3. Prepared By:
Varun Kumar Jaggi
MBA 2015 Section 4
IPER, Bhopal
The Dabbawala System: On-Time
Delivery, Every Time
4. Our ancestors fought in Shivaji’s army.
Today we fight against time.
-Raghunath Medge, President Dabbawala
Organization
5. 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.
6. Our Strength comes from Shivaji and
Devotion comes from Lord.
-Raghunath Medge, President Dabbawala
Organization
7. 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).
8. Customers
Word of Mouth for acquiring new Customers.
Diversity ( Caste, Tastes and Preferences).
10. Recruiting
New members recruited are friends & relatives of
existing members & shared same culture , language,
food & religious beliefs.
They are hired on probation of 6 months & were paid
Rs.3000 after which they could buy into business.
After 6 months they have to invest 10 times the
expected monthly income in a group’s business in
order to become a member. If a group pay Rs.7000 to
each member, a new Dabbawala would pay Rs.70000
to become a partner
They recruited uneducated people who would finish
their tasks without asking further questions.
COMMITMENT MATTERS,QUALIFICATION
DOESN’T.
11. Motivation
They stick to time and believe that work is
worship.
They form emotional unity which helps in
excellent team work.
High job satisfaction is another key factor which
motivates them to remain in their own groups for
their entire working time.
As they build long term relationship with their
customers this helps them to identify the problem
& find solutions easily.
They are providing employment to low-income
members of the community and using the cheap
labor to deliver lunches.
12. Finances
REVENUE IN 2009 – RS.470 million ($9400000)
On average Rs. 300 is collected per month from
each customer.
Most Dabbawala's took home Rs.7000 / month ,
after deducting expenses, which typically ran
to:Rs200 for railway pass, Rs.200 for permit to
use train’s luggage van, Rs.100 for bicycle,
Rs150 for other costs & 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
16. Coding
Initial Coding System used colored threads to mark 7 Islands
Now using color markers:
E :: Code for Dabbawala Street
at residential station
VLP :: Residential Station Ville Parle
3 :: Code for Destination station.
E.G :: Church gate
9 :: Code for Dabbawala at Destination.
Ex :: Express towers ( Building name)
12 :: Floor no. in the building.
17. 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.
18. 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.
19. The January 15th Meeting
Routine Organization & Operational matters.
“Future Issues” (TECHNOLOGY)
Response of Mr. Joshi’s proposal.
Up gradation of the English Language Website.
Generation of Revenue from other sources.
More products available i.e. Dabbas, Mugs, T-
shirts, “Gandhi caps,” and a CD documentary.
Online Payment Gateway.
Moving from a Publicity Portal to a Business Portal.
Customer Relationship Management System.
20. SMS based order system.
Organization Unconvinced with the proposals.
Difficulty in overcoming barriers.
Dabbawala’s not friendly with technology.
Training the Dabbawala's. (English & Hindi classes)
Mastering the Technology.
Lack of Database.
Powerful opportunity for Expansion with the rapidly
increasing cell phone network.
Customer acquisition & innovation involving lowest
possible cost.
