New Ruan VP sees logistics expansion

Bob Silverman, a 20-year transportation veteran and the new VP-sales in the southwest U.S. for Des Moines, IA-based logistics provider Ruan Transportation, believes logistics outsourcing is going to increase in the near future as shippers seek to reduce the risk and cost derived from operating their own transportation networks.

"Logistics outsourcing as a trend will continue throughout 2005 because it makes good business sense," he said.

Silverman cities four reasons why he thinks it makes good business sense going forward for companies to outsource elements of its supply chain: To reduce the risk of operating a fleet of trucks; to obtain expertise you don’t have yourself; to gain resources you don’t have; and to return to your core business and concentrate on what you do well.