Mumbai Dabbawala - Masters of Supply Chain Management
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Definition (Wikipedia) Who are Dabbawala’s? History Organization Structure Process Coding System Relay & Hurdle Race Setbacks Certifications Celebrity & PR Case Studies & Documentaries Records Marketing Ideas Management Principle Conclusion
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Mumbai Dabbawala - Masters of Supply Chain Management
- 1. SCMMasters of Supply Chain Management –by Chandresh Dedhia
- 2. Index •Definition •Who are Dabbawala’s? •History •Organization Structure •Process •Coding System •Relay & Hurdle Race •Setbacks •Certifications •Celebrity & PR •Case Studies & Documentaries •Records •Marketing Ideas •Management Principle •Conclusion
- 3. Definition -Wikipedia •ADabbawala;alsospelledasdabbawallaordabbawallah; isapersoninIndia,mostcommonlyinMumbai,whoispartofadeliverysystemthatcollectshotfoodinlunchboxesfromtheresidencesofworkersinthelatemorning,deliversthelunchestotheworkplaceutilizingvariousmodesoftransport,predominantlybicyclesandtherailwaytrains,andreturnstheemptyboxestothecustomer'sresidencethatafternoon.
- 4. Who are Dabbawala’s •VarkariSampradaya/Sectpeople,stsaVaishnavareligiousmovement •GeographicallyassociatedwiththeIndianstatesofMaharashtraandnorthernKarnataka •VarkarisworshipVithobaorVitthal,DeityofPandarpur,regardedasformofLordKrishna •SaintsandGuruassociatedwereincludingTukaram,Namdev, Gyaneshwar,Eknath,allofwhomwereaccordedtitleofSANT •Dutybaseapproachtowardslife,emphasisingonmoralbehaviour, andstrictavoidanceofalcoholandtobacco
- 5. Who are Dabbawala's •Mumbai Dabbawala is one of the most efficient SCM systems in the world •More than 5000 Dabbawala’s •More than 200,000 Dabba’s delivered and returned every day •This works out to 40 Dabba's and approx. 60 kgseach Dabbawala carries. •That's 120 tons of food Daily
- 6. Who are Dabbawala's •Dabba changes at least 6 hands before being delivered and same while returning from journey •Dabba collection to delivery it take approx 3 to 4 hours •Total area covered is approx 70 kms •Value added services -money, spectacles, keys are sometimes sent through Dabba •Standard price for all -weight, distance, space , they charge approx Rs.350 per month
- 7. Who are Dabbawala's •Each Dabbawala earns approx Rs.5000 to Rs.6000 per month •Diwali bonus is extra months salary •Excluding the Mumbai Train service, all other mode of transport are manual and no technology is used •They would never tell you the trains were late, they will always deliver your tiffin before the time.
- 8. History •Startedin1890-startedwith1Dabbawalaand1customer •Charitabletrust-registeredin1956,NoStrikerecordsince1890 •Dabbawalabusinessis124yearsold,NoPoliceorcourtcasesince1890 •AverageLiteracyrateis8thgradeschoolingand50%areilliterate •TheDabbawala'sareliteratetothelevelofonlyunderstandingalphabetsandnumbers. •AverageageofDabbawalais52years,thereisnoretirementage •Manydabbawallaare3rdgenerationinheritors
- 9. Organization Structure •There are 800 Mukkadam’s •Each Mukkadam has approx 20 Dabbawala's reporting to him. •The highest age Dabbawala is always the Mukkadam President 1 Vice President 1 General Secretary 1 Treasurer 1 Directors 9 Mukkadam 800 Members 5000
- 10. Process
- 11. A day in life of Mumbai Dabbawala •http://www.youtube.com/watch?v=vrKFu9D6h2o
- 12. Coding System Error Rate -1 mistake in 16 million end deliveries
- 13. Relay & Hurdle Race •Unpunctual customer •Physical distance •Large number of Dabba’s •Mumbai Traffic •Crowded trains •Multiple handovers •Scattered pickup and drop off destinations
- 14. Setbacks •1969 -Nationalization of Banks •1975 -22 days of Railways strike •1982 -textile mill workers strike •1993 -serial bomb blast in Mumbai •2006 -Mumbai Floods •2008 -terrorist attacks in Mumbai
- 15. SIX Sigma
- 16. Certification •ISO 9001:2000 certified by the Joint Accreditation System of Australia and New Zealand
- 17. Celebrity & PR
- 18. Case Studies •Harvard •Richard Ivy School •IFMI •IIM A •ICFAI
- 19. Documentaries •BBC, CNN, TV Tokyo •UTV, MTV, Zee TV, AajTak, •TV Today, Sahara, CNBC TV 18, •Sony TV, NDTV, Channel 7 , DD Metro & Doordarshan
- 20. Records •Record with Guinness Book of world record •Ripley's believe it or not
- 21. Marketing Ideas
- 22. Partnership –Share my Dabba •http://www.youtube.com/watch?v=UyT_bi-20e4
- 23. Management Principle •Keep operational cost as low as possible •Just serve your customers, nothing else matters •Customer is not King (Raja), they are king of king (Maharaja) •Complexity opposes compliance •Co-operation inside, competition outside •Commitment matters, Qualification doesn't •High salary alone cannot retain employees •Flat organization, fast decision •Never deviate from your core competency
- 24. Conclusion •Zero % Fuel •Zero % technology •99.999999 % performance •Zero % investments •Zero% disputes•100% Satisfaction
- 25. Questions?