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Supply chain of Dabba Walas

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Overview of Dabbawalas India from logistics and supply chain perspective

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Supply chain of Dabba Walas

  1. 1. SUPPLY CHAIN OF DABBA WALAS 1
  2. 2. Company Profile  Started in 1890 and registered as Nutan Mumbai Tiffin Box Suppliers Trust in 1956  Six sigma designation and ISO 9001 accreditation.  Error rate – 1 in 16 million transactions (99.999999% delivery accuracy rate)  5000 employees with average literacy of 8th Grade Schooling  4,00,000 transactions every day and total coverage area of 60 to 70 kms within Mumbai  Cost of service is Rs. 400/- to 500/- month 2
  3. 3. Schematic Diagram of Dabba Walas’ Supply Chain 3
  4. 4. Distribution Network 4
  5. 5. Distribution Network 5 Andheri station
  6. 6. Train route
  7. 7. Supply chain drivers  Logistics drivers  Facilities :  Distribution of Dabbas daily & Service based – no physical warehouses to store dabbas  Location of Aggregation point matters – railway stations  Capacity of crates  Inventory :  Nil – almost stable demand and return of lunch boxes in reverse order 6
  8. 8. Supply chain drivers  Transportation  Through cycle, cart, train and by walk  0% Fuel reliant  Very low transportation cost  Each person has to handle 35-40 dabbas  Maximum collection time of 2 minutes 7
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  10. 10. Supply Chain drivers  Cross sectional drivers  Information  Decentralized – better flow of information  Absence of IT analytics  Simple coding system – common and easily understandable  Sourcing  People from particular community is sourced – minimum capital is required 9
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  12. 12. Supply Chain drivers  Pricing  No competition  Low service cost to customers  ( Cost of taking lunch in hotels nearby offices per month + medical expenses due to unhygienic food per month ) > ( service cost of delivering lunch boxes + cost of preparing food in home ) 11
  13. 13. IT system usage in supply chain  No use of any modern technology for carrying out the logistics  At present, website and SMS services are provided to customers to facilitate on-line booking and delivery request through SMS respectively  Online polls on website – to get customer feedback 12
  14. 14. SC concepts in Dabbawalas’ supply chain  Push view - response to a quite stable customer order by keeping people trained well in advance  Efficient reverse logistics - transfer of empty lunch boxes to the source location  Prevalent characteristics of cross docking without any fuel based vehicles at destinations  Continuous improvement over the past 120 years 13
  15. 15. “ Dabbawalas got Six Sigma because they didn’t care about the certification but cared only about customer satisfaction “ “Our lunch can go wrong but not the Mumbai dabbawalas.” – The people of Mumbai Ultimate driver behind the success :

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