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ST-IF-SD-001 — SUPPLIER / DISTRIBUTOR — SYNTERMINAL

Your customers are
getting smarter about
what they're paying you.

You should know what your billing system is doing before they do. Synterminal serves distributors and suppliers from three directions simultaneously — your own buy-side invoice exposure from upstream manufacturers, your sell-side billing compliance before your customers document it for litigation, and competitive pricing intelligence in a market where algorithmic pricing is under active federal antitrust scrutiny.

// three distinct engagements · fixed scope · document-anchored findings
// DOOR 01 — YOUR OWN BUY-SIDE INVOICE EXPOSURE
YOU ARE ALSO A BUYER · YOUR MANUFACTURERS KNOW YOU DON'T CHECK EVERY LINE
// THE BUY-SIDE PROBLEM
The same invoice forensics that finds overcharges on a contractor's supply invoices finds them on yours from your upstream manufacturers.

You are a supplier to your contractors. You are also a buyer from your manufacturers, importers, and commodity traders. Every electrical supply house, HVAC distributor, plumbing supply, and building materials company has its own upstream supplier invoices — arriving daily, processed by an AP team that is managing volume, not reading every line against every purchase order.

At distribution margins — typically 2% to 5% operating — a 2% overcharge from an upstream manufacturer is not an accounting rounding error. It is the profit margin on nearly two million dollars in sales, gone before anyone noticed it was missing.

A food distributor with 950 invoices per month and a 3.2% operating margin loses €31,500 annually from avoidable supplier billing errors alone — equal to the profit on €1.9 million in sales. That's one supplier category. Most distributors buy from fifteen to fifty upstream vendors. The errors compound. The margin doesn't recover itself.

// THE MARGIN MATH — DISTRIBUTION BUY-SIDE EXPOSURE
Operating margin — typical distribution 2–5%
Overcharge rate from upstream suppliers — invoice error baseline 2–5%
Typical AP overcharge on distribution invoices — documented €31,500/yr per supplier category
Equivalent in sales at 3.2% margin to replace that loss €1.9M in revenue
What Synterminal does with your supplier invoices Reads every line. Documents every gap.
// WHAT SYNTERMINAL FINDS IN YOUR UPSTREAM INVOICES
Your manufacturers know your AP team is processing volume. They have the same information advantage over you that you have over your contractors.
PRICE DRIFT
Unit price increases applied to ongoing purchase orders without a corresponding change in the underlying commodity cost. Copper wire priced above COMEX spot trajectory. PVC fittings priced above oil derivative PPI movement. The gap between what the raw material costs and what you're being billed — documented per SKU over time.
SKU SUB
Grade or specification upgrades billed at multiples not proportional to the actual cost difference. The same mechanism found in your contractor customers' invoices — same item, different SKU, 99% description similarity, 4–6× the price. Running upstream, from your manufacturer to you.
FREIGHT CASCADE
Freight surcharges, fuel surcharges, handling fees, and environmental charges applied on top of agreed unit prices without reference to negotiated terms. The same surcharge cascade that appears in construction equipment rental invoices appears on manufacturer freight billing — at your scale, at your volume.
UNQUOTED SPEND
Items billed with no purchase order reference or no agreed price on file. The manufacturer delivers. The invoice arrives with line items outside the agreed catalog. The price is set unilaterally. At distributor volumes, unquoted spend compounds quickly and silently.
CROSS-BRANCH
Same manufacturer, same item, different prices at different branch locations in the same period. No legitimate commercial reason for the variance. Detected by comparing invoices across your full purchasing network — something no single branch AP team can see.
// ST-IF-SD-002 — WHAT SYNTERMINAL RUNS ON YOUR OWN BILLING DATA
SIX ANALYTICAL OUTPUTS · YOUR INVOICES AS THE SUBJECT · INTERNAL COMPLIANCE USE
Analysis · 01
SKU Substitution Pattern Detection
The same semantic matching that finds grade substitutions in contractor invoices runs on your billing data. Are there SKUs being substituted at price multiples not proportional to the actual cost difference of the substitution? Documented across your customer base, this is the pattern that defines the RealPage theory.
94–99% description similarity threshold
Analysis · 02
Price Trajectory vs Commodity Index
For each material category in your catalog — copper, PVC, steel, aluminum — how does your sell-side price trajectory track the commodity index? Items where your pricing moved faster or slower than the underlying commodity are the items most likely to appear in a buyer's forensic analysis.
COMEX · BLS PPI · FRED benchmarks
Analysis · 03
Cross-Customer Price Consistency
Same item. Same period. Different customers. Different prices — beyond what account-level negotiation would explain. Systematic pricing variance across your customer base, documented at the SKU level, is the evidentiary core of every algorithmic pricing class action filed to date.
Cross-account · same SKU · same period
Analysis · 04
Surcharge Cascade Audit
Every surcharge, fee, and ancillary charge in your billing — environmental fees, fuel surcharges, delivery charges, handling fees — reviewed against your published rate schedule and against the underlying cost indices the surcharges are supposedly tracking. Surcharge persistence when underlying costs fall is the pattern that produced MDL 3152.
Fee schedule · cost index · persistence detection
Analysis · 05
Unquoted Billing Exposure Map
What percentage of your customer invoices contain line items with no agreed price reference — no purchase order, no quote, no contract line? 74.9% unquoted spend in a single engagement is the finding that starts the conversation. Knowing your own unquoted billing rate before your customers do is the defensive position.
NIQ rate · per customer · per category
Analysis · 06
Pricing Behavior Fingerprint
How does your pricing system actually behave at the population level? Step-change updates. Continuous drift. Emergency order premiums that persist. Catalog update cycles that don't reset prices downward when costs fall. The fingerprint is the document that tells you what your system is doing — and what it looks like to a plaintiffs' attorney reviewing your invoices.
Population-level · pattern detection · system behavior
// DOOR 03 — COMPETITIVE PRICING INTELLIGENCE — THE SELL SIDE
WHERE IS YOUR PRICING RELATIVE TO THE MARKET · COMMODITY CORRELATION · ACCOUNT INTELLIGENCE
// WHAT YOUR CUSTOMERS ALREADY KNOW
The contractor who hired Synterminal knows exactly what you charged him for every SKU over the last two years, how it moved against the commodity market, and where it was inconsistent across jobs. You should know that too.

Your contractor customers are increasingly sophisticated. They have invoice forensics tools, commodity intelligence services, and in some cases — Synterminal — running their invoices against market benchmarks before they pay them. The information asymmetry that defined supplier-contractor relationships for decades is narrowing. The distributor who understands their own pricing relative to the market is the one who can defend it in a renegotiation — and the one who can identify where they're genuinely uncompetitive before losing an account.

This is not an audit. It is intelligence. The same pipeline that builds a price index from a contractor's invoice history can build one from yours — looking outward at the commodity markets your materials trace to, at what comparable distributors in your category are winning and losing, and at where your pricing is creating vulnerability in your account relationships.

Commodity correlation scoring per SKU category — how does your pricing on copper fittings track COMEX copper? How does your PVC pricing track oil derivative PPI? Where are you pricing above commodity movement, and where are you pricing below it unnecessarily?
Account-level price sensitivity mapping — which accounts are on the edge of a renegotiation? Which accounts have been paying above your average by category? Which accounts are most likely to bring in a third party to audit what they've been paying — and what will that audit find?
Public procurement award intelligence — what are competing distributors winning on public bid awards in your category and geography? What prices are being accepted on public projects in your market? Where are you competitive? Where aren't you?
Margin erosion pattern detection — across your catalog, which SKUs have seen the largest gap open between your cost trajectory and your sell price trajectory? Where is margin expanding passively? Where is it being compressed? The data is in your invoices. The question is whether anyone is reading it.
// COMMODITY BENCHMARKS — DISTRIBUTOR MATERIAL CATEGORIES
Every material category in your catalog traces to a commodity. Synterminal maps your pricing against the commodity your customers' attorneys will use when they build their case.

The indices below are publicly available, timestamped, and independently verifiable. When a contractor brings an invoice forensics engagement to Synterminal, these are the benchmarks we use to score whether your pricing moved with market conditions or independently of them.

// DISTRIBUTOR COMMODITY MAP — KEY INDICES
Copper Wire / Conduit / Fittings
COMEX HG · FRED WPUSI019011
TRACKED
PVC Pipe / Fittings / Conduit
BLS PPI PCU32612232612218
TRACKED
Steel Conduit / Fittings / Strut
BLS PPI WPU10170503
TRACKED
Aluminum Cable / Fittings
LME Aluminum · COMEX ALI
TRACKED
HVAC Refrigerant
EPA Phase-Down Schedule · Spot
MONITORED
Brass / Bronze Fittings
COMEX HG + Zinc premium
TRACKED
Resin / Plastic Components
NYMEX WTI derivative · ICIS
DECLINING

Sources: COMEX, LME, BLS Producer Price Index via FRED, NYMEX, EPA. All publicly available. All timestamped. All independently verifiable. The same sources Synterminal uses on the buy side of every engagement.

// WHAT SYNTERMINAL ACTUALLY IS IN THIS VERTICAL
We have seen both sides of this invoice. That is the edge.

Synterminal has real engagement data on what distributors actually charge versus what they quote. We have commodity index correlation built into the pipeline. We have SKU substitution detection running at the description-similarity level. We have price trajectory analysis per SKU per supplier per period. When a distributor brings us their own billing data and asks "what will a contractor's forensics engagement find in our invoices," we can answer that question with document-anchored findings.

No competitor at the mid-market level is offering this proactively. The Big Four do billing compliance work for defendants in active litigation — after the complaint is filed, at enterprise scale, at enterprise cost. Synterminal does it before the complaint is filed, for the distributor who wants to know what's in their billing system before their customers — or a plaintiffs' class action firm — finds it first.

Three doors. One engagement. The same infrastructure. A different vantage point. Tell us which door applies to your situation. We scope it same day.

Three doors.
One conversation.
Tell us which situation applies — buy-side invoice exposure, billing compliance before your customers document it, or competitive pricing intelligence. All three can run simultaneously. We scope it and confirm same day.
// OPEN A REQUEST

Distributors, supply houses, manufacturers who sell direct. Describe your situation — which door or all three. Fixed scope. Document-anchored findings. No percentage of recovery. Every finding ties to a source document.

research@synterminal.com
Bring the
ugly problem.
If a pricing question, data mess, supplier problem, monitoring task, or operational mystery has been sitting untouched — that is the job. Synterminal investigates what others don't have the infrastructure to find.
// OPEN A REQUEST

Direct intake for difficult information problems. Physical markets, procurement, pricing, supply chain, entity resolution, litigation support. Describe the problem. We scope the engagement.

research@synterminal.com