EC reveals new logistics plans

Filed in archive Market Overview on July 5, 2006

The European Commission (EC) says that new levels of interaction are needed between supply chain management solutions to improve logistics in the european union (EU) as a whole.

According to the Mikrofax, purchasing software and other procurement solutions must become more efficient and better at exchanging information for there to be an overall improvement in tracking products through transportation.

This comes as part of a wider EC initiative to improve freight transport logistics so as to improve competitiveness while cutting pollution and congestion, ahead of the announcement of an action plan on the topic next year.

The commissioner in charge of transport policy, Jacques Barrot, explained:
"A European logistics policy should keep know-how and talent in Europe and help to avoid the relocation of jobs outside our borders."

He added: "Logistics can optimize the conditions for the delivery of goods. It is a crucial means of making transport more efficient, while limiting the effects of pollution and congestion."

Logistics spending in Europe currently amounts to around €1,000 billion annually and accounts for between ten and 15 per cent of the price of finished products.