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Chapter-10
A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
• 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
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
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.
Ch-10 A Few Case Studies In Distribution
Awards and Felicitation
Shri.Varkari Prabhodhan Mahasmati Dindi (palkhi) sohala – 4th march – 2001.
Invitation from CII for conference held in Bangalore.
Documentaries made by BBC ,UTV, MTV, and ZEE TV
Ch-10 A Few Case Studies In Distribution
LOGISTICSLOGISTICSLogistics is happening 24 hrs a day,7 days a week
and 52 weeks a year.Logistical competency is achieved by coordinating the
following:Network DesignInformationTransportationInventoryWarehousing
Ch-10 A Few Case Studies In Distribution
• CodingVLP : Vile Parle (Suburb in Mumbai)
9E12 : Code for Dabbawallas at Destination
E : Express Towers(Bldg. Name)
12 : Floor No.
E : Code for Dabbawallas atResidential 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:
Ch-10 A Few Case Studies In Distribution
• 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.
Ch-10 A Few Case Studies In Distribution
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!
Ch-10 A Few Case Studies In Distribution
• 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.
Ch-10 A Few Case Studies In Distribution
RETURN JOURNEY:
• 2:00 – 2:30 pm• The group members meet for the segregation as per
the destination suburb.
Ch-10 A Few Case Studies In Distribution
• 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.
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
Hub and Spoke Model
Railway Stationorigin Railway Station
destination
Intermediatestation
Railway stationdestination
Ch-10 A Few Case Studies In Distribution
Lessons from Dabawallas
• Simplistic coding system• Leveraging public transports• Successful synergy of different mode of
transportation• Extremely flat organization• Simplicity in command structure
Ch-10 A Few Case Studies In Distribution
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.
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution
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.
Ch-10 A Few Case Studies In Distribution
• 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
Ch-10 A Few Case Studies In Distribution
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
Ch-10 A Few Case Studies In Distribution