Strategy

MISSION
Support effective B2B timber supply chain processes in the market with a digital communication platform and services based on it providing information flow, data and information security management in the timber industry for the accurate and quality measurement and recording of production.

VISION
KpDC creates and maintains for all market actors, through information communication technology services, equally available master data, data standards and data flow information systems and infrastructure platform, ensures strict standards of data and information confidentiality, participates in developing more efficient and cost-effective business models for cooperation, promoting new business system solutions and the emergence of services on the market based on these data flows and standards, as well as offering the information technology competencies and data validation services required for the production of timber measurement test reports for timber measurement operators.

BASIC OPERATING PRINCIPLES
❖ KpDC mainly offers and performs the functions of a digital communication platform between different representatives of business roles in the market with internationally standardised business data to support process efficiency in the timber flow from forests to the wood processing industry.
❖ KpDC provides timber flow support in the international PapiNet data standard as well as forest machine communication in the international StanForD2010 standard and ensures participation in both the development and implementation of the latest versions in Latvia.
❖ KpDC shall ensure that information from KpDC information systems is only accessible to the recipients specified by the data owner and only for the data operations specified by the data owner. Certifying and maintaining an information security management system in compliance with ISO 27001, KpDC demonstrates a commitment to partners to continuously improve the security of the information it holds, and ensures that your data is protected. The security of information systems is also audited in line with the terms of the Open Web Application Security Project (OWASP).
❖ The content and preservation of information is the responsibility of the originator and the recipient.
❖ KpDC maintains master data supporting the timber flow business processes: KpDC information system actors, organisations and users; timber and machinery items classifiers and codes, algorithms and constants defined by legislation and market actors for the preparation of timber measurement test reports. KpDC also uses other master data sources to provide its service, such as the State Land Service Address Classifier.
❖ The terms and conditions of information systems and data security and the terms and conditions of the service level agreement (SLA) are set by KpDC in consultation with customers.
❖ The information systems offered by KpDC shall support the needs of customers for operations with data (document) input and receipt both automatically and manually.
❖ KpDC does not primarily process the business data to be communicated and shall not build specialised solutions but provides a platform that encourages free competition for business system solutions and applications, as well as for market development now and in the future. Developing business system solutions in KpDC will be considered, if the market does not offer them for a long time and their absence has a negative impact on the possibilities to use the communication platform effectively.
❖KpDC initially (since 2020) offers services to support the flow of timber business document flow: Transport work assignment “delivery instruction”; Timber transporter’s report on loaded cargo “delivery message”; registration of the timber transporter at the delivery point “shipment status”;
Cargo measurement information “measuring ticket”. There are plans to develop KpDC’s information systems, to fully support the timber flow business process chain in forestry.
❖ KpDC maintains a matrix – timber purchase/sale and measurement work order
specifications, including functionality for timber buyers and sellers to create and validate the content of the matrix.
❖ To support faster, more efficient and reliable timber data flow in the market and to streamline the structuring of resources and competencies involved in timber inventory and measurement, the KpDC shall process data to the following extent:

  • matrix validation;
  • adding external master data;
  • automated transfer of information (headers) common to business processes to different sequential business documents for timber flow items such as road haulage;
  • e-delivery note as a derivative of the electronic transport document from the business document “timber transporter’s report” or “delivery message”;
  • e-Deed of Acceptance and Delivery, as a derivative of the goods acceptance electronic document from the business document “fact of acceptance” or “shipment status”;
  • receiving data directly from timber measurement devices, validating this data, performing calculations and creating an e-test report for the timber measurement operator.

❖ The business document “testing report” is available by default for both the timber buyer and the seller, if the seller is identifiable as a user of the KpDC Communication Platform.

MEDIUM-TERM OPERATIONAL OBJECTIVES AND TARGETS FOR THE PERIOD TO 2024:

OPERATION OF THE TIMBER FLOW E-DOCUMENT COMMUNICATION PLATFORM DACE INPUT, RECEIPT AND PROCESSING OF TIMBER MEASUREMENT DATA
OVERALL OPERATIONAL OBJECTIVES
DEVELOPMENT OF OTHER SERVICES SCALE AND RESULT OF OPERATIONS

OVERALL OPERATIONAL OBJECTIVES

SERVICE LEVEL AGREEMENT (SLA)

System availability time 24 hours 7 days.
The emergency response time will depend on the category.

Name Description Elimination time  
A Accident The problem causes the system or a part of it to stop working completely. The work cannot continue. 8

 

 hours
B An error that cannot be bypassed A problem that adversely affects the performance of essential functions of the system. There is no known solution to the problem, but it is possible to continue working in a limited mode. 4 working days
C An error that can be bypassed The problem causes minor limitations in the functionality of the system. The impact on the system is minor, but inconvenient. There is a bypass solution. 20 working days
D The problem does not affect system capacity The problem does not affect system capacity, but causes inconvenience in working with the system. Mainly regarding system update and/or maintenance. 30 working days

Network infrastructure

Troubleshooting – Support for network connection points must be provided 365 (366) days per year.

SLA levels:

SLA 1 – maximum time for troubleshooting – within one (1) hour on working days, 24 hours a day from the moment the relevant problem is detected or logging on the data connection.

  • Batch loss factor – <0.01% at data channel peak load up to 90%;
  • Latency – <20 ms at data channel peak load up to 90%;
  • Cumulative monthly downtime allowed – 30 minutes.

 

ENSURE THE SECURITY OF CUSTOMER INFORMATION.
• As part of information security management, carry out ISO 27001:2013 certification in 2022 and maintain it on an ongoing basis.
• Verify the technical security of information systems with appropriate OWASP security tests.
• Ensure that information from KpDC information systems is only available to the recipients specified by the data owner and only to the operations with data that the data owner has specified.

TO BE AN ACTIVE PARTICIPANT IN THE INFORMATION COMMUNICATION TECHNOLOGY INDUSTRY.
• To actively participate in the work of the Latvian Information and Communication Technology Association (LIKTA), especially on issues affecting the forest sector.
• Keep abreast of and, where possible, participate in planned changes to the regulatory environment to ensure that KpDC solutions meet the requirements defined by the regulatory environment without additional action by forestry companies.

OPERATION OF THE TIMBER FLOW E-DOCUMENT COMMUNICATION PLATFORM DACE.
To the extent planned, KpDC has developed and is launching the DACE platform for the electronic circulation of timber transport accompanying documents. The introduction of this service in the business and information systems is still very slow in 2021, with only 3% of the timber volume registered on the platform. Main reasons The main reasons for this are the lack of IT competence of market participants and/or the desire to change something if it is not used by the majority or is not required by the regulatory environment. The introduction of new IT solutions also requires companies to change processes, which as with any change, is initially uncomfortable.

INCREASE ELECTRONIC FLOW OF TIMBER SUPPLY CHAIN TRANSPORT ACCOMPANYING DOCUMENTS FOR AT LEAST 70% OF THE ANNUAL LOGGING VOLUME BY 2024 IN LATVIA
• From 2022, also offer to support each specific company in the market with advisory services and project management of IT solutions within their IS&T competencies for the timber supply chain, if a company has expressed a desire for such.
• Achieve the electronic circulation of timber supply chain transport accompanying documents for at least 45% of the annual logging volume in Latvia in 2022.

• Communicate KpDC service fees and their changes in the market at least 6 months in advance.
• In order to support companies in the implementation of e-document circulation, offer an introductory fee of € 0 to transport logistics companies by the end of 2022.

– In order to keep the cost of the service affordable for customers, there are no plans to carry out changes to the DACE platform system to limit certain features of its overall functionality.

EXTEND DACE FUNCTIONALITY TO SUPPORT THE FULL TIMBER FLOW BUSINESS PROCESS CHAIN IN FORESTRY
• By H2 2022, develop functionality including local installation in the harvester computer system, enabling the automated receipt and transfer of StanForD 2010 files without operator engagement through the KpDC communication platform.
• Ensure the availability of StanForD 2010 files to the defined recipients according to the information contained in the data by no later than 2023.

INPUT, RECEIPT AND PROCESSING OF TIMBER MEASUREMENT DATA.
Since the company was founded, the development of services has been mainly related to extracting timber measurement information from automatic measurement equipment, improving and creating manual measurement systems, as well as processing of the obtained data and the application of calculation algorithms. In 2021, with the European Union Regional Development Fund support to SIA “Forest Competence Centre” in project No. 1.2.1.1/18/A/004 “New Wood Materials and Technologies” KpDC has completed the development of an image-based technical solution and development of the “KpDC Frame” data processing information system. A pilot project has been launched to implement the technical solution. The largest customer ordering these timber measurement data input, receipt and processing services is VMF LATVIA, the largest timber measurement company in Latvia. KpDC offers these services widely to all timber measurement operators in the market.

TO SUPPORT TIMBER MEASUREMENT WITH INPUT, RECEIPT AND PROCESSING OF TIMBER MEASUREMENT DATA SERVICES FOR AT LEAST 80% OF ANNUAL LOGGING VOLUME IN LATVIA
• To ensure the automated preparation of timber measurement results within 2 minutes of receiving the necessary data.
• To ensure the quality of timber measurement results, which depends on the operation of the KpDC, the monthly number:
o not more than 1.0% of the results suspended during validation,
o not more than 0.2% of cancelled results
• By the second half of 2022 at the latest, to start offering a completely reorganised measuring data input system service.

PARTICIPATE IN THE REDUCTION OF TIMBER MEASURING COSTS FOR MARKET PARTICIPANTS THROUGH THE USE OF NEW TECHNOLOGIES.

• To start providing the timber measuring data processing KpDC Frame service by no later than September 2022, reaching at least 1.0 million cubic metres per year by 2024.
• With the aim of reducing timber measuring costs by leveraging public funding, fully automate the KpDC Frame timber volume functionality by 2025.

DEVELOPMENT OF OTHER SERVICES.

DEVELOP FUNCTIONALITY THAT ALLOWS TIMBER SELLERS TO CREATE AN INVOICE FOR THE TIMBER SUPPLIED, BASED ON THE MATCHING OF MATRIX DATA, .
• By H2 2022, ensure that timber prices are linked to the matrix (based on the parameters that are relevant for pricing dimensions, defects, etc.) and the availability of the grouped totals to the timber seller, enabling them to retrieve this data in their accounting information systems.
• By the 2nd quarter of 2023, ensure billing and communication without cross-system data communication.

DEVELOP THE FUNCTIONALITY OF CREATING A TIMBER TRANSPORT SERVICE BILL
• Reaching the electronic circulation of timber supply chain transport accompanying documents for at least 50% of the annual logging volume in Latvia, start developing the functionality immediately.

ENSURE THAT IS ARCHITECTURE AND SOLUTIONS DO NOT IMPACT DATA COMMUNICATION PLATFORM VULNERABILITY AND VALIDATE SUCH WITH SECURITY TESTS.
Further develop business intelligence (BI) solutions, including the export of reports or summary results data.

SCALE AND RESULT OF OPERATIONS.

  • to ensure an increase in the number of customers by at least +10% per year, reaching 180 by 2024.
    • to ensure an increase in the total value of the provided services by at least +10% per year.
    • to ensure profit for the further development of services with efficient operation and high-quality ICT services supporting the digitisation of companies in the sector.