I read an article today that Flipkart is beginning to work with the famous Dabbawalas of Mumbai for last mile delivery. The efficiency of these tiffin box carriers of Mumbai has been lauded so much that there is even an Harvard Business Review Case Study on them. Much has been written about these men who wear the white cotton kurtas and ensure hot food from homes reach office goers at the perfect time. In other words, it is a classic example of a supply chain model which has been perfected over the years.
So, now on to todays news of Flipkart and their tie-up with the dabbawalas. Apparently at this moment in time, this is in pilot, and a group of dabbawalas are being trained for delivery. Initially they would only be handling orders that are already paid for (would not be handling COD).
This is a pretty innovative thing that Flipkart is getting into. I see several areas where both Flipkart and the dabbawalas can mutually benefit from such a tie-up.
Additional income for the dabbawalas: This is probably the one that bubbles up first. The dabbawalas current schedule mostly works in 2 spikes. One spike to delivery the dabbas from home to offices, and the other to collect the dabbas back from the offices and deliver it back to home. The other times are pretty much open to them to earn additional income.
Additional delivery people for Flipkart: They can choose to be the ‘uber’ of delivery-men. Let me elaborate here. When dabbawalas have their spike time done, and they are free, they can intimate to flipkart, that they are free and for how long. If the logistics and supply chain software is able to allot him a ‘ride’ or a ‘job’ that can be executed within that time, and he is comfortable with it, he can pick it up, and deliver it. This creates an additional pool of delivery people for flipkart. (Another pilot is happening in Bangalore with Flipkart trying a crowd-sourced delivery model).
Processes knowledge sharing: The dabbawalas have perfected the art of sorting, colour-coding, and routing, within a congested city like Mumbai. If they have arrived at this amazing process, which works in a chaotic environment like Mumbai (and mostly using either public transportation or low-key transportation such as bicycles), this model can be replicated in many other cities.
At the end of the day, what the dabbawalas do is to pick up dabba from point X and deliver it to point Y. Isnt this what Flipkart does too, in its last mile delivery – pick up package from Flipkart distribution center at location X, and drop off at location Y (customer)?
This may not be only one way. For all you know, Ekart (which is the delivery wing of Flipkart) may have come up with some processes as well, which uses more modern tech and the use of sophisticated algorithms. It is very well possible that some of this might end up being beneficial in automating processes in the dabbawala community. An immediate example that comes me is bar-coding stickers instead of the traditional color coding.
Dabba delivery as a business: Well, who knows. If this proves lucrative and serves multiple purposes such as delivery on the way, flipkart might even get on to it.
Food delivery: If you replace the origin of the dabba from home to a restaurant, you have food delivery. If you replace restaurant to a catering service, you have a subscription based tiffin service.
The possibilities are endless…