A Few Case Studies in Distribution


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The above slides present a few Case Studies in Distribution. Case studies of Dabawallas, Newspaper and Fresh Flower are analyzed in detail. The objectives of these three case studies are highlighted. The presentation is compiled by Welingkar’s Distance Learning Division.

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A Few Case Studies in Distribution

  1. 1. Welingkar’s Distance Learning Division CHAPTER-10 A Few Case Studies in Distribution We Learn – A Continuous Learning Forum
  2. 2. Dabawallas Of Mumbai • What is NMTBSA? • (Nutan Mumbai Tiffin Box Suppliers Association) • History : Started in 1880 • Charitable trust : Registered in 1956 • Avg. Literacy Rate : 8th Grade Schooling Ch-10 A Few Case Studies In Distribution
  3. 3. Dabawallas Of Mumbai • Total area coverage : 60 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 Ch-10 A Few Case Studies In Distribution
  4. 4. Error Rate : 1 in 16 million transactions • • • • • Six Sigma performance (99.999999) Technological Backup : Nil. Cost of service - Rs. 200/month ($ 4.00/month) Standard price for all (Weight, Distance, Space) Rs. 50 Cr. Turnover approx. [200,000*200=400,000,00 p.m. i.e. 48 crore p.a.] • “No strike” record as each one a share holder • Earnings -5000 to 6000 p.m.26 Ch-10 A Few Case Studies In Distribution
  5. 5. APPROACH • • • • • • DISCIPLINE : No Alcohol Drinking during business hours Wearing White Cap during business hours Carry Identity Cards LATEST MARKETING STRATEGY: Marketing message in the “dabba” Ch-10 A Few Case Studies In Distribution
  6. 6. Case Study : TBSA Tiffin Box Suppliers Association • How do they do it…? • Organizational structure Executive Committee (5 members) Teams of 20-25 headed by a group leader Ch-10 A Few Case Studies In Distribution Individual Dabawallas workload = 30 Tiffin
  7. 7. Organizational structure PRESIDENT 13 MEMBERS VICE PRESIDENT GENERAL SECRETARY TREASURER DIRECTORS(19) MUKADAM MEMBERS(5000) Ch-10 A Few Case Studies In Distribution
  8. 8. FINANCIAL DATA OF A GROUP 1st group – Rs 125000 Total earnings -20 People Rs 35000 Maintenance cost Tiffin luggage basket pass – Rs 180 per person. Maintenance of cycles – Rs 300 – 2 cycles per month. Maintenance of wooden boxes – Rs 100 per person . T.C , police robbery of Tiffin Rs 500 yearly. Organizational fee Rs 15 per head. Puja held per station Rs 50 per head. Ch-10 A Few Case Studies In Distribution
  9. 9. Awards and Felicitation  Shri.Varkari Prabhodhan Mahasmati Dindi (palkhi) sohala – 4th march – 2001.  Invitation from CII for conference held in Bangalore.  Documentaries made by BBC ,UTV, MTV, and ZEE TV Ch-10 A Few Case Studies In Distribution
  10. 10. LOGISTICS Logistics is happening 24 hrs a day,7 days a week and 52 weeks a year. Logistical competency is achieved by coordinating the following:  Network Design  Information  Transportation  Inventory  Warehousing Ch-10 A Few Case Studies In Distribution
  11. 11. • Coding VLP : Vile Parle (Suburb in Mumbai) 9E12 : Code for Dabbawallas at Destination E : Express Towers (Bldg. Name) 12 : Floor No. E : Code for Dabbawallas at Residential station. 3 : Code for Destination station (E.g.. Nariman Point) Ch-10 A Few Case Studies In Distribution
  12. 12. • Let us now look at an example of these codes on the tiffins to better understand the system and what it all denotes: Ch-10 A Few Case Studies In Distribution
  13. 13. • 10:34-11:20 am • 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. Ch-10 A Few Case Studies In Distribution
  14. 14. 11:20 – 12:30 pm • 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 • 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! Ch-10 A Few Case Studies In Distribution
  15. 15. • 1:15 – 2:00 pm • 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. Ch-10 A Few Case Studies In Distribution
  16. 16. RETURN JOURNEY: • 2:00 – 2:30 pm • The group members meet for the segregation as per the destination suburb. Ch-10 A Few Case Studies In Distribution
  17. 17. • 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. Ch-10 A Few Case Studies In Distribution
  18. 18. 3:30 – 4:00 pm • 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 Ch-10 A Few Case Studies In Distribution
  19. 19. Hub and Spoke Model Railway Station origin Intermediate station Railway Station destination Railway station destination Ch-10 A Few Case Studies In Distribution
  20. 20. Lessons from Dabawallas • Simplistic coding system • Leveraging public transports • Successful synergy of different mode of transportation • Extremely flat organization • Simplicity in command structure Ch-10 A Few Case Studies In Distribution
  21. 21. THE ROYAL VISIT: • Recently, the dabbawala’s had royal company at Church gate station. The Prince of Wales himself had visited them when he came down to Mumbai. • He took keen interest in their way of functioning, expressed surprise at their efficiency and was struck with awe when he was told that they didn’t employ any technology. • The prince was presented a small memento, accompanied with a garland, a Gandhi topi and a trophy by the dabbawalas. Ch-10 A Few Case Studies In Distribution
  22. 22. Case 2: Newspaper Distribution • Principle distribution objective is speed • Time available between printing and distributing is relatively small • Depending upon the destination to be catered to the news paper print early morning editions and late city editions • The early morning editions are sent out very early hours to catch connecting transportation modes such as trains, flights, bus etc Ch-10 A Few Case Studies In Distribution
  23. 23. Case 2: Newspaper Distribution • Packets are prepared on the basis of daily requirements • Estimating stalls demand is crucial • Entire emphasis on each stage is on fast forwarding movement of the material through the chain, all the processes and operations being planned and executed with that single objective in mind Ch-10 A Few Case Studies In Distribution
  24. 24. Case 3: Fresh Flowers • The principle distribution objectives would be ,through out the chain maintaining the quality of the product handled • In India flowers are cultivated on over 40000 hectares spread over areas around Pune, Bangalore, Hyderabad, Delhi and Kolkata. Ch-10 A Few Case Studies In Distribution
  25. 25. Case 3: Fresh Flowers • Flowers are packed into flat boxes, little water holder or buckets depending on the nature and cost of flowers • Distribution chain has to ensure that the quality of the cargo is given the top most attention through out the process Ch-10 A Few Case Studies In Distribution
  26. 26. Summary • Dabawallas case study shows a distribution marvel which emphasizes on accuracy of distribution • Newspaper case study highlights speed as a principle distribution objective • Fresh Flower case study represents Cargo Quality as a principle objective of distribution Ch-10 A Few Case Studies In Distribution