Rocky Plains Case Study

Rocky Plains Brewing Ltd.

Rocky Plain Brewing Ltd, one of the United States most recognized beers, family
with more than 100 years in business that provides exceptional quality producing, high standards
raw materials, proven brewing methods, and a rigorous production process; producing 3 to 4
million barrels of beer annually and employing approximately 500 people (Johnson 474), finds
themselves in a very touchy situation a position that Rocky Plain’s packaging materials manager
Mike Pearson must take immediate action to resolve.
Gilpin printing, also a family owned business have been Rocky Plains primary
label supplier for the past 15 years with the quality of service being good and sales to Rocky
Plains estimated at 45% - 50% of Gilpin’s total annual revenue; providing Rocky Plains with 3
day service for invoiced labels as a result causing the manufacturer to carry a substantial amount
in raw material safety stock with Rocky Plains carrying minimal inventory. With Gilpin’s
contract due to expire and Mr. Pearson consulting with Brian Evans, director of purchasing the
decision was made to test the market for better pricing, materials, and print methods; one of the
of the major concerns for both managers was the financial problems at Gilpin’s and their lack
to communication regarding the financial state of the company, and unsuccessful efforts to stem
its financial losses for the past 2 years. A Request for Proposals (RFP) were sent out soliciting
new contracts bids. Each proposal was to include financial stability of the supplier, protection for
raw materials, prices increases, currency and foreign exchange,, freight costs, print size and label
options.   Two suppliers where identified Stiles and Gilpin printing with Stiles being a larger
company they were able to provide a proposal identifying a variety of reduction initiatives
estimating approximately 2.5 million in savings in the following year compared to the proposal...