management Concept of Dabbawala's
Customer relationship management:
It identifies key customer target markets and develops and implements programs with key
customers. Key customer target markets for the dabbawalas are the end users of the cycle.
They include the office goers who get the dabbas from their homes. The time of delivery
of the dabbas is around 1p.m. to 1.30 p.m. to the end customers. They should get their
lunch around that time and its expected that they have the lunch break of one hour and
dabbas can be collected back at around 2.30 p.m. The service levels for this level is
maintained constant even if there are minor changes in service levels for the level 1
customers as they can adjust accordingly and serve the end customers.
Customer Service Management:
Customer Service Management provides the single source of customer information, real
time information system with current order, production and distribution information. In
the case of dabbawalas this information is real time. They plan for their day-to-day
collection on the basis of the information they already have. Though in each sector there
is a chance of minor variation of 2 to 3 dabbas, their system can accommodate that
change in the transported volume.
Demand Management:
Demand management balance customer requirements with supply capabilities. Though
the distribution system of the dabbawalas is capable of handling the slight variation of the
demand, always there are precautions for the additional supply. They arrange for more
number of dabbawalas for the handling of such situations from the nearer zones of action.
The seasonal variation in the quantity of food carried is also accommodated by the size of
the containers.
Order Fulfillment:
The first priority of any service is to provide timely and accurate delivery with a high
degree of order fulfillment. For the end customers the order fulfillment is 100%. Around
5000 dabbawalas deliver 2,00,000 lunches everyday and take the empty dabba back. They
make one mistake in 2 months. This means there is one error on every 16 million
transactions.
Manufacturing Flow Management:
It includes the customer-based service with flexible distribution systems, also in this case
with the right flexibility of the timings. In case of the dabbawalas this issue arises when a
client temporarily shift the premises of the collection and delivery. They collect the
details of the change in advance and respond for the change as and when needed.
DISTRIBUTION STRATEGY
Considering the distribution strategies followed by the dabbawalas, they follow
decentralized collection and distribution; and semi-centralized sorting at pre-defined
major sectors. These major sectors are selected based on the volume of the dabbas dealt
in that particular region. This has helped to move the distribution centers closer to the end
customers thus improving the customer service quality as the response time is lowered.
Since in the dabbawala network tier 1 customers (the distributing dabbawlas) are closer
to the end consumer, even if there is a delay in the supply of the dabbas to them, they are
able to exactly identify the time lag and adjust the final distribution process so that they
can deliver the dabbas within the appointment time. This effect can be identified as an
adaptive feedback with real time information system which the companies involved in the
logistics of food and beverage packaged goods can easily benchmark for their distribution
processes.
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