THE DABBAWALA SYSTEM

Aniket(33065),Biswajit(33071),Ikchhanshu(33076),Kanav(33077)Sushant(33115) 09th Oct 2013

VIDEO

INTRODUCTION

5000 individuals delivers around 130,000 dabbas to offices throughout Mumbai

Philosophy- Serving food is like serving god. 200 groups. Each group shares profit equally with its members. Traditional travellers.

Primary customers are office goers.

Takes advantage of Mumbais railway system .

Dabbas give the working class an option to have home cooked and healthy food. A positive relationship between the customers and Dabbawallas. Affordable and punctual.

6 SIGMA CERTIFIED??

NO, They are not! Though running at an error rate of one in 16 million transactions with a record of having no strikes.

OPERATIONS OF DABBAWALAS

Collection of dabbas from Clients Residence Reaches collection point at the suburban train station Sorting at the collection centres Loading onto the trains Unloading at a major hub Further sorting and loading onto trains headed to the final destination Unloading and sorting at the last train station Delivery to the specific destination Process of return same as process of collection

BUSINESS STRATEGY-INTEGRATED FOCUS ON COST AND DIFFERENTIATION

Competitive advantage Competitive Scope

Cost

Narrow target

Uniqueness

Broad target

Core competency Meeting delivery schedules operating at six sigma level

Competitive advantage 1.Cost leadership Lowest cost mechanism 2. Differentiation Unique door to desk service ,trustworthy, on time service
Competitive scope Office going working class Meeting special needs of the target segment

EXTERNAL ENVIRONMENT 1.OPPORTUNITIES HUGE WORKING CLASS SEGMENT OF MUMBAI EXISTING INFRASTRUCTURE TO EXPLOIT-RAIL CONNECTIVITY 2.THREAT CHANGING DEMOGRAPHIC PATTERN-NUCLEAR FAMILIES COMPLETE DEPENDENCE ON RAILWAYS INTERNAL STRENGTH WELL COORDINATED MECHANISM OF DELIVERY KEEPING THE COST LOWEST AS POSSIBLE GREATER CONTROL IN THE ENTIRE PROCESS-COMMUNITY SPIRIT LEVERAGING ON THE IMAGE BUILD OVER THE YEARS

TECHNOLOGY
Website can offer -Payment gateway for Order booking -Selling Dabbas, mugs, T-shirts& CD documentary - Marketing activities & Overall Activities - Online order booking - Text based inquiry systems

HURDLES
Semi- Literate people Do-not own Mobile phones Cost of handsets; Monthly bill

VALUE CHAIN

DABBAWALA CHAIN LINK SYSTEM

Importance on human capital Non-reliance on technology Deep commitment and strong work ethics Minimal infrastructure costs Reliance on the extensive rail network of Mumbai city Discipline and time management ethos of the workforce

WEAK LINKS IN THE CHAIN

Although no such weak links can be identified , the following can be the potential bottlenecks: The performance of the Dabbawalas is completely dependent on the railways. Limited dabba capacity/member which affects growth of individual members earning. Synchronization with the households providing dabbas

VERTICAL INTEGRATION

Backward Integration

Setting up their own kitchen- lack competency, may disturb the normal delivery schedule
Transport options- investing in motorcycles an expensive option (vehicle cost, license etc.)

Forward Integration

NON-REPLICABILITY OF THE MODEL

The Dabbawala model is non-replicable because:

Extensive railway network in Mumbai Longitudinal geography of city. Workforce shares similar norms and religious values

Thank You