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Dabbawalas of Mumbai-
Large Service Supply Chain
Leading without Suits and Ties
• Talks on Best Practices at CII, IIMs, IITs,
companies Regularly sought by print media and
electronic media
• Common queries
– How do they recruit?
– Working of incentive system with “equal pay for all”?
– Do they know their clients?
– Robustness of distribution channel?
– Dealing with growth?
– Competitors?
– World is changing! Not dabbawalas?
Facts
• 2003: 5000 recruits, 175, 000 clients
• 350,000 deliveries
• 75 kms of public transport
• Failure: once in two months, one in 15
million
• Rs 380 million per annum
Structure
• Three tier structure:
– Executive committee
– Mukadams
– Dabbawalas
• Role of Groups (a profit centre with 8
mukadams)
• Culture similarity of the staff
• Distinct local entity of dabbawalas
– Known for reliability and work ethic
– Helped by commuters
Distribution Network
• Baton relay system
• Hub and spoke arrangement
• No historical, theoretical legacy in the design
• No use of computer technology
• Coding system
– Decentralized at the group level
• Workday schedule
• 30-35 deliveries (manageable)
• Sorting, loading and unloading at peak rush hours
• 4 handlings of a dabba in a day- coding essential
Distribution Network
• K-BO-10-19/A/15
• Clients name is not even existing
• Easy coding scheme as the level of
literacy is not very high
Operating Environment
• Competitors: Fast Food chains,
restaurants and road-side vendors, Udipi
chain etc.
• Competition is different:
– NO MANUFACTURING, ONLY
DISTRIBUTION
Success Factors
• Low cost delivery
– Rs. 150 -200
• Delivery reliability
– Entrepreneurs, not employees
– No strikes
– Flat structure
– Referrals from friends and relatives
– No dilution of service culture
Success Factors
• Decentralization
• Perceived equality
– Effort different, same remuneration
• Suburban Railway Network
– Foodline of the city
Future
• Key concerns
– Shrinking customer base and loyalty
• Loss of textile mill workers in 80s amd 90s
• Each group authorized to target new customers (school
children etc.)
– Lifestyle changes
• Not a major damage for the business
– Workforce management
• Next generations do not seem to be greatly interested
• Not many incentives for good workers
• Not many disincentives wither (no firing)
Future
• Sales and Marketing reps of companies?
– Approach
• Only for sample products, flyers
• Not for products with billing
• Want to keep meal delivery simple and
manageable
• Replicate to other cities
– Distribution network
– Working population
– Preponderance of long commuting times

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Dabbawalas of mumbai

  • 1. Dabbawalas of Mumbai- Large Service Supply Chain
  • 2. Leading without Suits and Ties • Talks on Best Practices at CII, IIMs, IITs, companies Regularly sought by print media and electronic media • Common queries – How do they recruit? – Working of incentive system with “equal pay for all”? – Do they know their clients? – Robustness of distribution channel? – Dealing with growth? – Competitors? – World is changing! Not dabbawalas?
  • 3. Facts • 2003: 5000 recruits, 175, 000 clients • 350,000 deliveries • 75 kms of public transport • Failure: once in two months, one in 15 million • Rs 380 million per annum
  • 4. Structure • Three tier structure: – Executive committee – Mukadams – Dabbawalas • Role of Groups (a profit centre with 8 mukadams) • Culture similarity of the staff • Distinct local entity of dabbawalas – Known for reliability and work ethic – Helped by commuters
  • 5. Distribution Network • Baton relay system • Hub and spoke arrangement • No historical, theoretical legacy in the design • No use of computer technology • Coding system – Decentralized at the group level • Workday schedule • 30-35 deliveries (manageable) • Sorting, loading and unloading at peak rush hours • 4 handlings of a dabba in a day- coding essential
  • 6. Distribution Network • K-BO-10-19/A/15 • Clients name is not even existing • Easy coding scheme as the level of literacy is not very high
  • 7. Operating Environment • Competitors: Fast Food chains, restaurants and road-side vendors, Udipi chain etc. • Competition is different: – NO MANUFACTURING, ONLY DISTRIBUTION
  • 8. Success Factors • Low cost delivery – Rs. 150 -200 • Delivery reliability – Entrepreneurs, not employees – No strikes – Flat structure – Referrals from friends and relatives – No dilution of service culture
  • 9. Success Factors • Decentralization • Perceived equality – Effort different, same remuneration • Suburban Railway Network – Foodline of the city
  • 10. Future • Key concerns – Shrinking customer base and loyalty • Loss of textile mill workers in 80s amd 90s • Each group authorized to target new customers (school children etc.) – Lifestyle changes • Not a major damage for the business – Workforce management • Next generations do not seem to be greatly interested • Not many incentives for good workers • Not many disincentives wither (no firing)
  • 11. Future • Sales and Marketing reps of companies? – Approach • Only for sample products, flyers • Not for products with billing • Want to keep meal delivery simple and manageable • Replicate to other cities – Distribution network – Working population – Preponderance of long commuting times