The Dabbawala System: On-Time

Delivery, Every Time

Prepared By:
ANISH (18021141133)
SANJAY (18021141098)
SARBARTHA (18021141099)
SHARVANI (18021141100)
BINDIYA (18021141095)
SAKETH (18021141094)
MIHIR (18021141121)
BULBUL (18021141126)
SANGITA (18021141097)
 Introduction
Daily 5000 Dabbawalas delivering 130000
Dabbas.
124 Years Old Association.
Based in Mumbai.
Semi literate Force.
Excellence in absence of technology.
Applauded Worldwide.
Model discussed at various platforms.
Organized Structure, Elected Representatives.
Walking towards technology.
 Background

Identification of Opportunity by Mahadev Haji

Bache.
Conversion of Opportunity into Business.
Utilizing the Railway System for the Business.
Hiring Villagers and Tribal's (Dabbawalas).
 Organization
• One dabbawala was in charge of a particular area, hiring 15-20 delivery boys who were paid monthly salary

• In 1983, dabbawalas moved to an owner partner system

• There are 5000 dabbawalas in Mumbai, among them only 4 were women

• Women typically performed administrative function

• Senior members with about 10 to 15 years of experience were regarded as supervisor(called muqaddams)

• By2009, there were 635 muqaddams, who carried dabbas as well as helped troubleshoot, resolve disputes and
oversee coding, sorting , loading/unloading, collections, and payments.

• Supervisors would stand for elections to become part of one of the two committees that oversaw the functioning
of the dabbawala system
 Organization
Operational Charitable
Committee(MDVM) Trust(NMTBS)

General General
Secretary Secretary

5000 members includi

Treasurer Treasurer 635 supervisors

Director(6) Director
 Recruiting and Motivating
• Recruitment method - employee recommendation; same culture and
belief systems
• Trainees were paid a stipend
• Post training, contract basis employment
• Main focus of employment was commitment and long term
relationship with customers
• “Commitment matters, qualification doesn’t” – Medge, President,
Nutan Mumbai Tiffin Box Suppliers Association
• Retention tool – Emotional unity, resulting in high job satisfaction
• Non performers given at most 2 chances
• Replacement from the family
• Followed a strict code of conduct and were fined heavily for
misconduct during work hours
FINANCES
• Individual dabbawalas responsible for negotiating price
• Pricing was done on the basis of various factors
• In 2009 revenue was about Rs. 470 million
• On average Rs. 300 was collected per month by each customer
• Each group independently calculated its profit based on number of
customer the group serviced, the price per customer and number of
members in the group
OPERATIONS
10:00-10:30 Groups
& A TYPICAL
DABBAWALAeither
Congregate at Kurla
with Dabbas and sort
DAY
10:30-10:45 Board
trains with Dabbas
in wooden crates
10:45-11:30 Travel by
Trains
based on destination or in hand.
station.

01:30-2:30 Collect
11:30-12:00 All groups empty dabbas and
congregate at station 12:00-01:00 Delivery to return to the
and sort dabbas based offices destination station; sort
on final destination based on station of
origin

3:30-5:00 Sort the

dabbas the staion of
origin and return
dabbas to homes.
 Coding System
• No written address or where to it pickup or drop the
dabba.
• Identification based on colours, numbers and codes.
• Research showed 1 error in 6 million deliveries.
• They followed the Hub and Spoke Distribution System.
• Railways stations served as central sorting and
distribution points which are known as Hubs.
• Every station has its own different delivery routes
known as Spokes.
 Decoding the Code

VLP : Vile Parle

E : Code for dabbawalla at starting station
12 : Floor Number
Ex : Express towers (Building Name)
3 : Code for destination station (ex: Churchgate)
9 : Code for dabbawalla at destination
Name : Only if the customer requests
 Increasing complexities
Delay in pickup of a single Dabba may result in
the delay in the delivery of thousands of dabbas.
The growing number of vehicles slows down the
speed of the Dabbawala.
In the anxiety to ensure on-time delivery many
Dabbawalas end up breaking traffic rules.
Honest to their commitment, Dabbawalas don’t
stop their services even in extreme weather
conditions.
Experimenting with the System.
Level of commitment.
DELIVERY (Core Mission)
No Complications for Customers.
Easy transportation (Handcarts & Bicycles)
Operations in Mumbai with no outside Expansion
Plans.
Replication of system outside by other
entrepreneurs.
Service should deliver more than Lunch.
Marketing of the System.
Confrontation with Technology.
 THE JANUARY 15 MEETING
The proposals of the meeting were as follows:
1. Upgradation of website to include a payment gateway to facilitate internet based order
booking.
ADVANTAGES:
• Website could generate regular income or grow the business.
• It could help manage sales related activities.

2.Proposal to implement Customer Relationship Management System.

ADVANTAGES:
• Overall systems benefit
• Preserving their dabbawala’s uniqueness.
3. Cell-phone based text messaging service for order enquiry.
Prospective challenges
• Many did not own cell phones.
• For most mastering technology was inconceivable.
• Absence of proper records about the dabbawala’s

Sources of financing the idea.

 Tie up with cell-phone providers for free cell-phone usage.
 Tie-up with an NGO, who could provide free classes in English and Hindi to develop basic
skills.

The dabbawala’s system could benefit financially through new customer acquisition and
service innovation and have leading age of very low-cost, high quality and supply chain
system.