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...