The Purchase Order Liability That Could Have Cost Millions

This simple purchase order line could save your company millions in liability—or destroy it if missing critical ISO 9001 requirements.

I just walked out of an audit that revealed something disturbing. What I discovered wasn’t just a nonconformity—it was a ticking time bomb that could bankrupt the entire operation.

Let that sink in.

🚨 The Hidden Crime Against Manufacturing: Purchase Order Liability

Manufacturers can commit a cardinal sin without even realizing it. It happens when they make verbal agreements with suppliers about critical material specifications—ASTM standards, testing requirements, material properties—without documenting them on purchase orders.

This isn’t just sloppy. In the eyes of the law, it’s practically suicidal.

⚡ Fast forward to the inevitable lawsuit when your product fails and causes injury. The opposing counsel asks for your purchase order specifying the ASTM requirements. You confidently mention your “verbal agreement” with the supplier.

Then comes the bombshell:VERBAL REQUESTS DON’T HOLD UP IN COURT.

I’ll say it again because your company’s survival depends on it:

VERBAL REQUESTS DON’T HOLD UP IN COURT.

🔍 The Revelation That Changes Everything

During today’s audit, we discovered a manufacturer who thought they were protected. They had verbally requested specific material testing from their supplier. They “trusted” their supplier understood the requirements.

But here’s the bitter truth: Undocumented supplier requirements are one of the greatest liability exposures I see in manufacturing today.

It’s a crime...

A crime against quality.

A crime against your business.

A crime against your future.

🛡️ The ISO Shield You Never Knew You Needed

ISO 9001 isn’t just a customer requirement—it’s your legal armor in a world waiting to destroy you.

Cornerstone Engineering has helped hundreds of companies build ISO systems that serve as both shield and sword:

• Shield: Protecting you from liability with proper documentation

• Sword: Cutting through supplier excuses when materials don’t meet specifications

🔥 The Nightmare Scenario You’re Facing Right Now

If you’re operating without proper ISO 9001 controls on your purchasing process, you’re essentially playing Russian roulette with your company’s future.

Let me be brutally honest: Your verbal agreements are worthless. Your handshake deals are meaningless. Your “understanding” with suppliers will evaporate the moment a lawyer gets involved.

⚡ Fast forward again to the courtroom. Your company is facing a multi-million dollar lawsuit because a product failed. Your defense hinges on proving you specified the right materials.The judge asks for the purchase order. You produce it. It doesn’t specify ASTM requirements.Game over.

💣 The Solution You’ve Been Missing

Here’s what you don’t know: Cornerstone Engineering’s customized ISO system development can transform your purchasing process in weeks, not months.

Our globally recognized approach doesn’t just check boxes for certification—it builds a legal fortress around your business that:

• Documents every critical requirement

• Specifies testing and verification needs

• Creates a paper trail that will stand up in court

🎯 Take Action Now or Accept the Consequences

Let me be clear: If you’re reading this and haven’t reviewed your purchase orders today, you’re already at risk.

Because verbal agreements don’t just fail in court—they fail your customers, your employees, and ultimately, they fail you.

This isn’t just about ISO 9001 compliance. This is about survival.

Cornerstone Engineering, Training, and Consulting LLC helps companies achieve continual improvement and compliance with ISO standards. Visit www.ce-q.com to learn more.