SUPPLYING THE WORLD’S FINEST MOLASSESWritten by Tom WadlowProduced by Heykel Ouni

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You might be forgiven for thinking that a global leader in the tobacco

industry had been built on a foundation stretching back several generations. For Al Fakher Tobacco however, the rise to the world’s most renowned tobacco molasses company has been a rapid one.

Formed in 1999 and owned by Jordanian parent Al Eqbal Investment Company, the UAE-based organisation is now present in 150 countries with a team of 550-plus staff of 20-plus different nationalities.

Othman Tahboub is Al Fakher Tobacco’s Senior Director

of Supply Chain. With more than 15 years’ experience in the procurement industry, he joined the company in 2007 as a Commercial Manager before heading up the supply chain operation in June of 2015.

His intricate knowledge of the wider business strategy is critical in the way supply chain operations are approached, allowing the company to differentiate itself from the competition in all of its markets.

“Al Fakher differentiates itself in many markets through quality,” he says. It’s a very competitive market out there, that’s why we always need to provide our sales

Al Fakher Tobacco is the global leader in the production and distribution of high quality molasses products, driven by a supply chain operation on a path to excellence

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Contract Logistics across the Middle-East

• Warehousing and Distribution• Packing

• Project Management• Airfreight

• Ocean Freight• Road Transport

Tel: +971 4 398 7117 | Fax: +971 4 398 7227Web: www.imadxb.com | Email: Enquiry@imadxb.com

UAE – SAUDI ARABIA – QATAR – OMAN – KUWAIT – BAHRAIN

teams with the best quality and best priced products possible to become more competitive.

“We also need to be flexible in order to meet sudden peaks in demand, while at the same time offering consistency in our product quality. All of this helps the company to become more competitive in our markets.”

Al Fakher’s product range consists of more than 100 flavours across standard, gold and special edition ranges, with accessories such as high quality glass shisha also sold worldwide. “We have also entered the vapour market which is massively popular in the UK and the USA, which makes it crucial that we are flexible to meet ever-changing customer demands with new products and variations,” Tahboub adds.

Supplier landscapeAl Fakher Tobacco’s supply chain landscape is made up of two world-class manufacturing facilities in the UAE, one dedicated to the local market and the other, larger site producing for export. The company also hosts a network of warehouses

across the country containing tailored storage systems

for particular products and materials used. And it is the suppliers of such materials, and having visibility over

the entire network, that is the number one

priority for Tahboub. “The most important part

of our supply chain operations is choosing the right suppliers,” he explains. “If you choose a good one your life will become much easier. Al Fakher is risk certified and we work with top risk management providers in the world to identify, assess, and mitigate risks.

“We have to diversify our

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Number of employees at Al Fakher Tobacco

550

Head Offi ce Industrial Area # 1, P.O. Box 6032, Sharjah, UAE., Tel: +971 6 5331264, Fax: +971 6 5331917, Email: cplast@cosmoplast.com

At the outset, Cosmoplast started with the production of transport crates and polyethylene bags and today the company has grown to be the Middle East’s largest and most diversifi edpipeand well casing manufacturer. Renowned for their product range that includes house ware products, plastic thermoformed disposable cups and containers, outdoor furniture and a full line ofcoolers and iceboxes that are sold in retail outlets, hypermarkets, supermarkets, sporting goods, hardware and speciality stores in the UAE, GCC and 35 countries worldwide.

With over 45 years of experience, Cosmoplast is a leading plastics manufacturer that incorporates its values of service and reliability with quality products.Founded in 1970, Cosmoplast pioneered the supply of building materials, infrastructure products and consumer goods in the emerging markets of the Middle East.

Services: Molded Products Infrastructure Pipes Plumbing System Disposable Products

supply base, that’s why we work with multiple suppliers around the world to minimise supply risk. Our suppliers are the best in their fields, profitable and add value to what we do.

“Supply chains are more complex than ever and we need visibility of the whole chain to make sure we comply with regulations across borders, for example with sustainability and CSR. We have regular meetings with suppliers and get to know them inside out.”

Shipping providers handle the inbound logistics operations, with 85 distributors making sure the products reach wholesalers and retailers in the 150 different national markets. Al Fakher’s team of marketing and sales managers frequently touch ground in these different territories, acting as a vital point of direct communication and scouts for new business opportunities.

Continuous improvement Suppliers and partners aside, Al Fakher is also embarking on its own internal continuous improvement programme in order to achieve supply chain excellence.

For example, it is investing in a new warehouse management system to enhance analysis of inventory data, a move which should result in quicker issuing and movement

“If you can’t develop people, then how can you develop a business forward?”

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We make a difference in the supply chain.We are a prominent regional supplier of oleo, functional, detergents, paint, cosmetics, tobacco, dairy farms and specialty chemicals. Selling in to 23 countries around ME and Africa. Representative of WILMAR (World # 1 in agribusiness)

www.al-behar.com / ammar.rafi e@al-behar.com

of goods and an improved cash conversion cycle.

The most significant continuous improvement project, and what the whole of Al Fakher’s supply chain operation is aiming to reach, is platinum standards.

“We are aiming is to achieve platinum standards within three years, which would recognise us as being on a par with the procurement departments in” in the biggest multinationals Tahboub says. “Such standards are very efficient and strategically aligned. There are more than 20 criteria to achieve this, five of which are leadership and organisation; strategy; people management; processes, procedures, systems and performance, measurement and management. Even within these there are many more subcategories. This is very focussed way for us to improve.”

Custodians Crucial to attaining excellence, and indeed crucial to the company’s

success to date, is Al Fakher’s loyal employee base. Across all business departments employees benefit from a range of incentives and initiatives, resulting in a 99.5 percent retention rate.

These policies are grouped into a triangle, at the top of which is a positive, safe and comfortable working environment.

The second is competitive packages, from salaries to benefits like accommodation, transport and profit sharing.

“The third part is development and training, and this is why we have a high retention rate,” Tahboub adds. “The company invests a lot in internal and external training, case studies, site visits, active learning, and experiential learning. We never look at this as a cost but an investment – if you can’t develop people then how can you develop a business forward?”

As well as looking after its people, Al Fakher is also

increasingly becoming a custodian of the local environment in which it operates. “We are also working on a waste management programme to make sure we are known as a sustainable producer as well as a world-class one,” says Tahboub.

The waste management programme involves a new water treatment facility which cleans water before it reaches sewage works. Other initiatives include a tobacco dust capturing system and a rubbish compressing systems to cut down on waste output.

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Q&ACEO Samer Fakhouri Samer Fakhouri is the CEO of Al Fakher Tobacco. He is also EICO’s chairman of the board. In addition to his position in Al Fakher and EICO, Fakhouri held the position of General Manager of the International Tobacco & Cigarette Co. (ITC) in Amman – Jordan since 1995 and until EICO was founded in 2008. Under his command, ITC was sold to Philip Morris International in 2011.

Fakhouri’s experience in tobacco business extends beyond two decades. He is the driving force behind EICO’s acquisition and subsequent expansion of Al Fakher in 2006. Fakhouri holds a BBA from Oklahoma State University gained in 1993.

How has Al Fakher progressed since you arrived?

Al Fakher has experienced tremendous growth since it was acquired in 2006. Distribution networks didn’t exceed 20 countries. Our distribution network now encompasses 85 countries and with presence in 150+ countries.

Manufacturing capacity has increased tremendously. Usage of technology was minimal compared to a high usage of best technology now. Al Fakher have partnered with the world best technological providers to combine their technologies with our platform setup to create complete solutions tailored to fit our high-end requirements

What defines Al Fakher Tobacco?

Leadership. Our Leaders are humble, they take their ego away, their ambition is for the larger cause, Visionary, adaptable to change, and can be change catalysts.

Mentality. Our team have a winning mentality. We believe that Success is being the best in what we do and that Success is choice and discipline.

The team. Our team is empowered, motivated, engaged, enhanced, and enabled. We are a team, not just a group of people.

Environment of truth and transparency. We have a climate where truth and not compliments are heard. People can speak up freely and will be heard.

Simplicity. We simplify work. We don’t complicate things or processes. We work smarter, not harder.

Culture of discipline. People operate with freedom in a system of responsibilities. In a culture of discipline, people do not have "jobs", we have responsibilities.

Tell me about the wider business strategy. What are your aims and ambitions for the coming years?

Al Fakher focuses in maintaining its market leadership, through sourcing top quality ingredients, to produce premium products, and sell through a competitive pricing strategy, supported by aggressive marketing. We will focus on strengthening its premium offerings, unlocking new markets and M&A opportunities going forward, while maintaining operational and supply chain excellence.

How important a role does supply chain play in formulating this strategy?

It’s all about Efficiency, and flexibility. Our supply chain is an essential element to our operational excellence. Our efficient supply chain enables al Fakher to be more competitive in the market place and helps controlling costs which maximizes our profits.

Our flexible supply chain always aims to speed up products flows. It is fast in detecting and responding to short term requirements and in adapting to new strategies to support change in overall company or changing market dynamics.

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Bright futureAl Fakher Tobacco’s strategy revolves around maintaining its position as a global industry leader through maximising its competitive advantage, namely quality of product in vast array of guises and flavours costed at competitive prices.

“In our strategy framework, every department has a goal,” Tahboub says. “We know the molasses industry will continue to grow, as opposed to cigarettes industry which is a declining sector. Whether its quality management, operations, HR or supply chain management, the target is to achieve excellence and sustain our competitive advantages and core competencies by providing customers with the best products possible. Achieving competitive advantage is difficult, but sustaining it is even harder and we cannot stop at where we are now.”

Tahboub is also passionate about encouraging more talent to pursue a career in the supply chain at large, especially given how complex supply chain processes have become at global companies such as Al Fakher.

He concludes: “For anyone looking to pursue a career in supply chain I would emphasise the importance of being an effective communicator, a change catalyst and a positive thinker. It is a stressful world but you really have to keep spirits high and motivate yourself and others because we deal with many stakeholders in this business.

“I would also stress the need to aim high with certifications and executive education and to also get involved with other areas of the business, as this will help to understand the requirements of the supply chain even more. This is what is happening at Al Fakher Tobacco.”

Othman TahboubSenior Director of Supply Chain

Othman Tahboub is the Senior Director of Supply Chain, responsible for the procurement of all materials and services for the company, raw materials and finished goods warehouses, material management and in-bound logistics.He joined Al Fakher in 2007 as a Commercial Manager. Prior to joining Al Fakher Tobacco, Tahboub spent seven years at the International Tobacco & Cigarettes company in Amman, Jordan, where he held a variety of roles in production, data analysis, procurement, shipping, and logistics.Tahboub has an MBA from Hult International Business School in Boston and is a full member MCIPS in the Chartered Institute of Procurement & Supply in the UK. w w w. a l f a k h e r. c o m 1 9

Al Fakher Tobacco Trading,

Ajman, United Arab Emirates

P.O. Box 20037

T +971 6 740 0366F +971 6 740 0688

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