A Few Case Studies in Distribution

Welingkar’s Distance Learning Division

CHAPTER-10

A Few Case Studies in
Distribution

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


APPROACH
•
•
•
•
•
•

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


Case Study : TBSA
Tiffin Box Suppliers Association
• How do they do it…?
• Organizational structure

Executive Committee
(5 members)

Teams of 20-25 headed by a
group leader


Individual Dabawallas
workload = 30 Tiffin

Organizational structure
PRESIDENT
13 MEMBERS
VICE PRESIDENT
GENERAL SECRETARY
TREASURER
DIRECTORS(19)
MUKADAM
MEMBERS(5000)


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
 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

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

• Coding
VLP : 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)


• 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 Station
origin

Intermediate
station

Railway Station
destination

Railway station
destination


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.


Case 3: Fresh Flowers
• 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


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

More Related Content

Similar to A Few Case Studies in Distribution (20)

More from We Learn - A Continuous Learning Forum from Welingkar's Distance Learning Program. (20)

Recently uploaded (20)

A Few Case Studies in Distribution