The Logistics Input‐Output Model and its Application

As a development of the study of the possibilities for improvement in logistics productivity in the United States conducted by A.T. Kearney on behalf of the NCPDM (National Council of Physical Distribution Management) a similar enquiry has been carried out in a number of Western‐European countries. The results indicate that the potential savings in logistics in Europe are at least as big as those in the United States. To inform Dutch industrial top management of these results NEVEM (the Dutch distribution management association) organised a seminar, “Productivity through logistics”, in Amsterdam. The conclusions of this seminar were that, in order to achieve productivity improvement, a “top‐down approach” in the organisation is necessary and also continuous attention to such improvements. Based on the interest of Dutch industry, NEVEM instituted a working group with the following assignment: