Logistics as a Strategic Variable in Post-1992 Europe.

This article focuses on logistics as a strategic variable in post-1992 Europe. Logistics will play a key role in determining whether American companies will remain competitive within the European Community (EC) after 1992. The Single European Act, which took effect on July 1, 1987, committed the EC to achievement of internal harmonization of member markets by removal of non-tariff barriers in both goods and services by December 31, 1992. The legislation provided for approximately 300 regulatory and policy changes to promote that harmonization. Many of those changes impact on transportation operations within the EC and consequently will affect the logistics activities of American companies operating in the Community. This study addresses these changes and discusses their implications for those companies. The 1987 legislation mandated the creation of a "free transport market without quantitative restrictions." Specifically, the legislation was intended to 1) eliminate delays at border crossings; 2) open transport markets to many new entrants while allowing existing carriers to modify their route networks; 3) simplify documentation; and 4) promote greater price competition among carriers.