Installed capacity is an essential concept for the sustainable growth of any company and ignoring it can lead to significant problems. This is exactly what almost happened to one of our clients when they considered a major investment in a Big Brother Brasil campaign to reverse a failed product launch.
It all began when this client faced challenges with the launch of a new product. The initial campaign was designed to target major urban centers, using various media channels. Despite investments in radio, newspapers, and TV, sales numbers were disappointing, and the company even considered discontinuing the product.
Seeking a turnaround, the marketing team proposed a bold idea to save the product and the company’s results: advertise on Big Brother Brasil. The proposal included an investment of R$30 million, with the promise of tripling sales within three months.
Certainly, an attractive prospect, but that’s where the data came in. While the idea was enticing, the CFO raised a critical question: could the company’s installed capacity handle this surge in sales?
Since MyABCM had recently been implemented within the organization, the FP&A and Controllership teams were able to perform detailed simulations to answer this question. The analysis uncovered significant bottlenecks in several areas, including production, logistics, and IT. The system revealed that without structural adjustments, tripling sales could lead to operational collapses severe enough to bankrupt the company!
This case clearly illustrates that ignoring installed capacity during periods of growth can be disastrous. This concept goes beyond simply measuring available production resources; it involves understanding bottlenecks and limitations throughout the workflow, from production to customer service. Companies that conduct detailed analyses of their processes, like those using MyABCM, can anticipate problems and prepare adequately for new challenges.
For our client, the insights provided by MyABCM were decisive. They identified the bottlenecks that needed to be resolved and reorganized their internal processes. This way, the company avoided a potential crisis by recognizing that it lacked the structure to support the sudden increase in demand that the campaign would generate.
After adjustments and improvements, the scenario completely changed. With its installed capacity reviewed and optimized, the company was finally able to invest in a Big Brother Brasil campaign in a subsequent season. This time, the results were an absolute success: sales volumes more than tripled, and all departments were prepared for the new reality.
This story highlights the importance of planning based on robust data and analysis. Tools like MyABCM provide not only a detailed view of costs and processes but also the ability to simulate scenarios and anticipate challenges. This allows companies to turn risks into real growth opportunities.
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