Horizon KKUS was developed on order of JSC Latvijas Valsts meži (LVM). LVM is entrusted with management of state-owned forests of Latvia. The company is responsible for about 2 000 00ha of forest which is approximately ¼ of the whole territory of Latvia. One of their business lines is Forestry with structural division “Round timber supplies”.
The Horizon KKUS is solution designed to facilitate LVM Round Timber supply business model, which is characterized by following principles:
Transparent system of choosing customers and contractors;
Use of contactors for all logging and transportation assignments;
Payments to contactors are made based on calculations made by LVM, not based on bills issued by contractor.
LVM Round Timber supply system
- There is a separate registration card in Horizon KKUS system for each of wood felling sites. Each card contains a calculation, made by LVM, about the number, amount and species of timber that can be obtained in the wood felling site.
- On the basis of this information, twice a year LVM organises auctions, in which buyers purchase timber products called assortments offered by LVM. When choosing the winner of the auction, not only is the offered price taken into account, but also other factors like the distance to the wood felling site, recipients opening hours, previous business history and other conditions. All the calculations necessary for the auction process are provided by the Horizon KKUS auction module PPAS in accordance with an algorithm defined by LVM.
- As a result of the auction, a delivery schedule is prepared and entered into Horizon KKUS. Product preparation planning is also done, and the respective results are entered into the Horizon KKYS system. On the basis of this information, as well as the information about the evaluation of the wood felling site and logger’s availability, a work assignment for the contractor – logger is prepared in Horizon KKUS.
- Logging appliances - the harvester or workers with power saws cut the trees in the wood felling site and prepare the assortments to the necessary length. All prepared assortments are registered and this information is stored in the harvester’s report, which is periodically sent to the Horizon KKUS system, together with manually entered information, generating the timber preparation report in Horizon KKUS system.
- Round timber assortments that are prepared by the harvester or workers with power saws, are transported out of the forest by a transporting appliance known as a forwarder, which stacks timber assortments to their types in stacks next to the road. The operator of the forwarder prepares a forwarder report in the Horizon KKUS WEB environment, indicating operative information regarding timber assortments transported to the stacking. This provides delivery planners with timely information on the content of the timber stacking. Additionally, the labelling for timber stacks is printed out based on the information in Horizon KKUS.
- After completing a particular logging work amount, a logging delivery-acceptance protocol is prepared in Horizon KKUS. On the basis of the drawn up protocols, bills for logging services are made by LVM. When calculating the costs of the works, price sheets generated in the Horizon KKUS system are used, taking into account not only the logged amount of forest, but also the weather and other conditions.
- Each timber stacking has a registration card in Horizon KKUS, indicating the location of it. The contents of each timber stacking can be obtained from the Horizon KKUS reports. Data are edited according to the increase or decrease of the assortment amount in the stacking.
- Considering the contents of the timber stacking, the location of the available transport and delivery schedules, a transportation assignment task is prepared in Horizon KKUS. It is sent to the contractor who carries out the timber transportation to customer. The carrier loads products from the stack and fills out the timber transportation report in the Horizon KKUS WEB environment. It is done from the cabin, entering information on amount of loaded assortments. As this information is entered in the Horizon KKUS Web environment immediately after loading the timber materials onto the transportation vehicle, the information regarding the contents of the stacking is always up to date.
- The driver of the transportation vehicle fills out the invoice, indicating the distance with and without cargo, and the amount of transported timber materials. Considering these data and other conditions (weather, delivery time), an estimate is calculated for the carrier. According to LVM contracts, this estimate serves as the basis for settlement with the carrier.
- Assortments delivered to the customer are measured with precisely calibrated devices and the respective measurement results are then imported into Horizon KKUS. On the basis of the measurement protocols, created according to these measurements, in Horizon KKUS is created a bill for the delivered timber assortments, which is paid by the customer. Prices in the bill are filled out according to the previously contracted price sheets.
Horizon KKUS also provides control process support – data registration of both the harvester and customer measurement accuracy.
Horizon KKUS implementation benefits:
- More effective resource planning – data that are necessary for planning are available quickly and easy;
- Operative process monitoring – all data are immediately available during all phases of the process;
- Control of losses – it is possible to determine and analyse discrepancies;
- Effective work with a reduced possibility of errors – Horizon KKUS is integrated with the company’s ERP system, therefore its data are also used by accounting and other structural units;
- Advanced company management – on the basis of the Horizon KKUS data, it is possible to obtain reports in various sections, thus helping to make data-based decisions.