LOGIC Consulting: Scaling FMCG growth through a unified operating model
Across the fast-moving consumer goods (FMCG) sector, regional and international expansion is no longer reserved for global multinationals. Many GCC-based FMCG players are seeking scale beyond their home markets, a shift that requires companies to rethink their operating models, according to a report from LOGIC Consulting.
FMCG companies in the GCC are currently facing high costs, fluctuation in currency values, and intense competition. However, moving from simply exporting products to actually running operations in multiple countries is no easy task and introduces a significant amount of complexity.
International expansion requires leaders to completely rethink how their companies are managed and how decisions are made. Without a clear plan, the small problems that arise when running an expanding business can quickly eat away at profits.
A unified operational strategy
To better manage growth, many leading firms are adopting what LOGIC Consulting calls the ‘Power of One’ strategy. This approach allows a company to function as one unified organization instead of a collection of separate local offices.
It works by connecting management, work processes, and digital tools so that the core strengths of the company are organized at the top level and then used across all different locations in a coordinated way. By using a single framework for strategy and investment, a company can make sure its brand looks and feels the same everywhere.
This also helps reduce wasted effort and ensures that money is spent on things that actually grow the business, such as new products or digital commerce. When a company connects its planning across different countries, it can respond much faster to what shoppers want and what stores need.
Balancing global vision with local needs
A major question for any expanding business is deciding which choices should be made at the main headquarters and which should be left to the local teams in each country. A unified way of working does not mean that every single market must do things exactly the same way. Instead, it is about finding a balance between central control and local speed.
In this model, the main office acts as a director that sets the long-term goals, manages the brand, and watches over the finances. Meanwhile, the teams in specific countries are given the freedom to handle daily tasks like local advertising, setting prices, and building relationships with customers. This flexibility is vital because what shoppers like and how stores operate can vary greatly from one country to another.
Success stories in regional growth
Several regional leaders have already proven that these management rules work. For example, the Agthia Group, based in the UAE, uses a central headquarters to guide its growth across Saudi Arabia, Egypt, and other markets. Their strategy is built on growth, efficiency, and capability and they appointed a head financial officer to ensure money is handled correctly across the entire group.
Similarly, Edita Food Industries in Egypt manages its seven manufacturing facilities and 26 distribution centers through a central hub. By keeping oversight of the supply chain and business planning at the top, they were able to ensure that their expansion stays on track.
In fact, the LOGIC Consulting report notes how even global giants like IKEA have seen success by moving away from independent regional planning toward a single system that coordinates everything from the suppliers to the retail stores.
The path to long-term success
Creating this type of unified model requires a structured strategy. It is not a one-size-fits-all solution. Companies must look at every part of their business – from buying materials to marketing – and decide whether certain tasks are better centralized or if they should stay local.
Activities are often scored to see if they can help save money through scale or if they require being close to a factory or a local law. These rules are then written down in official documents to make sure everyone knows who is responsible for what.
The report also notes the growth in advanced tools and AI that are used to help with reporting and to create digital dashboards that show how a business is performing in real time. By addressing these various management structures early on, companies are much better prepared to turn their international expansion into a lasting advantage.
“A Power of One operating model in FMCG does not imply rigid centralization or uniform execution in every market,” the report notes.
“Operating models in multinational companies typically balance centralized governance with localized responsiveness. In practice, this means global priorities (brand strategy, supply chain standards, and data platforms) are set centrally, while regional and country teams retain autonomy to customize product offerings, marketing activations, and distribution tactics that resonate locally.”
