In the metals industry, a purchase order (PO) is a critical document that ensures accurate transactions between buyers and suppliers. A well-prepared PO prevents errors, delays, and unnecessary costs. However, common mistakes in PO creation can lead to incorrect material shipments, pricing disputes, and production setbacks.
In this blog, we’ll explore the most frequent PO mistakes in metal procurement and how to avoid them to ensure smooth operations.
Why Accurate POs Matter in the Metals Industry
A purchase order (PO) is more than just a request for materials—it serves as a legal document that confirms:
✔ Material specifications (grade, size, coating, etc.)
✔ Pricing and payment terms
✔ Delivery schedules
✔ Supplier responsibilities
Errors in a PO can result in:
❌ Wrong materials being delivered
❌ Overpaying or pricing disputes
❌ Delays in production and missed deadlines
By understanding and avoiding these common PO mistakes, companies can ensure efficiency, accuracy, and cost savings in their metal purchases.
Common Mistakes in PO Creation for Metals (And How to Avoid Them)
1. Incomplete or Incorrect Material Specifications
❌ The Mistake:
A PO that lacks specific material details can lead to receiving the wrong type of metal. Common specification errors include:
Missing grade (e.g., A36 vs. A572 steel)
Incorrect thickness, width, or length
Not specifying coatings or finishes (e.g., galvanized vs. mill finish)
✅ How to Avoid It:
✔ Clearly list grade, thickness, dimensions, finish, and any additional processing.
✔ Include relevant ASTM, AISI, or ISO standards to ensure compliance.
✔ Double-check specifications with the supplier before finalizing the PO.
💡 Example: A construction company ordered “steel plate” but didn’t specify A36 or A572. The wrong grade was delivered, causing structural concerns and project delays.
2. Incorrect Unit of Measurement
❌ The Mistake:
Metals are sold in different units depending on the product type, such as:
Coils (lbs or metric tons)
Sheets (each or square feet)
Bars (feet, inches, or metric lengths)
Using the wrong unit can result in overordering, underordering, or incorrect pricing.
✅ How to Avoid It:
✔ Always confirm whether the supplier prices by weight, length, or quantity.
✔ Match order units to supplier invoice units.
✔ Use conversion tools when working with metric vs. imperial measurements.
💡 Example: A fabricator mistakenly ordered 5,000 lbs of aluminum bar instead of 5,000 feet, leading to excess material and wasted costs.
3. Failing to Specify Tolerances and Quality Requirements
❌ The Mistake:
If a PO doesn’t specify dimensional tolerances, surface quality, or mechanical properties, the supplier may ship material that doesn’t meet project requirements.
✅ How to Avoid It:
✔ Include tolerance requirements for thickness, width, and length (e.g., ±0.005″).
✔ Specify surface quality (e.g., No. 4 brushed stainless steel instead of just “stainless steel”).
✔ Request mill test reports (MTRs) to verify compliance.
💡 Example: A manufacturer received stainless steel tubing that was slightly undersized, leading to poor fitment in their assemblies. The PO didn’t specify tolerances, so the supplier followed standard production sizes.
4. Not Confirming Lead Times and Delivery Dates
❌ The Mistake:
A PO without a clearly defined delivery date can lead to delays, miscommunications, and project setbacks.
✅ How to Avoid It:
✔ Specify required delivery dates on the PO (e.g., “Delivery required by June 15, 2024”).
✔ Confirm lead times with the supplier before placing the order.
✔ Include penalties for late deliveries in supplier agreements if necessary.
💡 Example: A metal distributor assumed the supplier could deliver in four weeks, but the mill’s actual lead time was eight weeks, delaying customer shipments.
5. Incorrect Pricing or Hidden Charges
❌ The Mistake:
Not verifying pricing before issuing a PO can lead to unexpected costs due to:
Outdated quotes (metal prices fluctuate daily)
Extra processing fees (cutting, slitting, or coating charges)
Freight costs not included in the PO
✅ How to Avoid It:
✔ Confirm pricing validity before issuing the PO.
✔ Break down all costs, including material, processing, and delivery charges.
✔ Specify if pricing is fixed or subject to market changes.
💡 Example: A company was billed $2,000 more than expected because they didn’t account for edge trimming and packaging fees.
6. Lack of Freight and Delivery Instructions
❌ The Mistake:
Failing to specify freight terms, packaging, and unloading requirements can result in damaged materials or extra charges.
✅ How to Avoid It:
✔ Define shipping terms (FOB, CIF, or EXW) to clarify responsibility.
✔ Specify packaging needs (e.g., skids, wooden crates, or banded coils).
✔ Include unloading requirements (forklift, crane, or hand-off).
💡 Example: A coil of steel arrived damaged because the PO didn’t request protective wrapping for ocean freight.
7. Not Reviewing PO for Errors Before Submission
❌ The Mistake:
Simple typos or missing details can cause major order issues, such as:
Wrong supplier or shipping address
Missing approval signatures
Duplicated orders due to clerical mistakes
✅ How to Avoid It:
✔ Implement a double-check process before submitting POs.
✔ Use PO templates to standardize formatting.
✔ Have a designated approver verify all POs before sending.
💡 Example: A company accidentally sent a PO twice, leading to an excess order that was non-refundable.
Final Thoughts
Creating a clear, accurate PO is essential for smooth metal procurement and cost control. Avoiding common mistakes ensures that:
✅ You receive the right materials with proper specs.
✅ Your orders arrive on time and within budget.
✅ You prevent disputes with suppliers over pricing or quality.
📌 Key Takeaways:
✔ Clearly specify material grade, size, finish, and tolerances.
✔ Use the correct unit of measurement to avoid over/underordering.
✔ Confirm pricing, freight terms, and additional charges before issuing a PO.
✔ Define delivery timelines to prevent delays.
✔ Double-check all POs before submission.
By implementing these best practices, companies can reduce errors, avoid unnecessary costs, and improve supply chain efficiency.
🚀 Need help optimizing your PO process? Let’s discuss in the comments!
