Raw-materials price variance.
Negotiated commodity pricing varies with index movements.
How LEGERIS catches itLEGERIS validates the invoiced price against the contracted index-tracked formula on the PO date.
Materials and indirect cost
Manufacturing.
Raw-materials variance and supplier-side rebate leakage compound across thousands of POs. The patterns are well-documented; the audit surface is deep.
Section 1
Sector context.
Manufacturers run procurement across hundreds of suppliers, each with its own rate-tier structure, index-tracked commodity formulae, rebate cadence, and freight terms. The contracts behind the spend are dense; the invoices that arrive against them are high-volume and frequently produced by suppliers’ own ERP systems with formula misconfigurations.
The cost-leak in manufacturing lives in the indirect lines and the rebate reconciliation. The direct material price is usually checked; the freight surcharge, the handling fee, the missing quarterly rebate, and the mis-applied FOB term often are not. Each is small. Multiplied across the supplier base, the gaps move real money.
Section 2
Common patterns we catch.
Indirect-cost padding.
Indirect costs (freight, handling, packaging) are sometimes invoiced without contractual basis.
How LEGERIS catches itLEGERIS validates every indirect line against the contracted basis.
Supplier rebate leakage.
Volume-tier rebates negotiated quarterly are sometimes overlooked at invoice time.
How LEGERIS catches itLEGERIS reconstructs the rebate-eligible volume from the PO history.
Freight-on-receipt mismatch.
When freight terms shift between FOB origin and FOB destination, the carrier responsibility shifts.
How LEGERIS catches itLEGERIS validates the freight charge against the negotiated FOB term.
Surcharge basis-of-calculation.
Fuel surcharges and material surcharges have contracted basis-of-calculation formulae.
How LEGERIS catches itLEGERIS recomputes the surcharge against the formula and the index value on the invoice date.
Section 3
How LEGERIS catches them.
The supplier contracts, rate cards, rebate schedules, and FOB terms are ingested into the rulebook. Each invoice is extracted into a structured schema — material line items, indirect lines, surcharges, freight charges, totals. The deterministic engine recomputes the price-by-index formula, validates every indirect line against the contracted basis, reconstructs the rebate- eligible volume from PO history, and checks the freight charge against the negotiated FOB term. Findings carry the formula, the input values, the calculation, and the source line.
Ready to engage.
Audit a batch of supplier invoices. We will scope the engagement and quote the fee.