GROUP 24 ASIM AYAZ RAVISHANKAR T SUNNY TEOTIA SUNWINDER PAL SINGH VIGNESH S 29067 29097 29111 29112 29118

THE DABBAWALA SYSTEM

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

NUTAN MUMBAI TIFFIN BOX SUPPLIERS ASSOCIATION PRESIDENT:RAGHUNATH MEDGE

GENERAL SECRETARY

GENERAL SECRETARY

TREASURER

ANIL JOSHI ADVISOR FOR IT & MANUFACTURING

TREASURER

6 DIRECTORS

DIRECTOR

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 Overqualified staff Retention tool Emotional unity Strict enforcement of discipline

Core Values

USP:

On time delivery, every time food to people is serving God

Serving

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
Morning

Report @ Station

Collect from Household

Sort based on Destination

Travel to destination

Sort based on delivery points

Delivery @ offices in a locality

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 Joshis 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 costsshould 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...