Environmental and Facilities Service Industry: Process, Hierarchy, and Problems

http://jsa9.blogspot.sg/2012/06/1-888-junk-van.html http://mattkuschan.blogspot.sg/2013/02/1-888-junk-van.html IS101 – 1888-Junk-Van
Background Information
Industry: Environmental and Facilities Service Industry
Has a compound annual growth rate of 2.5% (2005 – 2009) Refer to Exhibit 1.
Solid Waste Management the largest and most lucrative segment, 53.8% of the industry’s total value.
Increase in Latent Demands for Waste Collection in both Canada and United States.

Exhibit 1: Graph of Compound Annual Growth in Environmental and Facilities Service Industry

Company Background
Founded: 2008 by Marcus Kingo in Ontario, London.
Service Provided: Customer Specific Waste Management Services
Competitors:
Global – Waste Management Inc, Republic Services
Local – 1-800-Got-Junk (Similar Business Model, Similar Marketing Principle as 1-888-Jun-Van)
Business Model: Virtual Business Model (No Physical Office), “One Truck, One Driver”
Why?
Low Overhead - provided the ability to compete with larger companies and offer competitive prices.
Focused on Reduction on Fixed Costs (I.e, Rental, Utility bills for office)
Business Performance

2008
2009
Asset
1 Truck
5 Trucks
Revenue
$300,000
$600,000
Cities of Operation
1 (Ontario)
3 (Ontario, Kitchener, Hamilton)

Business Process

Organizational Hierarchy

Roles of Responsibilities of Personnel
Personnel
Roles and Responsibilities
Customer
Request for a new job
Day Call Operator (0800 HRS – 1400HRS)
Receives phone call from customers
Books new job for customers (In Database)
Emails Database to Evening Call Operator
Evening Call Operator (1400HRS – 0800HRS)
Books new jobs
Updates Database
Creates Work Order for Drivers
Emails updated Database to Data Clerk
Data Clerk
Integrate Information into Central Database
Process payments
Updates Database & email to Day Call Operator
Consolidates Payroll Information (Hours Works, etc.)
Drivers
Plans next day schedule based on Work Orders
Inform Helpers
Collects/Transports Waste
Prepare Inovice (Settle Payments)
Email Data Clerk the details of Jobs Performed
Helpers
Collects Waste

Problems
1. Time Consuming
a. Templates Existed but was neglected, causing data consolidation to be time consuming
b. Drivers had to manually contact Helpers and Return to Customers to receive payments
2. Manual Data Entry – Human Errors
a. Error in Customer Information
b. Manual Calculations
c. Billing Mistakes
d. Forgotten Email
e. Sending of Outdated Database to Day Call Operator
e.i. Jobs that were booked were missing (Forgotten Orders)
e.ii. Time Consuming to remedy the issue; no database access while remedying the issue.
Let to negative customer interactions, poor customer service quality. Resulting in customers switching to other competitors.
Requirements of the New System
1. Maintaining Virtual Business Model (Remote Access)
2. Centralized Database
a. Not requiring the need to email database to and fro
3. Cost and Time efficient
4. Automated E-mailing to Customers
5. Easy to Implement/Operate
a. Kingo and Staffs did not possess very high IT Skills
b. Requires to rely on the system heavily for daily business Operations
6. Flexible and Robust system
a. To handle the changes in the industry or 1-888-Junk-Van’s Business
7. Vendor Support