Mumbai Dabbawala - A Case Study

1)      How does the local issue create a need for new supply chain strategy?

Mumbai has always attracted people from different parts of India as it provides many opportunities for work. So people from different communities have different taste and preference of food. Mr. Mahadeo Havaji Bacche (Mahadeo) sensed an opportunity here and developed the lunch-box delivery services with about 100 uneducated people, who were called the Mumbai Dabbawalahs. As the Mumbai population grew, the operations of Mumbai Dabbawalahs also expanded. The number of Dabbawalahs kept growing when there were closures of some mills in Mumbai. In 1954, they organized themselves with the formation of Nutan Mumbai Tiffin Box Suppliers Charity Trust. By the year 2000, they were delivering almost 2, 00,000 lunch-boxes a day.  So New supply chain strategy was needed to invent for fulfilling the need that was created by the local issue

2)      What are the operating 5 strategies of Mumbai Dabbawalah’s business - explain briefly.

The operating five strategies of Mumbai Dabbawalah’s business are as follows:

1.      Very low cost of operations - they use the local railway, bicycle for delivering the lunch-boxes. They do not use technology because technology can increase the cost of their operations.

2.      Error-free distribution of lunch-boxes - the distribution of lunch-boxes is free in error because the coding system of their distribution is simple and helps to distribute lunch-boxes correctly at the destination point.

3.      Highest level of customer satisfaction - they ensure highest level of customer satisfaction by providing lunch-boxes to customers on time or in time.

4.      Highly motivated workforce - dabbawalahs who are appointed to give the service to customers is highly motivated because they get salary on time and special bonus on diwali festival.

5.      Minimum use of modern technology - they use minimum technology in which they take an order from customers by using SMS and Website.

3)      How the business conducts their distribution network?

Dabbawalah’s proper distribution network is shown in the following flow chart.

4)      Do you think this process can be applied in your own country and why? Justify your answer.

Yes, Dhaka is one of the densely populated cities of the world like Mumbai. There are enormous numbers of working people living in Dhaka city. The working population generally travels quite a long distance from home to work place and often takes more than an hour in travelling. People commute through huge traffic, so it is pretty tough for them to carry their lunch / Tiffin boxes. If lunch boxes of different working people can be supplied to the workplace in due time it could be an attractive and profitable new way of business. There are many unemployed people in Dhaka city; it may create better opportunities for their employment. As communication system of Dhaka city is improving, it will help in faster delivery of lunch boxes and in the long run it will assist to gain economic of scale. (Justify)

5)      What strategy factors of network design improve the efficiency of business?

Just - in - time (JIT) system helps them to gain cost advantages and operational efficiency. Mumbai Dabbawalahs resembles a ‘milk run system’. They get the cost advantage for using ‘just in Time’ system and also get time saving. They have good communication with traffic police, so they get the avoidance of road congestion and safety and ease of movement in the long distance .Mass transport system like railways are generally very cost effective as compared to other operations. 

You Can See the Video (Click On It) - Share My Dabba (Video HD)