Optimal Logistics Networks: the Case of Italian Exports to Russia

Abstract

This paper is based on the concept of ‘logistics excellence’. In the first part the parameters that define such excellence in the internationalization process of companies are discussed, with particular attention to its effects on the design of logistics networks. A critical analysis of some Italian case studies of “logistics excellence” is presented, to show how some Italian companies, involved in foreign trade, have changed their network design in order to reach excellent performances. One of the most interesting results of this analysis is that in some cases goals behind decisions were too high (“overperformance”) and generated network designs that were too expensive and complex if set against a balanced needs analysis (of clients and logistics operators). Only those who have borne in mind their clients’ needs as well as the need of limiting network costs and have supported their systems with creative choices have managed to achieve the best results within the Italian logistics system. In the light of these considerations, the second part of the article analyses the logistics situation in commercial relations between Italy and Russia (with specific reference on export from Italy to Russia) and points out how, in the face of some structural problems posed by the logistics distribution in Russia, the network design solutions that can reduce costs the most are those which will turn out being the most suitable in the long run. In the light of this, the steps to be taken in order to support the design of adequate logistics networks connecting Italy and Russia are described; the options offered by intermodal transport when adequately combined with newly designed logistics networks are also highlighted.