“The Future of Logistics in the Richmond
Region ”
A Framework for Collaborative Logistics Research
Michael S. Williams
Chief 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 Future
Chair: Dr. Keith Miller
President
Virginia 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
History of the CCALS
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
Concept
Technology Readiness Levels (TRLs) 1 Through 9
New
Ideas
11
22
3
3
Basic Research
and Technology
Creation
44
66
55
Application
Development and
Proof of Concept
7
7
8
8
9
9
Product Development
and Commercialization
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
New
Logistics
Products
and Services
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
Industrial
Operations
Board
Technical
Advisory
Council
Executive
Director
Executive
Assistant
• Board of Directors
• One member from each Organizing Member
• Chair of Industrial Operations Board is a Member
Director of
Research
Other Staff
Directors as
Needed
• 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
Research Staff
Members
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
Funding Model
Applied Research Portfolio
50% of Fee
Directed
Research
Defined by Member
IP owned by Member
Annual Fee
CCALS
Member
Companies
50% of Fee
Generic
Research
Defined by Members
IP owned by CCALS
Additional Member Funding
Federal
Sponsors
Federal Funding
Collaborative
Research
Defined by Sponsors
Sponsors Define IP Rights
Workforce Development
Education
Educationand
and
Training
Training
Curricula
Curricula
KK-12
-12
Schools
Schools
Community
Community
Colleges
Colleges
Universities
Universities
Workforce
Workforce
Pipeline
Pipeline
Training
TrainingCenters
Centers
Workforce
Workforce
Readiness
Readiness
Levels
Levels
CCAM
CCALS
Industry
Industry
Members
Members
Future
FutureJobs
Jobs
and
andRequired
Required
Skills
Skills
CCAM
CCALS
Workforce
Workforce
Team
Team
Advanced
Advanced
Manufacturing
Logistics
Industry
Industry
Assessment
Assessment
Methods
Methodsand
and
Analysis
Analysis
Global
Global
Standards
Standards
and
andBest
Best
Practices
Practices
18
Next Steps
Develop business plan
Secure state financial support
Appoint Initial Executive Director
Develop branding platform
Create CCALS as a legal entity
Sign initial organizing members
Launch website
• Develop initial research roadmap
• Sign next 2 organizing members
• Sign first Government Associate
• Develop plan for facility
• Initiate research programs
Completed
Completed
Completed
Completed
Completed
Completed
Completed
January 2013
June 2013
June 2013
June 2013
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 Problem
Connecting with Top Talent
Owning the solution
Sharing the costs
Commonwealth Center for
Advanced Logistics Systems
www.ccals.com