"8 pcs HEA 200 S355J2, L = 7,450 mm sawn, 14 IPE 160 in stock length, plus 4 flame-cut blanks from 10 mm plate, and a 3.1 certificate for everything in S355." An inquiry like this from a metal fabricator contains not a single item number, but six decisions: profile, grade, length, processing, certificate and delivery form. Steel distribution software with AI reads such inquiries, breaks them into line items and attributes, and prepares the quote in the ERP. Pricing and approval stay with the distributor.

Key takeaways

• Inquiries in steel distribution are described by attributes (profile, dimension, material, length), not by item numbers.

• On top of the material come processing (sawing, flame cutting, blasting), certificates under EN 10204 and surcharges that must not be missing from the quote.

• AI software like Mercura reads inquiries from email, PDF, Excel or scans, matches the line items to your range, checks the requested grade and flags anything unclear.

• Prices, surcharges and processing calculation stay in the distributor's ERP or steel distribution software.

• Mercura has no public case study in steel distribution; the benefit should be verified with a test on your own inquiries.

Why are inquiries in steel distribution different from other wholesale sectors?

Inquiries in steel distribution are different because customers order material by attributes: profile series, dimension, material grade, length, surface and, where required, certificate. An item in the ERP often only comes into existence from the combination of these attributes, and the same line item can be requested in pieces, meters, kilograms or tons. Delivery terms matter too: besides price, metal fabricators care most about availability and fast delivery to the site.

There are also typical characteristics of the sector:

• Lengths and cuts: Stock lengths, fixed lengths and sawn cuts are each a separate service with its own pricing logic.

• Weight as the basis for calculation: Many line items are calculated by weight. Weight per meter times length times quantity gives the quantity the price applies to.

• Surcharges: Besides the base price, there are grade, dimension or alloy surcharges depending on the material. According to the tacto buyer glossary, an alloy surcharge reflects the current market prices for alloying elements and is adjusted monthly or quarterly.

• Certificates: Steel construction often requires inspection documents under EN 10204, usually a 2.2 test report or a 3.1 inspection certificate. According to LRQA, a 3.1 certificate contains results of specific tests on the delivery lot and is issued by the manufacturer's inspection department, which is independent of production.

• Short price validity: Steel prices fluctuate, so quotes are often valid only briefly. Anyone who quotes slowly has to recalculate more often.

How does AI break a steel inquiry into line items?

AI breaks a steel inquiry down by splitting each line into its attributes (profile, dimension, grade, length, quantity, processing, certificate), checking these attributes against the item master and product data, and suggesting the matching items. If an attribute is missing or contradictory, the line is flagged.

Example: inquiry from a metal fabrication company

The following example is anonymized and simplified. It shows how Mercura, an AI software for quote and order automation in technical sales, would process a typical inquiry.

Example: email inquiry for a hall extension

Subject: Inquiry hall extension project, delivery week 9

• 8 pcs HEA 200, S355J2, L = 7,450 mm, sawn

• 14 pcs IPE 160, S235JR, stock length 12 m

• Flat steel 100 x 10, S235JR, 60 m

• Square tube 80 x 80 x 4, S355, 6 bars at 6 m

• Plate 10 mm, S355J2+N, 4 blanks 450 x 600 mm, flame cut

• 3.1 certificate for all S355 line items

• Delivery to site

The process:

1. Capture: Seven lines are read; the certificate and delivery lines are recognized as requirements that apply to other line items.

2. Match: Profiles, tubes and plates are matched against the item master, and spellings are standardized.

3. Check: For the square tube, the exact grade designation is missing ("S355" without a suffix). The line is flagged. Whether a higher grade is offered as a substitute is decided by the salesperson, not by the software.

4. Processing and certificates: Saw cuts, flame-cut blanks and 3.1 certificates are shown as additional requirements on the respective line items. The calculation of these services stays in the ERP.

5. Rank and request: If several items meet the requirement, compliant options are sorted by margin. Anything not in stock goes to the supplier as a price request; the reply is read back in.

6. Approve: Inside sales reviews, adds prices and surcharges from the ERP and approves. The quote is written to the ERP and set for follow-up, so that it is chased in time given the short price validity.

What does an ERP in steel distribution need to do, and what does AI take over?

An ERP in steel distribution has to handle items with weights and dimensions, base prices and surcharges, processing, batches and certificates, and stock with remnants. AI software does not replace that. It takes over the step before: turning unstructured inquiries and orders into structured transactions that the ERP processes further.

Mercura deliberately stays out of the pricing logic. Prices and calculation stay in the ERP, and the ERP remains the leading system. Integrations include SAP S/4HANA, SAP ECC, SAP Business One, Microsoft Dynamics 365, Salesforce, proALPHA and UniTrade; for SAP, the real-time connection runs via OData, alternatively as an IDoc file, and other systems via an API or SFTP. Connections run only via routes your IT approves and controls. More under Integrations and in the article SAP order entry with AI.

Orders and call-offs can be processed the same way: the software picks them up from the shared mailbox, forwards them to the branch or the order clerk, translates customer descriptions and old item numbers, and books them into the ERP after approval (Automate order entry).

When is AI not worth it in steel distribution?

AI is not worth it in steel distribution if most of the business already runs in a structured way, for example through framework agreements with EDI call-offs or a web shop, or if the bottleneck is not in capture but in processing capacity or purchasing. In that case, better processing planning or a better purchasing strategy brings more.

More honest points:

• No reference in steel distribution: Mercura has its public case studies in plumbing and HVAC distribution, civil engineering supply and with building services manufacturers. For steel distribution, the benefit should be verified on your own inquiries before you set expectations.

• Specialized industry ERPs: Steel distribution solutions with integrated processing and remnant management have strengths in pricing and production logic that an AI layer does not replace.

• Parts made to drawing: Complex flame-cut parts made to drawing need design data and nesting. The software can structure the inquiry, but it cannot plan production.

• Volatile prices: The AI does not provide market price forecasts. How current a quote is depends on the prices in the ERP.

How can you verify the benefit in your own steel distribution business?

The best way to verify the benefit is a technical test on your own inquiries and your own item master; this is usually possible within two working days. First workflows are usually live in under four weeks, without upfront training and even with incomplete product data, because data sheets and catalog texts are read as well.

A sensible sample reflects the real day-to-day business: simple stock orders, inquiries with processing, inquiries with certificate requirements and one or two bills of materials from projects. Across all customers, the average matching accuracy is 92%, but it depends heavily on the customer and the catalog, which is why the test with your own data is what counts. Mercura is certified to ISO/IEC 27001, GDPR-compliant, hosts in Europe and does not use customer data to train external AI models. More under Quotes and tenders and Solutions for distributors.

Test it with your own inquiry Bring a real steel inquiry or order: in 30 minutes we show you how Mercura handles it in your process. Book a meeting

Conclusion

In steel distribution, the work is not in looking up item numbers but in breaking inquiries into profile, grade, length, processing and certificate. This is exactly the step AI can prepare and flag where things are unclear, while prices, surcharges and processing calculation stay in the ERP. Because there is no public case study for steel distribution yet, a test on your own inquiries is the most honest way to decide.

Further reading

• Quotes and tenders: turn every request into a quote

• Civil Engineering Supply: Faster Quotes Before the Bid

• Fastener Wholesale: Automate Orders With AI

• Customer story: Muffenrohr (civil engineering supply)

• Mercura vs. Canals: AI Quotes and Orders Compared

Frequently asked questions

What software does a steel distributor need? A steel distributor needs an ERP that handles weights, dimensions, surcharges, processing, batches and certificates. AI software complements it for inquiries and orders that arrive unstructured by email, PDF, Excel or scan.

Can AI understand steel inquiries without item numbers? Yes, the software reads attributes such as profile, dimension, grade and length and matches them to items from your own range. Missing or contradictory information is flagged.

Does the AI calculate surcharges and processing? No, prices, surcharges and processing calculation stay in the ERP. The software detects the requirements and shows them on the line items.

What is a 3.1 certificate in steel distribution? A 3.1 inspection certificate under EN 10204 certifies results of specific tests on the delivery lot and is issued by the manufacturer's inspection department, which is independent of production. In steel construction, it is often requested for load-bearing components.

Does Mercura have reference customers in steel distribution? Mercura has no public case study for steel distribution. Public references exist from plumbing and HVAC distribution, civil engineering supply and from building services manufacturers.

Does AI software replace a steel distribution ERP? No, the ERP remains the leading system for items, prices, stock and documents. The AI prepares quotes and orders and hands them over to the ERP after approval.