CSCMP Global Perspectives. Italy.

In close proximity to the two European corridors, north to south and east to west, Italy is the logistics hub of southern Europe. It has a population of 58 million people living in an area slightly larger than the state of Arizona in the United States (approximately 300,000 Km2). The economic system is composed of more that 4 million manufacturing and service firms, about 235,000 private non-profit institutions,and more than 15,000 public institutions. The peculiarities of the Italian economy are the prevalence of small-sized firms (employing more than 80% of the total workforce), the differences between North and South, and the organization of 200 industrial districts. The Italian logistics industry is the most fragmented in Europe and is considered to be “still developing.” The logistics industry composes about 11.5% of GDP and it is “transport intensive.” For this reason competitiveness depends very strongly on public infrastructure policies. Italian supply chains could be defined as internationally-based, export-oriented... and really openminded. The main effort in improving supply chain operating capabilities is still cost reduction, primarily via outsourcing to Romania, Eastern Europe and, more recently, to China. If foreign companies make an effort to understand the “Italian way” of managing a business, there are potentially good investment opportunities in Italy.