Every purchasing manager at a steel service center has faced this moment: your primary mill, the one you’ve trusted for years with timely coil deliveries, calls with bad news. Production is delayed. Your delivery window just shifted by two weeks—maybe more. Suddenly, your inventory position is upside down, customer orders are at risk, and you’re scrambling for alternatives.
Mill delays aren’t just a nuisance—they’re a direct hit to your credibility with operations and your customers. Keeping steel flowing during disruptions isn’t about heroics. It’s about preparation, relationships, and process discipline.
Step One: Know Your Exposure Before the Delay Hits
The moment you hear of a delay, don’t panic—prioritize. Map the affected POs by due date, customer, and product line. Are these hot rolled coil shipments for stock or specific cut-to-length orders? Are your customers expecting that steel for committed projects? The worst thing you can do is make assumptions. Instead, gather your order book and check what’s truly at risk.
If you don’t already run an open order aging report weekly, start. It should show every outstanding ton by supplier, product, due date, and promised ship window. That visibility gives you lead time to act before the problem becomes a crisis.
Step Two: Activate Your Secondary Supply Plan
Smart purchasing managers always have at least two backup sources—whether that’s a secondary mill with similar specs, a master distributor with stock on the floor, or even an import option. Your relationships matter here. If you’ve kept communication lines open and maintained small-volume buys even during stable times, you’ll be in a better position to get emergency coverage.
Be transparent. Call your secondary supplier and explain the delay. Ask what they have available that matches grade, gauge, and finish—even if it requires some processing adjustments. Ask for firm availability and lock it in.
In volatile markets, avoid chasing last-minute spot buys blindly. Establish internal limits: how much extra freight are you willing to pay? What’s the premium per ton you’ll tolerate to avoid a customer miss?
Step Three: Talk to Operations—Early
Your plant, processing line, or warehouse can only pivot if they know what’s coming. If the hot rolled coil you planned to receive next week won’t arrive, and the replacement option is a slightly different width or requires repackaging, give your operations team a heads-up.
The sooner you align with production and logistics, the easier it is to prioritize inbound shipments, reschedule slitter runs, or substitute coil in jobs that allow flexibility.
Don’t wait until the day steel doesn’t arrive to share bad news. A purchasing manager’s credibility rises when you bring both the problem and the proposed solution.
Step Four: Keep Customers in the Loop—but Strategically
If a customer’s delivery depends on the delayed coil, transparency is key—but it should be measured. Before reaching out, confirm alternative supply and timelines. Don’t lead with the delay; lead with the plan.
For example: “We’re experiencing a supplier delay on your coil order due in two weeks. We’ve secured a substitute lot from a secondary source with similar specs and can still deliver by your original window.”
That kind of communication earns trust. But if you call with just problems, not solutions, you’ll be seen as unreliable.
Step Five: Strengthen Your Mill Accountability Process
Once the dust settles, review the incident with your primary mill. Was this a one-off issue—equipment failure, labor shortage—or part of a trend? Ask for a detailed root cause explanation and what changes are being made. If this isn’t their first delay in the last six months, it may be time to reconsider contract volumes or tighten delivery penalties in your agreement.
Track mill performance. Maintain a scorecard with on-time delivery rate, quality issues, and responsiveness. Suppliers should be aware you’re tracking—and that it affects how you allocate future tonnage.
Step Six: Adjust Your Buffer Inventory Policy
Mill delays are often a symptom of a wider issue: your service center is running too lean. If you consistently order just-in-time with no buffer, even a minor disruption can trigger production downtime.
It may be time to build a smart buffer strategy. Identify fast-moving SKUs—like ASTM A1011 hot rolled coil or A1008 cold rolled—that you should carry 10 to 15 days of inventory on at all times. Not everything needs buffer stock, but key grades that feed your slitters or cut-to-length lines should have a minimum level that protects operations.
Review and revise buffer policies quarterly, especially after major supply disruptions.
Final Word
When your primary mill delays, your reputation as a purchasing manager is tested. But it’s also an opportunity to show leadership.
With preparation, second-source relationships, real-time visibility, and cross-functional coordination, you can keep steel flowing—even when the flow stumbles. Your mill may miss a date, but your plant and your customers don’t have to feel it.
