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The Dabbawala System

The Dabbawala system has been highly successful for 120 years due to its flat structure and efficient operations comparable to Six Sigma. World-class companies like FedEx study the system to learn how to manage a decentralized system with limited resources and achieve high accuracy. A consultant proposes modernizing the system, but the best response is to stop the consultant immediately, as the system's cultural similarities and long-term customer relationships are keys to its success that could be disrupted by large changes.

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Amit Kumar
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1K views4 pages

The Dabbawala System

The Dabbawala system has been highly successful for 120 years due to its flat structure and efficient operations comparable to Six Sigma. World-class companies like FedEx study the system to learn how to manage a decentralized system with limited resources and achieve high accuracy. A consultant proposes modernizing the system, but the best response is to stop the consultant immediately, as the system's cultural similarities and long-term customer relationships are keys to its success that could be disrupted by large changes.

Uploaded by

Amit Kumar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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The Dabbawala System

Presented By- Group 4

How does the dabbawala organization achieve its high service performance? What are the critical success factors?
With a very flat structure the 120 year old dabbawalas has achieved the excellence in their distribution systems. Critical Success factors Highly efficient operation (comparable to six sigma). Efficient use of intermodal transportation in very low cost Profit sharing Model & cultural similarity which reflect uniqueness Efficient distribution process- coding, sorting, loading/unloading, collections Long term relationship with customers Right product at the right place at right time Integrated supply chain Competitive pricing Less/ uneducated & committed work force Cultural similarity of work force

Why do world class companies like Fed-ex study the system? What do they expect to learn?
If we see the value addition in the supply chain is similar for Fed-ex and Dabbawala. Fed-ex is world known company for its logistics services, it is highly automated company which is using latest technologies in their supply chain.

So Fed-ex like world class companies want to learn following things Good management by dabbawala in decentralized system. Despite of advanced technology of computer systems & transport they achieve high accuracy Integrated supply chain With the limited resources the dabbawala works efficiently in Mumbai, so Fed-ex would be expecting to manage their decentralized system with the latest technologies across the globe.

A consultant wants to move the dabbawala system into the 21st century and proposes several changes. How should Mr. Medge respond i) Stop the consultant immediately. ii) Focus on small experiments only. (please list examples) iii) Change the system to include modern approaches to managing customers and logistics (Internet, CRMS, etc.) Ans- (i) Stop the consultant immediately.
Tiffins in the wild. (source: NY Times)

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