copy of dabbawalas of mumbai--1

8/8/2019 Copy of Dabbawalas of Mumbai--1

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CASE STUDY ON SCM OF

DABAWALLASPRESENTED BY:

SAMITA RATHOD ROLL 55

UMA DALVI ROLL 28

JANARDHAN BIRADAR ROLL 58

DILIP BHAGALE

SUMEET GURNANI ROLL 97

SURYABHAN PANDEY

SANJAY POOJARI


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INTRODUCTION

A dabbawala is a person in the Indian city ofMumbaiwhose job is to carry and deliver freshly made food fromhome in lunch boxes to office workers.

For the efficiency of theirsupply chain it has beenclaimed that this virtually achieves a Six Sigmaperformance rating, (i.e. 99.9999% of deliveries aremade without error.

Though the work sounds simple, it is actually a highlyspecialized trade that is over a century old and whichhas become integral to Mumbai's culture.


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DISCIPLINE :

No Alcohol Drinking during business hours

Wearing White Cap during business hours

Carry Identity Cards

WOMEN:

Mrs. Bhikhubai of Borivali(East)

Mrs. Anandibai of Andheri(East)LATEST MARKETING STRATEGY:

Marketing message in the dabba

APPROACH


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LEADING WITHOUT

SUITS AND TIES Talks on Best Practices at IIMs, IITs, companiesRegularly sought by print media and electronicmedia

Common queries How do they recruit?

Working of incentive system with equal pay for all ?

Do they know their clients?

Robustness of distribution channel? Dealing with growth?

Competitors?

World is changing! Not dabbawalas?


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FACTS

2003: 5000 recruits, 175, 000 clients

350,000 deliveries

75 kms of public transport Failure: once in two months, one in 15

million

Rs 380 million per annum


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ORGANIZATION STRUCTURE

Role of Groups (a profit centre with 8

mukadams)

Culture similarity of the staff

Distinct local entity of dabbawalas Known for reliability and work ethic

Helped by commuters


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HIERARCHY OF STRUCTURE

PRESIDENT

VICE PRESIDENT

GENERAL SECRETARY

TREASURER

DIRECTORS(9)

MEMBERS(5000)

MUKADAM

13 MEMBERS


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LOGISTICSLOGISTICS

Logistics is happening 24 hrs a day,7 days a weekand 52 weeks a year.

Logistical competency is achieved by coordinating

the following: Network Design

Information

Transportation

Inventory

Warehousing


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REAL PICTURE OF ANDHERI


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LOADING OF TIFFINS.

10:34-11:20 am This time period is actually the journey time. The

dabbawalas load the wooden crates filled with tiffins ontothe luggage or goods compartment in the train. Generally,they choose to occupy the last compartment of the train.

11:20 12:30 pm

At this stage, the unloading takes place at the destinationstation Re-arrangement of tiffins takes place as perthe destination

area and destination building. In particular areas with high density of customers, a special

crate is dedicated to the area. This crate carries 150 tiffinsand is driven by 3-4 dabbawalas!

1:15 2:00 pm

Here on beginsthe collection process where the dabbawalashave to pick up the tiffins from the offices where they haddelivered almost an hour ago.


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RETURN JOURNEY: 2:00 2:30 pm The group members meet for the segregation as per the destination suburb

2:48 3:30 pm

The return journey by train where the group finally meets up after the days routine ofdispatching and collectingfrom various destination offices

Usually, since it is more of a pleasant journey compared to the earlier part of the day, thedabbawalas lighten up the moment with merry making, joking around and singing

3:30 4:00 pm

This is the stage where the final sorting and dispatch takes place. The group meets up atorigin station and they finally sort out the tiffins as per the origin area


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UNINTRUPTED SERVICE

The service is uninterrupted even on the days ofextreme weather,such as Mumbai's characteristic monsoons.

The local dabbawalas at the receiving and the sending ends are

known to the customers personally, so that there is no question oflack of trust.

Also, they are well accustomed to the local areas they cater to,which allows them to access any destination with ease.

Occasionally, people communicate between home and work byputting messages inside the boxes. However, this was usuallybefore the accessibility oftelecommunications


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FINANCIAL DATA

1st group

Rs 125000 Total earnings20 People

Rs 35000 Maintenance cost .

Tiffin luggage basket pass Rs 180 per person.

Maintenance of cycles Rs 300 2 cycles per month.

Maintenance of wooden boxes Rs 100 per person

Organizational fee Rs 15 per head.

Puja held per station Rs 50 per head.


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DISTRIBUTION NETWORK

Hub and spoke arrangement

No historical, theoretical legacy in the design

No use of computer technology Coding system

Decentralized at the group level

Workday schedule

30-35 deliveries (manageable)

Sorting, loading and unloading at peak rush hours

4 handlings of a dabba in a day- coding essential


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DISTRIBUTION NETWORK

K-BO-10-19/A/15

Clients name is not even existing

Easy coding scheme as the level ofliteracy is not very high


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SIX SIGMA EFFICIENCY.

Error Rate : 1 in 16 million transactions

Six Sigma performance (99.999999)

Technological Backup : Nil.

Cost of service - Rs. 200/month ($ 4.00/month)

Standard price forall (Weight, Distance, Space)

Rs. 50 Cr. Turnoverapprox.

[200,000*200=400,000,00 p.m. i.e 48 crore p.a.]

No strike recordas each one a share holder

Earnings -5000 to 6000 p.m.


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OPERATING ENVIRONMENT

Competitors: Fast Food chains,

restaurants and road-side vendors, Udipi

chain etc.

Competition is different:

NO MANUFACTURING, ONLYDISTRIBUTION


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SUCCESS FACTORS

Low cost delivery

Rs. 150 -200

Delivery reliability Entrepreneurs, not employees

No strikes

Flat structure Referrals from friends and relatives

No dilution of service culture


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SUCCESS FACTORS

Decentralization

Perceived equality

Effort different, same remuneration Suburban Railway Network

Foodline of the city


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FUTURE

Key concerns

Shrinking customer base and loyalty

Loss of textile mill workers in 80s and 90s

Each group authorized to target new customers (schoolchildren etc.)

Lifestyle changes

Not a major damage for the business

Workforce management

Next generations do not seem to be greatly interested

Not many incentives for good workers

Not many disincentives wither (no firing)


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AWARDS AND FELICITATION

Shri.Varkari Prabhodhan Mahasmati Dindi (palkhi) sohala 4th march 2001.

Invitation from CII for conference held in Bangalore.

Documentaries made by BBC ,UTV, MTV, and ZEE TV Dabbawalla services are popular with the Indian IT developer community inSilicon Valley, California, USA

Inliterature

One of the two protagonists in Salman Rushdie's controversial novel TheSatanic Verses, Gibreel Farishta, was born as Ismail Najmuddin to adabbawallah. In the novel, Farishta joins his father, delivering lunches allover Bombay (Mumbai) at the age of 10, until he is taken off the streets andbecomes a movie star.

Dabbawalas feature as an alibi in the Inspector Ghote novel Dead on Time.


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SOME ACHIEVEMENTS

World record in best time management.

Name in GUINESS BOOK of WorldRecords.

Registered with Ripley's believe it or not.


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SOME MORE ACHIEVEMENTS


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ORDERING THROUGH

SMS

A web site, mydabbawala.com.

The return on capital is ensured by

monthly division of the earnings of eachunit. - [email protected]


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THE ROYAL VISIT

Recently, the dabbawalas had royal company atChurchgate station. The Prince of Wales himself had visitedthem when he came down to Mumbai.

He took keen interest in their way of functioning, expressedsurprise at their efficiency and was struck with awe when hewas told that they didnt employ any technology.

The prince was presented a small memento, accompaniedwith a garland, a Gandhi topi and a trophy by thedabbawalas.


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THANK YOU..

copy of dabbawalas of mumbai--1

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