Read the 1-888-Junk-Van case (in your Harvard Course Pack)
Working with your team write a 2-3 page analysis of Junk Van’s strategy and the alignment of
each option with that strategy. You may use the collaboration tools in the Canvas groups (or any
other online tools) to help you share files, have online discussions, or launch synchronous online
meetings.
Problem/Issue Statement
1-888-Junk-Van operates in the waste collection industry. Waste collection is generally perceived
to be a “rough” business, characterized by unreliable customer service and a lack of
professionalism. It was also considered to be a commodity service, and so as competitors
increasingly entered the market prices began to fall. Achieving operational efficiencies in this
challenging environment was difficult enough for global companies that benefited from
significant scale economies, but was almost impossible for local companies like the Canadian
based Junk Van run by Marcus Kingo. To reduce high fixed startup costs, Kingo opted to create a
simple virtual business model. As business grew, however, so did operational complexity, and
inefficiently and errors became common place. Drivers relied on instructions deliveries through
an email system, and when this information was incomplete or incorrect, customers suffered the
consequences. Information holding errors were pervasive and the business was losing
customers.
The key problem is to find an affordable IT system that met Kingo’s operational requirements
and allowed the business to grow. While the system had allowed 1-888-Junk-Van to grow
initially, information errors and inefficiencies were now negatively impacting operations and
increasing costs. The scope of the problem is that since the business model is a virtual business
model with no brick and mortar store locations, all communication and information transmission
would be electronic meaning if there were communication error’s they would greatly affect the
business. Kingo could not afford to keep wasting time putting out these fires in a very
competitive job market.
The case touches of a few of the symptoms which include:
Simple administrative tasks (e.g. contracting helpers, going back to the customer site to
collect money) took up a lot of the driver’s time.
Even though some templates existed for drivers to send their information to the data
clerk, they rarely used them, so delivers data consolidation was very time consuming.
Customer service quality was suffering, which damage the company’s reputation.
Errors in customer contact information, forgotten emails, manual calculations, and
billing mistakes caused negative customer interactions.
The most serious problem originated with the data clerk who would accidently send the wrong
version of the database to the morning operation, and as a result some jobs were already booked
no longer showed in the database and did not make tier way onto the spread sheet used by the
drivers. Fixing the database was extremely time consuming and meanwhile no new reservations
could be taken as there was only one live copy.


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- Fall '18
- Marcus Kingo