closely even after that when the pup is around it's mom. I wished I had better news. The hole will also create a hernia as well which will need to be surgically corrected as well.
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Since there have been recalls on certain foods, please check the following site to be sure the food your animals eat is not affected. If it is affected, contact your vet as soon as possible. Have your dog seen if they have any symptoms.