The Dabbawallas of Mumbai have provided a lunch delivery service since 1890, transporting 200,000 tiffin boxes (lunch containers) across the city each day with an incredible error rate of just 1 in 16 million deliveries. They use a system of alphanumeric codes to route boxes from homes to offices and back again without refrigeration or advanced technology. Run as a cooperative by over 5,000 employees, the Dabbawallas have remained successful due to their low-cost operations, customer focus, teamwork, and reliance on Mumbai's extensive rail network for transportation. Potential threats to their model include increased fast food options and changes to transportation systems.

1. The Dabbawallas, FEEDING MUMBAIInspiration of Management Robin Varghese

2. WHAT IS NMTBSA???? N -Nutan M -Mumbai T -Tiffin B -Box S -Suppliers A -Association 10/16/2011 2

3. Started in 1890 Mahadeo Havaji Bacche (Mahadeo), a migrant from North Maharashtra, started the lunch delivery service. Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work Service started with about 100 Dabbawalas HISTORY 10/16/2011

4. Current Statistics Charitable trust : Registered in 1956 Avg. Literacy Rate : 8thGrade Schooling Total area coverage: 60 Kms to 70Kms Employee Strength : 5000 Number of Tiffin's : 2,00,000Tiffin Boxes i.e. 4,00,000 transactions every day. Time taken :3hrs 10/16/2011

5. Interesting facts Error Rate : 1 in 16 million transactions. Six Sigma performance (99.999999) Technological Backup : Nil. Cost of service -Rs. 300/month ($ 6.00/month) Standard price for all (Weight, Distance, Space) Rs. 36 Cr. Approx. Turnover. [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.] No strike” record as each one a share holder. Diwali bonus: one month’s from customers. 10/16/2011

6. GENERAL SECRETARY TREASURES DIRECTORS(9) MUKADAM PRESIDENT VICE PRESIDENT 13 Members MEMBERS(5000) Organizational Structure 10/16/2011 6

7. Competition: Its difficult to replicate their supply chain network New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged. Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further. Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers. Threat of a new substitute product or service: No substitutes to home cooked food in Indian scenario, hence threat to the dabbawalla service is not an issue at least in the foreseeable future. PORTERS FIVE FORCE THEORY 10/16/2011 7

8. Strengths: Simplicity in organization with Innovative service Coordination, team spirit, & time management Low operation cost Customer satisfaction Low Attrition Rate Weaknesses: High dependability on local trains Funds for the association Limited Access to Education SWOT Analysis 10/16/2011 8

9. Opportunities Wide range publicity Operational cost is low Catering Threats Indirect competition is being faced from caterers like maharaja community Indirect threats from fast foods and hotels Change in timings Company transport Ticket restaurant Contd.. 10/16/2011 9

10. Management Learning Keep operational costs as low as possible. Keep capital Investment bare minimum only investment. Just serve your customer Customer is not Raja-but Maharaja Never deviate from core competencies Be Master of one trade, than jack of all. If required develop product and services around core competency. Don’t be over dependent upon technology. Cooperation inside-competition outside. 10/16/2011 10

11. Contd.. Commitment matters qualification does not. Know the implications of failures. Build your services around existing infrastructure. Abandon customers. Penalize employees for non-compliance. Do not transfer your employees very often. 10/16/2011 11

12. Reasons for success

13. 1. STRATEGY 2. STRATEGY 3. STRATEGY same since 120 years – To develop localized organization and groups to have location advantage cause of familiarity with the area

14. Railway Network Customer Inclusion

15. Low cost deliveryDelivery reliability

16. Decentralization

17. Equality

18. What could threaten their existence?

20. Increasing habits of fast food Indirect competition is being faced from caterers like maharaja community Indirect threats from fast foods and hotels Change in timings Company facilities

21. Team work Time management Customer relationship management Logistics And Supply chain management

22. Thank you…