The Dabbawala System
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Transcript of The Dabbawala System
THE DABBAWALA SYSTEM
GROUP 24
ASIM AYAZ 29067RAVISHANKAR T 29097SUNNY TEOTIA 29111SUNWINDER PAL SINGH 29112VIGNESH S 29118
Some Facts about dabbawalas They use coding system on the dabbas They have excellent memory and experience Most of them are uneducated or high school
pass-outs Still based on traditional system and
technologically averse Display a deep level of commitment and honesty Have a strict disciplined system which enforces
penalty for breaking the rules
History In 1890, the idea of dabbawala system was
conceived from lunch box delivery man, from Pune
Initial delivery business – 35 farmers in Mumbai Customer demand and on-time delivery, every
time – made dabbawala earn business and credibility
After 120 years, this system now delivers 1,30,000 dabbas within 6 hours each day
Organization MUMBAI DABBE
VAHANTUK MANDAL
PRESIDENT: SOPAN MARE
GENERAL SECRETARY
TREASURER
6 DIRECTORS
NUTAN MUMBAI TIFFIN BOX SUPPLIERS
ASSOCIATION PRESIDENT:RAG
HUNATH MEDGE GENERAL
SECRETARY
TREASURER
DIRECTOR
ANIL JOSHIADVISOR FOR IT & MANUFACTURING
Finance In 2009, the revenue was INR 470 million The average collection/month from each
customer was INR 300 With 25 trips for every customer, the cost of each
trip was INR 6 Cost includes railway pass, train's luggage van,
bicycle or handcart, miscellaneous cost and contribution to the charitable funds
Each dabbawala earns about INR 7000/month
Marketing Relied on word-of-mouth for acquiring new
customers
Dabbawallas with white Gandhi caps, distinctive bicycles and handcarts all served to advertise their service
120 years success is based on high commitment and trust building
Human Resources Initially, one area – 15-20
delivery boys
From 1983, owner-partner system
25 members (2-3 back-ups)
Age range from 18 to 65 Supervisors - Muqadam
Only four women
Recruitment Only from 30 villages in and around Pune 6 months probation – On the job training – INR
3000/month Investment – Ten times expected monthly income
– Partner of the group Commitment over Education – Avoidance of Over-
qualified staff Retention tool – Emotional unity Strict enforcement of discipline
Core Values USP: On time delivery, every time
Serving food to people is serving God
Efficiency of Supply Chain
Literacy may not motivate employees to learn
Challenges Faced Increase in the number of vehicles impact the
timely delivery of dabbawalas Presence of potholes limits the maneuverability Crossing of railway tracks instead of climbing up
to overhead bridge to save time is dangerous Increased security concerns further delay their
delivery: security guards checking the dabbas before letting them in
Using sidewalks and shortcuts to reach fast
Operations
Report @
Station
Collect from
Household
Sort based
on Destination
Travel to
destination
Sort based
on deliver
y points
Delivery @
offices in a
locality
Morning
Evening
Coding System
Suburban Railway
• 4700 / Train @ Peak Hours• Longitudinal Coverage
Cycles
• Wide Handle• Front basket / Rear Parcel Tray• 30-35 Boxes
Agenda for the meeting Tie up with NGO to educate members Upgradation of the website for:
Internet-based order booking Managing sales related activities customer relationship
management Featuring products like mugs, Gandhi caps and CD
documentary to generate more revenue Payment gateway
Coordinate with cell phone provider for free cell phone usage for the supervisors
Technologically advancement leading to low cost, high quality supply chain systems
Implications of Anil Joshi’s Suggestions
Organisational Level Issues
•No Proper DB is maintained •Serving food for people will be considered as business
Marketing Issues•Urge to spend on advertising and marketing to increase revenue•IMCs other than word of mouth is required
Human Resource Issues•Literacy will lead to attrition•Motivation to learn may reduce
Operational Issues•Quality may reduce with increased demand
Financial Issues•Cell phone and Bills•Website maintenance (IT Dept.)•Increased demand and employees
Suggestion Should start other services like flyers, samples and
courier services along with the dabbas Apart from the website, social networking sites can be
used to generate more awareness about the service Generate more revenue through keeping an
advertisement section at the website Using bicycles would reduce the operational costs-
should not move to motor cycle
Due to these issues, we believe that the dabbawalas shouldn't go ahead with the technological upgrading of their system.
Thank You...