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Ultimate Factories: Coca-Cola - Article Example

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As a leading beverage company, Coca-Cola has had a long history. However, little did I know that such a big multinational faces a myriad of challenges until I watched the…
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Challenges Facing Coca-Cola For a very long time, I have known that Coca-Cola is one of the most successful multinationals in the world. As a leading beverage company, Coca-Cola has had a long history. However, little did I know that such a big multinational faces a myriad of challenges until I watched the Ultimate Factories: Coca-Cola. From this video clip, I found out that the company has been battling procurement, transportation, sustainability, forecasting, and fulfillment challenges.
As a multinational, the company has established a series of subsidiaries in many countries. So, the major challenge faced in its procurement system has more to do with supplier contracts. There have been several cases of compliance in which many suppliers fail to provide the company with the required materials and supplies as agreed. This coupled with cost containment, has affected the company a great deal. Besides, since the company operates in many countries, it has had to deal with transportation hiccups which have been caused by poor state of roads in most places. This has made it much difficult to get supplies in time and supply its products to the customers.
Moreover, the company has faced environmental challenges resulting from the fact that most of its commodities have been associated with obesity. Thus, the company has not achieved its sustainability because many clients are now abandoning its GMO food products for more healthy ones. On the other hand, more problems still persist because the company can not efficiently make accurate forecasts. The unpredictability in business operations mostly blamed for stiff competition and changes in demand have made the company to realize reduced sales and low profitability. Lastly, it faces challenges in its fulfillment in that there are inadequate expertise to man and properly coordinate the handling and shipping of orders. Read More
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