Question

2. Why do world-class companies like FedEx study the dabbawala system? What do they expect to learn?

Answer 1

World class companies like FedEx study the dabbawala system to be able to understand how the dabbawalas are able to manage such a complex and comprehensive logistics system without relying on any high technology application and without incurring high expenses.

The dabbawala system is a highly successful system and the system is highly reliable, efficient and a low cost system. Companies like FedEx which themselves are in the logistics business study the dabbawala system to learn the nuances of their supply chain and of their management and then apply the same to improve their operations, increase their efficiency and lower their costs.

Companies like FedEx expect to learn from the dabbawalas how to better satisfy their customers and further reduce their error rates in their operations. The dabbawalas use a low tech system of delivery that relies on good management and is based on schedules of the local trains, bicycles and delivery men. Companies like FedEx that have huge amount of high-tech assets at their disposal can learn how to use the operational structure of dabbawalas to further streamline and sanitize their operations.