mumbai dabbawala - masters of supply chain management
DESCRIPTION
Definition (Wikipedia) Who are Dabbawala’s? History Organization Structure Process Coding System Relay & Hurdle Race Setbacks Certifications Celebrity & PR Case Studies & Documentaries Records Marketing Ideas Management Principle ConclusionTRANSCRIPT
SCMMasters of Supply Chain Management – by Chandresh Dedhia
Index• Definition• Who are Dabbawala’s?• History• Organization Structure• Process• Coding System• Relay & Hurdle Race• Setbacks
• Certifications• Celebrity & PR• Case Studies & Documentaries• Records• Marketing Ideas• Management Principle• Conclusion
Definition - Wikipedia
• A Dabbawala; also spelled as dabbawalla or dabbawallah;is a person in India, most commonly in Mumbai, who ispart of a delivery system that collects hot food in lunchboxes from the residences of workers in the latemorning, delivers the lunches to the workplace utilizingvarious modes of transport, predominantly bicycles andthe railway trains, and returns the empty boxes to thecustomer's residence that afternoon.
Who are Dabbawala’s
• Varkari Sampradaya/Sect people, sts a Vaishnava religious movement• Geographically associated with the Indian states of Maharashtra and
northern Karnataka• Varkaris worship Vithoba or Vitthal, Deity of Pandarpur, regarded as
form of Lord Krishna• Saints and Guru associated were including Tukaram, Namdev,
Gyaneshwar, Eknath, all of whom were accorded title of SANT• Duty base approach towards life, emphasising on moral behaviour,
and strict avoidance of alcohol and tobacco
Who are Dabbawala's
• Mumbai Dabbawala is one of the most efficient SCM systems in the world
• More than 5000 Dabbawala’s
• More than 200,000 Dabba’s delivered and returned every day
• This works out to 40 Dabba's and approx. 60 kgs each Dabbawala carries.
• That's 120 tons of food Daily
Who are Dabbawala's
• Dabba changes at least 6 hands before being delivered and same while returning from journey
• Dabba collection to delivery it take approx 3 to 4 hours
• Total area covered is approx 70 kms
• Value added services - money, spectacles, keys are sometimes sent through Dabba
• Standard price for all - weight, distance, space , they charge approx Rs.350 per month
Who are Dabbawala's
• Each Dabbawala earns approx Rs.5000 to Rs.6000 per month
• Diwali bonus is extra months salary
• Excluding the Mumbai Train service, all other mode of transport are manual and no technology is used
• They would never tell you the trains were late, they will always deliver your tiffin before the time.
History • Started in 1890 - started with 1 Dabbawala and 1 customer
• Charitable trust - registered in 1956, No Strike record since1890
• Dabbawala business is 124 years old , No Police or court casesince 1890
• Average Literacy rate is 8th grade schooling and 50% areilliterate
• The Dabbawala's are literate to the level of onlyunderstanding alphabets and numbers.
• Average age of Dabbawala is 52 years , there is no retirementage
• Many dabbawalla are 3rd generation inheritors
Organization Structure
• There are 800 Mukkadam’s
• Each Mukkadam has approx 20 Dabbawala's reporting to him.
• The highest age Dabbawala is always the Mukkadam
President
1
Vice President
1
General Secretary
1
Treasurer
1
Directors
9
Mukkadam
800
Members
5000
Process
A day in life of Mumbai Dabbawala
• http://www.youtube.com/watch?v=vrKFu9D6h2o
Coding System
Error Rate - 1 mistake in 16 million end deliveries
Relay & Hurdle Race
• Unpunctual customer
• Physical distance
• Large number of Dabba’s
• Mumbai Traffic
• Crowded trains
• Multiple handovers
• Scattered pickup and drop off destinations
Setbacks
• 1969 - Nationalization of Banks
• 1975 - 22 days of Railways strike
• 1982 - textile mill workers strike
• 1993 - serial bomb blast in Mumbai
• 2006 - Mumbai Floods
• 2008 - terrorist attacks in Mumbai
SIX Sigma
Certification
• ISO 9001:2000 certified by the Joint Accreditation System of Australia and New Zealand
Celebrity & PR
Case Studies
• Harvard
• Richard Ivy School
• IFMI
• IIM A
• ICFAI
Documentaries
• BBC, CNN, TV Tokyo
• UTV, MTV, Zee TV, Aaj Tak,
• TV Today, Sahara, CNBC TV 18,
• Sony TV, NDTV, Channel 7 , DD Metro & Doordarshan
Records
• Record with Guinness Book of world record
• Ripley's believe it or not
Marketing Ideas
Partnership – Share my Dabba
• http://www.youtube.com/watch?v=UyT_bi-20e4
Management Principle• Keep operational cost as low as possible
• Just serve your customers, nothing else matters
• Customer is not King (Raja), they are king of king (Maharaja)
• Complexity opposes compliance
• Co-operation inside, competition outside
• Commitment matters, Qualification doesn't
• High salary alone cannot retain employees
• Flat organization, fast decision
• Never deviate from your core competency
Conclusion• Zero % Fuel
• Zero % technology
• 99.999999 % performance
• Zero % investments
• Zero% disputes
• 100% Satisfaction
Questions?