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Value Chain Analysis & the Flow logic

Primary Activities:

Inbound Logistics: Collection of Lunch boxes (made of tin or aluminum) from homes of the

customer in the morning. Mode of transportation is foot or cycle, all logistics is manual. EachDabbawalla is pre - assigned 30 - 35 customers in a specific area and they work in a group.

Operations: The dabbas are transported to the railway station where they are sorted outwith exclusive Codes a collection of Numbers and Letters painted on the Dabbas. 5000dabbawallas remember the address of 2 lakhs customers through codes. Then the boxes withsimilar destination code are bundled together and loaded on crates.

Outbound Logistics: Use of long crates and hand carts to load the dabbas in the luggage

section of the appropriate train and then for unloading too at the destination.

Marketing and transaction flow: WORD OF MOUTH PUBLICITY so NO PAPER,PAMPHLETS used for PUBLCITY, ADVERTISEMENTS

Now Use WEBSITE for their Advertisements and publications

The cost of dabba depends upon the weight, size of the dabba and the distance of destinationfrom the home. Another important factor of deciding cost is how many dabbas are beingsupplied to that area. If there are very less dabbas then the cost will rise.

In general, thecost of each dabba ranges between Rs 350- 400 per month.

The money collection is doneby the dabbawala who collects the tiffin from the home in morning, the one who delivers thetiffin does not get anything in this transaction.

Service: SATISFACTION BASED SERVICE CUSTOMER RELATIONSHIP

A Dabbawalla has served one Household on an average of 30 years.

He has Gained their Trust and achieved high Customer Satisfaction

Mainly due to an Error Free, rationalized pricing and timely delivery system

Support Activities

Procurement: The input is freshly cooked food and the supplier is the customer itself.

Human Resource management: Dabbawalas work in groups and the profit are shared after

deducting the expenses. Competition exist only till collection stage and they bad customersThey do not transfer their employees very often, most dabbawalas have been serving for 30+

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years. There is an existing trust between them and customers. Penalize Dabbawalas fornoncompliance.

Infrastructure: Build your services around existing infrastructure like local trains. Use ofcheap and effective infra like cycle and hand carts.

Use of public place for sorting

Cheap Maintenance Cost of vehicle

Maintenance of Bicycles = Rs 300 per month, Not a Single Drop of Petrol is used. NominalPrice of Railways serves as High Frequency Mode of Service

Technology: Today mobile phones are used only for incoming calls, Logistics still manual,website for publicity

High standards of quality control

Sustainability features

No waste

Dabbas are Reused and Not Thrown away

Earlier Times Codes were painted with Thrown Away Cotton Threads

Dabbawallas are sensitive towards Waste Management

WORD OF MOUTH PUBLICITY

NO PAPER, PAMPHLETS used for PUBLCITY, ADVERTISEMENTS

Now Use WEBSITE for their Advertisements and publications

Able to maintain High Customer Volumes ; 300,000 Transactions/day

Environment Friendly: no involvement of paper manuals or logs for recording the codes, norelectronic gadgetry. The Codes are mostly learnt by heart by the dabbawallas.

Efficient service design network

Their Designs are service oriented but form an integrated whole with the product andconsumer satisfactionhome-cooked food delivery away from home.

Gives them An Appropriate Network Structure i.e. to concentrate on very small areabut with large volumes and transactions and yielding high profits.

The Design involves the Use of Flexible Infrastructure and Smooth Flow ofinformation and Material Tracking in the system.

The Service Design Structure ensures PUNCTUAL TIMINGS, SMOOTHOPERATIONAL EFFICIENCY and CAPABILTIY TO HANDLE VOLUME GOODS

Indian cuisine are preserved

Maintains the Consumption habits that are linked with Religion, Caste and alsoHygiene values as Food enclosed in the Dabba neither touched nor manhandled.Vegetarian Communities such as the Jains, Saraswat Brahmins are major customersof this service.

The Service Popularizes and Preserves Regional Ethnic Food Habits e.g. Parsi food(Parsi Communitys cuisine is fast dying out with the small size of the community).

Also leads to the Conservation of the culinary habits and Skills.

Cost efective and profit oriented service

Low Operational Cost Cheap Maintenance Cost of Transport

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Maintenance of Bicycles = Rs 300 per month

Nominal Price of Railways

Value Pricing for Customers = Rs 250 per LUNCH BOX delivery per month

Still Able to Produce an Annual Turnover of Rs 30 Crores.

Sustainable mode of transportation

EcoEfficient Mode of Transport and Mobility (bicycles, hand carts) Not a Single Drop of Petrol is used

Railways serves as High Frequency Mode of Service

No Technological Backup hence Saves Energy

Yet Maintaining Accurate Timing, No Errors and Fast Supply.