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Mumbai’s Dabbawala Service Mumbai’s Annadatas
39

Final --_study_ondabbawalabydelhimba_student_rahulchoudhary

Jun 25, 2015

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Page 1: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Mumbai’s Dabbawala

Service

Mumbai’s Annadatas

Page 2: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

» President- Mr. Raghunath Dhondiba Medge» Secretary- Mr. Gangaram Laksman Talekar» Director(IT)- Mr. Manish Tripathi

Website: www.mydabbawala.comE- Mail : [email protected]

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WHAT IS NMTBSA????

N -NutanM -MumbaiT -TiffinB -BoxS -SuppliersA -Association

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• Started in 1890

• Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra, started the lunch delivery service.

• Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work

• Service started with about 100 Dabbawalas

• History : Started in 1890

• Charitable trust : Registered in 1956

• Avg. Literacy Rate : 8th Grade Schooling

• Total area coverage : 60 Kms to 70 Kms

• Employee Strength : 5000

• Number of Tiffin's : 2,00,000 Tiffin Boxes

i.e 4,00,000 transactions every day.

• Time taken : 3 hrs

Page 5: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra, started the lunch delivery service.

• Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work

• Service started with about 100 Dabbawalas

Page 6: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

TREASURES

DIRECTORS(9)

MUKADAM

GENERAL SECRETARY

PRESIDENT

VICE PRESIDENT

MEMBERS(5000)

13 Members

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Our BeliefWORK IS WORSHIP

Tiffin basket’s weight:75-80 kgs.

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Working of NMTBSA• Error Rate : 1 in 16 million transactions• Six Sigma performance (99.999999)• Technological Backup : Nil.• Cost of service - Rs. 300/month ($

6.00/month)• Standard price for all (Weight, Distance,

Space)• Rs. 36 Cr. Turnover approx. [6000*12*5000=360000000 i.e Rs. 36 crore

p.a.]• “No strike” record as each one a share holder • Earnings -5000 to 6000 p.m.• Diwali bonus: one month’s from customers.

Page 9: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Case Study: NMTBSATiffin Box Suppliers Association

How do they do it …?

• Organizational

Structure

• Operations

• The Code• War against Time

(9:00 am – 12:30 pm)

Executive Committee(5 members)

Teams of 20-25 headed bya group leader

Individual dabbawallahs workload:Collect from home – 35 tiffinsDelivery at office – 35 tiffinsReturn empty tiffins to home – 35 tiffins

Page 10: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

APPROACHDISCIPLINES :

• No Alcohol Drinking during business hours

• Wearing White Cap during business hours

• Carry Identity Cards

WOMEN:

• Mrs. Bhikhubai of Kandivali

• Mrs. Anandibai of Borivali

• Mrs. Parvatabai of Karale (Ghatkopar)

• Mrs. Laxmibai Bagade of Santa Cruz

LATEST MARKETING STRATEGY:

Marketing pamphlets in the “Dabba”

Page 11: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Zero % fuel Zero % investmentZero % modern technology Zero % Disputes99.9999% performance 100 % Customer Satisfaction

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PORTERS FIVE FORCE THEORY

• Competition: Its difficult to replicate their supply chain network

• New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged.

• Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further.

• Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers.

• Threat of a new substitute product or service: No substitutes to home cooked food in Indian scenario, hence threat to the dabbawalla service is not an issue at least in the foreseeable future.

Page 13: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

SWOT Analysis• Strengths:

• Simplicity in organization with Innovative service • Coordination, team spirit, & time management• Low operation cost• Customer satisfaction• Low Attrition Rate

• Weaknesses:

• High dependability onlocal trains

• Funds for the association• Limited Access to Education

Page 14: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• Opportunities

• Wide range publicity • Operational cost is low • Catering

• Threats

• Indirect competition is being faced from caterers like maharaja community • Indirect threats from fast foods and hotels• Change in timings• Company transport• Ticket restaurant

Page 15: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

HOW THE DABBA IS DELIVERED

The entire system depends on TEAM-WORK and meticulous timing.

Tiffins are Collected from homes & taken to nearest Railway Station.

Then they are Sorted out for area-wise distributiuon.

A tiffin takes hand changes from3 to 4 Times in the course of its daily journey.

Page 16: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

The Color Coding of Dabbas

The color coded on Dabbas can be Read in following pattern:

Page 17: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Coding SystemVLP : Vile Parle (suburb

in Mumbai)

9EX12 : Code for Dabbawalas at Destination

EX : Express Towers (building name)

12 : Floor no.

E : Code for Dabbawala

at residential station

3 : Code for destination Station eg. Churchgate

Station (Nariman Point)

D’souza

Page 18: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

The Flow Logic

Grant Road(12)

Churchgate(1-10)

Lower Parel(14)

2

3

7

4

5

6

Zones for destination

DistributionBy Carriersat lunchtimeTo offices

Point of AggregationAnd Sorting

C DB

A E

Collection from home

1

Page 19: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

CODING OF DABBAS

1-11 CHURCHGATE12 MARINE LINES13 GRANT ROAD, BOMBAY CENTRAL15 LOWER PAREL16 DADAR (WEST)17 DADAR (EAST)18 ANDHERI (EAST, WEST)

Page 20: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• 10:34-11:20 am(Andheri Stn.)• This time period is

actually the journey time. The dabbawalas load the wooden crates filled with tiffins onto the luggage or goods compartment in the train. Generally, they choose to occupy the last compartment of the train.

12 coach train4,000 commuters8,000 disputesBut no excuses, Duty first

Page 21: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• 11:20 – 12:30 pm (Church Gate

Station)

• At this stage, the unloading takes place at the destination station

• Re-arrangement of tiffins takes place as per the destination area and destination building

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• In particular areas with high density of customers (Nariman Pt.,Fort , CST), a special crate is dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawalas!

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• 1:15 – 2:00 pm ( At All Destination Stations)

Here on begins the collection process where the dabbawalas have to pick up the tiffins from the offices where they had delivered almost an hour ago.

RETURN JOURNEY:

Page 24: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• 2:00 – 2:30 pm (At Destination Station)• The dabbawalla’s meet for the segregation as

per the destination suburb.

Page 25: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• 2:48 – 3:30 pm

• The return journey by train where the group finally meets up after the day’s routine of dispatching and collecting from various destination offices

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

Page 26: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

• 3:30 – 4:00 pm ( The Origin

Station)• This is the stage

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

Page 27: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Some Facts of Dabbawal’s SCM

• 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

Page 28: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Distribution Network

• Baton relay system• 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

Page 29: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Royal wedding was heavenly, say dabbawalas

Page 30: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Their AchievementsDocumentaries made by : • BBC ,UTV, MTV, ZEE TV, AAJ TAK, TV TODAY, SAHARA SAMAY, STAR TV, CNBC TV 18,

CNN, SONY TV, TV TOKYO, NDTV.

CASE STUDY made by : • ICFAI Press Hyderabad & Bangalore• Richard Ivey School of Business – Canada• Also, Included in a subject in Graduate School of Journalism University of California, Berkeley

Invitations from : • CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s Lab

Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Pune, Rotary Club – Bangalore, NIQR at Chennai

Radio: • German Radio Network, Radio Mirchi, Radio Mid-day, FM – Gold, BBC Radio, Radio City

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Others:

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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Page 33: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Letter from Letter from

PRINCE CHARLESPRINCE CHARLES

Page 34: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Awards and Felicitation (contd.)

• Invitation from CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy’s Lab Foundation Hyderabad, SCMHRD Pune, SCMHRD Nasik, Sadahana – Poone.

• Included in a subject in Graduate School of Journalism University of California, Berkeley.

• Radio – • German Radio Network

• Radio Mirchi

• Radio Mid-day

• FM – Gold

• BBC Radio

Page 35: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Invitation to Italy

• Was invited for the Terra Madre World meeting of food communities between October 20-23, 2004.

• We were part of the “Community of Cooked Food distributors from Mumbai”.

• Invited to marriage of Hon. Price Charles of England on 9 , April 2005.

Page 36: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

MBA students seeking help for their projects and case studies

Page 37: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Some Achievements

• World record in best time management.

• Name in “GUINESS BOOK of World Records”.

• Registered with Ripley's “ believe it or not”.

Page 38: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

Ph.D. on Mumbai Dabbawala By

Principal Pawan G. Agrawal M.Com., B.Ed., LL.B., A.C.S.

DirectorAGRAWAL INSTITUTE OF MANAGEMENT

Mumbai

Topic : Study of Logistic & Supply Chain Management of Dabbawala in Mumbai.

University : Yashwantrao Chavan Mukta Vidyapeeth, Nashik.

Research Work : Doing since last One and Half Year.

Guide : Dr. Kulkarni, Nashik.

Page 39: Final  --_study_ondabbawalabydelhimba_student_rahulchoudhary

THANK YOU