The Role of Time in the Supply Chain

Abstract

Time plays an important role for every participant of the supply chain because of the need to ensure internal efficiency, and because of the external pressure of the time-based competition. For the connection of participants, time also plays the leading role because of the global size of production, purchasing and distribution. The size of the supply process is determined by logistics, since transport and different kinds of waiting make up most of the time-demand. Different interests stand behind the reduction of waiting time, depending how expensive the sacrifice of waiting is for each participant. The study examines the buyer’s attitude to time on three levels, from the view point of the business participants of the supply chain.  Examining firms as buyers reveals their attitudes toward time, the details of practical handling of time, the preference of time - as a logistical quality factor. The results of the empirical research proves that the decision preferences of organizational buyers concentrate on time. Based on the practical handling of the time-factor there is a segment of time-sensitive buyers which shows time-conscious behaviour and needs another kind of service from the suppliers.