Dabbawalas of MumbaiLarge Service Supply Chain

IIMs. companies Regularly sought by print media and electronic media ‡ Common queries ± ± ± ± ± ± ± How do they recruit? Working of incentive system with ³equal pay for all´? Do they know their clients? Robustness of distribution channel? Dealing with growth? Competitors? World is changing! Not dabbawalas? .Leading without Suits and Ties ‡ Talks on Best Practices at CII. IITs.

000 clients 350. one in 15 million ‡ Rs 380 million per annum .Facts ‡ ‡ ‡ ‡ 2003: 5000 recruits.000 deliveries 75 kms of public transport Failure: once in two months. 175.

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. loading and unloading at peak rush hours 4 handlings of a dabba in a day.coding essential . theoretical legacy in the design No use of computer technology Coding system ± Decentralized at the group level Workday schedule 30-35 deliveries (manageable) Sorting.

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 .

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

150 -200 ‡ Delivery reliability ± Entrepreneurs.Success Factors ‡ Low cost delivery ± Rs. not employees ± No strikes ± Flat structure ± Referrals from friends and relatives ± No dilution of service culture .

same remuneration ‡ Suburban Railway Network ± Foodline of the city .Success Factors ‡ Decentralization ‡ Perceived equality ± Effort different.

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 .