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A casestudy presentation on
“ The Dabbawala System:
On-Time Delivery, Every Time “
By
Prajwal V J
Title Lorem
Ipsum Dolor
INTRODUCTION
• Dabbawala is a person who delivering freshly home made food in
dabbas (tiffin boxes) to the office workers.
• They will cover around 60 to 70 kms of area in Mumbai city
• There are around 5000 dabbawalas in the organization
• Raghunath Medge is the President for the association of Dabbawala
• They will follow the principles, coding system, dress code and other
strategies that had been made by organization
• This organization is 130+ years old and it is recognized as a best case
of network management in the world and even by management
gurus.
History and Evolution
• Banker hired a person to bring food to office
• Mahadev haji bachi was the original delivery person and the founder
who started in Bombay.
• It started in 1880 when Britishes were ruling India and now it has
140 years of vast service to the people.
• Charitable trust was registered in 1956
• “Nutan Mumbai tiffin box suppliers trust”
• No strike recorded
• Six sigma performance
• 5000 dabbawalas delivering to 200000 people
• Standard price
• 50cr+ annual turnover
• No technology has adopted
• No such education for the most of dabbawalas
• Booking through SMS from recent 10 years
• On 21 March 2011, Prakash Baly Bachche carried three dabbawalla
tiffin crates on his head at one time, which was entered as a Guinness
world record.
• Attracted famous personalities like Britain’s Prince Charles, Richard
branson of virgin group, FedEx executives, many more.
ORGANISATIONAL STRUCTURE
Operational Committee Charitable trust
Mumbai Dabbe
Vahantuk Mandal
Sopan Mare - President
Nutan Mumbai Tiffin Box
Suppliers Association
Raghunath Medge - President
General Secretary General Secretary
Treasurer Treasurer
20-25 deliveryboys
Each Dabbawala
Muqaddams(635)
Director (6) Director
RECRUITMENT
• New members will be recruited only around 30 villages which are near to
the city
• New entrants are usually recommended by the existing family members
who are relative or friend to them.
• New members hired for 6 months as probation period after which they
need to become partner by investing 10 times of monthly income
• Their view is that uneducated dabbawalla will finishes task before the
educated asks too man questions to do the same task
• Non performers will be warned and given a chance to perform
• The organization will charge fine if the members drink alcohol during the
delivery time, not wearing white Gandhi cap, etc
FINANCE
• Pricing guideline were set by management depending on the location,
average weight of dabba
• REVENUE in 2009-Rs 470 million ($9400000)
• ON AVERAGE Rs-300 is collected per month from each customer.
• Most Dabbawala’s took home Rs-7000per month, after deducting
expenses, which typically ran to Rs-200 for railway pass,Rs-200 for permit
to use train’s luggage van,Rs-100 for bicycle, Rs-150 for others costs and
Rs.15 as contribution to charitable trust.
• Once a year, customers paid them bonuses.
• Publicity over the last few years had helped then increase their monthly
prices by Rs.50 to Rs.100
OPERATIONS :
* Simplify the complex system sorting and coding.
* Focus on process control, standardization and
continuous improvement
* Flat Organizational Structure.
* Zero error delivering system.
* Community value and strong sense of belonging.
* Zero carbon business.
OPERATIONS
9:30
to
10:30 10:30
to
11:20
11:20
to
12:30
12:30
to
1
1:30
to
2:30
2:48
to
3:30
3:30
to
4:30
Coding system
1(center) Destination
Green colour(center) central railway line
1(edge) Dabbawala code
SN Destination building code
1 (other edge) floor number
Blue colour(bottom) origin station
Conclusion
• The main reason that business model of dabbawala’s success is
because of having efficient transportation of local trains in Mumbai
which is difficult to find in other cities
• Inspirational and role model for startup companies
• So many management lessons to learn for all companies
• Their hard work, ethics, principles, punctuality, marketing strategy,
commitment and other values that leads them to success.
Dabbawalla Business model and working method

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Dabbawalla Business model and working method

  • 1. A casestudy presentation on “ The Dabbawala System: On-Time Delivery, Every Time “ By Prajwal V J
  • 3. INTRODUCTION • Dabbawala is a person who delivering freshly home made food in dabbas (tiffin boxes) to the office workers. • They will cover around 60 to 70 kms of area in Mumbai city • There are around 5000 dabbawalas in the organization • Raghunath Medge is the President for the association of Dabbawala • They will follow the principles, coding system, dress code and other strategies that had been made by organization • This organization is 130+ years old and it is recognized as a best case of network management in the world and even by management gurus.
  • 4. History and Evolution • Banker hired a person to bring food to office • Mahadev haji bachi was the original delivery person and the founder who started in Bombay. • It started in 1880 when Britishes were ruling India and now it has 140 years of vast service to the people. • Charitable trust was registered in 1956 • “Nutan Mumbai tiffin box suppliers trust” • No strike recorded • Six sigma performance
  • 5. • 5000 dabbawalas delivering to 200000 people • Standard price • 50cr+ annual turnover • No technology has adopted • No such education for the most of dabbawalas • Booking through SMS from recent 10 years • On 21 March 2011, Prakash Baly Bachche carried three dabbawalla tiffin crates on his head at one time, which was entered as a Guinness world record. • Attracted famous personalities like Britain’s Prince Charles, Richard branson of virgin group, FedEx executives, many more.
  • 6. ORGANISATIONAL STRUCTURE Operational Committee Charitable trust Mumbai Dabbe Vahantuk Mandal Sopan Mare - President Nutan Mumbai Tiffin Box Suppliers Association Raghunath Medge - President General Secretary General Secretary Treasurer Treasurer 20-25 deliveryboys Each Dabbawala Muqaddams(635) Director (6) Director
  • 7. RECRUITMENT • New members will be recruited only around 30 villages which are near to the city • New entrants are usually recommended by the existing family members who are relative or friend to them. • New members hired for 6 months as probation period after which they need to become partner by investing 10 times of monthly income • Their view is that uneducated dabbawalla will finishes task before the educated asks too man questions to do the same task • Non performers will be warned and given a chance to perform • The organization will charge fine if the members drink alcohol during the delivery time, not wearing white Gandhi cap, etc
  • 8. FINANCE • Pricing guideline were set by management depending on the location, average weight of dabba • REVENUE in 2009-Rs 470 million ($9400000) • ON AVERAGE Rs-300 is collected per month from each customer. • Most Dabbawala’s took home Rs-7000per month, after deducting expenses, which typically ran to Rs-200 for railway pass,Rs-200 for permit to use train’s luggage van,Rs-100 for bicycle, Rs-150 for others costs and Rs.15 as contribution to charitable trust. • Once a year, customers paid them bonuses. • Publicity over the last few years had helped then increase their monthly prices by Rs.50 to Rs.100
  • 9. OPERATIONS : * Simplify the complex system sorting and coding. * Focus on process control, standardization and continuous improvement * Flat Organizational Structure. * Zero error delivering system. * Community value and strong sense of belonging. * Zero carbon business.
  • 11. Coding system 1(center) Destination Green colour(center) central railway line 1(edge) Dabbawala code SN Destination building code 1 (other edge) floor number Blue colour(bottom) origin station
  • 12. Conclusion • The main reason that business model of dabbawala’s success is because of having efficient transportation of local trains in Mumbai which is difficult to find in other cities • Inspirational and role model for startup companies • So many management lessons to learn for all companies • Their hard work, ethics, principles, punctuality, marketing strategy, commitment and other values that leads them to success.