19 Jul DISCUSS THE IMPORTANCE OF HAVING THE RIGHT INVENTORY AT THE PIPE DISTRIBUTOR WHEN THE CUSTOMER CALLS IN WITH AN ORDER.
Discuss the importance of having the right inventory at the pipe distributor when the customer calls in with an order.
When CDC acquired BirdTech, Inc. out of bankruptcy they received the following assets:
A PVC Pipe plant in Louisiana that was the last of the PVC pipe operations BirdTech owned. At one time BirdTech was a major competitor in the production of PVC pipe.Details on the PVC Pipe Plant follow.
An overfunded pension plan valued at $3.4 million. It took the management of CDC over two years to work through the IRS regulations to liquidate the pension plan and collect the $3.4 million. The IRS stipulated that the PVC plant must continue operating until the overfunded pension plan was closed.
A Gulfstream jet. This gave CDC two corporate airplanes, one a turbo-prop from the previous major stockholder and the Gulfstream. Both planes were sold by the CDC management team. We used the turbo-prop a couple of times, but after looking at the condition of the PVC Pipe Plant, we decided that the maintenance on the Gulfstream might be suspect, so we let it set in the hanger until the sale.
Several season tickets to the professional football team in Houston, which were sold to one of the partners of the CPA firm. Like good auditors, they covered their increased expenses by billing CDC a few extra hours to cover the cost of the tickets.
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