In the world of steel procurement, timing is everything. Mill quotes come with an expiration date, and if you miss it, the price can change—or worse, your order might no longer be available at the agreed-upon rate. For the buyer in a steel service center, managing the pressure of expiring quotes is a regular challenge. So, what do you do when your mill quote expires before you can get approval?

First, don’t panic. While the expiration date on a quote may seem rigid, it’s often negotiable. Start by reaching out to the mill or distributor as soon as you realize the delay. Be transparent about your situation—whether it’s approval holdups, unforeseen changes in demand, or logistics hurdles. Most vendors value open communication and may be willing to extend the quote for a short time.

If the vendor isn’t willing to extend the quote, it’s time to evaluate your options. Can you still place the order at the new price? If the new price increase is minor, it might not warrant the time spent requesting an extension. However, if the increase is significant, you need to weigh the cost of the new price against potential supply chain disruptions or production delays caused by the change in pricing.

You should also look at alternative suppliers. If your preferred mill is unwilling to extend the quote, reach out to other vendors. Depending on the steel grade and quantity, you may be able to secure a similar deal from a different supplier. Just be aware that lead times may vary, and shipping costs could change.

Another option is to explore blanket orders. If your center regularly orders certain grades of steel, consider negotiating a blanket order contract with your preferred suppliers. These agreements often include price stability for an extended period, which can provide some peace of mind when mill quotes are on the brink of expiration.

If the quote expiration is due to internal delays, like approval bottlenecks, consider streamlining your internal approval process. You may be able to set up automated workflows or pre-approved spending limits for certain materials to help avoid this issue in the future. Reducing approval friction can allow you to act quickly when critical quotes come through.

One final tactic is to build in price escalation clauses when negotiating with mills and distributors. This allows for some flexibility in case the market shifts unexpectedly. If the price increases by more than a certain percentage, you can renegotiate the deal or walk away without penalty. This adds a layer of protection for buyers who are dealing with unpredictable price movements.

In any case, timing is crucial. The key to managing expiring mill quotes is to be proactive. If you sense that a quote is about to expire, start working on approval early, reach out to your suppliers to ask about extension options, and keep alternative plans in your back pocket. With the right approach, you can minimize the impact of expired quotes and still maintain control over your steel procurement strategy.