As we enter the 2018-2019 Winter Season, we are faced with a widespread salt supply shortage. The reasons for this are known. The inventory of salt across North America was depleted at the end of last winter. This article includes operations recommendations as well as communication tips to discuss the issue and potential solutions with your customers.
There were two major salt mines which experienced labor strikes. Bulk import material is on the ships headed to North America, but the concerns are that this product is coming in at a much higher cost and it may not arrive in time for the start of the season. Bagged inventory is at the lowest it has ever been and will take time to replenish. Only one major salt supplier (Compass) is bidding rock salt to municipalities. Road rock salt prices have doubled, and municipal commitments have increased substantially. Freight costs have gone up due to fewer drivers and trucks on the road to haul it.
All of these have implications on our brand operations in both Canada and in the US. As a result, this will pose incredible operational challenges for us to overcome. We must consider alternatives like conserving material, substituting de-icing materials, or simply using sand, dirt or ashes to help provide traction.
Operational recommendations are to buy early and stockpile because the supply will only become scarcer as the season progresses. Consider using liquid brine to reduce dry salt needs. Evaluate calibration of equipment to verify your application rates are at the recommended pounds per acre (300-500 lbs) for optimum snow and ice melting success. Consider blending sand and / or grit with salt or use these as a substitution to salt. The price of sand can be as much as $84 per ton cheaper.
More importantly, open and honest communication between you and your customer will help to maintain customer satisfaction through this difficult time. Exploring each step in detail before talking with a customer will help guide the discussion and help ensure a successful result. We must define the problem, explore alternatives, select a plan, implement the solution, and evaluate the results.
Talk through solutions with your customers ahead of the first event of the season. This ensures you are going into the season with a good relationship and a stronger potential for them to renew their contract with you. Explain the reasons why salt isn’t available and what to expect as you approach your service delivery in a different way than they are accustomed to. The consequences may be that the client letting you know they will look for a new snow vendor moving forward. If they are unhappy with the news you give them now, what do you think will happen to your relationship as you service them during the season. The result would be a hit on your reputation instead of disappointment with your honesty and attempt to address this uncontrollable problem.
As you communicate with your customers, position your discussions on problem solving. Include them in the discussion. This is a “We” problem, not a “They” problem. Walk through the options available as you are the expert. Make definitive recommendations that they can easily understand and agree to.
Explain that the future supply of salt is limited, and this is not a matter of cost. Help the customer understand that the situation is based on weather, national demand, and the role that local and state governments play in securing salt. Finally, explain the amount of deicing material that is on-hand, how long you expect it to last, and when more is expected.
The next step is coming up with solutions. These may include substituting deicing materials, supplementing salt with a type of traction control, or focusing on priority areas and times to reduce material use. Discuss these options with the customer, answer their questions, and explore the pros and cons of each alternative.
Give the customer the option to suggest which solution they’d like you to use. Telling them without getting their opinion and input will make them feel undervalued and reflect negatively on your relationship with them. When involving the customer, they will appreciate your cooperative nature and will own their decision. This is vital because many times the customer must convince other people within their company or community that the solutions chosen are the best given the circumstances.
Keeping a client engaged and treating them like a partner is a good customer relationship strategy to practice always.