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Dabba Wala

This document discusses the operations of Dabbawallas, who deliver home-cooked lunches to workers in Mumbai. It outlines their standard operating procedures and daily routine, which involves efficient sorting and delivery of dabbas (lunch boxes) using Mumbai's train network. Key factors in Dabbawallas' continued success are their low-cost and reliable delivery, decentralization, and reliance on the local train system. The document also compares Dabbawallas' supply chain to McDonald's, noting similarities like trust between partners but differences in use of technology and forecasting. Lessons for management highlighted include maintaining low costs, strong customer focus, relying on core competencies, and emphasizing cooperation and commitment within the workforce

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328 views16 pages

Dabba Wala

This document discusses the operations of Dabbawallas, who deliver home-cooked lunches to workers in Mumbai. It outlines their standard operating procedures and daily routine, which involves efficient sorting and delivery of dabbas (lunch boxes) using Mumbai's train network. Key factors in Dabbawallas' continued success are their low-cost and reliable delivery, decentralization, and reliance on the local train system. The document also compares Dabbawallas' supply chain to McDonald's, noting similarities like trust between partners but differences in use of technology and forecasting. Lessons for management highlighted include maintaining low costs, strong customer focus, relying on core competencies, and emphasizing cooperation and commitment within the workforce

Uploaded by

robin70929
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Dabbawalla

ON TIME EVERY TIME


Agenda
Standard operating procedure and Operations flow diagram of DOM
Factors contributing to the continued success of DOM
Similarities and Differences in their Supply Chains
McDonalds Supply Chains best practices adopted in the Middle East market
Which are the various world class management practices apparent in the case
Logistics & SCM
HR practices
Future challenges for Dabbawallas and what are your suggestions to them to overcome
these challenges
Learnings from the case which can be applied to Corporate Management
Daily Routine of Dabbawallas
Pickup from Home
8.30 AM
Collection at
Groups hub 8.38
AM
Railway Station
9.20 AM
Aggregation &
Sorting
9.30 AM
Dabbas Board the
train
9.41 AM
Resorting at Railway
Hub
10.21 AM
Re-Load in Trains
11.05 AM
Deconsolidation and
Resort at Railway Station
Hub
11.45 AM
Final Transport
12.10 PM
Final Delivery
Operational Flow Diagram
Pickup Collection Aggregation Drop Off Pickup Delivery
Reverse cycle for recollection of Empty Dabbas
Logistics at its Best
Use of Hub and Spoke
Reverse logistics
Baton Relay
Milk Run

Most of the organizations would require high values ERP packages and
sophisticated MBA

Factors Contributing to Success
Low Cost Delivery
Rs 150 to Rs 200 per month for Delivery
Delivery Reliability
Error of 1 in 15 million deliveries
Decentralization
They ran a group system allowing independent operation
Perceived Equality
Mumbai Railway Network
If the local train is the life line of the city,
then dabbawallas were the foodline
Peoples demand for Home Cooked Food
Customer Co-Operation


McDonalds India & Dabbawallas
(What they do same)
Similarities
TRUST between supplier and customer
Supply Chain process standardization
Both the organizations are time honoring
Customer services levels of high importance
Both follow Standard operating procedures

What they do different
Mc Donald
They are in business of producing food
and serving
Uses in-house transportation services
Relies heavily on forecasting and
demand planning
Uses technology to serve customers
better
Presence in 119 countries


DOM
They are in business of delivering food
No forecasting and demand planning
Relies on Mumbai locals
Uses hand made invoices and takes care
of accounts in old fashion way by using
ledgers
Presence in Mumbai only


McDonalds Supply Chains best
practices adopted in the Middle East
market

70 % Local Sourcing
Localized Menu with International Taste
Stringent Supplier Selection Process
Highly Sophisticated IT Systems
Suppliers from other continents were helping suppliers in middle east
Invisible Distribution System
Key Obstacles
1
Job satisfaction levels of new generation
Flexible Work Hours
2
Competition from other tiffin walas
3
Canteen facility provided by Corporates
Food courts are increasing rapidly
Sodexo Passes
4
Increase in Double Income Household
Key Recommendations
1
Tie up with caterers and
supply variety of food
2
Expanding network in
other cities
3
Booking of services
through internet
Key Management Lessons
Low Operations cost / Capital
expenditure
Used cycle,
hand cart,
local trains All
low cost
No big
infrastructure
to maintain,
Sorting done at
public place
No
advertisement/
IT budget , No
HR dept
Key Management Lessons
Customer focus
On time delivery
Do not impress customers with unsolicited offers
Core
competencies
Only in the field of delivering home made food
Technology
For 116 years the dabbawala didnt use technology
and yet got six sigma & ISO certification
Key Management Lessons
Cooperation
Extra person to fill in void
Collection is in group but transport is shared
Profit is shared equally
Commitment
Majority of the dabbawalas were illiterate, yet delivered
best services w.r.t time
Abandon bad
customer
Dabba should be ready when the person knocks the door
Bad customers affect the operation and profitability from
existing customers
Key Lessons for Managements
Worldwide
Avoid frequent
transfer of
employees
5000 dabbawalas remember the addresses of 2 Lac
customers
Most have been serving for many years
Discipline
Penalize employees for non compliance
Abandon bad
customer
Dabba should be ready when the person knocks the door
Bad customers affect the operation and profitability from
existing customers
Thank You

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