Established in 1985, Arabian Paper Products Company (APPCO) has grown into the dominant paper cup supplier to major beverage bottlers and the Gulf region's rapidly growing fast-food industry. It has also ridden the Saudi boom in the post-mix business where beverages are dispensed directly to consumers in cups.
APPCO has excellent technology, provided by the Polarcup unit of its joint venture partner, The Huhtamaki Van Leer Group of Finland. In June 2006, APPCO received the first shipment of its newest product -- a high-end, double-wall cup with insulation -- from a Huhtamaki factory in New Zealand.
APPCO manages its materials very tightly, negotiating long-range contracts for the supply of its main raw material, plastic-coated board. This ensures that its customers are not faced with frequent price fluctuations due to fluctuating prices of world paper.
Also, its production line is highly flexible, which enables APPCO to keep inventories very low. It instituted this policy to better serve its customers' needs.
Customer service drives APPCO from top to bottom. For example, the company revamped its art department to better serve the private label business. As a result, not only can the company print existing client labels to almost any specification, but it can design original logos, labels or ad messages for a diverse array of clients, large and small.
Like most Olayan enterprises, APPCO's organizational structure is highly compressed and free from complicated management hierarchy. The path from general manager to the shop floor travels through just one individual. The result is a flexible, efficient and highly responsive operation, offering customers impeccable service and a high-quality product at a reasonable price.
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