Dabbawala

THE CULT OF
THE DABBAWALAS
 It was the time when English were
ruling INDIA
 New government offices, post offices,
bridges ,etc were being built
 No MacDonald or Pizza Hut
 A Parsi banker employed a person to
bring home-made food to site of
work
 His colleagues too liked the idea and
started with it
 Evolved into the present Dabbawala
system.
(Nutan Mumbai Tiffin Box Suppliers Association)
 History : Started in 1880

 Charitable trust : Registered in 1956
 Avg. Literacy Rate : 8th Grade Schooling
 Total area coverage: 60 Kms to 70 Kms
 Employee Strength : 5000
 4,00,000 transactions every day
 Time taken :3 hrs
SOME HIGHLIGHTS
 Error rate : 1 in 16 million transaction
 Six sigma performance
 Technological backup : nil
 Cost of service: Rs.250 – 300 pm
 Approx annual turnover: Rs30cr
 Earnings:4000-5000/month/dabbawala
 Diwali bonus: one month salary by customer
 No retirement age.
 Service on through all hurdles
 0 % Fuel
 0 % Modern Technology
 0 % Investment
 0 % Disputes
 99.999999 % Performance
 100 % Satisfaction
 Dabbawalas operate in group of 25–30, headed
by a group leader
 In one segment there are more than one groups.
 A flat organization
 Instant decisions are taken.
 Everyone is a shareholder
 Even the president and the other high ups also

work
The color coded on Dabbas can be read in the following
pattern:
THE GENERAL
NE
 Pick up dabba from residence and bring it to a central location.
 Journey in local train
 Unloading and sorting at destination station
 Dabbawalas have their food
 Collection of empty dabba and sorting at destination station
 Return journey
 Sorting and delivery of empty dabba at residential station
CODE
NDUCT Fine (Rs. 25) – Not carrying ID card.
 Fine (Rs. 25) – Not wearing white cap
Fine (Rs. 100) – Smoking on duty
Fine (Rs. 500) – Drinking on duty
Fine (Rs. 1000) – Leave without intimation,
sacked if repeated in 2-3 instances.
’S UNIQUE
Different dabbawalas pick up, sort and deliver.

Co-ordination is seamless.
The person who delivers, does not know the origin address and vice
versa.
Nowhere on the dabba is the persons
name or address specifically mentioned,
but there is no error.
Errors don’t occur due to mistakes but due
to train delays.
No ‘parking’ issues though such a huge
load is processed.
STRENGHTS WEAKNESSES
 Customer satisfaction  High dependability on

 Coordination, team
local trains
spirit, & time
 Funds for the
management
 Simplicity in association
organization with  Limited Access to

Innovative service Education
 Low Attrition Rate
 Low operation cost
OPPORTUNITIES THREATS
 Indirect competition is being

 Wide range publicity
faced from caterers like
 Operational cost is low maharaja community
 Catering  Indirect threats from fast
foods and hotels
 Improving rail network
 Change in timings
 BPO employees
 Increase in number of working
 Increasing petrol prices women – no tiffins
 Attrition rates are high.
 Average age of the dabbawala
is 52 years.
 Flat organization
 No hire and fire rule
 Community based
Recruitment
 Sharing common beliefs,

values, ethics
 The ‘bottom-up’
management approach.
 Training provided to the new joinees.
 Loyalty & trust is their monopoly
 Owner + Employee is the designation

of each.
 Quarterly Meetings to discuss issues
 Interdependence
 Equal profit sharing

 Team work and inter
dependence
 Efficient utilization of
resources
 No dependence on
technology if not
absolutely necessary
 Heterarchy
 Keep operational costs
as low as possible.
 Logistical efficiency
 Responsible autonomy
 Always maintain operational
flexibility.
 Keep Extras for FAULT
TOLERANCE.
 PUT THE CONSUMER AHEAD
OF EVERYTHING.
 Dabbawala system is like the Internet. The Internet relies
on a concept called packet switching.
 Voice or data files are sliced into tiny sachets, each with
its own coded address which directs its routing.
 These packets are then ferried in bursts, independent of
other packets and possibly taking
different routes, across the country or
the world, and re-assembled at their
destination.
 Mobiles are now used (mostly incoming)
 Their website (www.mydabbawala.com)
 Order through email
 Booking delivery through SMS.
 Express delivery system (pick up at 11 am)
 Tie-up with a group of housewives to cook & supply
home-cooked food.
 Tie up with Dr. Vijaya Venkat,
who supplies food based on
medical ailments of the
patients, after examining
them.
 World record in
best time
management.
 Name in “
GUINESS BOOK of World Records
”.
 Registered with
Ripley's “believe it or not”
.
 People study business books and then practice.
We practiced first and have now become case
studies – R. Megde (President)
 “We cannot deliver only if the trains in Mumbai do

not run, but in that case, no one can reach office
either.” – Gangaram Talekar (General Secretary)
 It’s a model of managerial and organisational

simplicity – C. K. Prahalad
That’s to tell that Perfect
Business Models
are not necessarily taught in
B-Schools!
 By Balu B. (We School, Mumbai)

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Dabbawala

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THE CULT OF

 History : Started in 1880

 Even the president and the other high ups also

 Customer satisfaction  High dependability on

organization with  Limited Access to

 Indirect competition is being

 No hire and fire rule

 Sharing common beliefs,

 Loyalty & trust is their monopoly

 Owner + Employee is the designation

 Quarterly Meetings to discuss issues

 Equal profit sharing

 “We cannot deliver only if the trains in Mumbai do

 It’s a model of managerial and organisational

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