Case: Dabbawala System Email of team leader: hmpanch2@illinois.

edu
Team Number: 10 Track: Grad
Background:
Dabbawala system has been working efficiently based on their hundred plus year old delivery
model. Their delivery mechanism doesn’t have any technological support but, still they are
managing to deliver dabbas on-time, every time. Though Dabbawala system is successful, they
are facing some challenges in implementing delivering promotional products, text message based
order inquiries, online order booking and payment system to increase profitability without
hampering core operations. But, it’s not easy to make changes in dabbawalas’ delivery process.
Analysis:
Commitment is one of the major factor in achieving high service performance. Dabbawala
organization consists of small groups of around 25 members and each group have their unique
coding system (Exhibit 1 & 2) and that avoids any error in delivery process. Each Dabbawala has
fixed route for collecting dabbas therefore, they build good relationship with their customers and
memorize returning locations. All dabbas were sorted at originating railway station based on
delivery location. At destination railway station, dabbas sorted again and delivered to individual
offices. They start from farthest place at the time of pickup and nearest place for delivery. In
order to increase revenue, Dabbawala started promotional brochures and samples with dabbas.
But, the extra work at the time of sorting have increased risk of being late and wrong delivery. In
addition, many dabbas have been delivered to security guard of building due to security
measures and so, it’s not necessary that promotional product reached to customers. Moreover,
they are trying to increase customer satisfaction by providing cell phone based inquiry service
but, it includes training, device and service cost and doesn’t seem to be achievable (Exhibit 3).
Recommendations:
In order to get more revenue, Dabbawala should follow reverse process like they should give
samples and brochures at the time of returning dabbas, this won’t hamper delivery service at
lunch time and ensures delivery of promotional products. In addition, they could utilize 2-3
backup dabbawalas to make this process even faster. Moreover, they should focus on their
website for online booking, monthly payments as 21st century is an era of internet. Raghunath
would approve these change in their delivery system because it’s not affecting delivery schedule
of dabbawalas. Apart from this, we don’t think Raghunath will approve any more changes
because changes will going to jeopardize their delivery system.

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Exhibits:
1) Coding System for Dabbas which originate from Thane Railway Station

Thane written in Marathi

Destination Code

Shop # 11

Second floor of building

Code of Destination building

Code of Dabbawala, who

will make the delivery

Originating Railway
Station Code

2) Coding System for Dabbas which originate from CST Railway Station

Sixth floor of Building

Destination Code

Code of Destination building (LB)

Code of Dabbawala, who will make

delivery

Name of Customer (LALIT)

Originating Railway Station Code

3) Cost for implementing text based Inquiry Services

Implementing Text based Inquiry service
Description Per Dabbawala Total Cost
Cost of Device (One time Cost) $20.00 $100,000.00
Annual Service Fee per Dabbawala (Based on
$19.20 $96,000.00
$1.6/month for service provider)
Total Investment for first year $39.20 $196,000.00
Fixed Annual Cost for Cell Services $19.20 $96,000.00

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