The Challenge

Madeireira do Marceneiro is a growing lumber and hardware retailer with multiple store locations. The company serves carpenters, contractors, and builders—customers who depend on reliable inventory, fair pricing, and consistent service. For years, the business had grown through hard work and local relationships. But growth brought complexity.

However, behind the scenes, the company was struggling. Financial data lived in scattered spreadsheets. Inventory organization varied wildly from store to store. Decisions about purchasing, pricing, and staffing were made based on gut feel and whatever cash happened to be in the bank account that day. There was no clear picture of profitability, no standardized processes, and no way to compare performance across locations.

"We were managing the business by looking at the bank balance," one leader explained. "If there was money in the account, we thought we were doing well. But we had no idea if we were actually making money or just moving cash around."

The real problem was deeper than scattered data. Without visibility into margins, costs, and cash flow, the company couldn't make smart decisions about growth. Purchasing was reactive. Staffing decisions were unclear. Store managers operated independently, each with their own way of organizing inventory and handling transactions. And when problems arose—like unexpected payment delays or inventory shortages—there was no system to catch them early.

The company had the right people and the right market. What it lacked was the operational foundation to scale.

The Solution

The leadership team recognized that transformation required more than new software. It required new habits, new discipline, and a shared commitment to data-driven decision-making.

The first step was to establish two financial pillars: the DRE (Demonstração de Resultados—a profit and loss statement) and cash flow projections. These weren't new concepts, but they had never been used consistently or in real time. The team committed to feeding the DRE daily and reviewing cash flow projections weekly.

"Once we started looking at the DRE every week, we could see exactly where the money was going," a team member shared. "Suddenly, we could see that our cost of goods was too high, or that fixed costs were eating into our margins. We could actually do something about it."

In parallel, the company tackled inventory chaos. Each store had its own way of organizing stock. Items were hard to find. Transfers between locations were unpredictable. The team worked with store leaders to map out a standardized layout—defining which products go in which aisles, how items should be labeled, and how stock should rotate. They created a simple checklist (POP—Procedimento Operacional Padrão) that every store could follow.

"The layout mapping sounds simple, but it changed everything," one store manager noted. "New employees could find items faster. We had fewer picking errors. And we could actually compare inventory accuracy between stores."

Cost control came next. The company implemented a formal budget for purchases, tied to sales forecasts and margin targets. Instead of buying reactively, purchasing decisions were now anchored to a plan. Commissions were restructured to reward selling slow-moving inventory. And the team cleaned up data quality—correcting misclassified transactions, validating commission records, and ensuring that every dollar was accounted for correctly.

Perhaps most importantly, there was 100% commitment from leadership. Weekly meetings became non-negotiable. Financial data was shared openly. Store managers were trained to read the DRE and understand their role in the numbers. The company invested in people—training Fernanda and Raul to own the financial processes, and empowering store leaders to make decisions based on real data.

"The biggest shift was cultural," a leader reflected. "We moved from 'I hope we're doing okay' to 'Here's exactly where we stand, and here's what we need to do.' That confidence changes everything."

The Transformation

Within months, the results were tangible.

Margins improved. By analyzing the vertical composition of the DRE—understanding what percentage of revenue went to cost of goods, what went to fixed costs, and what remained as profit—the company identified specific levers to pull. They negotiated better terms with suppliers. They reduced unnecessary fixed costs. They focused sales efforts on higher-margin products. Between May and June alone, the margin of contribution increased by approximately 20%.

Cash flow became predictable. By projecting weekly cash inflows and outflows, the company could anticipate tight weeks and adjust purchasing or payment timing accordingly. Accounts in arrears dropped significantly—by roughly 40% between May and June. The company went from worrying about cash crises to actively managing liquidity.

Operational consistency improved across all locations. With standardized inventory layouts and checklists, new employees ramped up faster. Picking accuracy improved. Stock transfers between stores became reliable. Managers could now compare their store's performance to others and learn from best practices.

But perhaps the most important shift was decision-making speed. What once took weeks of guesswork now took a weekly meeting with clear data. Should we buy more of this product? The DRE and cash flow projection answered it. Should we adjust pricing on slow-moving items? The margin analysis showed the impact. Should we hire another person? The labor cost percentage told the story.

"We went from managing by crisis to managing by plan," a leader said. "That's the real transformation."

The company is now positioned for the next phase of growth. With financial clarity, operational consistency, and disciplined cost management in place, leadership can confidently invest in new initiatives—whether that's expanding product lines, opening new locations, or deepening relationships with key customer segments like architects and contractors.

The journey isn't finished. The team continues to refine processes, improve data quality, and push margins higher. But the foundation is solid. Madeireira do Marceneiro has moved from a business managed by cash balance to a business managed by strategy. And that changes everything.

"We finally have the visibility to grow the right way," the leadership team reflected. "We know where we stand, we know where we're going, and we know how to get there. That's the power of integrated financial management."