Dabbawala_Supply_Chain_Network

Supply Chain Management Assignment # 2 Dabbawala Supply Chain Network Submitted By Waqar Ahmed (CM 31/2009) Submitted to Mr. Hanif Ajari   Dabbawala Supply Chain Network Introduction Mumbai Dabbawala or tiffinwala are the ones who carry lunch boxes. They are known for collecting lunch boxes from homes and delivering them to offices across Mumbai. The typical Mumbai residents prefer homemade food. Dabbawala provide the services of brining the lunch box from home to work and back. Following are the major aspects of their functioning 1) Very low cost of operation 2) Error-free distribution of lunch-boxes 3) Highest level of customer satisfaction 4) Highly motivated workforce 5) Minimum use of Technology Employees Dabbawals are semi literate or illiterate with an average grade eight pass qualifications. They earn around Rs. 5000 to Rs. 8000 per month. In addition they get Deepawali bonus that they receive from customers. Distribution network Means of Transportation For long distance travel, local train service is used. The use of this mass transport system is very economical as the fare for a daily commuter on these local trains is quite low. Movement of lunch boxes from home to nearest originating suburban station is through bicycle, hand pulled wooden cart or in many cases dabbawalas carry these packed lunch boxes in their hand held bags. Service quality characteristics Following service quality characteristics are critical for the customers. 1) Everyone will like to have his own lunch box 2) It should be delivered neither too early nor too late. 3) The cost of this service should be low as a higher cost would dissuade customers from using this service. Coding system for the lunch boxes The coding system is unique, very simple and ad hoc but serves its purpose. The coding has a flow logic which ensures complete traceability and defines flow directions in both situations of forward logistics and reverse logistics of lunch boxes. The flow logic of the coding is simple yet effective. At the point of aggregation and sorting, a symbol A, B, C, D.. indicates the start point of the forward distribution node. Supply Chain The supply network consists of following distinct distribution points. Collection from home Dabbawala goes to houses allocated to him, one after another. He almost runs while he collects from one home to another. Housewives generally keep lunch box ready as these dabbawala are never ready to wait. In the process, one dabbawa collects around 20 lunch boxes one dabbawala collects around 20 lunch boxes. Deliver to Nearest collection point These boxes are then collected to a central collection point or to the nearest railway station Arrival at destination railway station From here it goes to the destination railway station. From this railway station the distribution of the lunch boxes is done in manner similar to the hub and spoke system. This destination railway platform is now hub of the distribution point and different dabbawal take their lunch box load for different office buildings. Consolidation and delivery to offices Consolidation of distribution id done, lunch boxes of one multistoried building or few adjoining offices are sorted according to the coding system