management inspiration of dabbawalas


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management inspiration of dabbawalas

  1. 1. The Dabbawallas, FEEDING MUMBAIInspiration of Management<br />Robin Varghese<br />
  2. 2. WHAT IS NMTBSA????<br />N -Nutan <br />M -Mumbai<br />T -Tiffin<br />B -Box<br />S -Suppliers<br />A -Association<br />10/16/2011<br />2<br />
  3. 3. Started in 1890<br />Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra, started the lunch delivery service. <br />Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work<br />Service started with about 100 Dabbawalas<br />HISTORY<br />10/16/2011<br />
  4. 4. Current Statistics<br />Charitable trust : Registered in 1956<br />Avg. Literacy Rate : 8thGrade Schooling<br />Total area coverage: 60 Kms to 70Kms<br />Employee Strength : 5000<br />Number of Tiffin's : 2,00,000Tiffin Boxes <br />i.e. 4,00,000 transactions every day.<br />Time taken :3hrs<br />10/16/2011<br />
  5. 5. Interesting facts<br />Error Rate : 1 in 16 million transactions.<br />Six Sigma performance (99.999999)<br />Technological Backup : Nil.<br />Cost of service -Rs. 300/month ($ 6.00/month)<br />Standard price for all (Weight, Distance, Space)<br />Rs. 36 Cr. Approx. Turnover. [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.]<br />No strike” record as each one a share holder.<br />Diwali bonus: one month’s from customers.<br />10/16/2011<br />
  6. 6. GENERAL SECRETARY<br />TREASURES<br />DIRECTORS(9)<br />MUKADAM<br />PRESIDENT<br />VICE PRESIDENT<br /> 13 Members<br />MEMBERS(5000)<br />Organizational Structure<br />10/16/2011<br />6<br />
  7. 7. Competition: Its difficult to replicate their supply chain network <br /> New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged. <br /> Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further. <br /> Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers. <br /> 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. <br />PORTERS FIVE FORCE THEORY<br />10/16/2011<br />7<br />
  8. 8. Strengths:<br /> Simplicity in organization with Innovative service <br /> Coordination, team spirit, & time management<br /> Low operation cost<br /> Customer satisfaction<br /> Low Attrition Rate<br />Weaknesses:<br />High dependability on<br /> local trains<br /> Funds for the association<br /> Limited Access to Education<br />SWOT Analysis<br />10/16/2011<br />8<br />
  9. 9. Opportunities<br />Wide range publicity <br /> Operational cost is low <br /> Catering<br />Threats<br />Indirect competition is being faced from caterers like maharaja community <br /> Indirect threats from fast foods and hotels<br /> Change in timings<br /> Company transport<br /> Ticket restaurant<br />Contd..<br />10/16/2011<br />9<br />
  10. 10. Management Learning<br />Keep operational costs as low as possible.<br />Keep capital Investment bare minimum only investment.<br />Just serve your customer<br />Customer is not Raja-but Maharaja<br />Never deviate from core competencies<br />Be Master of one trade, than jack of all.<br />If required develop product and services around core competency.<br />Don’t be over dependent upon technology.<br />Cooperation inside-competition outside.<br />10/16/2011<br />10<br />
  11. 11. Contd..<br />Commitment matters qualification does not.<br />Know the implications of failures.<br />Build your services around existing infrastructure.<br />Abandon customers.<br />Penalize employees for non-compliance.<br />Do not transfer your employees very often.<br />10/16/2011<br />11<br />
  12. 12. Reasons for success<br />
  13. 13. 1. STRATEGY<br />2. STRATEGY<br />3. STRATEGY<br />same since 120 years – To develop localized organization and groups to have location advantage cause of familiarity with the area<br />
  14. 14. Railway Network<br />Customer Inclusion<br />
  15. 15. Low cost deliveryDelivery reliability<br />
  16. 16. Decentralization<br />
  17. 17. Equality<br />
  18. 18. What could threaten their existence?<br />
  19. 19.
  20. 20. Increasing habits of fast food <br />Indirect competition is being faced from caterers like maharaja community <br />Indirect threats from fast foods and hotels<br /> Change in timings<br /> Company facilities<br />
  21. 21. Team work<br />Time management<br />Customer relationship management<br />Logistics And Supply chain management<br />
  22. 22. Thank you…<br />