SUPPLY CHAIN MANAGEMENT

ASSIGNMENT 02 PART 01

SUBMITTED TO:

SIR ABDUL REHMAN

SUBMITTED BY:

ZUNAIRA GHANI

27608

BS PS 07
1. What factors need to be in place for a service like the dabbawallahs
to work effectively?
SIX SIGMA PERFORMANCE

Factors that are essential for a service like the dabbawallahs to operate effectively include
achieving Six Sigma performance levels, which is a statistical measure indicating extremely high
quality with minimal defects. The dabbawalas have been recognized for their exceptional
reliability in delivery, with a Six Sigma performance rating of 99.999999, meaning less than one
mistake in six million deliveries. This level of performance requires a meticulous focus on quality
improvement and operational excellence.

No over-reliance on technology:

Additionally, the dabbawalas demonstrate the importance of not relying solely on technology for
success. While they have incorporated web technology and SMS for orders, the core of their
operation remains low-tech, emphasizing the significance of efficient processes, execution, and
expectations over technological solutions.

Creating an Integrated Performance Chain:

Furthermore, creating an integrated performance chain is crucial for the dabbawala system to
function smoothly. By prioritizing the overall system and flow of products and information rather
than individual components, organizations can enhance efficiency and effectiveness.

Acute visibility:

Lastly, acute visibility within the chain is essential for ensuring seamless operations. The
dabbawalas' ability to maintain precise timing and coordination among all members of the system
highlights the importance of clear communication, understanding of roles, and adherence to
deadlines for successful service delivery.

Flexible infrastructure and transport economics:

Flexible infrastructure and transport economics play a crucial role in the success of the
Dabbawallahs. The availability of frequent sub-urban train services, with trains running almost
every minute, serves as the backbone of their operations. Moreover, these train services are offered
at affordable prices, making them accessible to a wide range of customers.

Customer cooperation:

Customer cooperation is another key factor in the efficient functioning of the Dabbawallah system.
The Dabbawallahs do not wait for lunch boxes if they are not ready when they arrive for collection
at residences. This is possible because the households understand the importance of punctuality
and actively cooperate with the Dabbawallahs to ensure smooth operations.

Redundancy:

Redundancy is built into the Dabbawallah system to ensure uninterrupted service. Each route is
assigned to an individual member, and this information is shared among the team members. In
case a member needs to be substituted on a collection route, the process can be seamlessly carried
out without affecting the overall collection process and its accuracy.

Keep it simple. Real simple:

The simplicity of the Dabbawallah system is a valuable lesson for any organization. They
understand what their customers value the most - timely delivery of food every day. Instead of
complicating things or adding unnecessary features, the Dabbawallahs focus solely on meeting
this customer need. This unwavering dedication allows them to efficiently allocate their time and
energy towards fulfilling their customers' expectations.

2. What are the economics of the dabbawallah meal distribution

network? Is this business model scalable?
The dabbawallah meal distribution network operated through a unique combination of two
systems: the "baton relay system" and the "hub and spokes" system. Under the baton relay system,
dabbas (lunch boxes) were passed on from one dabbawallah to another at different points during
the delivery process. Meanwhile, the hub and spokes system involved sorting the dabbas at specific
railway locations, from where individual spokes branched out for distribution. In essence, each
dabba was collected by one dabbawallah from its source and transported to the railway terminal.
Then, a second dabbawallah would sort and load the dabba, followed by a third dabbawallah who
would unload and re-sort it at the hub or destination station. Finally, a fourth dabbawallah would
deliver the dabba to the home from which it was originally picked up earlier in the day.

This model of operation is highly scalable and relies on the active participation of its members.
The day-to-day operations are managed at the member level, fostering harmony, synergy, and a
sense of unity. The tracking mechanism employed by the dabbawallah system is both innovative
and cost-effective compared to online tracking systems. Due to its innovative nature, the cost of
tracking is minimal. The dabbawallah network's size, operational efficiency, modular structure,
exceptional customer service, and minimal error rate have effectively deterred competition,
making it an appealing and lucrative business proposition.

3. Is the dabbawallah meal distribution network an example of world-

class service? If yes, if not, what change(s) to the business model is
required to achieve world class status?
Yes dabbawallah meal distribution network is the example of world class service. Their model
hasn’t been successfully replicated elsewhere, because:

Reliable Technology:

The dabbawallah meal distribution network serves as a prime illustration of a world-class service.
The reason why their model has not been successfully replicated elsewhere lies in several key
factors. Firstly, the reliability of the technology utilized is paramount. The system is powered by
the Mumbai railway system and bicycles, which are both simple and efficient modes of
transportation. Trains operate punctually and frequently, while bicycles can navigate even the most
congested streets to collect and deliver cargo.

Scale-able Operation:

Moreover, the scalability of the operation is another crucial aspect. The system can be easily
expanded through replication, with an increase in manpower directly correlating to an increase in
volume. There is minimal management overhead involved in this process, making it a cost-
effective solution. As demand rises, the system can swiftly adapt by bringing more labor onboard,
all while keeping cost increases to a minimum due to the use of nominally priced public transport.
Superior Visibility:

Furthermore, the superior visibility within the network is a key factor in its success. All
dabbawallahs are well-informed about the operations and timings, with pre-determined hand-off
points across the city. This streamlined approach eliminates unnecessary complexities and ensures
efficient operations. The system's ability to rival modern supply chains without the need for
advanced technologies like cell phones, RFID's, bar code readers, or GPS logistics is a testament
to the effectiveness of simplicity. In essence, the dabbawallah network exemplifies the application
of the KISS principle (Keep It Simple and Stupid) in optimizing the entire supply chain, making
it a unique and challenging model to replicate elsewhere.

4. What is the basis for the success of the dabbawallahs of Mumbai?

Low cost delivery

Dabbawallahs offered their delivery services at a significantly lower cost compared to courier
companies. Clients paid a monthly fee ranging from Rs.150 to Rs.200, depending on the route and
distance covered. This competitive pricing made their services more accessible and affordable for
customers.

Delivery Reliability

 The reliability of the dabbawallahs' service was attributed to several factors.

 Firstly, they considered themselves as entrepreneurs rather than employees, which instilled
a sense of responsibility and dedication.
 Unlike traditional hierarchical structures, they operated in clans, where each dabbawallah
took personal accountability for the delivery of 30 to 35 clients.
 This decentralized approach fostered a strong work ethic and minimized the chances of
disruptions such as strikes.

Decentralization

The group structure of the dabbawallahs allowed for independent operations. Each group
maintained its own financial records, served its own customer base, and managed its own billing,
collection, and expenditure allocation systems. This decentralization empowered each group to
handle their operations efficiently, distribute monthly revenue among members, resolve disputes,
and attract new customers. It also facilitated cohesion within the group and enabled a focus on
improving delivery effectiveness.

Perceived Equality

The dabbawallah system recognized that not every member needed to contribute an equal amount
of time and effort. The system had mechanisms in place to ensure fairness and balance. For
instance, senior dabbawallahs were assigned tasks that required coordination, such as sorting at a
central hub, while younger members handled physically demanding tasks like collection, loading,
unloading, and delivery. Despite the varying workload, each dabbawallah received equal
remuneration, promoting a sense of equality and fairness within the group.

Suburban railway network

One popular saying in Mumbai was “If the local train is the lifeline of the city, the dabbawallahs
are the food line”. The suburban railway network in Mumbai played a crucial role in the efficient
functioning of the dabbawallahs' food delivery system. The geographical layout of Mumbai, with
its north-south orientation, allowed for smooth logistics management as the dabbas could easily
be transported to their respective destinations without much hindrance. This, in turn, minimized
the chances of food spillage during the delivery process. The dabbawallahs heavily relied on the
well-connected suburban railway network of Mumbai to carry out their operations effectively.

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