Time-Based Competition in Supply Chain Management: A Case Study of Zara

This document discusses the concept of time-based competition in supply chain management and its effectiveness through a case study of Zara. It explores the key elements required for success in delivering great quality in time-sensitive operations and provides examples from various industries. The document also evaluates the information presented and offers insights into the concept of time-based competition. It further outlines how Zara delivers its products/services using time-based competition concepts.

Operations
Management and the
Supply Chain

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Overview of Time based competition.........................................................................................4
Evolved to make their supply chain processes faster..................................................................5
Literature search on time based competition .............................................................................5
The key elements required to be successful in delivering great quality in time-sensitive
operations. ..................................................................................................................................6
Give examples that demonstrate wider reading including facts and figures from a variety of
industries.....................................................................................................................................7
Evaluate the information presented and give the reader an insight into your educated
viewpoints on the subject and the content you have presented...................................................8
Apply the ideas/concept of time-based competition to an organisation you are a familiar with.
.....................................................................................................................................................8
Outline how they deliver their products/services using time-based competition concepts.........9
The industry and other environmental constraints that influence their approach ....................10
Critical evaluate the effectiveness of industry standard and its prospects ...............................10
CONCLUSION..............................................................................................................................11

INTRODUCTION
Operation management defines as the procedure that support in successful
accomplishment of several operations that get performed within the enterprise efficiently. On
other side supply chain is refers to the network of all individual, resources, activities,
organisational and technology that involve in production and sale of a commodity which remains
between the delivery of source material from the supplier to the manufacturer (Yuen and Thai,
2017). Current project is based on a time-based competition approach of supply chain
management and its effectiveness over an organisation. In addition to this it further expanded
with the implantation of this strategy over Zara which is an internation brand of fashion product
and accessories, along with its critically evaluation over the effectiveness and meeting up with
the industrial standards.
MAIN BODY
Overview of Time based competition
Time based competition
It identified that time based competition is used by management team of a company for
gaining competitive edge at marketplace (Hugos, M.H., 2018). It is a concept which is used by
the large number of organisation in order to reduce their time which is involved in performing
their tasks. All those organisation which effectively used their time and change themselves
according to the situation will be able to gain various advantages at the marketplace.
Definition: Time based leads to develop and establish new and fresh relationship among
consumers and suppliers which result in saving both time as well cost of the company, helps in
enhancing productivity and efficiencies within stipulated time frame (Kshetri, N., 2018). It is a
time based competition that get extended from Just In Time approach assist in each activity of an
organisation. It is a competitive strategy which is mainly focused on time as they consider it one
of the most effective method in order to attain goals and objectives. It is very essential for a firm
or organisation to modify its current methods as well as alter their decision making structure
which is used by the management team in order to produce high quality goods and services.
Origin: Time based competition was firstly launched by BCG in the year 1980. It is the
concept developed by George Stalk and Tom Haut. Basic need of this concept is to fulfil the

requirements and demands of customers by producing high quality goods and services within
stipulated time frame.
Evolved to make their supply chain processes faster
Time bases competition is mainly a presentation of power of time management and the
manner in which company can use this for gaining more competitive advancements. It came into
existence within its occurrence in 1988. It is mainly termed as a competitive strategy that mainly
focus towards time being a main factor in order to achieve and maintain competitive advantage
at sustainable manner (Choi, Wallace and Wang, 2018). This support in making the supply chain
of an organisation faster as it never leave any option to get delayed in supplying of product or
services by keeping the source available fro quicker availability to product fro further supply.
Literature search on time based competition
As per the information presented by the Christopher, Harrison and van Hoek, 2016,
Time-based competition is given by George Stalk and Tom Haut which then get documented
within a book named as “Competing Against Time.” This theory was presented by them after
observing that the Japanese companies not focuses over the volume for competing with others
rather they focuses toward minimizing the production time as well as factory lead time with an
aim to increase the speed of work. This allowed them for maintaining a Flexible manufacturing
which support in producing product of many variety that contribute toward increasing the market
share while maintaining the quality of products or services (Quang and et. al., 2016). The focus
was made over the value delivery system by considering organisation as a whole where manager
realize the operating and strategic advantage by managing time, eliminating waste and reducing
the lead time. This concept was formulated as it support in establishing the better relationship
between the customer and supplier which further contribute toward the saving time and cost as
well as support in enhancing the productivity and help in customizing the product or services for
the individual customer which brings up maximum satisfaction.
According to the view point of George Stalk, 2019, time-based competition is basically
refers to a concept which companies mainly uses in order to meet the need of its customer and
responding to the changing need of market which work more faster than that of competitors,
growing business faster and to become more profitable than other rivals already present in
industry. The time is considered as a strategic weapon as it is consider as equivalent to the
money, quality, productivity and even innovation. This concept was first introduced by the

Boston Consulting group in late 1980s over one of the BCG's short essay named as perspectives.
It demonstrated as the ability of managing time and manner in which company can utilise it to
achieve competitive advantage. For companies which utilises time as they revert and being
adaptable to the change within the market place, support them in dealing with the obstacles in
order to achieve the adaptive advantage. This support na organisation to improve its services by
managing the time of the operations performed on continuous basis. This in turn not only ensure
the accomplishment of task on deadlines but also support in delivering timely services to the
customer which in turn help in keeping them happy and satisfied from the effort of the
organisation (Stevens and Johnson, 2016).
The key elements required to be successful in delivering great quality in time-sensitive
operations.
In order to achieve success there are several factors to be consider while implementing
the Time-Based competition. These includes, technological evaluation which requires an
organisation to perform its operations while considering the technological factors which are
crucial to be involve within the offerings as per market trend. Another factor to be consider for
success is competitors movement this is because it is crucial for an organisation to determine the
competitors actions and the formulate strategies accordingly to deal with it. In addition to this
while implementing the time-based competition it is also crucial for the organisation to consider
the customer demand so that product can be arrange and deliver on timely manner to the
customer so that required satisfaction from them can be achieved. In order to become a time-
based competitors an organisation must focuses toward executing the structure as well as
organisational change within three key areas which includes,
 Manufacturing:- Companies mainly uses just in time production as well as flexible
factories which help them in applying fewer employees within the production process in
order to develop more good within less possible time while lowering the cost. This
mainly perform by switching the workers with machinery as a result of products can be
manufacturer much more faster that support in increasing the productivity of the
organisation while minimizing the time and cost at they same time (Yazdani and et. al.,
2017). Hence, this support the organisations in eliminating the delays in operation and
manufacturing of products as a result of wh9ich it support in producing the time based
competitive advantage.

 Sales and Distribution:- Another phase is for optimizing the sales as well as
distribution channels which support in preventing the loss in term of any kind of time
based gains from refining the manufacturing or production process. For instance, an
organisation which is only shipping the volume of product which they want to sell as a
result of which it require less storage as well as fewer employees are required as there
are not such inventory maintain which required to take care and managed.
 Innovation and product development:- At last, organisational should focuses on
brining the products faster to the market than that of its competitors when it is based over
innovation cycle. This is because when a particular organisation reduces its new product
development and then introduce a cycle then they get a instant advantage by bring the
product in the market first (Oloruntoba, Hossain and Wagner, 2016). This in turn also
support them in shifting the balance of power within the industry and forcing the other
rivalry to react over this. Hence this first initiator will act a positive factor which support
the organisation in achieving competitive advantage.
Hence, reducing and eliminating the time delays within all of the above three areas will
allow the companies in reducing the costs, staying closer to users and improving the quality of
products or services which in turn contribute toward producing a time-based competitive
advantage to the company.
Give examples that demonstrate wider reading including facts and figures from a variety of
industries.
Time based competition support a business to meet with the need and expectation of its
customers in more effective manner that leads to maximum satisfaction. As a result of which
organisations mainly adopt the time based competition in order to achieve sustainability at
marketplace. For instance, while the manufacturing or production process within automotive
suspension components, Japanese organisations mainly not compete over volume rather they
compete over reducing the product development time and factory lead time for increasing the
speed which allows flexibility in producing variety of product which increase the market share
while marinating the quality level. Hence, with the comparison of Japanese companies with US it
has been found that US competitors maintain a volume of 10 million unit with 242 employees
which results into annual unit per employee is 43000 and the type of finished part will remains at
11. But on the other side annual volume of 3.5 million with 57 employees total results into 61400

annual unit per employee and 38 type of finished parts. From this it can be state that by making
use of Time Based Competition Japanese organisations are performing more effectively as
compare to organisation that operates within the US.
Evaluate the information presented and give the reader an insight into your educated viewpoints
on the subject and the content you have presented.
As per the information evaluated it has been identified that the Speed is consider as a
competitive factor that achieve more importance with the companies strategies which are dealing
at the global market competition. The company is trying to compete for getting the quick
responses to the demand of customers in term of new product as well as technologies that get
introduces in market. Such competition within the term of time is defined as the TBC. The
companies which implement time based competition mainly seeks toward reducing the period
which is devoted to each phase of a general cycle by avoiding the activities that are not adding
any value to the process which support in shortening the time and help in efficiently coordinating
the value added activities (Alfreda Sapkauskiene and Sviesa Leitonien, 2010). If respond time
toward the customer need is shorten as compare to other rivals then the company become able to
achieve the competitive supremacy as it support in shortening the time of delivery, lowering the
cost, flexibility, higher quality and credible delivery. There are basically two important cause
behind the fact that time is influencer for the financial success of a company. This is because by
showing the quick response the company become able to find the favour with consumer which
results into increase in market share and higher sales. In addition to this it also support the
organisation to deal with the change by reacting on timely manner which leads to radical
achievement of quality and productivity which in turn also contribute toward reducing the time
and cost of production.
Apply the ideas/concept of time-based competition to an organisation you are a familiar with.
The organisation consider under the study of time-based competition approach is Zara
which is a fashion retailer that offer variety of product or services that includes shoes, clothing,
swimwear, beauty, perfume, accessories etc. It is consider as world's largest apparel retailer as its
offering high quality and unique design products or services. But the fashion industry run at the
higher degree of uncertainty where changes are being anticipated much quickly (Moreira and
Tjahjono, 2016). Therefore, with such dynamic environment it become difficult for the company
to predict the market and forecasting the raw material and supplies which are required for

production. In past mainly push factor is consider by the retailer where they usually push the
style and new outfit to market but this strategy is not fruitful for today as with the new entrant
competition get spread at every corner of the industry and brands now started to listening the
customers. Hence in order to maintain the customer base, ZARA has decided to adopt the Time-
based competition strategy where it aims toward providing quick response to the customers by
satisfying their need. For this Zara has decided to stand itself as a leader within the apparel
industry by adopting a unique supply chain strategies (Zara’s Fashion Retail Supply Chain
Strategies, 2014).
Outline how they deliver their products/services using time-based competition concepts.
As the major complexity of supply chain management is the dependency of export from
developing countries as majority of garments produce in world get exported within the
developing country which increase the cost involved within the transporting material as well as
finished good (Lai, Sun and Ren, 2018). Hence to deal with this, Zara formulated several
principle to be followed by applying the time-based competition approach with an aim to
increase the net income and maintain a standing brand that is both affordable as well as fashion
forward. These principles are mentioned below:
 Quick response to demand:- For this Zara has followed the pull model within their
inventory and supply chain management for which they have decided to create up to 1000
design per month as per the current trend and store sales. They started monitoring the
customer spending within the store for understanding and evaluating for determining the
type of design being consumed and then iterating accordingly for next design (Choi, Chiu
and Chan, 2016).
 Small Batch Productions:- Zara focuses over producing its product in small;er
quantities which give them an opportunity to determine which of their designs are
successful. This also supported them in exploring the new design and understand its
acceptance in the market (Durach, Kembro and Wieland, 2017). This in turn reduces the
risk of developing the product in higher quantity of something which customer don't
require. The idea of investing in different design is not appropriate and also costs high,
hence Zara focuses over optimizing the same material in different ways.
 Central Distribution centre:- Zara maintain a strong IT system which back its
distribution. For timely delivery of products all the clothes are firstly deliver to the Spain

i.e. the central location and then it is distributed to different countries as well as stores
that are based on individual needs and requirements of particular locality.
The industry and other environmental constraints that influence their approach
These are the principle which Zara has developed with the help of time-based
competition approach support it in achieving the competitive edge. But despite of this, there are
certain issue or constraints that are present in external environment which may influence the
performance of Zara while performing business operations in marketplace. These are mentioned
below:
 Social factor:- As the Zara focuses over producing its cloth design in smaller quantity as
a result of which sometimes their may be high demand for a particular design
(DuHadway, Carnovale and Hazen, 2017). At that time unavailability of product may
affect the brand image or customer perception toward Zara that may affect customer
choice for future purchases.
 Economical factor:- The economical recession may also be consider as a issue to
company as if when a country is facing the recession issue, purchasing power of
consumer may also get affected. As a result of customer demand for product that are of
low price. This demand is not possible to be met by Zara as for this it is required to
reduce the quality of product but that may affect its brand image. On the other side if not
adjust with this then the it may leads to vanishing of company's profit or somewhat
existence from that particular nation.
Critical evaluate the effectiveness of industry standard and its prospects
The Zara is consider to be world's top most brand in term of offering high quality and
trending cloth which always remain in the demand from the customers. But as it uses a high
quality raw material its production costs relatively higher in term of raw material, manufacturing,
supply and distribution (Coughlan and et. al., 2016). But after the implementation of time based
competition the performance of Zara has get enhanced and it also become able to minimize the
cost as well as wastage in term of its manufacturing process. In addition to this, it has also brings
up a benefit to the Zara that it become able to offer its product and services as per the customer
demand which in turn allow it to offer the clothes or other accessories that are different each
time. Hence it support Zara in keeping its product differentiated from that of competitors in
marketplace all the time. This in turn allow Zara to maintain its stronger customer base by

offering unique products all the time and being adaptable to the changing customer demand in
the market.
With the implication of this, Zara become able to not only enhance its productivity and
brining efficiency to its operations but also be able to maintain its positive image within the
marketplace by keeping its operations align with the industrial standard. Among them in order to
reduce the wastage of cloths or raw material as well as cost of the production. It has started the
repair and reuse program which allow customer to drop their used garment in store so that they
can be recycle this in turn not only contribute toward reducing the wastage but also help Zara in
creating its positive image within the marketplace and among the customers. In addition to this it
also help Zara in saving the cost (How Ethical Is Zara? 2018).
Despite of this, Zara labels mainly identify the items that get produced using the most
sustainable raw material such as recycled material or organic cotton and the synthetic fibres
which are forest-based which are made using an efficient process such as Tencel® Lyocell or by
producing the clothes that are technological produced with the help of renewable energy or
which make efficient use of energy or water (The quality of our products, 2014). The main
reason behind using such material is that these are cost efficient, more environmental friendly,
easy to recycle and doesn't have any side effect to the consumer. Hence it can be said that the
implication of time-based competition strategy proves to be fruitful for the Zara as it become
able to perform its operations in effective manner while considering the industrial standards
which contribute toward enhancing the brand image in front of the authorities, customers and
other stakeholders that leads to greater sustainability.
CONCLUSION
From the above mentioned report it can be conclude that operation and supply chain
management is consider to be one of the crucial factor which support an organisation to enhance
its efficiency while ensuring the performance of operations in cost efficient manner. In addition
to this it also support an organisation to be able to improve its performance by keeping the stock
maintained as per customer demand and keeping it available all the time so that it can be
delivered on timely manner. The time-based competition is a strategy of supply chain
management which proves to be most effective as it allow a company to compete over time by
making product available to the customer on timely manner before the competitors while
reducing the time and cost of the company.