CHAPTER1

INTRODUCTION

Logistics management activities typically include inbound and

outbound

transportation

management,

fleet

management,

warehousing, materials handling, order fulfillment, logistics network

design, inventory management, supply/demand planning, and
management of third party logistics services providers. To varying
degrees, the logistics function also includes sourcing and
procurement, production planning and scheduling, packaging and
assembly, and customer service. It is involved in all levels of
planning

and

execution--strategic,

Logistics

management

is

an

operational

integrating

and

function,

tactical.
which

coordinates and optimizes all logistics activities, as well as

integrates logistics activities with other functions including
marketing,

sales

manufacturing,

finance,

and

information

technology.

Logistics is concerned with getting the products and services

where they are needed when they are desired. It is difficult to
accomplish any marketing or manufacturing without logistical
support. It involves the integration of information, transportation,
inventory, warehousing, material handling and packaging.

The operating responsibility of logistics is the geographical

repositioning of raw materials, work in process, and finished
inventories where required at the lowest cost possible. All the
1

activities involved in moving an item- from the place where its raw
materials are located, to the place where it was made or grown, to
the place where it is used or consumed- can be described under
the broad terms as logistics or distribution people variety of
logistics careers are responsible for getting the right products to
the right places at the right time in good condition and at a
reasonable cost. The act of supervising or managing this farreaching activity is generally known as logistics management and
the people who work in this industry are generally referred to as
logistics managers or distribution managers.

Within the firm the challenge is to co-ordinate individual job

expertise into an integrated competency focused on servicing
customers. In most situations the desired scope of such
co-ordination transcends the individual enterprise, reaching out to
include customers as well as material and service suppliers. In a
strategic sense the senior logistics officer leads a boundary
spanning initiative to facilitate effective supply chain relationships.
The excitement of contemporary logistic is found in making the
combine result of internal and external integration one of the core
competencies of an enterprise. Throughout the history of mankind
wars have been won and lost through logistical strengths and
capabilities or the lack of them. Even though the generals of the
past have understood the critical role of logistics it is only in the
recent past that the big organizations have realized its role in the
achievement of competitive advantage.

A PROJECT REPORT ON

ABOUT THE TITLE

The present study is title as Logistics Management A Case
Study.
OBJECTIVES OF THE STUDY
To study the history of logistic management.
To study how it implement in practical life.
To study how logistic management is useful in case of
Dabbawala management.
To know the success of Dabbawala management with
reference to logistic management.

SCOPE OF THE STUDY

The project basically revolves around logistic management with
reference to Dabbawala and how the Dabbawala implemented this
system and use to their best knowledge to reach the point of
success.

LIMITATIONS OF THE STUDY

This project is limited to the Dabbawala Management. In this
project Dabbawalas only related to the Logistics.
DATA AND METHODOLY
Primary Data:
A questionnaire was prepared for getting the view of president of
Dabbawalas management about their work which is most related
to the logistics.
Secondary Data:
Secondary data was collected from Reference Books and various
websites

CHAPTER LAYOUT:
Chapter 1
This chapter gives introduction to the topic
Chapter 2
This chapter gives activities involved in logistics management.
Chapter 3
This chapter gives introduction to Dabbawala Management.
Chapter 4
This chapter gives how Dabbawala implement six sigma in their
work.
Chapter 5
This chapter gives final conclusion.

CHAPTER 2
THE EVOLUTION
Every major war has been learning for industries. Second World
War was disastrous but has taught many things to the mankind.
However, the industries have gained.

Pre-1950 was the dormant years. All the places the monopolistic
conditions were prevailing, Low quality products were selling at
high cost. Customer was not having demanding character.

World War II developed military logistics. Concept of getting

required material immediately at needful place was the need of
the hour. It gave an important massage to the industries.

1950 to 1970 were the years of development for the industries. In

this logistics included total cost concept which represent
transportation costs for inventory & other costs.

1970 to present year were the Take off years for the subject of
logistics. Here there was shift from cost control to revenue
generation in the world competition. In the competitive situation
number of companies realized that they are loosing in the business
even though their products and reputation was good. The unknown
factor of logistics management was a cause of concern.
6

DEFINITION OF LOGISTICS MANAGEMENT

Logistics Management is defined by the Council of Logistics

Management (CLM) as:the process of planning, implementing and controlling the efficient,
effective flow and storage of goods, services and related
information from point of origin to point of consumption for the
purpose of conforming to customer requirements.

Business Definition:-

Logistics is defined as a business- planning framework for the

management of material, service information and capital flows. It
includes the increasingly complex information. Communication and
control systems required in todays business environment.

The Formal Definition:-

The process of systematically identifying, defining, designing,

developing,

producing,

acquiring,

delivering,

installing

and

upgrading logistics support capability requirement through the

acquisition process for Air Force systems, subsystems and
equipments.

IMPORTANCE OF LOGISTICS MANAGEMENT

Without selling and or buying there can be no trade and business.

Buying and or selling takes place only when goods are physically
moved into and or away from the market. Take away logistical
support and trade will collapse.

In conventional management environment, various activities of

logistics work in isolation under different management functions.

Each pocket trying to sub optimizes its objectives at the cost of

overall organizational objectives.

Operations produce large quantities at minimum production costs

ignoring demand leading to doom inventories.

Logistics functions of management bring all such functions under

one umbrella pulling down inter department barriers.

One could study about logistics matters simply because the

subject is interesting & essential. Such study would likely make
one more knowledgeable & interesting. However, there are far

more practical reasons for spending some time learning about this
subject.

Most service firms, institutions and government agencies as well

as all business firms, need the aid of logistician to some degree. It
has been the case that the demand for people in the various
activity areas of logistics has exceeded the supply of trained
personnel. The shortage is especially acute at the managerial
level. The typical pattern, out of necessity, has been to acquire
such people outside the logistics organization who have had no
formal training in the area.

Even at the career entry level, there are many opportunities. It is

estimated that 87% of the countrys largest companies plan to hire
college graduates with degrees in transportation and/ or logistics
by 1981.

Future economic conditions will make logistics an even more

attractive field. It is not expected that the domestic economic will
grow at the rate it has in the past, because the birth rate is slowly
and the availability of prime quality resources seems to be
reaching a limit. Because of this, company will turn to competing
for market share. As a recent article in Business Week point out,
no business firm or service organization can operate without
carrying out logistical activities to some degree. Therefore, anyone
seeking to move up the managerial ladder will want some
understanding of logistical problems and how to deal with them.

OBJECTIVES OF LOGISTICS MANAGEMENT

Basic objectives of logistics are to provide customer satisfaction

with the product/ services availability, customer satisfaction is to
providing the required product at required place of required
time.
To understands the needs and the requirements of the
customers. Apart from the point of view of the product design, it
is more essential to understand the time, the place, atmosphere
in which the customer needs.

In competitive environment, it is difficult to predict changes,

suppliers, customers, partners, competitors are changing there
position and they may join hands to stay in the business.

The need of any business is now to provide the materials

cutting all the borders of the nations. Now it is global village.
The growth of any company cannot be done just by confining to
one country.

From all the parts of the company their has to real time of
information available to all the people concerned for doing any
10

job. Keeping right data and decisions to every person is an

important in logistics management.

The need to reduce inventory cost companies has discovered

that their ability to manage the entire supply chain from raw
materials to delivery of the finished products or services to the
customer is a source of competitive advantage.

REASONS FOR LOGISTICS TO EXIST

Logistics management from this total system is the means

whereby the needs of customers are satisfied through the
coordination of the materials and information flows that extend
from the market place through the firm and its operations and
beyond that the supplies.

For Example, for many years marketing and manufacturing have

been as largely separate activities within the organization. At best
they have coexisted at worst there has been open warfare.
Manufacturing priorities and objectives have typically been focused
on operating efficiency achieved through long production runs,
other hand marketing has sought to achieve competitive

11

advantage through variety, high service levels and frequent

product changes.

In todays more turbulent environment, there is no longer any

possibility of manufacturing and marketing acting independently of
each other.

It is now generally accepted that the need to understand and meet

customers requirements is a prerequisite for survival. At the same
time

in

the

search

for

improved

cost

competitiveness,

manufacturing management has been subject

of massive

renaissance. The last decade has seen the rapid introduction of

flexible manufacturing systems of new approaches to inventory
based on Materials Requirements Planning (MRP) and Just In
Time (JIT) methods a sustained emphasis on quality.

Equally there has been growing recognition of the critical role that
procurement

plays

in

creating

and

sustaining

competitive

advantage as part of an integrated logistics process.

In this scheme of things, logistics is therefore essentially an

integrative concept that seeks to develop a system wide view of
the firm. It is fundamentally a planning concept that seeks to create
a framework through which the needs of the manufacturing
strategy and plan which in turn links into a strategy and plan for
procurement.

12

NEW DIRECTION FOR LOGISTICS

The business reaching a state of maturing started strategy use of

logistics.

Involving

channel

partnership,

inter

organizational

logistics

alliances, more direct interface with suppliers and customers.

Logistics as a competitive weapon to secure and maintain

customer loyalty by providing more responsive and flexible service.
Professional discipline
Specialized skills knowledge
Cost, globalization and time trends

THE LOGISTICS MISSION

The logistical mission of an enterprise is to develop a system that

meets objectives at the lowest possible dollar expenditure. The

13

logistical

system

is

primarily

concerned

with

support

of

manufacturing and marketing operations. At the policy level, the

critical question is to determine the desired level of

performance

and determine the associated cost of logistical operations. The

challenge is to establish a balance between performance and cost
that will result in attainment of the logistical objectives of the
enterprise. This logistical policy provides managerial mandate for
system design.
A well design logistical effort must have the capacity to control
operational variances and to minimize inventory commitments
across the entire system. Total cost expenditure is directly
impacted

by

achieving

maximum

possible

transportation

consolidation. In addition to cost containment, the objectives of

quality control and life cycle support are integral to the logistical
mission.

ACTIVITIES INVOLVED IN LOGISTICS MANAGEMENT

1) Order processing
2) Inventory management
3) Materials planning

14

4) Warehousing
5) Transportation

Provide a targeted level of customer service at the least cost

maximize profits, not the sales. So the company must compare the
benefits of providing higher levels of service with the costs. Some
companies may offer less service and charge less but others may
offer more services than its competitors and charge higher prices
to cover their cost.

1) Order processing :Orders can be submitted in many ways; by mail, telephone,

through sales people, or via computer. Order processing systems
prepare invoices and order information. The warehouse receives
instructions to pack and ship the ordered items. And bills send out.

2) Inventory management :Inventory decision involved

when to order and
how much to order
In deciding when to order, the company must think of the risks of
running out of stock and costs of carrying too much. In deciding
how much to order, the company must think of order processing
costs and inventory carrying cost.

15

3) Materials planning :Easy to think about output side. In put side is just as important,
especially with perishable food products. Every company stores in
goods while they wait to be sold.

4) Warehousing :The company must decide on_

How many and
What types of warehouses it needs and
Where they will be located

The company might own private warehouses or rent space in

public warehouses or both.
Owning a private warehouse; bring more control ties up capital is
less flexible if locations change.
On other hand, public warehouses; charge for rented space
provide additional services for inspecting, packaging, shipping and
invoicing goods but at a cost offer wide choice of locations. Basic
types of warehouses_
Storage warehouses
Distribution warehouses
Storage warehouses store goods for moderate to long
periods, distribution centers are designed to move goods
rather then just store them. They are large and automated

16

warehouses designed to receive goods from suppliers, take

orders and deliver goods to customers.

5) Transportation :The choice of transportation carriers affects_

The pricing of products
Delivery performance
Condition of the goods when they arrive
all affect customer satisfaction.

In choosing a transportation mode, shippers consider five criteria _

speed door to door delivery time
Meeting schedule on time
Ability to handle various products
Number of geographic points served
Cost per ton kilometer.

SUPPLY CHAIN MANAGEMENT DEFINITION

17

The supply chain management (SCM) profession has continued to

change and evolve to fit the needs of the growing global supply
chain. With the supply chain covering a broad range of disciplines,
the definition of what is a supply chain can be unclear. Often times
SCM can be confused with the term logistics management.
CSCMP and the board of directors, comprised of industry experts,
created official definitions for the following terms.

Supply chain management encompasses the planning and

management of all activities involved in sourcing and procurement,
conversion, and all logistics management activities. Importantly, it
also includes coordination and collaboration with channel partners,
which can be suppliers, intermediaries, third party service
providers, and customers. In essence, supply chain management
integrates supply and demand management within and across
companies.

Supply Chain Management Boundaries and Relationships

Supply chain management is an integrating function with primary
responsibility for linking major business functions and business
processes within and across companies into a cohesive and highperforming business model. It includes all of the logistics
management activities noted above, as well as manufacturing
operations, and it drives coordination of processes and activities
with and across marketing, sales, product design, finance, and
information technology

18

HISTORY
MUMBAI the city of dreams and ambitions. The city of explorers
and wildcatters. The city that had always been on fast track. Here
success happens purely on merit. The British develop the basic
infrastructure of roads, railways and buildings for Bombay. At that
time, the prime business centers were Fort and Ballard pier areas.
These were the houses of banks, government departments,
insurance houses, shipping companies and the other industrial
head offices. Soon, the residential colonies moved away from fort
and hence, lot of Paris Christians and Europeans started finding it
difficulty to go home from lunch from work. Carrying lunch boxes
was not always preferred routine for them since they did not like
having cold meals.
19

The Dabbawalas service began informally in Mumbai. According to

Raghunath Medge; In the 1980s, a Paris banker working in Ballard
Pier employed a young man who came down Pune to fetch his
lunch everyday. Business picked up through referrals and soon our
pioneer Dabba- carrying entrepreneur had to call for helping hands
from his village. This reinforcement led to the unleashing of an
army that even today, in the 21 st century, serves millions of
Mumbai with the same spirit and competence.
Such was the origin of dabbawalas. This Tiffin carrier guy picks up
the lunch box in the morning and delivers it on time to the place of
work, wherever in Mumbai that is, and delivers it back to the
residence at a very economical price. However trivial the task may
sound nevertheless, it is of vital importance since havoc is caused
if the client has to skip his home cooked food, or worse, carry the
Tiffin in the ever so crowded Mumbai local trains and that too
during the rush hour.
Approximately 5000 dabbawalas across Mumbai coordinate each
other for picking up and delivering the Tiffins for over 1,75,000
Mumbai ties everyday in a 3 hour period, through 60 kms of public
transport. In fact, the modes of transport simply includes the local
trains, bicycles and handcarts. Of course it is rare that Tiffin may
miss being on the owners lunch tables at the lunch hour.
The history of the Dabbawalas lunch delivery service dates back
to the 1890s during the British Raj. At that time people from
various communities migrated to Mumbai for work. As there were
20

no canteens or fast food centers then, if working people did not

bring lunch from home, they had to go hungry and invariably, lunch
would not be ready when they left home for work.
Besides different communities had different taste and preferences,
which could only be satisfied by a home, cooked meal.
Recognizing the need, Mahadeo Havaji Bacche (Mahadeo), a
migrant from North Maharashtra, started the lunch delivery service.
For his enterprise, Mahadeo recruited youth from villages
neighboring Mumbai, who were involved in agricultural work. They
were willing to come, as the income they got from agriculture was
not enough to support their large families, and they had no
education or skills to get work in the city.
The service started with about 100 dabbawalas and cost the client
Rs.2 a month. Gradually the number of dabbawalas increased and
the service continued even the founder was no more.
In the 1950s, the dabbawalas were delivering 2,00,000 lunches a
day. The dabbawalas became organized after 1954 when the
Nutan Mumbai Tiffin Box Suppliers Charity Trust was established.
The trust had offices in various parts of the city such as Grant
Road, Dadar, Chembur, Ghatkopar and Mumabi.

21

WHO IS DABBAWALA?
Descendants of soldiers of the legendary Maharashrian warriorking Shivaji, dabbawalas belongs to the Malva caste, and arrive in
Mumbai grom places like Rajgurunagar, Akola, Ambegaon, Junnar
and Maashi. They believe in employing people from our own
community. So whenever there is a vacancy, eiders recommend a
relative from their village.
Farming earns a pittance, compelling us to move to the city. And
the Tiffin service is a business of repute since we are not working
under anyone. Its their own business, they are partners, and it
confers a higher status in society.
The proud owner of a BA (Hons) degree, Raghinath Medge,
president of MTBSA, is a rare graduate. He wanted to be a
Chartered Accountant but couldnt complete the course because of
the family problems. Of his three children, his daughter is a
graduate working at ICICI, one son is a dabbawala and the
younger son is still studying.
Apart from commitment and dedication, each dabbawala, like any
businessman, has to bring some capital with him. The minimum
investment is two bicycles (approximately Rs.4,000), a wooden

22

crate for the Tiffins (Rs.500), at least one cotton kurta- pyjama
(Rs.600), and Rs.20 for the trademark Gandhi topi.

DABBAWALA METHODOLOGY AND RULES

Error is horror, in the event of the dabbawala meeting with an

accident in route, alternative arrangement are made to deliver
the lunch boxes.
For Example, in a group of 30 dabbawalas catering to an area,
five people act as redundant members; it is these members who
take on responsibility of delivering the dabbas in case of any
untoward happenings .
The dabbawales must be extremely disciplined. Consuming
alcohol while on duty attracts a fine of Rs.1,000.
Unwarranted absenteeism is not tolerated and is treated with a
Similar fine.
Every dabbawala gets weekly off, usually on Sunday.

The Gandhi cap serves as a potent symbol of identification in

the crowded railway stations. Not wearing a cap attracts a fine
of Rs.25.

In fact, Richard Branson, the maverick businessman who is

never shy to promote him and virgin brand, donned a Gandhi
23

topi and dhoti (the dabbawalas signature dress code ), during

the lunch of virgins inaugural flights to Mumbai.

There are no specific selection criteria like age, sex or religion;

however, I have never seen a female dabbawala. The
antecedents of the candidates are thoroughly verified and a
new employee is taken into the fold for six- months probation.

After that period, the employment is regularized with a salary of

Rs.5, 000 a month.

It is interesting a note there is no retirement age, and any

person can work till he is fit enough to carry on the tasks
required of him.

LOGISTICAL DISTRIBUTION NETWORK

The dabbawala mean distribution network was characterized by a
combination offer baton relay system in which dabbas were
handed of between dabbawalas at various point in the delivery
process and the hut and spokes system in which the storing of
dabbas was done at specific railway location form where individual
spokes branched out for distribution. There was no local historical

24

model on which this distribution network was design. All design

decision was driven by the singular purpose of delivering as dabba
in time for the customers. This delivery process remained
unchanged since their inception even though the environment of
service is changed. For example, the delivery system does not rely
on the computers.
The only change in the dabbawalas delivery model was the fineturning of the coding system in 1996. the number of customers
using the delivery services had continued to grow and without
some form of common identification that all the dabbawalas could
follow. The sorting process at the hub was likely to become overly
time consuming.
STARTING POINT - 8.30 TO 10.34 AM
The day for the dabbawala starts at 8.30 am, with collection of
dabbas at various houses. People usually leave the dabbas
outside the door for them. In case they are late the dabbawalas
have to urge them to hurry up, else if it gets late they have to leave
the client. Because if they keep waiting for this one Tiffin they
might not be able to reach to the station on time.
The dabbawala is forced to do so because he is bound by the train
time. The departing train time is very crucial and he must consider
the time required for the sorting process. Their may on the other
hand, be further delay caused by other customers too. It is
extremely difficult, yet crucial to ensure that the entire pick of all
Tiffin takes place as per schedule. The scheduling as the include
25

cushion time for uncertainties such as these without which the

whole system will be disrupted. The dabbawala picks up the Tiffin
from his lot fob houses in Santacruze and meets the other group
member at the designated spot at the station. This particular group
of 10 dabbawalas takes the 10.34 am Churchgate local time
everyday. Therefore the dabbawala have to make sure that they
reach the platform for the sorting process at least by 10.15 am. In
order to ensure smooth flow of their networking throughput there
daily routine, this period in the morning that includes picking up the
Tiffins and meeting at the designated spot on the station is most
crucial part of the system. One bit delay in this aspect will disrupt
the whole system. And will lead to a chaotic situation. Therefore
the dabbawalas have to collect the Tiffins at time and reach the
station with enough time left for the sorting to take place before
train arrives.

SORTING PROCESS - 10.15 TO 10.34 AM

The critical phase of the system is sorting. Sorting of all the Tiffins
according to their destination station and arranging them into
wooden crates taken 20-25 mins. The aim of the process is to
segregate the Tiffins and differentiate them as per the destination.
Sorting makes them it easier to identify each group of Tiffins and
less time consuming for respective dabbawalas. Sorting makes the
entire process error free. The process is similar to that of the post
office where letters are segregated according to their destination.
26

Since each Tiffin exchanges many hands each of the lids of the
Tiffin is marked with the color code indicating the originating
station, destination and building with the floor number. The secrete
behind the efficient working of the systems and thats why the
network is information rich.
This is a unique feature, as it requires no documentation and
record keeping. There is no communication between the two
groups, but just coordinating among them because the whole blue
print is pre-decided by the dabbawalas themselves.
The Mukadam plays a key role here to ensure smooth working and
coordination, his responsibility is to know all the Tiffins his group
carrier. The responsibility of the Mukadm is to extend that he has
to know all the Tiffins that his group carries. Therefore he must be
able to recognize these Tiffins even if the codes on them are
barely visible. Also if any member of the group absent from his
duty for particular day for some reason. Then it is the responsibility
of the Mukadam to ensure that all the dabbas that the absentees
are responsible for are duly picked up and deliver back on time.
Hence we see that the Mukadam plays a critical role in this stage
for sorting and allocating jobs.
The dabbas are collected and sorted out and sent to their
destination based on the numerical and alphabetical code. Every
station has a numerical code and each place has an alphabetical
code. These codes have been developed over a year and began
with simple color threads. An employees deliver the dabbas
collected individually from houses at the railway station nearest to
27

houses. At the station the destination are sorted out, based on the
codes. And taken by trains to respective stations.

JOURNEY IN TRAIN 10.34 TO 11.20 AM

During this time the dabbawalas load the wooden crates on tiffins
in to the goods and luggage compartment of the trains. Generally
they try to occupy the last compartments as this helps them to
avoid the rush at the platforms and it easy to be located and
continently situated once the train arrives at the platform. Mostly
the commuters dont get this compartment as they are already
filled crates and there is not enough room. This is common
understanding among daily commuters and dabbawalas. in any
case the platform is filled with people. And dabbawala has to
unload the crates on the platform. They start a series of loud
comments warning everyone to make way for crates unloading.
The unloading of this particular group takes place at Dadar, Lower
Parel, Grant Road and Churchgate.
The allocation of manpowerat each station depends on the number
of Tiffins that have to be delivered in a particular area.

SORTING WHEN REACHING - 11.20 TO 12.30 PM

28

At this stage the unloading takes place at Churchgate and our

destination

station.

Dabbawalas

have

to

be

dispatched

accordingly and the dabbas are to be delivered in large quantities

at times to areas like Nariman Point, RBI, and Stock Exchange.
Now within that area, if one location like Mittal Tower has a huge
number of Tiffins to be delivered then its area of number or
location number remains the same and the dabbas get
differentiated based on its color. To sum up the delivery process at
the destination center, each dabbawala looks for specific code
written on the right side top of the Tiffin.
The dabbawalas concentrate only on the dabbas that he has to
deliver. He may not have in some cases, picked up his Tiffin from
the originating stations; he has been allotted these dabbas only at
Churchgate. This kind of specification makes the entire system
efficient and error free.
The unique feature of system is that bigger buildings with large
office densities. Like in Nariman Point and stock exchange building
itself. An elevator is especially reserved for dubbawalas during
lunch time. Usually these elevators have a special elevator
reserved for themselves onto which others cannot board. In some
cases they also leave Tiffin in the canteen that is common to the
whole building and hence the respective owners can simply pick
up there.
In other case like Mittal Chambers the dabbawalas leaves the
Tiffins outside the respective offices. The peons come and give
them to the respective client thats why even the peons are good to
29

recognized Tiffins. So these ways the dabbawalas save a lot of

time in this delivery process.
Then dabbawala takes break for their own lunch, which is usually
there Tiffin kept along with others. Different groups have there
lunch at different locations. It is generally on the footpath or on the
benches on road side.
The break is for 45-60 mins. Till then customers finish having there
lunch and keep there dabbas outside the office to get collected.

COLLECTION PROCESS 1.15 TO 2.00 PM

Here on begins the collection process where the dabbawala have
to pick up the Tiffin from the office where they have delivered
almost hour ago. The dabbawalas are the same in this case. The
one who delivers it to the office will be the same one to collect it.
Most of the time the dabbawala will collect the dabbas from all the
officers situated on the same floor will leave them in the corridor.
Then he goes and collect all the dabbas from various floors and
gets them at the base level. Finally he loads them on the crates.
This is the actually the only risky point in the entire network
system. This is because there is risky of theft when the dabbawala
leaves the Tiffin outside the corridor. The solution to this to have
another dabbawala securing the dabbas. While the other one
30

goes and collect the remaining. This is related to a personal

experience and hence the mention of this situation is critical in
analyzing the mechanism of the system. By complains and
suggestions from customers the dabbawalas can actually bring the
improvement such as the one mention. A dabbawalas who can
secure Tiffin can greatly help in reducing theft.

RETURN JOURNEY 2.00 TO 2.30 PM

After the collection is over the dabbawalas need the remaining
members designated spot and the first assortment on the first
return journey takes place. The group members meet with their
remaining crates and the segregation as per the designation
suburbs take place. The group departs for the station and all
groups meet there for a common sorting process. The crates are
arranged in a line and each dabbawalas picks up the Tiffins that
belongs to his group at a designation center. This is not the final
sorting and therefore. The individual members of the designating
group have to just identify the boxes and put them into crates.
One important thing is to note is that a particular dabbawala need
not operate in the same group throughout the day. He will, in most
cases operate with two different groups one at the origination
station and one at the designation station. The coordination is
equally important in either group. And there is total unity among
them.

31

After sorting the various crates they departs in their respective

trains which again are pre-decided and again its a part of there
daily routine. This part of journey is more relaxed and they are not
under the pressure of the timely delivery as in the morning. They
lighten up the moment by joking around and singing, which ease
their stress and develop the strong bond in the group.

TRAIN JOURNEY 2.48 TO 3.30 PM

This again is return journey by train where the group finally meets
after the days routine after dispatching and collecting from various
offices. The group members from Marine Lines, Grant Road and
Dadar board and designated compartment and finally they arrive at
origin station.
Usually since it is more of a pleasant journey compared to the
earlier part of the day, the dabbawalas lighten up the moment by
merry making, joking and singing. Dabbawalas have created
impression on the passengers for being hardworking, dedicated
and joyous people.

FINAL JOURNEY OF THE DAY 3.30 TO 4.00 PM

This is the stage where final sorting and dispatching of the day
takes place. The group meets up at the station and finally sort outs
the Tiffins as per designated area. This is the easiest process
32

because of the limited quantity of Tiffins that gets off the train with
them. It is simpler to understand which Tiffin belongs to whom. The
delivery process takes roughly 30-45 mins depending on the
distance that the dabbawala will have to cover.
Thus the entire system end with the delivery of the Tiffin back to
the customers origin point.

The customer is satisfied with the

timely delivery of home food and getting Tiffins back to their origin.
There is still one important and unique aspect to this system and
that is individual dabba. This dabbawala doesnt operate in any
group. He picks up the dabba himself in the morning travels to
various destinations to deliver and collect the Tiffins back to send
to the origin. A real example of this kind of dabbawala can be cited
here. This type of dabbawala travels from Ghatkoper to Cuffe
Parade and back everyday. It is simply unbelievable that a person
can work and travel so much everyday and can still maintain
punctuality.
He operates on an 8.00am to 8.00pm shift. But he does not have
an option of taking up the train to at any point because there are
always Tiffins at various points and at various suburbs routes.
This method of individual dabbawala is preferably for those who
are ready to put in more hard work just to earn a bit of that extra
income.

33

ZONES FOR DESTINATION

1
GRANT
ROAD
(12)

2
3

CHURCH
GATE

POINT OF
AGGREGATION
& SORTING

(1-10)
LOWER
PAREL
(14)

4
5
6
7

B
C

D
DISTRIBUTION BY
CARRIERS AT
LUNCHING TO
OFFICES

COLLECTION FROM HOME

34

CHAPTER 4
IMPLEMENTATION OF LOGISTICS BY DABBAWALA
In the dabbawalas elegant logistics system, using 25 kms of public
transport, 10 kms of footwork and involving multiple transfer points,
mistakes rarely happen. According to a Forbes 1998 article, one
mistake for every eight million deliveries is the norm. For one, the
system limits the routing and sorting to a few central points.
Secondly a simple color code determines not only packet routing
but packet prioritizing as lunches transfer from train to bicycle to
foot.
The entire system depend on team work and meticulous timing.
Tiffins are collected from homes between 7.00 am and 9.00 am,
and taken to the nearest railway station. At various intermediary
stations, they are hauled onto a platforms and sorted out to areawise distribution, so that single Tiffin could change hands three to
four times in the course of its daily journey.
At Mumbais downtown stations, the last link in the chain, a final
relay on dabbawalas fan out to the Tiffins destined bellies. Lunch
hour over, the whole process moves into reverse and the Tiffins
return to suburban homes by 6.00 pm., 200 Tiffins are collected by
9.00 am, reach the station and sorted according to their
destinations by 10.00 am when the Dabbawala Special train
arrives.

35

The railway provides sorting areas on platforms as well as special

compartments on trains traveling south between 10.00 am and
11.30 am.
During the journey, these 80 dabbawalas regroup according to the
number of Tiffins to be delivered in a particular area, and not
according to the groups they actually belong to. If 150 Tiffins are
to be delivered in the Grant Road station area, then four people
are assigned to that station, keeping in mind one person can carry
no more than 35-40 Tiffins.
During the earlier sorting process each dabbawala would have
concentrated on locating only those Tiffins under his charge
wherever they come from, and this specialization makes the entire
system efficient and error free. Typically it takes about ten to
fifteen minutes to search, assemble and arrange 40 Tiffins onto a
crate, and by 12.30 pm they are delivered to offices.
In a way, MTBSAs system is like the internet. The internet relies
on a concept called packet switching. In packet switch networks,
voices or data files are sliced into tiny sachets, each with its own
coded address which directs its routing.
These packets are then ferried in bursts, independent of other
packets and possibly taking different routes, across the country or
the world, and re-assembled at their destination. Packet switching
maximizes network density, but there is a downside: your packets
intermingle with other packets and if the network is overburdened,

36

packets can collide with others, even get misdirected or lost in

cyberspace, and almost certainly not arrive on time.
To better understand the complex sorting process; lets take an
example. At Vile Parle station, there are four groups of dabbawala,
each has twenty members and each member services 40
customers. That makes 3,200 Tiffins in all. These 3,200 Tiffins
have to be collected by 9.00 am, reached the station and sorted
according to their destinations by 10.00 am when the Dabbawala
Special train arrives.

37

THE CODING SYSTEM:

VLP:- Vile Parle

9E12:- code for Dabbawala at destination
9:- number of dabbawala who picks it up at destination
E:- express towers (bldg. name)
12:- floor no.
E:- code for dabbawala at residential station
3:- code for destination station (E.g. Nariman point)

38

SIX SIGMA AND DABBAWALA

Six Sigma can be used to create a brand business process from
ground up. Six Sigma strives from perfection. It allows only 3.4
defects per million opportunities for each product or services
transaction. Six Sigma relies heavily on statistical techniques to
reduce defects and measure quality.
Six sigma experts (Green Belts and Black Belts) evaluate a
business process and determine ways to improve upon the
existing process. Six sigma incorporates the basic principles and
techniques used in Business, Statistics and Engineering. These
three form the core elements of six sigma. Six sigma improves the
process performance, decreases variation and maintain consistent
quality of the process output. This leads to defect reduction and
improvement in profits, product quality and customer satisfaction.
Six sigma focuses on improving quality (i.e. reduce waste) by
helping organizations produce products and services better, faster
and cheaper. Six Sigma focuses mainly on defects prevention,
cycle time reduction and cost savings. Unlike mindless cost cutting
programs, which reduce value and quality, Six Sigma identifies
and eliminates costs, which provide no value to customer and the
production process. To understand the concept of Six Sigma one
must understand the concept of normal curve.

39

DABBAWALAS WORK AS PER SIX SIGMA

Human sigma is a measure that focuses on reducing variances in
key

employee

and

customer

outcomes

by

improving

an

organizations human performance and moving it towards

excellence.
Six Sigma is quality improvement programmer that links output
quality to financial performance provides tangible measures to help
focus the organization and outlines processing for managing
improvement. It calls for a quality level of 3.4 DPM (defects per
million) and many Indian companies including TVS Lucas have
benefited from application of the six sigma concept.
Most interestingly, the humble dabbawala who delivers the
Mumbaikar his home cooked lunch at his office on time, come
rain or shine has achieved the coveted six sigma level of
performance.
Interestingly this quality metric (measure) has now been extended
to the human side of business an area that hitherto has never
been quite so accurately measurable and its called Human
Sigma. Curt Coffman, the global practice leader for Workplace and
Customer Management for the Gallup Organization is credited with
this phrase.
Human Sigma is a measure that focuses on reducing variance in a
key employee and customer outcomes by improving organizations
human performance and moving it towards excellence. Simply put,
40

the human sigma approach shows how to manage and maximize

the human difference. The concept was born out of an extensive
research study by the Gallup Organization involving more than
80,000 managers in more than 400 companies the largest study
of its kind ever undertaken. The study revealed directs link
between the engagement levels of employees and customers and
bottom line performance of the firm.

DABBAWALA: MUMBAIS BEST MANAGED BUSINESS

Prince Charles is not the first person to show an interest in the
Dabbawala of Mumbai. In fact, the first time they actually shot to
international fame was when his compatriots at the BBC did a
documentary on them way back in the late 70s.
But it was in the 1990s, when management lexicon became a part
of daily life, that the interest in Dabbawalahs, now synonymous
with Mumbais blaringly fast life, grew. Today, they are feted
regularly and invited to lecture students of business management.
Corporate chiefs applaud them; management gurus use them as a
model. Raghunath Medge, president, Nutan Mumbai Tiffin Box
Suppliers Charity Trust, who met Prince Charles on Tuesday, will
be in Lucknow in January to address the students of the
prestigious Indian Institute of Management. And, in between, some
management students will be spending time with him.

41

DABBAWALA ECONOMIC ANALYSIS

Everyone who works within this system is treated as an equal.
Regardless of a dabbawalas function, everyone gets paid about
2-4,000 rupees per month (around 25-50 British pounds).
More than 1, 75,000-2, 00,000 lunches get moved everyday by an
estimated 4,500-5,000 dabbawalas, all with an extremely small
nominal fee and with utmost punctuality. According to a recent
survey, there is only one mistake in every 6,00,000 deliveries. The
American

business

magazine

Forbes

gave

six

sigma

performance rating for the precision of dabbawalas.

The BBC has produced the documentary on Dabbawalas, and
Prince Charles, during his visit to India, visited them (he had to fit
in with their schedule, since their timing was too precise to permit
any flexibility). Owing to the tremendous publicity. Some of the
dabbawalas were invited to give guest lectures in top business
schools in India, which is very usual. Most remarkable, the
success of the dabbawala trade has involved no modern
technology. The main reason for their popularity could be the
Indian peoples aversion to fast food outlets and their love of
homemade food.

42

MUMBAIS DABBAWALAS: EFFICIENCY IN SUPPLY CHAIN

Battling the traffic and crowds of Mumbai city everyday, unfailingly
delivering about 2 lakh lunch boxes to office-goers and school
children, and returning the empty boxes to where they come from,
is what the dabbawalas do for a living. The 5000 workforce is
largely illiterate or semi- literate. Whats more, they have been
doing this consistently for the last 115 years without using any IT.
The network operates on a meticulously planned and precise
manner using a zoning system approach, that consist of several
teams each team supervised by a Mukadam. The citys network
for local trains is used in the delivery process, as also bicycles and
carts, besides the physical ferrying of large wooden crates of
dabbas weghing 65-70 kg on the heads of the dabbawalas. For his
efforts, the dabbawala, who is also a shareholder in the
Association, earns an average of Rs.5000/- per month. Currently,
the Association has begun inviting dabba booking through SMS,
and has even launched a website in order to keep up with the
changing times, though it still aims to keep operational costs low
as that has been its USP.
The Associations representatives spoke about the recognition that
their organization was currently receiving from all quarters,
especially after Prince Charles visit to the Mumbai Churchgate
Station to interact with them, and also after their six sigma
certification. Talekar made humorous reference to the
Thumbs Up status of the workforce a reference to their illiteracy
and also to the inconsequence of certifications to the dabbawala
43

who would rather get on with his job of delivering his dabba to the
satisfaction of his customer. Medge, for his part, said that for the
dabbawala, the customer was a greater king than any other royal
representative.
What came across was the sincere belief of the dabbawalas in
their role as Annadatas or providers of food. Their motivation
stems from the desire to ensure that no individual subscribing to
their service would go hungry on any working day. Though their
logistics and delivery processes can be interpreted as akin to the
hub and spoke system, one even Just- In- Time and Network
Management,

one

certainly

cannot

find

an

equivalent

in

management parlance to their motivational tools.

44

CHAPTER 5
ANALYSIS
UNIQUENESS OF DABBAWALAS
At the simplest, the dabbawala deliver home cooked meals to
individuals at their workplaces and return empty Tiffin boxes to
homes and, in some cases, caterers. For this, they charge
Rs.300 to 350 that $6-7. a month.
The workforce of the Tiffin box suppliers trust, the cooperative
that runs the system, is 5,000. Each Tiffin box contains two or
three containers, often carrying traditional Indian fare- rice,
curry, chapattis, and vegetables. Housewives even send notes
to their hubbies in these boxes.
Each tray can hold up to 40 boxes. These trays then travel in
local trains down to various stations. At each station, there is
another set of dabbawalahs who quickly take the dabbas meant
for other stations.
A Mumbai local halts at a station for about 20 seconds or less
and thus, the dabbawala have to work with precision and
speed. During rush hour, its a nightmare. Ask anyone who has
done time on Mumbai locals.
At each station, the boxes are once more sorted for localities
and offices and taken there by handcarts or sometimes carried
45

by individuals. They carry up to 35 kg for distances of a couple

of kilometers.
The boxes are placed in the offices reception area by 12.30 pm
and are picked up from the same spot by the deliverer a couple
of hours later. The whole process then starts again in the
reverse. The boxes are picked up from the offices, taken to the
nearest station and sorted for their journey home.
Forbes magazine gave this service its highest quality rating of
sigma 6, which means that per million transactions, there is just
an error of one.
On an average, a dabbawalah can make about Rs.3,000 to
5,000. the trust provides several services to its members,
including schools for the children and health care in
emergencies.
Mumbais geography makes it unique; it is a longish city where
residences are in the north and offices in the south, so it makes
our work simple. They tried a similar service in Delhi a few tears
ago and it didnt work out; Delhi being a circular city, the
logistics were difficult.
Today, the service delivers not just homemade food but also
picks up food from caterers and deliver them to offices.
But Medge said that foods from caterers are still a small
segment of the total operation.

46

DISADVANTAGES OF THIS SYSTEM

The dabbawalas entire scheduling and system will be disrupted
if any customer cause a delay in giving a dabba to him.
And secondly if the dabbawala falls ill or take leave due to any
reason there wont be anyone to substitute his place and
therefore no back up. The customers will be frustrated and will
switch over to another dabbawala if he has a habit of remaining
absent. That would be the great loss to the dabbawala and
hence his health also needs to maintain. Even more that any
other dabbawala who are working in groups. This is rather
difficult considering the rigorous working and long hours
required.
As it is apparent enough, there is hardly any contact with the
clients and the dabbawala during each day. The dabbawala
meet his client in the office only on the 1 st day of delivery to
verify and to show the spot where the Tiffin is to be delivered.
The system has been honored to such perfection that many
dabbawalas carry out the operation with the help of just one
code, which is absolutely reserved. This system is specifically
for city like Mumbai. Such daily exercise can run successfully
only in city like Mumbai because of the following reasons:
Plentiful commuters who goes to office daily.
Presence of efficient and widespread railway network.
Large distance between residence and workplace.
47

 An efficient and simple information system like coding used by

dabbawalas.

IMPORTANCE OF DABBAWALAS
They have 5,000 people on their payroll to ensure the prompt
delivery of lunch boxes within Mumbai; these delivery boys
travel by local trains and use bicycles or walk to reach every
nook and corner of Mumbai.
The lunch boxes are delivered exactly at 12.30 pm. Later, the
empty boxes are collected and taken back to the homes,
catering services or hotels before 5.00 pm.
On an average, every Tiffin box changes hands four times and
travels 60-70 kilometers in its journey to reach its eventual
destination.
Each box is differentiated and sorted along the route on the
basis of marking on the lid, which give an indication of the
source as well as the destination address.

48

SUGGESTIONS:
Logistics is very important aspect of dabbawalas.
The error free system can be taken as blue print and be
implemented in many systems.
Six sigma acts as very important aspect of shipment.

RECOMMENDATION:
Literacy rate has to be increased among Dabbawalas in order
to help them over come all problems.
Dabbawala can implement this model in different countries.
Training has to be given to Dabbawalas in order to make them
compete globally.
Need for global recognition.
Development of infrastructure for supporting initiative taken by
Dabbawala.

49

CONCLUSION
The supply chain management systems used by the Mumbai
Dabbawalas. They have global applause and are featured as
case studies in B school books.
Apart from career- giving tips, they also give life changing tips
on

honesty,

commitment,

stress

management,

humility,

discipline, and HR and Time Management.

The process begins early in the morning. Cooked food is picked
up from houses and caterers by Dabbawala and taken to the
nearest railway station. There, the different Tiffin boxes are
sorted out for specific destination stations and loaded on to
large, rectangular trays accordingly. The service runs every
working day.
As long as the dabbawala service is there, Mumbaikars alone in
the world would have the option of eating homemade food in
offices without bother of having to carry a cumbersome lunch
box.
Logistics

is

the

new

mantra

for

building

competitive

advantage, the world over. Mumbais dabbawalas developed

their homegrown version long before the was coined

50

51