RESULTS | FMCG / MARKET ENTRY
Stabilizing North American operations through 3PL governance and cost control
A global FMCG retailer entering and expanding in North America was facing rising fulfillment costs, uneven service, and weak operational control. Eighty Four Group Consulting helped create a more disciplined operating model, stronger 3PL governance, and clearer decision structure for scalable growth.
Executive summary
The business was growing in North America, but the operating model was not keeping pace. Internal roles were unclear, 3PL governance was underdeveloped, reporting was inconsistent, and logistics costs were rising too quickly relative to sales. Service reliability was also under pressure.
The solution combined SLA and SOP design, performance reporting, rate review and negotiation strategy, a structured operating cadence, and a regional operating model built for expansion. The result was stronger stability and oversight in North American operations, along with lower warehousing and logistics costs as a percentage of sales.
The challenge
Entering a new market is rarely just a logistics task. It is an operating model challenge. In this case, North American operations were dealing with:
-
no coherent structure for managing market entry and expansion
-
fragmented decisions between internal teams and the 3PL
-
inconsistent service expectations and accountability
-
elevated warehousing and transportation costs
-
poor customer service performance
-
limited ability to scale without increasing cost and complexity
As volume increased, the absence of a disciplined governance structure made both service and cost harder to control.
Where control was breaking down
The issue was not simply that the 3PL was underperforming. The deeper problem was the lack of a strong governance system and market-ready operating structure.
Several gaps were contributing to the problem:
-
no robust SLA framework
-
inconsistent SOPs and operating routines
-
limited performance visibility through standard reporting
-
cost drivers and rates not fully optimized
-
internal roles and decision rights not structured for ongoing expansion
In other words, the region lacked an operating blueprint. Costs rose and service slipped because the control system around execution was too weak.
The solution
Eighty Four Group Consulting delivered an integrated response built around governance, cost discipline, and operating clarity.
-
3PL SLA, SOPs, and reporting framework
-
Logistics rate review and negotiation strategy
A structured governance foundation was introduced, including SLAs, SOPs, KPI definitions, and a practical reporting package to track performance consistently and support corrective action.
Logistics cost drivers were reviewed and benchmarked. Negotiation levers were identified, and a plan was developed to lower fulfillment costs while preserving service expectations.
What improved
Business outcomes
-
stronger stability and oversight in North American operations
-
improved control and predictability
-
stronger service execution through clearer accountability
Operating outcomes
-
reduced warehousing and logistics costs as a percentage of sales
-
better performance management through standard reporting and cadence
-
lower operational noise, allowing the business to scale with greater confidence
Why this matters in new-market FMCG operations
In new regional markets, cost and service often deteriorate together when governance is weak. A business can grow volume while still losing control of fulfillment economics, customer experience, and operating accountability.
This case shows the importance of putting the operating blueprint in place early: clear SLAs, disciplined routines, performance visibility, and decision rights that support scale instead of confusion.
Capabilities demonstrated
-
3PL governance design
-
SLA and SOP development
-
performance reporting structure
-
logistics rate strategy
-
market-entry operating model design
-
cost-to-serve and service stabilization support
Similar decision problems often look like this
If your business is expanding into a new market and costs are rising faster than control, the underlying issue may be governance, operating structure, and decision clarity rather than execution effort alone.
EIGHTY FOUR GROUP CONSULTING
AI for supply chain management grounded in business reality.
Ready to Talk?