Value Chain Analysis & the Flow logic

Primary Activities:
Inbound Logistics: Collection of Lunch boxes (made of tin or aluminum) from homes of the
customer in the morning. Mode of transportation is foot or cycle, all logistics is manual. Each
Dabbawalla is pre - assigned 30 - 35 customers in a specific area and they work in a group.
Operations: The dabbas are transported to the railway station where they are sorted out
with exclusive Codes a collection of Numbers and Letters painted on the Dabbas. 5000
dabbawallas remember the address of 2 lakhs customers through codes. Then the boxes with
similar destination code are bundled together and loaded on crates.
Outbound Logistics: Use of long crates and hand carts to load the dabbas in the luggage
section of the appropriate train and then for unloading too at the destination.
Marketing and transaction flow: WORD OF MOUTH PUBLICITY so NO PAPER,
PAMPHLETS used for PUBLCITY, ADVERTISEMENTS
Now Use WEBSITE for their Advertisements and publications
The cost of dabba depends upon the weight, size of the dabba and the distance of destination
from the home. Another important factor of deciding cost is how many dabbas are being
supplied to that area. If there are very less dabbas then the cost will rise. In general, the
cost of each dabba ranges between Rs 350- 400 per month. The money collection is done
by the dabbawala who collects the tiffin from the home in morning, the one who delivers the
tiffin does not get anything in this transaction.
Service: SATISFACTION BASED SERVICE CUSTOMER RELATIONSHIP

A Dabbawalla has served one Household on an average of 30 years.

He has Gained their Trust and achieved high Customer Satisfaction
Mainly due to an Error Free, rationalized pricing and timely delivery system

Support Activities
Procurement: The input is freshly cooked food and the supplier is the customer itself.
Human Resource management: Dabbawalas work in groups and the profit are shared after
deducting the expenses. Competition exist only till collection stage and they bad customers
They do not transfer their employees very often, most dabbawalas have been serving for 30+

years. There is an existing trust between them and customers. Penalize Dabbawalas for
noncompliance.
Infrastructure: Build your services around existing infrastructure like local trains. Use of
cheap and effective infra like cycle and hand carts.

Use of public place for sorting

Cheap Maintenance Cost of vehicle

Maintenance of Bicycles = Rs 300 per month, Not a Single Drop of Petrol is used. Nominal
Price of Railways serves as High Frequency Mode of Service
Technology: Today mobile phones are used only for incoming calls, Logistics still manual,
website for publicity
High standards of quality control

Sustainability features
No waste

Dabbas are Reused and Not Thrown away

Earlier Times Codes were painted with Thrown Away Cotton Threads
Dabbawallas are sensitive towards Waste Management
WORD OF MOUTH PUBLICITY
NO PAPER, PAMPHLETS used for PUBLCITY, ADVERTISEMENTS
Now Use WEBSITE for their Advertisements and publications
Able to maintain High Customer Volumes ; 300,000 Transactions/day

Environment Friendly: no involvement of paper manuals or logs for recording the codes, nor
electronic gadgetry. The Codes are mostly learnt by heart by the dabbawallas.
Efficient service design network

Their Designs are service oriented but form an integrated whole with the product and
consumer satisfaction home-cooked food delivery away from home.
Gives them An Appropriate Network Structure i.e. to concentrate on very small area
but with large volumes and transactions and yielding high profits.
The Design involves the Use of Flexible Infrastructure and Smooth Flow of
information and Material Tracking in the system.
The Service Design Structure ensures PUNCTUAL TIMINGS, SMOOTH
OPERATIONAL EFFICIENCY and CAPABILTIY TO HANDLE VOLUME GOODS

Indian cuisine are preserved

Maintains the Consumption habits that are linked with Religion, Caste and also
Hygiene values as Food enclosed in the Dabba neither touched nor manhandled.
Vegetarian Communities such as the Jains, Saraswat Brahmins are major customers
of this service.
The Service Popularizes and Preserves Regional Ethnic Food Habits e.g. Parsi food
(Parsi Communitys cuisine is fast dying out with the small size of the community).
Also leads to the Conservation of the culinary habits and Skills.

Cost efective and profit oriented service

Low Operational Cost
Cheap Maintenance Cost of Transport

Maintenance of Bicycles = Rs 300 per month

Nominal Price of Railways
Value Pricing for Customers = Rs 250 per LUNCH BOX delivery per month
Still Able to Produce an Annual Turnover of Rs 30 Crores.

Sustainable mode of transportation

Eco Efficient Mode of Transport and Mobility (bicycles, hand carts)
Not a Single Drop of Petrol is used
Railways serves as High Frequency Mode of Service
No Technological Backup hence Saves Energy
Yet Maintaining Accurate Timing, No Errors and Fast Supply.