The Challenge

Colore na Web is a dynamic e-commerce business that manufactures and sells products across multiple online platforms. The company had built a solid customer base and steady demand. However, success was creating new problems.

The core issue was fragmentation. Financial data lived in scattered spreadsheets. Production planning wasn't tied to actual demand. Cash flow forecasting was guesswork. And nobody had a clear picture of true product margins or where money was actually going.

"We were flying blind," one team member explained. "We had sales coming in from Shopee and Mercado Livre, but we couldn't see the real cost of making each product or when we'd run out of cash."

The company was hitting production bottlenecks. Capacity was capped at around 80 units per day. Inventory was piling up in some areas while other materials ran short. Supplier payments were reactive, not planned. And the team was spending hours each month trying to reconcile bank statements with sales data.

Most critically, the business lacked a unified view of profitability. Different products had different margins, but nobody knew which ones were actually worth making. Pricing decisions were made without solid cost data. And cash flow surprises—both good and bad—kept the leadership team on edge.

The company needed more than better spreadsheets. It needed a complete rethinking of how financial and operational data flowed through the business.

The Solution

The transformation started with a simple decision: make data visible and actionable. The team began by building a formal financial model that separated cash-basis accounting from accrual-basis accounting. This dual view revealed the real timing of costs and revenues.

Next came cost restructuring. The company mapped every cost—materials, labor, overhead—to specific products. This wasn't just accounting. It was a wake-up call. Some products were far more profitable than others. The team discovered that certain items had margins nearly 40% higher than others. Armed with this insight, they could make smarter production and pricing decisions.

Production planning got a complete overhaul. Instead of making products and hoping they'd sell, the team built a forecast-based system. They looked at actual demand from each sales channel, calculated how much inventory they needed, and planned production accordingly. This simple shift reduced waste and freed up cash that had been tied up in excess stock.

Cash flow forecasting became a discipline. The team built scenario models—pessimistic, realistic, and optimistic—to see how different sales levels and payment timings would affect liquidity. They identified a break-even threshold: the minimum monthly sales needed to stay cash-positive. They also restructured supplier payments, negotiating longer terms to smooth out cash outflows.

The company also tackled a critical governance issue. They separated roles to prevent conflicts of interest and ensure cleaner financial controls. They implemented a contribution margin analysis by product and sales channel, giving them real-time visibility into which products and channels were most profitable.

"Once we could see the numbers clearly, decisions became obvious," a team leader noted. "We didn't need to debate—the data told us what to do."

Throughout this process, there was 100% commitment from leadership. The team understood that better financial control wasn't a nice-to-have. It was essential to survival and growth.

The Transformation

The results came quickly and were substantial.

Production capacity jumped from 80 units per day to 450 units per day—a more than fivefold increase. This wasn't just about working harder. It was about working smarter. By focusing on higher-margin products and optimizing the production mix, the company increased output while improving profitability.

Cost visibility transformed decision-making. The company renegotiated supplier contracts, bringing material costs down significantly. They internalized certain production steps—like painting—that had been outsourced, saving roughly 50 reais per unit. They also reduced fixed costs by planning a facility move that would cut monthly rent by approximately 15,000 reais.

Cash flow became predictable. The company went from reactive, ad-hoc cash management to scenario-based forecasting. They could now project monthly cash positions months in advance. They identified which sales channels were most profitable and adjusted their strategy accordingly. They also structured debt repayment in a way that didn't strangle operations.

Margins improved across the board. By understanding true product costs and aligning pricing with value, the company moved from a contribution margin of around 23% to projections of 30% or higher. Some product lines saw margins jump to 64%, compared to 46% for others—a clear signal of where to focus effort.

The team also gained real-time visibility into operations. They could now see exactly where money was being spent, track inventory levels against demand, and catch cost overruns before they became problems. This transparency enabled faster decision-making and reduced surprises.

"The biggest win wasn't any single number," a team member reflected. "It was knowing that we could see the business clearly. We could plan. We could adjust. We weren't just reacting anymore."

Looking ahead, the company is positioned for sustained growth. The financial foundation is solid. Production capacity can scale. And the team has the tools and discipline to manage that growth profitably. The next phase includes further automation, potential system integration, and expansion into new channels—all built on the financial clarity and operational discipline they've now established.

Colore na Web went from a business struggling with visibility and cash flow to one with clear financial controls, optimized operations, and a roadmap for growth. The transformation wasn't about technology alone. It was about discipline, data, and the courage to see the business as it really was—and then fix it.