PackTech Writeup
Pack Tech, Dubai: Does trust exist in business relationships?
Case Write-up
By: Kshitij Sinha, Salil Garg, Kamran Khan, Tania Adhikari
About Pack Tech
Pack Tech is a family-owned, medium-sized, flexible packaging material converting company based in Jebel Ali Free Zone, Dubai. The company was started in 1997 and has grown five fold over the last 10 years. Today, it exports 70% of its products to 20 countries and imports its raw material from five different countries.
The company produces 2 types of products, namely, 38 micron aluminum foil lids & 35 micron polypropylene film labels. 38 micron aluminum foil lids are used for sealing polystyrene, polypropylene & other kinds of plastic containers for yoghurt, fruit juice & water. 35 micron polypropylene film is used in wrap-around labels for carbonated beverages, water & fruit juice bottles. Due to the criticality of the process & high inventory carrying cost of aluminum foil, Pack Tech has only 5 competitors in the whole Middle East region, 3 of which are based in Dubai. Since very few companies produce aluminum foil lids, it is important for suppliers and customers to maintain their relationship with Pack Tech.
Pack Tech also believes in a collaborative supply chain relationship. The company has been the sole supplier of packaging materials to most of its key customers (e.g., Nestle, Fonterra, Cargill, Coca Cola and Pepsi) in various countries since 1997. Similarly, it has also developed relationships with its key suppliers (e.g., Exxon Mobil, Elval, Evonick, and Wacker chemicals). The company has gained the trust of its customers through its commitment to quality & it enjoys excellent credibility among its suppliers. The company in this case had faced problems with its agents earlier between 2007 & 2009 in Iran, Sri Lanka & Greece. The case also finally describes how Pack Tech currently faces problems with its current ink supplier & how should these problems be tackled.
Iranian Agent
There was no formal agency
Case Write-up
By: Kshitij Sinha, Salil Garg, Kamran Khan, Tania Adhikari
About Pack Tech
Pack Tech is a family-owned, medium-sized, flexible packaging material converting company based in Jebel Ali Free Zone, Dubai. The company was started in 1997 and has grown five fold over the last 10 years. Today, it exports 70% of its products to 20 countries and imports its raw material from five different countries.
The company produces 2 types of products, namely, 38 micron aluminum foil lids & 35 micron polypropylene film labels. 38 micron aluminum foil lids are used for sealing polystyrene, polypropylene & other kinds of plastic containers for yoghurt, fruit juice & water. 35 micron polypropylene film is used in wrap-around labels for carbonated beverages, water & fruit juice bottles. Due to the criticality of the process & high inventory carrying cost of aluminum foil, Pack Tech has only 5 competitors in the whole Middle East region, 3 of which are based in Dubai. Since very few companies produce aluminum foil lids, it is important for suppliers and customers to maintain their relationship with Pack Tech.
Pack Tech also believes in a collaborative supply chain relationship. The company has been the sole supplier of packaging materials to most of its key customers (e.g., Nestle, Fonterra, Cargill, Coca Cola and Pepsi) in various countries since 1997. Similarly, it has also developed relationships with its key suppliers (e.g., Exxon Mobil, Elval, Evonick, and Wacker chemicals). The company has gained the trust of its customers through its commitment to quality & it enjoys excellent credibility among its suppliers. The company in this case had faced problems with its agents earlier between 2007 & 2009 in Iran, Sri Lanka & Greece. The case also finally describes how Pack Tech currently faces problems with its current ink supplier & how should these problems be tackled.
Iranian Agent
There was no formal agency