2. SUPPLYING
THEWORLD’S
FINEST
MOLASSESWritten by Tom Wadlow
Produced by Heykel Ouni
3

3. Y
ou 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 FakherTobacco 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
w w w. a l f a k h e r. c o m 5

4. 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 7227
Web: www.imadxb.com | Email: Enquiry@imadxb.com
UAE – SAUDI ARABIA – QATAR – OMAN – KUWAIT – BAHRAIN

5. 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 landscape
Al 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
8 w w w. a l f a k h e r. c o m 98
Numberofemployees
atAlFakherTobacco
550

6. Head Office 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 edpipe
and 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 of
coolers 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

7. 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?”
w w w. a l f a k h e r. c o m 1 3

8. 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.rafie@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.
1 5w w w. a l f a k h e r. c o m 1 51 4

9. Q&A
CEO 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.
1 7

10. Bright future
Al 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.”
OthmanTahboub
Senior 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

11. Al Fakher Tobacco Trading,
Ajman, United Arab Emirates
P.O. Box 20037
T +971 6 740 0366
F +971 6 740 0688
W W W . A L F A K H E R . C O M