THE DABBA WALLAS, FEEDING MUMBAI

INSPIRATION OF MANAGEMENT

Robin Varghese

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WHAT IS NMTBSA????

N -NutanM -MumbaiT -TiffinB -BoxS -SuppliersA -Association

04/10/2023

• Started in 1890• Mahadeo Havaji Bacche

(Mahadeo), a migrant from North Maharashtra, started the lunch delivery service.

• Mahadeo recruited youth from the villages neighboring Mumbai, who were involved in agricultural work

• Service started with about 100 Dabbawalas

HISTORY

Current Statistics

• Charitable trust : Registered in 1956• Avg. Literacy Rate : 8thGrade Schooling• Total area coverage: 60 Kms to 70Kms• Employee Strength : 5000• Number of Tiffin's : 2,00,000Tiffin Boxes • i.e. 4,00,000 transactions every day.• Time taken :3hrs

04/10/2023

Interesting facts

• Error Rate : 1 in 16 million transactions.

• Six Sigma performance (99.999999)

• Technological Backup : Nil.

• Cost of service -Rs. 300/month ($ 6.00/month)

• Standard price for all (Weight, Distance, Space)

• Rs. 36 Cr. Approx. Turnover. [6000*12*5000=360000000 i.e. Rs. 36 crore

p.a.]

• No strike” record as each one a share holder.

• Diwali bonus: one month’s from customers.04/10/2023

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TREASURES

DIRECTORS(9)

MUKADAM

GENERAL SECRETARY

PRESIDENT

VICE PRESIDENT

MEMBERS(5000)

13 Members

Organizational Structure

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• Competition: Its difficult to replicate their supply chain network

• New entrants: Fast food joints as well as office canteens. However, since neither of these serve home food, the dabbawallas' core offering remains unchallenged.

• Bargaining power of buyers: Delivery rates are so nominal (about Rs 300 per month) that one simply wouldn't bargain any further.

• Bargaining power of sellers: minimum infrastructure and practically no technology is used, hence they are not dependent on suppliers.

• Threat of a new substitute product or service: No substitutes to home cooked food in Indian scenario, hence threat to the dabbawalla service is not an issue at least in the foreseeable future.

PORTERS FIVE FORCE THEORY

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• Strengths:

• Simplicity in organization with Innovative service • Coordination, team spirit, & time management• Low operation cost• Customer satisfaction• Low Attrition Rate

• Weaknesses:

• High dependability on local trains

• Funds for the association• Limited Access to Education

SWOT Analysis

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• Opportunities

• Wide range publicity • Operational cost is low • Catering

• Threats

• Indirect competition is being faced from caterers like maharaja community • Indirect threats from fast foods and hotels• Change in timings• Company transport• Ticket restaurant

Contd..

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Management Learning

• Keep operational costs as low as possible.• Keep capital Investment bare minimum only investment.• Just serve your customer• Customer is not Raja-but Maharaja• Never deviate from core competencies• Be Master of one trade, than jack of all.• If required develop product and services around core

competency.• Don’t be over dependent upon technology.• Cooperation inside-competition outside.

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Contd..

• Commitment matters qualification does not.• Know the implications of failures.• Build your services around existing infrastructure.• Abandon customers.• Penalize employees for non-compliance.• Do not transfer your employees very often.

Reasons for success

1. STRATEGY

2. STRATEGY

3. STRATEGYsame since 120 years – To develop localized organization and groups to have location advantage cause of familiarity with the

area

Railway Network

Customer Inclusion

Low cost deliveryDelivery reliability

Decentralization

Equality

What could threaten their existence?

Competition

Threat of

substitute

Bargaining

power of

sellers

New entrants

Bargaining

power of

buyers

Increasing habits of fast food Indirect competition is being faced from caterers like maharaja community Indirect threats from fast foods and hotels Change in timings Company facilities

• Team work • Time management

• Customer relationship management• Logistics And Supply chain management

Thank you…