Brewing Peace Philippines: Customer Relationship Management

Case Solution

Jose Gerardo Santamaria, Sandeep Puri, Maria Luisa Chua Delayco, Rakesh Singh
Ivey Publishing ()

Brewing Peace was a company based in the Philippines that sold coffee beans. Despite a base of 80 clients, 70 percent of the business depended on 9 main clients; this included the largest buyer, Concepcion Coffee Enterprises Limited (CCEL), which accounted for 20 percent of Brewing Peace’s sales. After a Ç ± 30 million CCEL contract with a profit margin of less than 20 percent, a 90-day pay period, and a short delivery time, the Brewing Peace co-founder was forced to reconsider his relationship with your biggest customer. The dilemma Brewing Peace faced was that it could not accept this order on CCEL’s terms without jeopardizing the company’s payment terms with its suppliers and delivering orders worth ± 25 million to its own customers.

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