Dabbawalas of MumbaiLarge Service Supply Chain

Leading without Suits and Ties

Talks on Best Practices at CII, IIMs, IITs,
companies Regularly sought by print media and
electronic media
Common queries

How do they recruit?

Working of incentive system with equal pay for all?
Do they know their clients?
Robustness of distribution channel?
Dealing with growth?
Competitors?
World is changing! Not dabbawalas?

Facts

2003: 5000 recruits, 175, 000 clients

350,000 deliveries
75 kms of public transport
Failure: once in two months, one in 15
million
Rs 380 million per annum

Structure
Three tier structure:
Executive committee
Mukadams
Dabbawalas

Role of Groups (a profit centre with 8

mukadams)
Culture similarity of the staff
Distinct local entity of dabbawalas
Known for reliability and work ethic
Helped by commuters

Distribution Network

Baton relay system

Hub and spoke arrangement
No historical, theoretical legacy in the design
No use of computer technology
Coding system
Decentralized at the group level

Workday schedule
30-35 deliveries (manageable)
Sorting, loading and unloading at peak rush hours
4 handlings of a dabba in a day- coding essential

Distribution Network
K-BO-10-19/A/15
Clients name is not even existing
Easy coding scheme as the level of
literacy is not very high

Operating Environment
Competitors: Fast Food chains,
restaurants and road-side vendors, Udipi
chain etc.
Competition is different:
NO MANUFACTURING, ONLY
DISTRIBUTION

Success Factors
Low cost delivery
Rs. 150 -200

Delivery reliability
Entrepreneurs, not employees
No strikes
Flat structure
Referrals from friends and relatives
No dilution of service culture

Success Factors
Decentralization
Perceived equality
Effort different, same remuneration

Suburban Railway Network

Foodline of the city

Future
Key concerns
Shrinking customer base and loyalty
Loss of textile mill workers in 80s amd 90s
Each group authorized to target new customers (school
children etc.)

Lifestyle changes
Not a major damage for the business

Workforce management
Next generations do not seem to be greatly interested
Not many incentives for good workers
Not many disincentives wither (no firing)

Future
Sales and Marketing reps of companies?
Approach
Only for sample products, flyers
Not for products with billing
Want to keep meal delivery simple and
manageable

Replicate to other cities

Distribution network
Working population
Preponderance of long commuting times