Reference
Distribution AI Glossary
The language of modern distribution — defined for operators, not software vendors.
Backorder Management
The process of tracking, communicating, and fulfilling orders for items not currently in stock, including partial shipments and customer notifications. Effective backorder management keeps customers informed while minimizing fulfillment delays and protecting margin on split deliveries.
Branch-Level Pricing
Pricing rules and margin adjustments applied at the individual branch or location level, often varying by customer relationship, local competition, or inventory position. Branch-level pricing allows regional managers to respond to market conditions without overriding company-wide pricing policy.
Commodity Pricing Volatility
Frequent fluctuations in the cost of raw or commodity-based materials — lumber, steel, copper — that require real-time price updates to maintain accurate quoting. Managing commodity pricing volatility is critical for maintaining margin when cost inputs change faster than quote cycles.
Counter Sales
Walk-in or phone-based sales handled at the branch counter, typically high-volume, time-sensitive transactions requiring instant product lookup and pricing. Counter sales reps often handle dozens of transactions per shift, making speed and accuracy in the quoting system essential.
ERP Workflow Layer
Software that sits on top of an existing ERP to automate the manual work between transactions — quoting, order entry, procurement, dispatch — without replacing the ERP itself. An ERP workflow layer extends the value of existing systems while reducing the time employees spend on repetitive tasks.
Lost Sale Capture
The practice of recording quotes that did not convert to orders, enabling analysis of win/loss patterns, competitor pricing, and product gaps. Lost sale data is one of the most underutilized sources of competitive intelligence in distribution.
Proof of Delivery (POD)
Documentation confirming that materials were delivered to the job site, often required for invoice approval and dispute resolution. POD typically includes a signed receipt, timestamp, and delivery photos, and is increasingly captured digitally to speed up billing cycles.
Quote-to-Order Conversion
The workflow that moves an accepted quote into a confirmed sales order, including pricing lock, inventory reservation, and handoff to fulfillment. A smooth quote-to-order conversion reduces errors and ensures customers receive exactly what was quoted at the agreed price.
SKU Enrichment
The process of appending missing or incomplete product data — dimensions, specs, manufacturer codes, images — to existing SKU records, enabling faster and more accurate quoting. SKU enrichment is foundational to AI-powered quoting, where incomplete data leads to pricing errors and customer confusion.
Takeoff
A quantity and materials estimate derived from construction drawings, used as the basis for a materials quote. Common in lumber, framing, roofing, and millwork, takeoffs can range from simple hand counts to complex multi-page estimates for large commercial projects.
Unstructured RFQ
A quote request that arrives outside a structured system — via email, phone, or handwritten note — requiring manual interpretation before pricing. Common in lumber and building materials where contractor relationships are informal and high-volume, unstructured RFQs are one of the biggest sources of quoting delay.
Will-Call
An order fulfillment method where the customer picks up materials at the branch rather than receiving delivery. Requires different staging and confirmation workflows than delivery orders, and is common for contractors who need materials same-day to keep jobs moving.
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Matterhaul automates the workflows behind the terms you just read — from unstructured RFQ to quote-to-order conversion.
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