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Dabbawalas of Mumbai-

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					 Dabbawalas of Mumbai-
Large Service Supply Chain
 Leading without Suits and Ties
• Talks on Best Practices at CII, IIMs, IITs,
  companies Regularly sought by print media and
  electronic media
• Common queries
  –   How do they recruit?
  –   Working of incentive system with “equal pay for all”?
  –   Do they know their clients?
  –   Robustness of distribution channel?
  –   Dealing with growth?
  –   Competitors?
  –   World is changing! Not dabbawalas?
                  Facts
• 2003: 5000 recruits, 175, 000 clients
• 350,000 deliveries
• 75 kms of public transport
• Failure: once in two months, one in 15
  million
• Rs 380 million per annum
                     Structure
• Three tier structure:
   – Executive committee
   – Mukadams
   – Dabbawalas
• Role of Groups (a profit centre with 8
  mukadams)
• Culture similarity of the staff
• Distinct local entity of dabbawalas
   – Known for reliability and work ethic
   – Helped by commuters
             Distribution Network
•   Baton relay system
•   Hub and spoke arrangement
•   No historical, theoretical legacy in the design
•   No use of computer technology
•   Coding system
    – Decentralized at the group level
•   Workday schedule
•   30-35 deliveries (manageable)
•   Sorting, loading and unloading at peak rush hours
•   4 handlings of a dabba in a day- coding essential
        Distribution Network
• K-BO-10-19/A/15
• Clients name is not even existing
• Easy coding scheme as the level of
  literacy is not very high
      Operating Environment
• Competitors: Fast Food chains,
  restaurants and road-side vendors, Udipi
  chain etc.
• Competition is different:
  – NO MANUFACTURING, ONLY
    DISTRIBUTION
            Success Factors
• Low cost delivery
  – Rs. 150 -200
• Delivery reliability
  – Entrepreneurs, not employees
  – No strikes
  – Flat structure
  – Referrals from friends and relatives
  – No dilution of service culture
            Success Factors
• Decentralization
• Perceived equality
  – Effort different, same remuneration
• Suburban Railway Network
  – Foodline of the city
                         Future
• Key concerns
  – Shrinking customer base and loyalty
     • Loss of textile mill workers in 80s amd 90s
     • Each group authorized to target new customers (school
       children etc.)
  – Lifestyle changes
     • Not a major damage for the business
  – Workforce management
     • Next generations do not seem to be greatly interested
     • Not many incentives for good workers
     • Not many disincentives wither (no firing)
                     Future
• Sales and Marketing reps of companies?
  – Approach
     • Only for sample products, flyers
     • Not for products with billing
     • Want to keep meal delivery simple and
       manageable
• Replicate to other cities
  – Distribution network
  – Working population
  – Preponderance of long commuting times

				
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posted:3/30/2012
language:English
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