In my business, I would stop adding business/customers until I could manage the load effectively. Otherwise, customer satisfaction dropped and employees burned out creating quality issues, which was unacceptable to me.
Several ways to accomplish this; raising prices, extending leadtimes, turning lower margin business away, not adding new accounts, etc. During these times communication with customers and employees was paramount.
Periods when sales outran capacity were high margin because profits grew at a faster rate than fixed costs and salaries, but it’s a very slippery slope. Losing key customers and employees is a dangerous gamble.
Stormy seas for sure, I hope they sort it out soon.
