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Chapter-10    A Few CaseStudies In Distribution
Dabawallas Of Mumbai• What is NMTBSA?• (Nutan Mumbai Tiffin Box Suppliers  Association)• History             : Started in ...
Dabawallas Of Mumbai• Total area coverage : 60 Kms• Employee Strength : 5000• Number of Tiffins : 2,00,000 Tiffin  Boxes• ...
Error Rate : 1 in 16 million               transactions• Six Sigma performance (99.999999)• Technological Backup : Nil.• C...
APPROACH•   DISCIPLINE :•   No Alcohol Drinking during business hours•   Wearing White Cap during business hours•   Carry ...
Case Study : TBSA  Tiffin Box Suppliers Association• How do they do it…?                                                 E...
Organizational structure    PRESIDENT                                      13 MEMBERS   VICE PRESIDENT GENERAL SECRETARY  ...
FINANCIAL DATA OF A        GROUP1st group –Rs 125000 Total earnings -20 PeopleRs 35000 Maintenance costTiffin luggage bask...
Awards and Felicitation  Shri.Varkari Prabhodhan Mahasmati Dindi(palkhi) sohala – 4th march – 2001.  Invitation from CII f...
LOGISTICSLogistics is happening 24 hrs a day,7 days a week  and 52 weeks a year.Logistical competency is achieved by coord...
• CodingVLP : Vile Parle(Suburb in Mumbai)9E12 : Codefor Dabbawallas atDestinationE : Express Towers(Bldg. Name)12 : Floor...
• Let us now look at an example of these  codes on the tiffins to better understand  the system and what it all denotes:  ...
• 10:34-11:20 am• This time period is actually the journey time.  The dabbawalas load the wooden crates filled  with tiffi...
11:20 – 12:30 pm• At this stage, the unloading takes place at the  destination station• Re-arrangement of tiffins takes pl...
• 1:15 – 2:00 pm• Here on begins the collection process where  the dabbawalas have to pick up the tiffins from  the office...
RETURN JOURNEY:• 2:00 – 2:30 pm• The group members meet for the segregation as per  the destination suburb.               ...
• 2:48 – 3:30 pm• The return journey by train where the group  finally meets up after the day’s routine of  dispatching an...
3:30 – 4:00 pm• This is the stage where the final sorting and  dispatch takes place. The group meets up at  origin station...
Hub and Spoke Model Railway Station     origin        Railway Station                     destination                    R...
Lessons from Dabawallas• Simplistic coding system• Leveraging public transports• Successful synergy of different mode of  ...
THE ROYAL VISIT:• Recently, the dabbawala’s had royal company at  Church gate station. The Prince of Wales himself  had vi...
Case 2: Newspaper Distribution• Principle distribution objective is speed• Time available between printing and distributin...
Case 2: Newspaper Distribution• Packets are prepared on the basis of daily  requirements• Estimating stalls demand is cruc...
Case 3: Fresh Flowers• The principle distribution objectives would  be ,through out the chain maintaining the  quality of ...
Case 3: Fresh Flowers• Flowers are packed into flat boxes, little  water holder or buckets depending on the  nature and co...
Summary• Dabawallas case study shows a  distribution marvel which emphasizes on  accuracy of distribution• Newspaper case ...
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Few case studies in distribution

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Three cases are discussed. They include the much-talked about Dabbawallas example who operate at a six sigma performance of 99.9999. Then there is a newspaper case study that highlights speed as a distribution objective and fresh flower case study that represents cargo quality as a principle objective of distribution.

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Few case studies in distribution

  1. 1. Chapter-10 A Few CaseStudies In Distribution
  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 Tiffins : 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…? Executive Committee (5 members)• Organizational structure Teams of 20-25 headed by a group leader Individual Dabawallas Ch-10 A Few Case Studies In Distribution 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 GROUP1st group –Rs 125000 Total earnings -20 PeopleRs 35000 Maintenance costTiffin 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 inBangalore. Documentaries made by BBC ,UTV,MTV, and ZEE TV Ch-10 A Few Case Studies In Distribution
  10. 10. LOGISTICSLogistics 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. • CodingVLP : Vile Parle(Suburb in Mumbai)9E12 : Codefor Dabbawallas atDestinationE : Express Towers(Bldg. Name)12 : Floor No.E : Code forDabbawallas atResidential 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 Railway Station destination Railway station Intermediate destination station 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

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