The curious audience, comprising of students from diverse specializations, received valuable lessons in operational excellence and logistics management. The Dabbawalas, who offer their services at dirt-cheap price (Rs. 300/month), rely on simple procedures and their 5000-strong workforce to satiate the hunger of their customers with a clockwork precision. The organization treats each of its members as a shareholder and pays anywhere between Rs. 5000 to Rs. 6000 per month.
The students were amazed by the fact that no one in this century-old organization had received formal education on logistics management. Rather, most of them were either illiterate or semi-literate. The secretary of the association, Mr. Gangaram Talekar, had the audience in splits when he described his workers as “Thumbs up” (Angootha chhap or illiterate) and also took a dig at the cola drinks. The Dabbawallas use a unique coding system for identification of dabbas(boxes) and use the extensive network of local trains of Mumbai as their major mode of transport.
Despite getting the Six-Sigma and ISO certification, the dabbawallas have their feet firmly on the ground and still believe in keeping everything simple. However, the organization has started booking orders on SMS and has launched a website to keep up with the changing times. One of the many overwhelmed students quipped, “How can they manage such a flawless system without using modern IT?” The duo explained to the students that the secret of success of their supply-chain network lies in the “grassroots” approach. The crowd broke into thunderous applause when Mr. Medge told them that their chief motivation was their desire to ensure that their subscribers were not left hungry on a working day. Prof. Suresh Ghai, the Director of the institute, made a note of the social services rendered by the organization apart from their much talked-about delivery service.
The Dabbawalas have displayed that excellent logistics management is not the domain of just B-schools graduates but can also be implemented by some sound planning, co-ordination and common sense.