Service Supply Chain

The Case Of DABBAWALLAS

ASHOK KUMAR BOOLA IS-522, SP13, UAH

DABBA WALLA ?
DABBA means, a Box (Lunch/Tiffin) DABBAWALLA means, the Box carrying person

Mumbai Tiffin Box Suppliers Association (NMTBSA). Operating in MUMBAI city, India since 1880. Most dabbawallas are illiterates or less educated.

LUNCH BOX DELIVERY SYSTEM

HOME Dabbawallas Meal Delivery Logistics
By foot, Bicycle, Wooden crates and Local trains

OFFICE

Collect freshly cooked food in lunch boxes from the residences /restaurants. Deliver them to different workplace destinations. Return the empty boxes back to the customer's residence/restaurants. 130 year old, yet very Innovative
Delivery of >200,000 lunch boxes everyday. >400,000 transactions per day by 5000+ dabbawallas

Customer Profile
Students (11%) Businessmen (15%) Govt. employees (36%) Pvt. sector employees (38%) Indian culture and diverse food habits: Life in a metro city Employees leave homes pretty early in the morning Need to travel long distances in Jammed traffic At homes, it is difficult to prepare food by 6am. Food packed early morning will loose freshness by noon. Dabbawallas rescue them by preserving freshness/warmth of home food by the time the lunch box reaches offices.

DABBAWALLAS LOGISTICS

Footwork, Bi-Cycle, Wooden crates, and Local trains. Multiple transfer points along a stretch of 75Kms Rely hugely on Mumbai local trains which run on right schedules on most occasions. MumbaiCity: 20.7 million population, 53,600/Sq mi
(2011 census)

Resident train station

DABBAWALLAS OPERATIONS

3.4 errors in 1million operations (6sigma by Forbes 1998) Best time management, Guinness world record BBC, Ripleys believe it or not. Growing media focus Study by Business schools

http://www.youtube.com/watch?v=fTkGDXRnR9I

Supply Chain

Perfect planning and Strong Supply Chain network Efficient Logistic system Error free rapid delivery of the service irrespective of weather, riots, floods, etc. Process consistency and complete traceability Teamwork, Punctuality, and Discipline makes the Dabbawallas supply chain Agile.

PLANNING
Picking of dabbas from an area: From where, when, how many and by whom Aggregation of dabbas: Who will bring and to which station. Timing and Box coding strategies Pricing strategy and Means of transport Flat organization. Every Dabbawalla is a businessman and equally shares income. 3 tier structure: Executive committee, team leaders and Dabbawallas.

Distribution Network
Baton relay and Hub and spoke like system 12handlings of a dabba/day No historical, theoretical legacy in the design. No use of computer technology. Sorting , loading and unloading at peak rush hours. Coding of boxes, Clients name doesnt exist. Easy coding scheme understandable to the illiterate Dabbawallas.

Visibility of Information
Which box should go where

EFFICIENT LOGISTICS
9.30am-1pm (Forward), 1.30pm-4.30pm(Return) No fuel, human capital No big Investment (bicycle, crate, white dress, cap) No modern technology Low operational and maintenance

Bicycles - $5/Month, Nominal monthly rail ticket price

Low value price for customers

$8-11/month, yearly bonus of 1month salary Annual turnover crosses, $7million (400million INR) Monthly Avg. income of $120 (6000-7000 INR)

Reserves of extra Dabbawallas, as inventory (!)

CRITICAL SUCCESS FACTORS

Remarkable coordination & Time management
Ensures delivery in time

Control over the supply chain (No disputes)

Dabbawallas share common background.

Team spirit.No discrimination

Equal income, everybody should work, No hire/no fire

Discipline and the code of conduct

No alcohol, white cap, ID card, pre inform leaves.penalties Avoid bad customers (affect operations & profitability) Box should be ready in time, give 2-3 chances

Dedication.Work is worship
Strike is suicidal, every dabbawalla is owner cum employee

Customer satisfaction is the goal

Loyalty and trust

SWOT
STRENGTHS Time Management Ownership and Pride in the work Customer satisfaction Low operational costs Process consistency 6sigma standard service delivery Fool proof color coding OPPORTUNITIES Scope for additional lines of business like delivery of groceries. Dabbawallas wives can prepare food and sell. WEAKNESSESS High dependence on local trains Cannot have big aspirations Limited inflow of funds Inadequate income to cover life and medical insurances. THREATS Reducing no of Homemakers Fast food joints Small restaurants Office canteens Flexible office timings Work from home culture

DABBAWALA GOES GREEN

Use recyclable boxes, Eco efficient mode of transport Energy saving: No gasoline, No power, No technology back-up Word-of-mouth publicity, Avoid paper pamphlets, etc

RECENT DEVELOPMENTS
Launching of website, online products, ordering Orders through Mobile phones Dabbawallas learning English and computer Promotional messages and adds through dabbas

REFERENCES
http://myblog0411.blogspot.com/2011/12/mumbais-dabbawallas-master-in.html

http://www.indiaonlinepages.com/population/mumbai-population.html
http://avdevantimes.blogspot.com/2009/12/magic-of-dabbawala.html

http://en.wikipedia.org/wiki/Literacy_in_India http://www.randomspecific.com/dabbawallas-contained-coded http://www.docstoc.com/docs/99643284/Dabbawala-(PowerPoint) http://www.slideshare.net/amitgurus/mumbai-dabbawala-case http://www.authorstream.com/Presentation/dub.prateek-1265602-dabbawala-1/ http://www.slideshare.net/gauravdiwakar/dabbawalas20of20-mumbai http://www.slideshare.net/sonaabhi/supply-chain-management-mumbai-dabba-wala-new1http://www.authorstream.com/Presentation/aSGuest1762-99469-mumbai-dabbawalapresentation-entertainment-ppt-powerpoint/ http://www.iipe.co.in/journal/mar9/dabbawala.pdf http://articles.timesofindia.indiatimes.com/2012-07-21/news/32776369_1_mumbaidabbawalas-iim-c-management-calcutta http://www.brandchannel.com/features_profile.asp?pr_id=373 http://cmuscm.blogspot.com/2012/02/mumbais-dabbawalas-go-hi-tech.html http://yourstory.in/2012/03/dabbawala-customer-service-excellence-of-six-sigma-qualitywithouttechnology/ http://www.slideshare.net/targetseo/mumbais-dabbawalas-amazing-management-successstory-india
http://www.inmagine.com/dinodiarf-018/ptg01967281-photo