Coca-Cola CEO Concedes Supply Chain Is Now Strained
It comes as no real surprise, with much of the world in the midst of a lockdown in an effort to contain the coronavirus contagion. Coca-Cola (NYSE: KO) CEO James Quincey confirmed on Tuesday, however, the company's supply chain is "creaking around the world." The revelation was offered in a video interview aired by CNBC's Squawk on the Street, during which Quincey added, "some of the smallest SKUs will have to be left out."
Impasses are found in all directions and at all points of most companies' supply chains. North America moved into the COVID-19 storm already with a truck driver shortage in place, but with shopping habits being altered by the outbreak, that shortage appears exacerbated. Maritime imports into the U.S. are also down, while the cancellation of international flights largely meant to ferry passengers has also reduced U.S. air freight capacity by as much as 85%.
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Source Fool.com
