“The Future of Logistics in the Richmond Region ”

A Framework for Collaborative Logistics Research

Michael S. WilliamsChief Operating Officer

Logistics Management Resources, Inc.

Main Topics

• The Future of Logistics in the Richmond Region: Getting to the Tipping Point

• Commonwealth Center for Advanced Logistics Systems

Agenda

• Background• Future of Logistics Report• Commonwealth Center for Advanced Logistics

Systems• Next Steps• Concluding Thought• Discussion

Background• Logistics

• Management and compliance of the flow of resources from origination to consumption• Integration of technology, processes, policies, and people to accomplish the goals

• Virginia is a hub of logistics• Fort Lee is the home of the Army Logistics University• Fort Belvoir is the home of the Defense Logistics Agency (DLA)• Richmond is the home of the DLA – Aviation • Port of Virginia offers the deepest shipping channels on the U.S. East Coast• On-dock rail service makes the port a true multi-modal transportation hub• Panama Canal expansion enhances Virginia’s position as a hub

• Virginia’s universities provide expertise critical to logistics systems• Business – supply chain management, currency exchange issues, contract management• Engineering – process modeling/optimization, risk management, security, human factors• Public policy – compliance, export control, taxation, infrastructure investments• Workforce – STEM degree programs, certificate programs, interns

• Central Virginia can and should be a leader in the future of logistics• Focal point is needed to bring public and private entities together• Commonwealth Center for Advanced Logistics Systems (CCALS) provides the solution

The Future of Logistics in the Richmond Region: Getting to the Tipping Point

Report of the Logistics Task Force of Richmond's FutureChair: Dr. Keith Miller

PresidentVirginia State University

October 27, 2012

Strategic Mid-Atlantic Location

Regional Features

• “Logistics is a business sector that links the entire Metropolitan area, from Hanover to Richmond to Dinwiddie

• The logistics Industry can provide substantial employment opportunities across a large (number) of occupations…..

• Logistics is a business sector that can link the Richmond region to the increase in global trade………”*

*(Future of Logistics…, page 5)

The Tipping Point

• Central Virginia’s Strategic Location• Existing / New Logistics Enterprises• Army’s Sustainment Center of Excellence- Fort Lee• Ports / RIC

Complementary Initiatives

Development of the Port of Richmond Creation of CCALS Amazon facilities Creation of the Army Logistics University

Commonwealth Center for Advanced Logistics Systems

2005 BRAC impact –Fort Lee –November 2005

HR 487- July, 2007 recognized modeling and simulation as a national critical technology

VLRC Feasibility Study - May 2009

Strategic Plan for VLRC – July 2010

Strategic Plan briefing to CPDC Executive Committee – August 2010

Key Stakeholders meeting at Fort Lee – January 18, 2011

Core Team planning retreat held at VSU – April 14-15, 2011

Core Team planning retreat at Longwood U (Business Plan) – June 15, 2011

History of the CCALS

Technology Readiness Levels (TRLs) 1 Through 9

 1

 2

 3

 9

 8

 7

 6

 5

 4

Basic Research and Technology

Creation

Application Development and Proof of Concept

Product Development and Commercialization

New Logistics Products

and Services

New Ideas

University Partners

CCALS

Member Companies

CCALS will transform businesses through a collaboration that bridges the gap between research and commercialization to

accelerate delivery of new innovations and skilled workers to the logistics industries

1 2 3 4 5 6 7 8 9

Concept

Mission• Bridge the gap between research and commercialization

• Accelerate solutions into the market• Solve industry-defined problems

• Foster collaboration between diverse industry sectors• Directed Research for the benefit of an individual member• Generic Research for the benefit of all members

• Create transformational improvements in logistics systems• Reduce cost and time to market• Improve quality

• Lower the cost of applied research for member companies• Shared facilities and personnel• Shared pre-competitive applied research

• Train the next generation of technology leaders• Access skilled workers with industry experience and students with industry-defined

skills• Connect industry with students

Industry Led Governance Model• Virginia Non-Stock Corporation

• All founders are equal partners• Easy access to each university

• Multiple Levels of Membership• Organizing Industry Members• Organizing University Members• Tier 1 and Tier 2 Industry Members• Academic and Government Partners

• Board of Directors• One member from each Organizing Member• Chair of Industrial Operations Board is a Member

• Industrial Operations Board• One member from each Organizing and Tier 1 Member• One member elected by Tier 2 Members

• Technical Advisory Council• Creates technology roadmap defined by industry needs• One representative from each member

Value Proposition

• Shared resources• Lower R&D costs through shared funding of Generic Research• Lower risks by connecting industry problems with new ideas• Leverage government funding through Collaborative Research

• Novel intellectual property policy• Own results of Directed Research• Access at no cost results of Generic Research

• Industry directed applied research program• Reduce time to market by focusing research talent on industry problems• Provide a trusted environment for industry to share common problems• Provide an easy connection to strong talents in the Universities

• Access to workforce• Access students with industry defined skills• Assess students through internships and project participation

Core Competencies

• Large scale logistics systems • Supply Chain system dependability, reliability, security and

trust• Human factors in logistics (demographics, workforce,

behaviors and processes)• Supply chain and risk management• Logistics system modeling and simulation• Large scale data management, integration and analytics• Enterprise systems integration, application and customization

Initial Partners• University

• Longwood University• University of Virginia• Virginia Commonwealth University• Virginia State University

• Defense Community• Sustainment Center of Excellence (Fort Lee)• Army Logistics University• Defense Logistics Agency – Aviation

• Public Sector • Virginia Economic Development Partnership (VEDP)• Crater Planning District Commission (CPDC)

• Industry• Logistics Management Resources (LMR)• Logistics Management Institute (LMI)

Longwood University

Directed Research

Generic Research

Collaborative Research

Annual Fee

50% of Fee

50% of Fee

Additional Member Funding

Federal Funding

CCALS Member

Companies

Federal Sponsors

Defined by Member

IP owned by Member

Defined by Members

IP owned by CCALS

Defined by Sponsors

Sponsors Define IP Rights

Applied Research Portfolio

Funding Model

CCAMIndustry Members

Future Jobsand Required

Skills

CCAMWorkforce

Team

K-12Schools

CommunityColleges Universities

GlobalStandardsand BestPractices

WorkforceReadiness

Levels

AssessmentMethods and

Analysis

Education andTrainingCurricula

WorkforcePipeline

AdvancedManufacturing

Industry

Training Centers

CCALSIndustry Members

Future Jobsand Required

Skills

CCALSWorkforce

Team

K-12Schools

CommunityColleges Universities

GlobalStandardsand BestPractices

WorkforceReadiness

Levels

AssessmentMethods and

Analysis

Education andTrainingCurricula

WorkforcePipeline

AdvancedLogisticsIndustry

Training Centers

Workforce Development

18

Next StepsDevelop business plan CompletedSecure state financial support CompletedAppoint Initial Executive Director CompletedDevelop branding platform CompletedCreate CCALS as a legal entity CompletedSign initial organizing members Completed Launch website Completed• Develop initial research roadmap January 2013• Sign next 2 organizing members June 2013• Sign first Government Associate June 2013• Develop plan for facility June 2013• Initiate research programs January 2014

Concluding Thought

CCALS has been designed to provide transformational improvements in logistics systems that reduce costs, improve quality and dependability and reduce time to market……..CCALS members work together in……

Defining the ProblemConnecting with Top Talent

Owning the solutionSharing the costs

Commonwealth Center for Advanced Logistics Systems

www.ccals.com