ADVERTORIAL
With December just a few weeks away, the official start of winter is almost upon us. For winter maintenance professionals, however, the winter service offered to clients often begins well before December and ends well after February. Winter may be, officially, the three month period, and in the eyes of those out with the industry be signalled by the first snowfall, but for those tasked with providing winter service every year, activity often begins with the first signs of ice and frost. When this happens, it’s time to get the gritters ready, and make sure your salt supply is adequate for the time ahead. Indeed, it is the issue of salt supply that needs to be addressed.
HOW MUCH IS ENOUGH? The question of how much salt to
have in stock is always a difficult issue for winter professionals and indeed for salt suppliers such as ourselves at Peacock Salt. Prior to the harsh winters of five and six years ago, many customers carried out their business with the assumption that salt would always be readily available. They had no reason to think otherwise as the resilience of the supply chain had not been tested. However, the winters of 2009-10 and 2010-11 showed that, as with all commodities, there is a finite amount of salt that can be produced and delivered in a given period of time. When demand vastly exceeded the available supply, salt shortages occurred. This resulted in service failures and, in some cases, highly inflated prices from some suppliers.
Since the period in question, however, the winters have been relatively mild. Somewhat worryingly though, as a supplier we are seeing signs of complacency creeping in to individual customer ordering patterns. In effect, a reversion to the just-in-time, supplier-will- always-have-stock mentality. This is dangerous, especially as there is always the possibility of another harsh winter on the horizon and very high spikes in demand over short periods of time.
www.tomorrowsfm.com
SUPPLIES RUN DRY At Peacock Salt, we have eight salt
depots, all well stocked, throughout the UK, three bagging facilities, a sole-supply agreement with one of the largest white salt producers in the Mediterranean, and trading agreements in place with all three indigenous rock salt producers. On the face of it, this sounds like all bases are covered. However, these self-same circumstances were in place during the harsh winters of 2009-10 and 2010-11 and shortages still occurred.
“THERE IS A FINITE AMOUNT
OF SALT THAT CAN BE PRODUCED AND DELIVERED IN A GIVEN PERIOD OF TIME.”
The simple fact is, winter is highly unpredictable. This unpredictability is extreme; dealing with a surge in demand of ten, twenty, thirty per cent, etc, is easily absorbed. But in the 2010-11 period, we experienced demand uplifts of several hundred per cent. Much of this could actually have been handled had it occurred over a longer period of time, and if customers had simply ordered well in advance. However, many users waited until the last minute and began clamouring for salt in a very condensed period of time. As a result, supplies quickly diminished.
“WINTER IS HIGHLY UNPREDICTABLE.”
Where indigenously-produced brown rock salt is concerned, it should be noted that the priority of producers is to supply public sector bodies, such as local authorities, with whom contractual agreements are in place. In the event of a prolonged winter period, as in 2010-11, these
organisations needs will take primacy over, for example, the needs of FM businesses. As for importers of white marine salt such as ourselves, there is in fact more available salt out of the country than can be mined within the UK, so any supply restrictions imposed internally can be mitigated with imports. But imports take time to arrange, typically around three weeks from initially sourcing a vessel and the discharging of its contents at a home port.
PREPARATION IS KEY What this all demonstrates is that
advance-buying is key to protecting your winter maintenance business. While suppliers such as ourselves at Peacock are well prepared, if others do not take it upon themselves to stock up, then the lessons of history are not being learned and you risk exposure to stockout situations and long delivery lead times. Although the salt cost within any winter maintenance quotation is relatively low, the fact is that without salt in the first place you cannot provide service and charge for it. Being a spreader down, having reduced manpower, suffering a flat tyre, etc, are all situations that, although not ideal, can be dealt with and will not necessarily prevent you from carrying out your duties. However, even with everything in place and fully operational, without salt then no work can be done. Although so obvious it need hardly be stated, no salt means no business.
The events of past winters are not correlated to future winters. The last three or four winters have been relatively mild, but this should in no way be taken as an indicator of what the next winter will be like. If you have the space to stock up, we advise that you do so. Keep in mind the lessons of the past, take control of your own supply and don’t leave it to chance. As the saying goes ‘‘Those that fail to learn from history are doomed to repeat it’’.
www.peacocksalt.com
TOMORROW’S FM | 21
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