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Steaming to success: Transputec supplies computers across Europe
"It's good to have one contact and a centralised system. We get a better price and benefit from efficiency in other ways."
Arni Jonsson, VP Chief Information Officer, Eimskip
Eimskip is Iceland's largest transportation company with offices and subsidiaries across Europe, the US and Canada. When it was established in 1914 Eimskip was the country's first shipping line, but it has since evolved to become one of the world's leading providers of transportation, logistics and cold storage services.
Eimskip specialises in shipping, logistics and supply chain management, with a focus on temperature-controlled cargo. Through its subsidiaries, Eimskip operates 50 vessels, 2,000 trucks and trailers and approximately 180 cold stores. It has an extensive branch network, with a total of 200 operational bases in 30 countries, employing approximately 14,500 people.
The group's services include ocean freight, airfreight, inland transport, storage and distribution and cargo insurance. It also carries passengers on its northern route between Iceland and Scandinavia, Germany and the Netherlands.
Eimskip's subsidiaries include Innovate Holdings, a temperature controlled storage and distribution company in the UK, Versacold, a refrigerated warehousing with 72 facilities in the US, Canada, Australia, New Zealand and Argentina, and Containerships Group, a short sea carrier linking Finland, Russia, Scandinavia, Eastern Europe, the Baltic States and the UK.
Eimskip has more than 2,600 users of desktop and laptop computers in its various offices and subsidiaries all across Europe and North America.
Prior to its relationship with Transputec Computers plc, it sourced computers separately in each country. In addition to the enormous amount of administration involved in buying from different suppliers, this meant paying VAT according to the laws of each different country.
Eimskip wanted to harmonise its IT departments in all of the companies across the group, giving them all the same hardware to make them more cost-effective and compatible.
Julien Vannucci, account manager at Transputec Computers, said: "Eimskip used to buy from 10 different companies in 10 different countries, which is not an efficient way to buy anything. You wouldn't go to 10 different stores for your shopping."
Transputec's relationship with Eimskip came about because it already supplied computers to one of its former subsidiaries XL, based near Gatwick Airport. XL recommended Transputec's services to other companies within the group.
Transputec gradually supplied more and more companies within the group over the past four years, until it was the supplier of choice for the whole group.
When the group decided to harmonise its IT departments, Transputec was the obvious choice because of the reputation it had already built up within the group.
As well as desktop and laptop computers, Eimskip needed telephones, video conferencing equipment, servers and printers.
Julien arranged a meeting with the IT manufacturer Lenovo to discuss the specifications of the computers Eimskip needed.
Transputec negotiated a good price and sourced all the hardware for the European companies within the group. It arranged for a North American partner to take on the work in the United States and Canada.
Transputec holds stocks of computers for Eimskip and replaces around 400 to 500 new machines each year as they need to be replaced.
Transputec Computers plc made the ideal supplier for Eimskip because it is a key player in the IT industry, which gives it considerable purchasing power and influence.
Arni Jonsson, VP chief information officer for Eimskip, said: "Transputec has been working for us for a long time now and we've always been happy with the relationship.
"Dealing with Transputec is more efficient for us than having all the different suppliers in different countries that we used to have.
"It's good to have one contact and a centralised system. We get a better price and benefit from cost efficiency in other areas.
"Transputec are continuing to replace our machines as they need to be upgraded every year."
Eimskip replaces one third of its computers each year so staff can always have up-to-date technology when the older models become obsolete. The deal with Transputec means managers never need to worry about whether their new computers will be up to scratch and compatible.
Eimskip was able to triple its turnover in 2007 to EUR 1.5 billion, and made a EUR 9 million profit.
"We have been helped by the simplicity of our dealings with Transputec," said Arni.
For more information about Transputec Computers plc, call the Sales Information Centre at (0) 20 8584 1400. This case study is for information purposes only. Transputec makes no warranties, express or implied, in this summary.