The Dabbawala System: Ontime Delivery, Everytime

A CASE ANALYSIS

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

14008
14072
14082
14118
14129

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

Started in 1980

Registered as Charitable Trust

1956

Education

85% Illiterate

Area Covered

75 kms

Employee Strength

5000

Number of Dabbas

260,000

Number Of Groups

200

Time Taken

3 hours

Continued..

They share common benefits, value and ethics

Follow strict discipline like dress code and no liquor consumption at work
Trustworthiness and inspiration
Commitment
Focused on only delivering dabbas
Expertise in delivery

Customers
Word-of-mouth for acquiring new customers
People want different kinds of foods
For customers constraints in Mumbai and hence the dabbawalas

Recruiting and Monitoring

Members recruited from 3o villages in and around Pune, and were friends and relatives of existing membe
Probation for 6 months and later made permanent
For 6 months: fixed monthly salary = Rs 3000
Less educated people
Commitment mattered rather than education
Job satisfaction

Finances

Cost was based on average weight of a dabba, and the distance

Revenue : Rs 470 million in 2009
Average: Rs 300 from a customer
Rates varied depending upon the way the dabbas were delivered

Organization Structure
Sopan MarePresident

Raghunath
MedgePresident

General
Secretary

General
Secretary

Treasurer

Treasurer

Director (6)

Director
Members
(5,000; including 635
supervisors)

Supply Chain
Distribution
Network
Transportation
Supply Chain
Model

Distribution Network
Hub and spoke
arrangement
No theoretical legacy in
the design
Vehicles Used: Trains,
handcarts and bicycles
Coding system decentralised at the group
level
30-35 deliveries per
dabbawala
Sorting, loading and
unloading at peak rush
hours

Coding structure

Transportation
8.30 9am

Report for work

9 10 am

Pick up dabbas from houses

10-10.30 am
10.30 10.45 am

Groups congregate at Kurla and sort

dabbas
Board trains in wooden crates or hand

10.45-11.30 am

Travel by trains to CST

11.30 12.00pm

All CST groups congregate at station

and sort based on destination

12 -1.00 pm

Delivery to offices

1.00 1.30 pm

Lunchtime

1.30- 2.30 pm

Collect empty dabbas amd return

2.40 3.30 pm

Train ride back to station of origin

3.30 4.00 pm

Sort the dabbas

4.00 5.00 pm

Return the dabbas

Supply Chain Success

Error Rate: Six Sigma Performance 1 in 16 million transactions - high level of accuracy
Technology Nil
Cost of Service : Rs 300/month
Price based on distance, weight
Service delivery Efficient
Earnings per month: Rs 7000
Turnover: Rs 470 million as of 2009
Integrated performance chain
Low operational cost
Time Management
Customer satisfaction

Issues

Highly dependant on Mumbai Local Train Services

Security Concerns
Aversion to technology
85% are illiterate

Recommendations

Change of Attitude about technology and strategic changes

More access to education
Market penetration
Tie up with e-commerce
Advertising

Learnings
An organization with limited resources and technology can
achieve high levels of precision
Model focuses on commitment which increases efficiency
Self discipline
Time management
Innovation
Customer satisfaction
To hold up core competency

Thank You