Dr. Noel P. Greis, Director Center for Logistics and Digital Strategy Kenan Institute of Private Enterprise Kenan-Flagle

1. The Future is Here… INTELLIGENT LOGISTICS! New Opportunities for KFBS MBAs in the Center for Logistics and Digital Strategy Dr. Noel P. Greis, Director Center for Logistics and Digital Strategy Kenan Institute of Private Enterprise Kenan-Flagler Business School University of North Carolina at Chapel Hill

2. A SNAPSHOTUNC Center For Logistics And Digital Strategy • Established in 1997 as a resource for organizations struggling with logistics complexity and enterprise change management • Areas of Specialization • Strategic visioning for intelligent enterprising • New logistics technology (Intelligent Software, RFID, Wireless, GPS/GIS) • Logistics and Supply Chains in Emerging Markets • Logistical Network Planning and Design • Intelligent Supply Chain Management Strategies • Serves both public (SAP, FedEx, Boeing, Caterpillar) and private sector (NSA, DARPA, NASA, FAA) organizations • Founding member of the Global Logistics Research Initiative (GLORI)

3. OUR PREMISE…. New intelligent software and sensor technologies will change everything about how products and services are defined and delivered and how companies interact with their customers and suppliers.

4. WHAT IS INTELLIGENT LOGISTICS? Example …A truck moving equipment from a logistics hub to a sports venue is caught in a traffic jam. …The truck’s position and contents are known, as well as a snap shot of local traffic densities. …An “intelligent” decision can be made in real-time regarding re-routing or substituting equipment from an other venue. Intelligent logistics can be defined as the application of intelligent technologies, including RFID/sensors and intelligent software agents to manage increasingly complex logistics processes so they are real-time, event-driven, responsive and adaptive.

5. THE FUTURE…… Smart products/systems linked by smart processes to intelligent, closed-loop logistics networks that produce, maintain (and enhance) the utility of the product/system … until ultimate disposal.

6. WORK WITH OUR INDUSTRY FELLOWS • Manny Aparicio, CTO and Founder, Saffron Technology, and technologist extraordinaire. • Jack Olin, former VP for Technology, Delphi Europe and automotive guru. • Gayle Sheppard, former VP, J.D. Edwards and People Soft, IT marketing whiz. • Lowell Hoffman, former vice president and global chief purchasing officer for National Can, Kraft and Colgate-Palmolive, currently president Global Sourcing Solutions. • Richard R. Rocks, Advanced Support Concepts, Boeing, known as “God of Logistics” at Boeing.

7. TAKE A TEST DRIVE IN THE INTELLIGENT SYSTEMS LAB • “Virtual” laboratory for experimental intelligent logistics • GLORI lab links Kenan Institute’s ISL (Intelligent Systems Lab) with similar labs in Mexico and Netherlands • Explore electronic commerce and new logistics practices • Simulation modeling and computational capabilities • Playground for intelligent software agents • Global collaboration - Virtual Teaming Project Building a Dynamic and Intelligent Logistical System Layer by Layer

8. PARTICIPATE IN GLORI?Global Logistics Research Initiative Tsinghua University University of North Carolina Business School, Kenan Institute of Private Enterprise Chalmers University Dept. of Transportation and Logistics University of WarwickWarwick Manufacturing Group Brunell University Technical University of DelftFaculty of Mech. Engineering and Marine Technology University of Applied Sciences Cologne Faculty of Business Administration University of Hamburg-Harburg Instituto Tecnologico Estudios Superiores de Monterrey (ITESM) Hong Kong Polytechnic University Chulalonghorn University The Kenan Institute Asia Bangkok, Thailand Nat. University of Singapore Faculty of Business Administration Global Network of Logistics Excellence

9. The Chinese Century? KENAN-TSINGHUA CENTER FOR LOGISTICS AND ECONOMIC DEVELOPMENT IN BEIJING • New Opportunity for KFBS • Partnership with Tsinghua University • Research Collaboration for Faculty/Students • Consulting with Multinational/Chinese Companies • MBA Summer Internships in China! Pre

10. Interested in China? • Industry-Focused Projects on Emerging SC and Logistics Trends and Outsourcing in China • Aviation and Aerospace - Boeing • Retail and Fashion – Liz Claiborne • Automotive – General Motors • Electronic – Motorola • Research Assistants – Paid and Unpaid • When – Spring Semester 2006 • Forthcoming workshop on Business and Logistics in China! Work on a team with Prof. Jay Swaminathan and Prof. Noel Greis, along with Tsinghua students and faculty

11. Boeing’s Chinese Suppliers *Boeing holds $1.6 Billion in contracts with China’s aviation industry

12. OLYMPIC LOGISTICS Looking for Students to Help with Planning and Execution! February 2005 1st Annual Olympic Logistics Symposium – Learning from the Past and Planning for the Future February 2006 2nd Annual Olympic Logistics Symposium – currently being planned… Crisis Management theme

13. INTERESTED IN TECHNOLOGY?Convergence Of Enabling Technologies NetworkingInternet, Wireless Communications, Open Architectures, etc. Enabling Technologies Sensors, RFID, Prognostics “INTELLIGENT LOGISTICS” Intelligent Software Machine Agents, Multi-Agent Systems (Learning, Self-Organizing Computing Infrastructure Grid Computing, Peer-to-Peer Convergence new “intelligent” technologies is enabling a potential transformation in logistics

14. RADIO FREQUENCY IDENTIFICATIONGARTNER HYPE CYCLE (circa 1995) Peak of Inflated Expectations RFID is an Emerging Technology TECHNOLOGY 2004 Wal Mart Mandate 2008 Beijing Olympic Games Slope of Enlightenment 2007 2003 Plateau of Productivity 2005 Technology Trigger 2006 Trough of Disillusionment TIME Source: Gartner Group

15. What is CLDS Doing in RFID? • Consortium member of EPCGlobal • Participant in START project (SME-Tailored Applications of RFID Technologies”) with 14 European universities/companies, ITESM, and China European Business School • Building demos and applications in the ISL….and Interest in RFID brown-bag seminar series to help develop business cases for our clients?

16. ….working with Boeing “THE RFID-ENABLED AIRCRAFT” • Support Maintenance Personnel • Aircraft Configuration, Emergency Battery Status ....... • Support Flight Crew • Navigation Charts On-Board, Minimum Equipment List ...... • Support Flight Attendants • Meals on Board, In-Flight Entertainment Inventory....... • Support Baggage Handlers • Orphan Baggage….. • Support Maintenance Personnel • Aircraft Configuration, Oxygen System Status, Emergency Battery Status, Fire Extinguisher Status....... • Support Flight Crew • Navigation Charts Present On-Board, MEL Check, Software Configuration, ........ • Support Flight Attendants • Meals on Board, Liquor Status, Boxes of Peanuts, Emergency First Aid Kit Status, In-Flight Entertainment Inventory....... • How Should this Capability be Integrated with the Aircraft? • How Should this Capability be Demonstrated? • Volunteers? RFID will be integrated with wireless network inside aircraft to provide core aircraft functions

17. “BROKER” MODEL for PARTNERING WITH TECHNOLOGY START-UPS CLDS Technology Partners Saffron TechnologyAssociative Memory Topia VentureMobile Agents Magenta TechnologySwarming Agents 3D-Solve Virtual Reality Training CLDS is engaged in a pro-active way with technology developers as well as industry and government to create the intelligent technologies of logistics! Technology Start-Ups Logistics Companies CLDS Private/Public Sector Clients

18. CLDS Technology Partner in UK (programmers in Russia!) • Intelligent Software for Scheduling and Network Management • Real-time, Event-driven Network Control • RA Margaret Harrelson (KFBS MBA)

19. SAFFRON TECHNOLOGYAssociative Memory For Adaptive Learning • BIOLOGICALLY INSPIRED LEARNING! • Builds an associative memory like the Human Brain does. • Has the ability to recognize patterns and correlations across large and complex datasets (more than 1M attributes). • Ability to scaleto extremely large problems and datasets using patented compression technology. Think of Saffron as providing “the brain” of the Intelligent Agent. Associative Memory, developed by Saffron Technology, offers the ability to learn “on-the-fly” without rules!

20. DEVELOP BUSINESS CASES WITH SAFFRON • Work with Saffron Technology (located in RTP) • Named “Best Place to Work in Triangle” • 3-Month Pilot/Feasibility Studies • Associative Memory Intelligent Software • Project Teams – MBAs, CLDS Industry Fellows, Saffron Staff • Paid! • First Project….Lowes or Glaxo….starts in November www.saffrontechnology.com

21. PROGNOSTICS THE PILOT PROJECT(Prognostics-Integrated Logistics) A consortium of universities, aerospace manufacturing companies and airlines that have aligned to engage in collaborative research and development activities to achieve significant advances in (intelligent) aviation services.

22. WHAT IS AN INTELLIGENT SERVICE? Real-Time Info Process Control On-Board Diagnostics and Prognostics 1 RFID-Enabled Spare/Repair Parts Visibility Prognostics Make Unexpected Failures “Expected” 2 3 Off-Board Processes and Agent-Enabled Intelligent Decision Support Tools AIRPORT AIRPORT SYSTEMS GOAL: Keep aircraft in sky!

23. COLLABORATIVE LEARNING FOR SECURE LOGISTCS MBAs Needed to Develop Module 5 China Case – Summer 2006 Supported by National Science Foundation

24. TO CONCLUDE • If you are interested in… • Supply Chain Management and Logistics in China • Logistics Outsourcing • Beijing Olympics 2008 • Intelligent Technologies – Saffron/Magenta Business Cases • RFID and Prognostics • Aerospace, Aviation, Automotive and Electronics Industries (especially) • And are thinking about… • Summer Internships • Research Assistant during School Year (full-time or short-term) • Independent Studies • Or if you have your own innovative idea…. • Send me an email (noel_greis@unc.edu) or give me a call (962-8201). MBA Elective BA239 – Intelligent Enterprising in the Digital Economy (Spring)

25. Let the demos beginBoeing Network Centric LogisticsandRFID THANK YOU!