a detailed study on supply chain management of MUMBAI DABBAWALLA

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ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD
MUMBAI DABBAWALLA
SUPPLY CHAIN MANAGEMENT
PRESENTED BY-
PRESENTED TO-
DR. APURVA
PROF. B.V.N. SACHENDRA
DR. SHAILESH
DR. RAJENDRA
MS. PRIYADARSHINI
DR. SATYAM
DR. SUDIPTA(PT)

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INTRODUCTION
• A “dabba,” in local Indian parlance, is a lunch box or tiffin
with home cooked food; the person who delivers it is
called the “dabbawala.”
• The dabbawalas deliver warm lunches from the homes of
customers, and the women who work in those households
usually decide what is being served.
• Traditionally the process has been conducted via
personal networks, but today dabbawalas have websites
in place to facilitate the process.

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• A total of 5000 dabbawalas move almost 200,000 lunches
everyday, an activity that has been carried on with utmost
precision and punctuality for over a decade now.
• The organization has become symbolic of Mumbai’s
culture, and the dabbawalas themselves have structured
their own narrative as an indigenous brand that thrives on
little technology and basic infrastructure.
• Donning Gandhi caps and regularly getting together for
cultural ceremonies, the dabbawalas both draw upon and
contribute to the cultural fabric of Mumbai.

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Nutan Mumbai Tiffin Box Suppliers
Association
• History : Started in 1890
• Charitable trust : Registered in 1956
• Avg. Literacy Rate : 8th Grade Schooling
• Employee Strength : 4500- 5000
• Number of Tiffin's : 2,00,000 Tiffin Boxes
i.e. 4,00,000 transactions every day.

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ORGANIZATION STRUCTURE
President
Vice President
General Secretary 13
members
Treasurer
Directors(9)
Mukaddam
Members(5000)

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HUMAN RESOURCE PRACTICES
• The Governing Council (also called as Panch
Committee) holds meetings on the 15th day of
every month.
• Activities-
Keep record of payments.
Settle disputes.
Search new customers.
Train new dabbawallas.

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DESCIPLINES & MARKETING
STRATEGY
• No Alcohol Drinking during business hours
• Wearing White Cap during business hours
• Carry Identity Cards
MARKETING STRATEGY-
• Marketing pamphlets in the “Dabba”

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CODING SYSTEM

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FLOW LOGIC

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MEAL DISTRIBUTION NETWORK
• Combination of Baton Relay system and Hub and
spoke model.
• Decisions driven by single process of delivering a
dabba on time.
• Each Dabbawala personally responsible for 30-
35 dabbas in a day.

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TIMELINE
8:30 -9:30 am
• This is the time when dabbawallas collect tiffins from
home
9:30 -9:40 am
• This is when sorting of dabbastake place according to
hub, outside the station.
10:20 -11:05 am
• Sorting is done according to destination and carteges
are loaded into trains
11:45 – 12.10 pm
• Unloading takes place at the destination station
• Re-arrangement of tiffins takes place as per the
destinationarea and destination building

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12.10 – 12.30 pm
• In particular areas with high density of
customers, a special crate is dedicated to the
area. This crate carries 150 tiffins and is driven by
3-4 dabbawalas!

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REVERSE LOGISTICS
1:30 – 2:00 pm
• Collection process begins where the
dabbawalas have to pick up the tiffins from the
offices.
2:00 – 2:30 pm
• The group members meet for the segregation
as per the destination suburb.
2:50 – 3:30 pm
• Journey in train.
3:30 – 5:30 pm
• Final sorting, dispatch, delivery.

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MAJOR FEATURES OF SUPPLY CHAIN
• Zero % fuel
• Zero % investment
• Zero % modern technology
• Zero % Disputes
• 99.9999% performance
• 100 % Customer Satisfaction
• Food is taken from home or mess and is delivered at
office.

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PORTER’S FIVE FORCE MODEL

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MUMBAI DABBAWALLAS & SIX SIGMA
• Six Sigma is a methodology to manage process
variations that cause defects and to
systematically work toward managing variation to
eliminate defects.
• The objective of Six Sigma is to deliver high
performance, reliability, and value to the end
customer.
• It is a methodology to reduce defect levels below
3.4 defects per million opportunities (DPMO).

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• Six Sigma’s goal is to eliminate defects from any
process, product, or service.
• In this process of supplying Dabba, a unique
distribution system has been created.
• This system works so well that Forbes magazine
has conferred upon them a six sigma quality
rating putting it into the league of corporate like
GE & Motorola.

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STATISTICS WHICH DEFINES SIX
SIGMA
• Error Rate: 1 in 16 million transactions
• Six Sigma performance (99.999999)
• Technological Backup: Nil.
• Cost of service – Approx. Rs. 300 to 500 /month
• Although Six sigma rating implies that they have
an error rate of 3.4 errors per million
transactions, the fact is that Dabbawala have
error rate of 1-2 errors per 6 million transactions .
Accuracy rating is 99.999999. More than Six
Sigma.

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SUCCESS FACTORS
Low cost • Typically Rs. 300 to 500 per month.
delivery • Increased once in 2 yrs.
• worked 6 days a week.
Delivery • No boss-subordinate relationship.
reliability • Lived and worked in clans.
• work in groups and maintain exclusivity
Perceived in terms of revenue and expenditure.
equality • took responsibility of the group.
Suburban • great help in logistics.
railway network

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THREATS
Shrinking • Closure of several textile
customer base mills in 1980.
and customer • started delivery of meals to
loyalty schoolchildren.
Lifestyle • ready-to-eat packaged
changes foods.

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WHAT THEY LACKS
• IT system.
• Improvement in the education standard.
THE QUESTION WE HAVE-
• How to increase living standard of dabbawala’s
by using IT?

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APPLYING IT
• Advantages-
As dabbawala is using sms’s and web
services, the organization can install software in
HINDI fonts or their vernacular languages fonts
for easy accessibility.
E-codes/bar codes can be used instead of color
codes.
Presentations and lectures should be given to all
the workers to understand the English language.

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• Disadvantages-
Costly to implement.
Workers are not well educated to understand it
properly.
As orders increases the workforce also will
increase, so the cost reduction cannot be done.

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HOW CAN THEY INCREASE MARKET
SHARE
• They can use pamphlets and advertising in
papers so that they can cover more market share.
Also they can use telemarketing services.
• Proper pricing should be done according to
distance and food.
• Should open new outlets in other cities.
• E- services and sms services produce ample of
opportunity for business expansion.

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THEIR ACHIEVEMENTS
• World record in Best Time Management
• with Six Sigma rating.
• Name in “GUINESS BOOK of World Records”.
• Registered with Ripley's “ believe it or not”.
• Participated in “Deal Ya No Deal Contest” by Sony
Entertainment Television
• Invited for marriage of Hon. Prince Charles of England
on 9th April, 2005

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CONCLUSION
• Management learning's-
Utmost dependence on human capital
Honesty and integrity
Discipline and time management
Pride towards work
Recruitment policies and manpower management
Complete contentment
Musical medication
Sustained success will lead to fame

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ADDITIONAL READING
The Best Way To Innovation? - An Important Lesson
from India
http://www.forbes.com/sites/karlmoore/2011/05/24/the-best-way-
to-innovation-an-important-lesson-from-india/

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ROLE PLAYED
MEMBERS ROLES PLAYED
APURVA ANALYSIS
RAJENDRA ANALYSIS
SHAILESH DATA ASSEMBLED
PRIYADARSHINI DATA ASSEMBLED
SUDIPTA PPT COMPILING & DESIGNING
SATYAM PRESENTATION MADE

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ADMINISTRATIVE STAFF COLLEGE OF INDIA, HYDERABAD