THE IMPORTANCE OF LOGISTIC VILLAGES IN INCREASING FOREIGN TRADE POTENTIAL BETWEEN COUNTRIES: A STUDY ON ITALY-TURKEY EXAMPLE

Abstract

The ever-increasing globalization and, therefore, global competition can not be solely attained to the advances in information technology, while improvements in logistic activities are also playing a huge part. Effective incorporation of IT within production, marketing, and accounting processes of all businesses brings about more competition among enterprises. In this highly developed competitive environment, enterprises have recognised severe importance of logistics to ensure cost minimization, efficient and quick product supply, and secure and timely transportation of these products to their customer base. In this context, logistics has ascertained itself as one of the most basic business processes of great emphasis and importance, leaving its former position as a support activity of enterprises.
With this study, the logistic villages‟ advantages in this global competition environment will be evaluated, taking into account the fact that logistic activities are beginning to be regarded as a means to competition. By examining the figures of international trade carried out between Turkey and Italy in the last ten years, effects of establishing logistic villages within this increasing mutual trade will be assessed. The relevant cost advantages to be attained by establishment of these logistic villages are evaluated by conducting a survey of enterprises trading between these two countries.