C.H Robinson sales proposal to MillerCoors

1. Transportation
Proposal
February 22, 2018
Francis Ramadhani, Danielle Massey, Selena
D’Agostino, Anyssa Volarath
1

2. Agenda
Team
The Boston Beer Company
Fast Facts
Goals, Priorities, and Initiatives
Value
Solution Summary
By The Numbers
Why C.H. Robinson
Questions and Feedback
Recommendations and Next Steps
2Source: Transportation Proposal Case Study

3. One Team
Ramadhani, Francis
Food & Beverage Strategic Account Manager
Team and presentation lead
Massey, Danielle
Business Analyst
By the numbers
D’Agostino, Selena
Food & Beverage Specialist
The Boston Beer Company Profile
Volarath, Anyssa
Transportation Specialist
Solution summary and Why C.H. Robinson
Maria Hernandez
Senior Vice-President of Logistics and Supply Chain
Samuel Hubert
Transportation Director
Janet Smith
Vice-President of Sales & Customer Service
Bo Deitrich
Senior Director, Information Technology
Source: Transportation Proposal Case Study 3

4. The Boston Beer Company
Fast Facts
• Mission Statement:
• “Seek long term profitable growth by offering the highest quality products to the U.S. Beer
Drinker.”
•
1984 - Jim Koch started the Boston Beer Company
• 2nd largest craft brewery in the United States
• Headquarters: Boston, MA at One Design Center
• In 2016:
• 4 million barrels sold
• $968M revenue
• $87M net income
• 573 awards, Samuel Adams Utopias won 19 awards, and Bronze at the Beer World Cup
• Craft beer category grew 6%
• Better beer category up 7% , total category was flat
• Better Beer category is 29% of US beer consumption by volume
• Strongest competition: AB InBev and MillerCoors
• 6,500 craft breweries in operation
Source: Transportation Proposal Case Study 4

5. The Boston Beer Company
Goals, Priorities, and Initiatives
• Innovation
• Global expansion
• Increasing the number of Freshest Beer distributors
• Streamlining the reporting process
• A Third Party Logistics company that can grow with you
5Source: Transportation Proposal Case Study

6. Value
Solution Summary
Source: Transportation Proposal Case Study 6
Maria Hernandez:
• Increase in company profit through supply chain efficiencies
• Reduce the cost of transportation and bring on high quality service
• Going to make sure to have Samuel Adam’s beer available within 24 months in Canada, Mexico,
Brazil, Argentina and Chile
Samuel Hubert:
• Ensure high-quality truck drivers
• No more missed delivery times, and paper work errors
• Deliver quicker, cheaper IT solutions through Navisphere to offer “Real Reporting” and allows less
hours at work
Janet Smith:
• Faster transportation, less drivers missing delivery times, and professional truck drivers
• Save in shipping costs, and use that money for more advertisements
Bo Deitrich:
• Experts in Fresh delivery through the success of Robinson Fresh
• Offer real-time analytics through Navisphere

7. Value
Value by the Numbers
Source: Transportation Proposal Case Study 7
Key Metrics:
• 4-Year Total Savings $255,392.60
• Amounts to 4.47%
• Amount added to Janet Smith’s advertising,
promotional, and selling expense budget: $ 102,157.04

8. The Boston Beer Company IT Needs
• Modernize the reporting and data analytics associated with supply
chain (including transportation) and distributor success and satisfaction
• New transportation platform used by employees of both The Boston
Beer Company and distributors
• This solution reportedly costs $200,000 up front to build + $50,000
annually in maintenance and enhancements
Source: Transportation Proposal Case Study 8

9. What is Navisphere?
9Source: Transportation Proposal Case Study
Key Metrics:
Average Annual Savings:
$193,604.02
4-Year Cost Savings:
$774,416.09

10. 10Source: Transportation Proposal Case Study
Value
Why C.H. Robinson
• Largest 3PL in North America
• Opportunity to expand globally
• Freshest Beer Initiative
• Increase advertising budget

11. Recommendations and Next Steps
• Meeting with our Financial Team
• Get Trained In Navisphere Usage
• Map Out Distribution
• Mr. Jim Koch
11Source: Transportation Proposal Case Study

12. 12
Questions and Feedback

13. 13
THANK
YOU!

14. C.H. Robinson Transportation Proposal
Appendix

15. Appendix 1 (CH Robinson RFP Price Quote
Summary Sheet)

16. Appendix 2 (Navisphere Cost Savings)
• Key Metrics:
• Average Annual Savings $169,073.22
• 4-Year Cost Savings $ 676,292.90

17. Appendix 3 (Gross Margin)

18. Appendix 4 (The Boston’s Beer
Company’s Marketing Budget Increase)
• Janet can increase her selling expenses specific to advertising, sales force
expansion, and co-marketing with distributors in a 1:0.4 trade-off with actual
reductions in shipping costs.
• This means that Janet can spend forty cents ($0.40) for every dollar ($1.00) of
savings in shipping costs.
• Allows a $5,666.72 addition to Janet’s budget