Dabbawala : Efficient and Economical Lunch Delivery SCM

Abstract

The principle behind supply chain working in a manufacturing organization for complete operation and a service provider organization remain identical. This indicates that their problems are similar. Over the next 0 years, India needs to use technology to solve these problems. It has to start working on products and services for the Indian conditions. Operational planning is all times difficult in total supply chain cycle. The co-ordination of time bound activities requires dedication and speedy operation without wasting a single minute. In MUMBAI, to provide lunch delivery on time no sophisticated Software or Computers are needed. However, you need logical network of people and handcarts / bicycles. The workforce is not even educated to the secondary level. Here is a classic example that demonstrates the effects of precision planning in SCM with no more sophisticated resources. There are approximately 4500 dedicated workmen delivering fresh home-cooked lunch from .75 lakh houses to people's office desks with individualized accuracy, never lunch switched for another. The service charge is very economical about Rs. 50 - 300 per month. Dabbawala group drawing an estimated Rs. 50 crore in revenue. The quality of service remains consistent. The service will stop if and only if Mumbai's trains stop. The geographical pattern helps most of office-goers who live in the suburbs and work down town. There are local trains connecting the two points, which form hubs for subnetworks. The entire system works on a military discipline based on a shared agenda and a common protocol. In this paper we shall examine different SCM models and try to understand it's working.