Description
Success of story of The Dabbawalas
THE DABBAWALAS
WHO ARE WE…
• A dabbawala literally means "person with a box” • Most commonly found in the city of Mumbai. • Employed in a unique service industry
• Primary business – collecting , delivering , returning.
NMIMS
2
HISTORY & ORIGIN
• India under British rule. • Local food was not preferred. • Current Customers – Indian business men
NMIMS
3
INCEPTION OF “NUTAN”
• The service Nutan Mumbai Tiffin Box Suppliers Trust originated in 1880. • In 1890, Mahadeo Havaji Bachche, started a lunch delivery service with about 100 men. • In 1930, he informally attempted to unionize the dabbawalas. • Charitable trust registered in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers Trust
• Commercial arm of this trust registered in 1968 as Mumbai Tiffin Box Supplier's Association
NMIMS 4
BASIC FACTS
• Avg. Literacy Rate • Total area coverage • Employee Strength • Number of Tiffin's : 8TH Grade Schooling : 60 to 70 kms : 5000 : 2,00,000 Tiffin Boxes i.e. 4,00,000 transactions every day. : 3 hrs
5
• Time taken
NMIMS
MARKETING ANALYSIS
NMIMS
6
MARKETING ANALYSIS
• Experience curve of 125 years • Difficult to replicate supply chain network
• Core offering – home made food, remains unchallenged
• Substitutes to home made food - NO
NMIMS
7
MARKETING ANALYSIS
• Currently have a monopoly • Very reasonable prices
• Use of minimum infrastructure
• Human capital rather than technology
NMIMS
8
SUPPLY CHAIN
NMIMS
9
PROCESS MANAGEMENT
NMIMS
10
FLOW PROCESS
Delivery
• 10:34-11:20 am (Andheri Station) • 11:20 – 12:30 pm (Church Gate Station)
Return Journey
• 1:15 – 2:00 pm ( At All Destination Stations) • 2:00 – 2:30 pm (At Destination Station) • 2:48 – 3:30 pm (Returning) • 3:30 – 4:00 pm (The Origin Station)
NMIMS
11
COLOR CODING
• VLP : Vile Parle (suburb in Mumbai) • 9EX12 : Code for Dabbawalas at Destination
o o EX : Express Towers (building name) 12 : Floor no.
• E : Code for Dabbawala at residential station • 3 : Code for destination Station e.g. Churchgate Station (Nariman Point)
NMIMS 12
DABBAWALA METHODOLOGY
• Team Work • Elegant logistics
• Plan-B approach
• Extremely disciplined • Candidate validation
NMIMS
13
HR PRACTICES FOLLOWED
• Flat organization - No hire and fire rule • Community based Recruitment - Sharing common beliefs, values, ethics • Following of strict dress code- Loyalty & trust is their monopoly • Training provided to the new joiners • Quarterly Meetings to discuss issues
NMIMS
14
EFFICIENCY
NMIMS
15
BEYOND SIX SIGMA
• Error Rate: 1 in 16 million transactions • Six Sigma performance (99.999999) • Cost of service – Approx. Rs. 300/month
• Standard price for all (Weight, Distance, Space)
• Rs. 36 Cr. Turnover approx. • [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.] Earnings 5000 to 6000 p.m.
NMIMS
16
EFFICIENCY PARAMETERS
• Zero % fuel • Zero % investment • Zero % modern technology • Zero % Disputes • 100 % Customer Satisfaction • No strike records since 1890
NMIMS
17
ACHIEVEMENTS
• Documentaries made by :
• BBC ,UTV, MTV, CNBC TV 18, CNN, TV TOKYO, NDTV.
• Case study made by :
• Harvard Business School
• Invitations from :
• CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy?s Lab Foundation Hyderabad
• Radio:
• German Radio Network, Radio Mirchi, FM – Gold, BBC Radio
NMIMS 18
ACHIEVEMENTS
• World record in Best Time Management with Six Sigma ratio • Name in “GUINESS BOOK of World Records”
• Registered with Ripley's “ believe it or not”
• Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television • Invited for marriage of Hon. Prince Charles of England on 9th April, 2005
NMIMS 19
SUCCESS FACTORS
• Low cost delivery • Delivery reliability • Consumer focused • Perceived equality
• Suburban railway network
NMIMS
20
PROMOTIONAL ACTIVITIES
• Orders through SMS and online through dabbawala.com • Reliance power?s IPO application along with dabba. • Maharashtra government?s AIDS awareness.
• Promotion of movies for example „Tashan?
NMIMS
21
LEARNING AND RECOMMENDATIONS
NMIMS
22
MANAGEMENT LESSONS
• The Human Factor • Customer Orientation
• Customer Satisfaction
NMIMS
23
RECOMMENDATIONS
NMIMS
24
NMIMS
25
THANK YOU
NMIMS
26
QUESTIONS ?
NMIMS
27
doc_960428306.pptx
Success of story of The Dabbawalas
THE DABBAWALAS
WHO ARE WE…
• A dabbawala literally means "person with a box” • Most commonly found in the city of Mumbai. • Employed in a unique service industry
• Primary business – collecting , delivering , returning.
NMIMS
2
HISTORY & ORIGIN
• India under British rule. • Local food was not preferred. • Current Customers – Indian business men
NMIMS
3
INCEPTION OF “NUTAN”
• The service Nutan Mumbai Tiffin Box Suppliers Trust originated in 1880. • In 1890, Mahadeo Havaji Bachche, started a lunch delivery service with about 100 men. • In 1930, he informally attempted to unionize the dabbawalas. • Charitable trust registered in 1956 under the name of Nutan Mumbai Tiffin Box Suppliers Trust
• Commercial arm of this trust registered in 1968 as Mumbai Tiffin Box Supplier's Association
NMIMS 4
BASIC FACTS
• Avg. Literacy Rate • Total area coverage • Employee Strength • Number of Tiffin's : 8TH Grade Schooling : 60 to 70 kms : 5000 : 2,00,000 Tiffin Boxes i.e. 4,00,000 transactions every day. : 3 hrs
5
• Time taken
NMIMS
MARKETING ANALYSIS
NMIMS
6
MARKETING ANALYSIS
• Experience curve of 125 years • Difficult to replicate supply chain network
• Core offering – home made food, remains unchallenged
• Substitutes to home made food - NO
NMIMS
7
MARKETING ANALYSIS
• Currently have a monopoly • Very reasonable prices
• Use of minimum infrastructure
• Human capital rather than technology
NMIMS
8
SUPPLY CHAIN
NMIMS
9
PROCESS MANAGEMENT
NMIMS
10
FLOW PROCESS
Delivery
• 10:34-11:20 am (Andheri Station) • 11:20 – 12:30 pm (Church Gate Station)
Return Journey
• 1:15 – 2:00 pm ( At All Destination Stations) • 2:00 – 2:30 pm (At Destination Station) • 2:48 – 3:30 pm (Returning) • 3:30 – 4:00 pm (The Origin Station)
NMIMS
11
COLOR CODING
• VLP : Vile Parle (suburb in Mumbai) • 9EX12 : Code for Dabbawalas at Destination
o o EX : Express Towers (building name) 12 : Floor no.
• E : Code for Dabbawala at residential station • 3 : Code for destination Station e.g. Churchgate Station (Nariman Point)
NMIMS 12
DABBAWALA METHODOLOGY
• Team Work • Elegant logistics
• Plan-B approach
• Extremely disciplined • Candidate validation
NMIMS
13
HR PRACTICES FOLLOWED
• Flat organization - No hire and fire rule • Community based Recruitment - Sharing common beliefs, values, ethics • Following of strict dress code- Loyalty & trust is their monopoly • Training provided to the new joiners • Quarterly Meetings to discuss issues
NMIMS
14
EFFICIENCY
NMIMS
15
BEYOND SIX SIGMA
• Error Rate: 1 in 16 million transactions • Six Sigma performance (99.999999) • Cost of service – Approx. Rs. 300/month
• Standard price for all (Weight, Distance, Space)
• Rs. 36 Cr. Turnover approx. • [6000*12*5000=360000000 i.e. Rs. 36 crore p.a.] Earnings 5000 to 6000 p.m.
NMIMS
16
EFFICIENCY PARAMETERS
• Zero % fuel • Zero % investment • Zero % modern technology • Zero % Disputes • 100 % Customer Satisfaction • No strike records since 1890
NMIMS
17
ACHIEVEMENTS
• Documentaries made by :
• BBC ,UTV, MTV, CNBC TV 18, CNN, TV TOKYO, NDTV.
• Case study made by :
• Harvard Business School
• Invitations from :
• CII for conference held in Bangalore, IIML, IIMA, CII Cochin, CII Delhi, Dr. Reddy?s Lab Foundation Hyderabad
• Radio:
• German Radio Network, Radio Mirchi, FM – Gold, BBC Radio
NMIMS 18
ACHIEVEMENTS
• World record in Best Time Management with Six Sigma ratio • Name in “GUINESS BOOK of World Records”
• Registered with Ripley's “ believe it or not”
• Participated in “Deal Ya No Deal Contest” by Sony Entertainment Television • Invited for marriage of Hon. Prince Charles of England on 9th April, 2005
NMIMS 19
SUCCESS FACTORS
• Low cost delivery • Delivery reliability • Consumer focused • Perceived equality
• Suburban railway network
NMIMS
20
PROMOTIONAL ACTIVITIES
• Orders through SMS and online through dabbawala.com • Reliance power?s IPO application along with dabba. • Maharashtra government?s AIDS awareness.
• Promotion of movies for example „Tashan?
NMIMS
21
LEARNING AND RECOMMENDATIONS
NMIMS
22
MANAGEMENT LESSONS
• The Human Factor • Customer Orientation
• Customer Satisfaction
NMIMS
23
RECOMMENDATIONS
NMIMS
24
NMIMS
25
THANK YOU
NMIMS
26
QUESTIONS ?
NMIMS
27
doc_960428306.pptx