A casestudy presentation on

“ The Dabbawala System:

On-Time Delivery, Every Time “

By

Prajwal V J
Title Lorem
Ipsum Dolor
INTRODUCTION
• Dabbawala is a person who delivering freshly home made food in
dabbas (tiffin boxes) to the office workers.
• They will cover around 60 to 70 kms of area in Mumbai city
• There are around 5000 dabbawalas in the organization
• Raghunath Medge is the President for the association of Dabbawala
• They will follow the principles, coding system, dress code and other
strategies that had been made by organization
• This organization is 130+ years old and it is recognized as a best case
of network management in the world and even by management
gurus.
 History and Evolution
• Banker hired a person to bring food to office
• Mahadev haji bachi was the original delivery person and the founder
who started in Bombay.
• It started in 1880 when Britishes were ruling India and now it has
140 years of vast service to the people.
• Charitable trust was registered in 1956
• “Nutan Mumbai tiffin box suppliers trust”
• No strike recorded
• Six sigma performance
• 5000 dabbawalas delivering to 200000 people
• Standard price
• 50cr+ annual turnover
• No technology has adopted
• No such education for the most of dabbawalas
• Booking through SMS from recent 10 years
• On 21 March 2011, Prakash Baly Bachche carried three dabbawalla
tiffin crates on his head at one time, which was entered as a Guinness
world record.
• Attracted famous personalities like Britain’s Prince Charles, Richard
branson of virgin group, FedEx executives, many more.
ORGANISATIONAL STRUCTURE
Operational Committee Charitable trust
Nutan Mumbai Tiffin
Mumbai Dabbe
Box Suppliers
Vahantuk Mandal Association
Sopan Mare - President
Raghunath Medge - President

General Secretary General Secretary

Treasurer Treasurer

Director (6) Director

Muqaddams(635)

Each Dabbawala

20-25
deliveryboys
RECRUITMENT
• New members will be recruited only around 30 villages which are near to
the city
• New entrants are usually recommended by the existing family members
who are relative or friend to them.
• New members hired for 6 months as probation period after which they
need to become partner by investing 10 times of monthly income
• Their view is that uneducated dabbawalla will finishes task before the
educated asks too man questions to do the same task
• Non performers will be warned and given a chance to perform
• The organization will charge fine if the members drink alcohol during the
delivery time, not wearing white Gandhi cap, etc
FINANCE
• Pricing guideline were set by management depending on the location, average
weight of dabba
• REVENUE in 2009-Rs 470 million ($9400000)
• ON AVERAGE Rs-300 is collected per month from each customer.
• Most Dabbawala’s took home Rs-7000per month, after deducting expenses,
which typically ran to Rs-200 for railway pass,Rs-200 for permit to use train’s
luggage van,Rs-100 for bicycle, Rs-150 for others costs and Rs.15 as contribution
to charitable trust.
• Once a year, customers paid them bonuses.
• Publicity over the last few years had helped then increase their monthly prices
by Rs.50 to Rs.100
OPERATIONS :

* Simplify the complex system sorting and coding.

* Focus on process control, standardization and
continuous improvement
* Flat Organizational Structure.
* Zero error delivering system.
* Community value and strong sense of belonging.
* Zero carbon business.
OPERATIONS
12:30
to
11:20 1
9:30 to
to 12:30
10:30 10:30
to
11:20

3:30 2:48 1:30

to to to
4:30 3:30 2:30
Coding system
1(center) Destination
Green colour(center) central railway line
1(edge) Dabbawala code
SN Destination building code
1 (other edge) floor number
Blue colour(bottom) origin station
Conclusion
• The main reason that business model of dabbawala’s success is
because of having efficient transportation of local trains in Mumbai
which is difficult to find in other cities
• Inspirational and role model for startup companies
• So many management lessons to learn for all companies
• Their hard work, ethics, principles, punctuality, marketing strategy,
commitment and other values that leads them to success.