Dabahwallahs of Mumbai (a)

DABAHWALLAHS OF MUMBAI (A)

Case study Questions:

Please read the case thoroughly and answer the following questions:

1. Explain in detail the types of Business logic (Business Rules) the Dabahwallas follow in their business. i.e., the cost of the business, cost of delivery, total cost of a dabbah for the client, delivery times etc. (Note: Business logic most probably will remain similar but

the associated cost/charges may differ over the years.)

Need for Infrastructure Resources services and content

Figure: - Logic of Mumbai Dabahwallas

2. Explain the current Business processes Dabawallah’s perform in their daily operation and the business model adopted for the delivery network. This will provide an AS-IS, analysis of their system.

The Mumbai Dabahwallas provides illustration of several well known world class business practices. The Dabahwallas work like the Internet. Just like the Internet, where voice or data files are sliced into tiny packets with their own coded addresses that are then ferried in bursts, independent of other packets and possibly taking different routes, across the world, the Dabahwallas too work with packets in a similar manner. They collect lunch boxes from homes in the morning and take them to the nearest railway station. From there each of the boxes that is coded according to the station of origin, the Dabahwalla team at the collection and delivery point, and the destination, are sorted out and taken to the next intermediary stations, where they are sorted out again for area-wise distribution and delivery. So a single lunch pack could change hands three to four times in the course of its daily journey, It has all salient features of a brilliant business processes and strategy. The elegant management practices and the business processes used in Dabahwallas operation are:

Structure and Organization: The Mumbai Dabahwalla is organized as a co-operative structure to symbolize equality and fairness. The three tier structure is readily scalable based on business opportunity and volume. It eminently suits the attention needed at specific territories (group level). It ensures attention to detail and decentralization (at optimal resources deployment) at the team level. The team is nothing but a confederation of members. Each member is associated with a route. In this sense, the revenue opportunity is well integrated with the organization structure. The scale and scope economics are managed respectively by the teams and groups. The present structure is an optimal way of delivering centralized planning and decentralized execution of business services.

Codification System: This pragmatic codification system ensures complete traceability of lunch boxes in the system. It enables material flow and tracking of individual boxes by detailed information. It is inexpensive, less elegant, yet detailed enough to support operations. It integrates the knowledge and information of individual members on route, origin, handling agent, destination address etc. In a sense it is a variation of an online transaction processing system to identify and track material in (such) a large system.

HR Practices: The Dabahwalla is built on (members’) pride in work. The members do not consider themselves as logistic (operation) providers. They consider their job is to provide food to their customers. This is source of pride for them. It is a great motivator to improve and sustain their performance. The members belong to a homogeneous (ethnic) group. There is a well developed apprenticeship program.

Compensation: The compensation is same at the group level. Equal work equal pay. There is no subsidy since is a homogeneous and logically a differentiating entity.

Redundancy: The team members have slack capacity. Substitutability among members in a team is easy. Flexible manpower deployment at the destination ensures operational accuracy. More than one team operating in an originating train station ensures internal competition and operational efficiency.

Fun and Work mix: After delivery of lunch boxes, the members break from work to enjoy leisure time. There is a one week forced holiday every year to visit their (member) villages. Mutual respect for individuals and empowerment are reinforcing features. Members are