a few case studies in distribution

Welingkar’s Distance Learning Division

CHAPTER-10

A Few Case Studies inDistribution

We Learn – A Continuous Learning Forum

Dabawallas Of Mumbai

• What is NMTBSA?• (Nutan Mumbai Tiffin Box Suppliers

Association)• History : Started in 1880• Charitable trust : Registered in 1956• Avg. Literacy Rate : 8th Grade Schooling

Ch-10 A Few Case Studies In Distribution

Dabawallas Of Mumbai

• Total area coverage : 60 Kms • Employee Strength : 5000• Number of Tiffin's : 2,00,000 Tiffin

Boxes • i.e 4,00,000 transactions every day.• Time taken : 3 hrs


Error Rate : 1 in 16 million transactions

• Six Sigma performance (99.999999)• Technological Backup : Nil.• Cost of service - Rs. 200/month ($ 4.00/month)• Standard price for all (Weight, Distance, Space)• Rs. 50 Cr. Turnover approx. [200,000*200=400,000,00 p.m. i.e. 48 crore p.a.]• “No strike” record as each one a share holder • Earnings -5000 to 6000 p.m.26


• DISCIPLINE :• No Alcohol Drinking during business hours• Wearing White Cap during business hours• Carry Identity Cards • LATEST MARKETING STRATEGY:• Marketing message in the “dabba”

APPROACH


Case Study : TBSATiffin Box Suppliers Association

• How do they do it…?

• Organizational structure

Executive Committee(5 members)

Teams of 20-25 headed by a group leader

Individual Dabawallasworkload = 30 TiffinCh-10 A Few Case Studies In Distribution

PRESIDENT

VICE PRESIDENT

GENERAL SECRETARY

TREASURER

DIRECTORS(19)

MEMBERS(5000)

MUKADAM

13 MEMBERS

Organizational structure


FINANCIAL DATA OF A GROUP

1st group –

Rs 125000 Total earnings -20 People Rs 35000 Maintenance cost Tiffin luggage basket pass – Rs 180 per person. Maintenance of cycles – Rs 300 – 2 cycles per month. Maintenance of wooden boxes – Rs 100 per person . T.C , police robbery of Tiffin Rs 500 yearly. Organizational fee Rs 15 per head. Puja held per station Rs 50 per head.


Awards and Felicitation

Ø Shri.Varkari Prabhodhan Mahasmati Dindi (palkhi) sohala – 4th march – 2001.

Ø Invitation from CII for conference held in Bangalore.

Ø Documentaries made by BBC ,UTV, MTV, and ZEE TV


LOGISTICS

Logistics is happening 24 hrs a day,7 days a week and 52 weeks a year.

Logistical competency is achieved by coordinating the following:

Network Design Information Transportation Inventory Warehousing


• CodingVLP : Vile Parle (Suburb in Mumbai)

9E12 : Code for Dabbawallas at Destination E : Express Towers(Bldg. Name)

12 : Floor No.

E : Code for Dabbawallas at Residential station.

3 : Code for Destination station (E.g.. Nariman Point) Ch-10 A Few Case Studies In Distribution

• Let us now look at an example of these codes on the tiffins to better understand the system and what it all denotes:


• 10:34-11:20 am

• This time period is actually the journey time. The dabbawalas load the wooden crates filled with tiffins onto the luggage or goods compartment in the train. Generally, they choose to occupy the last compartment of the train.


11:20 – 12:30 pm

• At this stage, the unloading takes place at the destination station

• Re-arrangement of tiffins takes place as per the destination area and destination building • In particular areas with high density of customers, a special crate is dedicated to the area. This crate carries 150 tiffins and is driven by 3-4 dabbawalas!


• 1:15 – 2:00 pm

• Here on begins the collection process where the dabbawalas have to pick up the tiffins from the offices where they had delivered almost an hour ago.


RETURN JOURNEY:

• 2:00 – 2:30 pm• The group members meet for the segregation

as per the destination suburb.


• 2:48 – 3:30 pm

• The return journey by train where the group finally meets up after the day’s routine of dispatching and collecting from various destination offices

• Usually, since it is more of a pleasant journey compared to the earlier part of the day, the dabbawalas lighten up the moment with merry making, joking around and singing.


3:30 – 4:00 pm

• This is the stage where the final sorting and dispatch takes place. The group meets up at origin station and they finally sort out the tiffins as per the origin area


Hub and Spoke Model

Railway Stationorigin Railway Station

destination

Intermediatestation

Railway stationdestination


Lessons from Dabawallas

• Simplistic coding system• Leveraging public transports• Successful synergy of different mode of

transportation• Extremely flat organization• Simplicity in command structure


THE ROYAL VISIT:

• Recently, the dabbawala’s had royal company at Church gate station. The Prince of Wales himself had visited them when he came down to Mumbai.

• He took keen interest in their way of functioning, expressed surprise at their efficiency and was struck with awe when he was told that they didn’t employ any technology.

• The prince was presented a small memento, accompanied with a garland, a Gandhi topi and a trophy by the dabbawalas.


Case 2: Newspaper Distribution

• Principle distribution objective is speed• Time available between printing and distributing is

relatively small• Depending upon the destination to be catered to the

news paper print early morning editions and late city editions

• The early morning editions are sent out very early hours to catch connecting transportation modes such as trains, flights, bus etc


Case 2: Newspaper Distribution

• Packets are prepared on the basis of daily requirements

• Estimating stalls demand is crucial• Entire emphasis on each stage is on fast forwarding

movement of the material through the chain, all the processes and operations being planned and executed with that single objective in mind


Case 3: Fresh Flowers

• The principle distribution objectives would be ,through out the chain maintaining the quality of the product handled

• In India flowers are cultivated on over 40000 hectares spread over areas around Pune, Bangalore, Hyderabad, Delhi and Kolkata.


• Flowers are packed into flat boxes, little water holder or buckets depending on the nature and cost of flowers

• Distribution chain has to ensure that the quality of the cargo is given the top most attention through out the process

Case 3: Fresh Flowers


Summary

• Dabawallas case study shows a distribution marvel which emphasizes on accuracy of distribution

• Newspaper case study highlights speed as a principle distribution objective

• Fresh Flower case study represents Cargo Quality as a principle objective of distribution


a few case studies in distribution

Education