Integration of production and transport:

II Abstract The demand for transport is considered to be derived from the demand for produced goods. The amount of goods produced and sold determines the amount of goods transported. Attempts have been made to integrate production and transport activities to create a more efficient cooperation between both activities. Developments such as globalization, pulllogistics, logistic integrators, distribution centers and application of the just-in-time concept create a stronger integration of production and transport. The goal has become to minimize inventories in supply chains and to make goods pass through supply chains so fast that production companies can respond rapidly to increasing or decreasing market demand (Baker, 2004). The following research question was formulated: Research question: How strong is the degree of integration between production and transport within the European Union? Research within the European Union in the years 2003-2007 leads to the conclusion that the degree of integration between production and transport is weak. Transport volume is only explained for 37% by production volume and for 63% by other factors. Transport demand cannot yet be characterized as an integrated demand: Production volume would have to explain over 75% of transport volume and presence of logistical developments should be high. In the EU, the integration of production and transport has even weakened from 2003 to 2007. Integration between production and transport appears to be strong in specific production sectors. Transport demand can be characterized as an integrated demand in production sectors Machinery and Food, due to the strong presence of logistical developments in these production sectors. Integration is also strong in production sectors Metal, Chemicals and Mineral despite their weakly developed logistical chains. Integration is weak in production sectors Mining and Fuel since these sectors produce mostly raw materials, and surprisingly weak in the Clothing industry since clothing are retail products. Integration between production and transport is stronger in a country with excellent.