O'Reilly logo

The AMA Handbook of Due Diligence by Andrew J. Sherman, William M. Crilly

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

14-02 DUE DILIGENCE HANDBOOK
Physical Distribution Activities - Form 14-04
Form 14-04 lists the major elements of the physical distribution function. Space is also provided to indicate
where the responsibility lies for each of the elements.
W
arehouse Facilities - Form 14-05
This form provides for the recording of both the physical and financial characteristics of the entity’s
warehouse facilities.
Major
Distribution Equipment and Acquisitions / Accounting - Forms 14-06 and 14-07
Form 14-06, when completed, will summarize the entity’s companywide inventory of major warehouse
equipment items.
Form 14-07 will summarize the trend in distribution equipment purchases and leases and provide information
on the accounting treatment related to the acquisition and maintenance of this type of equipment.
WHAT TO LOOK FOR
What is the size of the various warehouse facilities and where are they located?
Are the warehouses properly located to efficiently serve the customer’s needs?
What is the utilization of the current facilities?
What condition are they in?
Are there surplus facilities that can be sold?
Are any new warehouse facilities contemplated or under construction?
To what extent can the existing facilities be expanded?
What are the costs directly associated with the warehouse facilities?
WHAT TO LOOK FOR
Are all of the indicated activities being performed? If not, where are the gaps?
What additional physical distribution activities are being performed?
Are the responsibilities so fragmented that it is difficult to “get control” of the complete function?
If a potential merger is contemplated, how compatible are the two firms’ distribution activities?
366

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required