Rick Anderson doesn’t mind if you refer to his business as a paper tiger. Anderson Paper and Packaging, just south of Ferndale, has become a fierce competitor by following its founder’s commitment to extraordinary customer service.
He learned the business by purchasing paper products and packaging for Trade Products, Inc., of Lynnwood, and doing some consulting work for Sound Container in Renton. Anderson moved to Whatcom County in 1990 and commuted for two years before leaving to start his own business.
“I built a home in Sudden Valley, but couldn’t find a job in the area that paid well,” he said. “I picked up some box accounts through my previous contacts and that was the beginning of the company.”
Anderson Paper and Packaging incorporated in 1994.
“That first year, I basically worked off my kitchen table,” Anderson said. “My niece was going to Western and I hired her as my first employee to run the office. Our first outside location was in Irongate and we outgrew that in three years. I built the building next door and we outgrew that. I got this building on a lease option and purchased it two years ago.”
The company has been growing at an annual rate of 35 percent and now has 23 employees. Those workers are a major part of Anderson’s formula for success.
“You have to have the right structure and the right people,” he said. “We succeed by providing better customer service than anyone in the industry. We instill in our employees the principle that the customer is always right. It takes time to get people to think that way. Whatever the customer wants, we work it out, no matter what. That can-do attitude gets and keeps business.”
Anderson believes size doesn’t matter.
“It doesn’t matter how large or small the customer is, we treat them all the same,” he said. “Barlean’s Organic Oils was very small when we first hooked up with them. Now, they’re huge and they’ve stuck with us.”
The company that started by selling corrugated boxes is now a full-line packaging firm with separate divisions for janitorial supplies and safety equipment.
Anderson created a system called SMILES, Supplier Managed Inventory Leaves Everyone Smiling, that results in a far more efficient operation. It also enables the company to promise next day delivery on almost any product.
“Over the years, I saw the lack of service in the industry and it kept going downhill,” Anderson said. “I set up programs here to enable top-notch service. Companies are looking to cut suppliers because of the cost of cutting purchase orders. With us, they can get everything in one place. We give and give some more when it comes to service. It’s not rocket science.”
One major challenge is maintaining that level of service while growing rapidly. Anderson believes that growth is not good if the service level drops as a result.
“Our volume is up 32 percent this year, so we added a customer service manager to insure there are no glitches,” he said. “One day turnaround is not common in this industry, but we’ve succeeded by exceeding industry standards. We can get custom boxes from the manufacturer for you in three to five days. The industry standard is seven to ten. We have just-in-time systems in place to keep things moving.”
Bob Cline is vice president of the company.
“There are lots of little industries out there, more than most people realize,” Cline said. “Almost all of them need bags or boxes. Then, they need toilet tissue or copy paper. There are lots of innovative people moving to this area for the lifestyle. They create new merchandise that needs packaging. It’s also a good market for hiring. We get a better mix of employees as more people come into the area.”
The company encourages longevity by paying well above the industry average and offering outstanding benefits, including a 401k plan with a 10 percent company match.
“The real kicker, though, is the sense of pride our people have,” Cline said. “People like working here because they’re recognized. We also promote from within. For example, one person who started as a truck driver moved into customer service and is now in outside sales. Some of our reps can make $100,000 a year. But we also have truck drivers that wouldn’t do anything else. They’re really our eyes and ears out in the community.”
Anderson still loves soliciting new businesses.
“The most rewarding thing is to go out, meet businesses and see what’s being done,” he said. “We have something to sell to almost everyone. First, it’s boxes. Then, they need janitorial supplies like towels and tissues. We supply some pretty big customers like Bellis Fair Mall. The City of Bellingham buys copy paper from us because we can beat the prices at office supply stores.”
Economic fluctuations are not always negative.
“The recession actually helped us work smarter,” Cline said. “We’ve become a one stop shop where you can get anything.”
Recycling has changed the industry.
“Our paper products now run to 60 percent post-consumer recycled material,” Anderson said. “We didn’t really have to do anything, it just happened. Some of our customers now require a certain level of recycled content in paper products.”
Diversification has been fruitful for the company.
“As the economy slowed, we tried to move further south,” Anderson said. “We’re now covering the territory from Marysville to the border. We have customers in Monroe, Woodinville, Mukilteo. There are a lot of new businesses coming into Snohomish County. We can get in and out of the north end faster than suppliers from south of Seattle who have to fight the traffic. We’re now delivering into Canada since their dollar has gotten stronger and we’re looking for a full time sales rep up there.”
His marketing approach is pretty basic.
“We have five delivery trucks with big signs on them,” Anderson said. “The best thing I ever did was move to this high visibility location on the freeway. We’re positioned for this company to explode. Good systems make it possible.”
Word of mouth is vital.
“Customers are a great source of new business,” Cline said. “Having what they want makes it easy. We were even hiring people during the down economy. We’re very proactive about picking up new business to the point where we’re going to need more space soon.”
That is part of the motivation behind Anderson and Cline’s new project.
“Bob and I have partnered to purchase 22 acres adjacent to this property,” Anderson said. “We’ll put up 10 buildings ranging from 30,000 to 50,000 square feet and lease them out to other companies. Projections are that Ferndale will have 17,000 people in five years. This light industrial area could provide over 300 jobs. There will also be a 50,000 square foot retail strip along the frontage road.”
Anderson expects the long awaited Smith Road off ramps from the interstate to be constructed within 18 months.
“Once that happens, the value of this development will skyrocket,” Anderson said. “The engineering and surveying is finished and we’re now working with the Army Corps of Engineers on wetland mitigation.”
Anderson Cline LLC hopes to break ground in three months and have one building completed by the end of the year.
“We’ve had some interest already from Canadian firms who need facilities to fulfill U.S. orders,” Anderson said. “We’re just 12 miles from the border.”
Long-term goals for the parent company involve continued diversification and expansion.
“I’d like to have branches in the Kent and Portland areas,” Anderson said. “Things change and evolve. One of our former competitors is now an ally as a result of a merger. We’re doing $1 million a month right here. Eventually, I’d like to be doing $25 to $30 million. You have to be proactive. The bottom line is efficiency. You grow or get bought.”
Anderson Paper and Packaging may be a paper tiger, but it has a pretty impressive roar.