Dabba Wala

DABBAWALA
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?
1. If we see the value addition in the supply chain is similar for Fed-ex
and Dabbawala.
2. 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-
3. Good management by dabbawala in decentralized system.
4. Despite of advanced technology of computer systems & transport
they achieve highaccuracy
5. Integrated supply chain
6. With the limited resources the dabbawala works efficiently
in Mumbai, so Fed-ex wouldbe expecting to manage their
decentralized system with the latest technologies acrossthe globe
The complexity of logistics in Mumbai is very high, with disruptions
expected occasionally. Studying the Dabbawala system will help FedEx
operate in areas across the globe that meet such high complexity
Dabbawala system works with a minimalistic usage of technology.
FedEx can thus learn from this system and leverage technology to
function at a broader scope.
1. Despite the limited access to resources and constraints on their cost,
Dabbawala has achieved six-sigma level efficiency. Analysing this will
help FedEx reduce its costs, while maintaining/improving its efficiency.
2.Biggest resource for Dabbawala system is its members. An
important part of Dabbawala’s success is – how new members are
added; who is added; how are they replaced.
3. All of this is very crucial in setting up the culture of commitment and
work ethic within the organization. This can help FedEx can align its work
force with its operational strategy
How does the dabbawala organization achieve its high service
performance? What is its secret for success?
1. The Dabbawala system is a 120-year-old organization that distributes lunch boxes to offices in
Mumbai. The dabbawalas are engaged in the pickup, delivery and return of the lunchboxes on a day
to day basis and the operational efficiency of this daily process matched the six sigma standards.
2. The following factors contributed towards high service performance of the dabbawala organiztion:1.
The extensive rail network of Mumbai was critical to the delivery system of dabbawalas. The daily
delivery schedule was heavily dependent on the local trains and the railway plaforms served as hubs
of sortng with different delivery routes , thus forming the hub and spoke distribution system. Such
distribution system built around railways helped in achieving high service level.
3. The dabbawalas used a simple and comprehensive system of identification codes that was based on
universally identifable colours, symbols and character. Such coding enabled dabbawalas to segregate
and handle thousands of lunchboxes each day with amazing accuracy.
4. The dabbawalas had built in buyers to deal with any glitches or bottlenecks in the delivery system
because of various reasons. The workforce was cross trained in all activities such as collecting,
sorting, transportation and customer relations to increase speed and efficiency.
5. The organizational structure of the dabbawalas enabled them in quick decision making when the
delivery system got strained because of variety of factors
6. Building and maintaining customer relationships through reliable and
on time delivery on a consistent basis.
7. New hires were made from friends or recommendations by existing
members and these new hires shared the same culture, language and
food. This led to high level of cooperation, coordination and mutual
understanding at work that translated to higher service performance.
8. Further, the secret of success of the dabbawalas can be attributed to
the high level of commitment and focus towards the core mission
of delivering dabbas to the customers.. The core operating principle of
dabbawalas was based on the philosophy that dabbas were not just
containers but medicines for the ill. In additon, a consistent and on time
delivery of dabbas with tremendous accuracy was also one of the key
factors in the success of dabbawalas

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