The Dabbawala System: On-time Delivery, EverytimeA Case analysis

By, Group 04, Section A Aishwarya Balasubramaneyam 14008 Lokkesh Kumar C 14072 Mohammed Rafath T P 14082 Ravikiran R 14118 Sachin Madan Honnavar 14129 Yashasvi S 14183

IntroductionDabbawala : is a person whose job is to carry and deliver freshly made food in lunch boxes to office workers

HistoryStarted in 1980Registered as Charitable Trust1956Education85% IlliterateArea Covered75 kmsEmployee Strength5000Number of Dabbas260,000Number Of Groups200Time Taken3 hours

Continued..They share common benefits, value and ethicsFollow strict discipline like dress code and no liquor consumption at workTrustworthiness and inspirationCommitment Focused on only delivering dabbasExpertise in delivery

Customers

Word-of-mouth for acquiring new customersPeople want different kinds of foodsFor customers constraints in Mumbai and hence the dabbawalas

Recruiting and MonitoringMembers recruited from 3o villages in and around Pune, and were friends and relatives of existing membersProbation for 6 months and later made permanentFor 6 months: fixed monthly salary = Rs 3000Less educated people Commitment mattered rather than educationJob satisfaction

FinancesCost was based on average weight of a dabba, and the distance Revenue : Rs 470 million in 2009Average: Rs 300 from a customer Rates varied depending upon the way the dabbas were delivered

Sopan Mare- PresidentRaghunath Medge- PresidentGeneral SecretaryGeneral SecretaryTreasurerTreasurerDirector (6)DirectorMembers(5,000; including 635 supervisors)Organization Structure

Supply Chain

Distribution NetworkHub and spoke arrangementNo theoretical legacy in the designVehicles Used: Trains, handcarts and bicyclesCoding system - decentralised at the group level30-35 deliveries per dabbawalaSorting, loading and unloading at peak rush hours

Coding structure

Transportation8.30 9amReport for work9 10 amPick up dabbas from houses10-10.30 amGroups congregate at Kurla and sort dabbas10.30 10.45 amBoard trains in wooden crates or hand10.45-11.30 amTravel by trains to CST11.30 12.00pmAll CST groups congregate at station and sort based on destination12 -1.00 pmDelivery to offices1.00 1.30 pmLunchtime1.30- 2.30 pmCollect empty dabbas amd return2.40 3.30 pmTrain ride back to station of origin3.30 4.00 pmSort the dabbas4.00 5.00 pmReturn the dabbas

Supply Chain SuccessError Rate: Six Sigma Performance 1 in 16 million transactions - high level of accuracy Technology NilCost of Service : Rs 300/monthPrice based on distance, weightService delivery Efficient Earnings per month: Rs 7000Turnover: Rs 470 million as of 2009Integrated performance chain Low operational cost Time ManagementCustomer satisfaction

IssuesHighly dependant on Mumbai Local Train ServicesSecurity ConcernsAversion to technology85% are illiterate

RecommendationsChange of Attitude about technology and strategic changes More access to educationMarket penetration Tie up with e-commerceAdvertising

Learnings An organization with limited resources and technology can achieve high levels of precisionModel focuses on commitment which increases efficiencySelf disciplineTime managementInnovationCustomer satisfactionTo hold up core competency

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