Delivering The Right Solutions
Outsourcing its IT activities has allowed Jones Distribution to focus on its core business David Stewart reports
Based in Dublin, Jones Distribution has come up with the ideal solution for its problems of finding and retaining staff to run its IT department: outsource the puppy.
Outsourcing peripheral activities in order to focus on core business is a favoured strategy of large companies. Jones Distribution qualifies as a medium-sized enterprise with a staff of 200 spread over 25 locations in the UK and Ireland, but the company is no stranger to the concept.
The Jones group first went public in 1973 and at the time was highly diversified group. In subsequent years, it acquired further businesses in the distribution sector, but over time it divested itself of its engineering and shipping division leaving only the oil distribution and fastening business, which was taken private in a management buyout 1999.
Because of the acquisition process, the company found itself with five or six different legacycomputing systems. “In the UK, the systems were largely similar,” says Paul Curran, finance director at Jones Distribution. “But we felt it was important to streamline our operation and get the same processes in each location. We wanted one finance and credit function physically and we wanted one platform for both the UK and Ireland.”
The company recognised however, that to implement such a solution itself would have required a quite high skills base. “We didn’t want to have to set up an IT department, so we looked at what we could do and we decided to outsource our IT function,” Curran explains.
The company turned to the IT industry and, after a tender process, selected Mentec and Interfusion Networks - both Dublin-based companies - not just to install the new information and communications technology (ICT) systems but to take on its entire management. “It was very much a strategic project for Jones Distribution,” explains Noel Meenan, the prime contractor. “It manifested itself firstly in the replacement of the various financial systems with various financial systems with Agresso. That was the first part of the outsourcing element of the plan.”
Once the financial package was in place, much of Jones Distribution’s IT infrastructure
Based in Dublin, Jones Distribution has come up with the ideal solution for its problems of finding and retaining staff to run its IT department: outsource the puppy.
Outsourcing peripheral activities in order to focus on core business is a favoured strategy of large companies. Jones Distribution qualifies as a medium-sized enterprise with a staff of 200 spread over 25 locations in the UK and Ireland, but the company is no stranger to the concept.
The Jones group first went public in 1973 and at the time was highly diversified group. In subsequent years, it acquired further businesses in the distribution sector, but over time it divested itself of its engineering and shipping division leaving only the oil distribution and fastening business, which was taken private in a management buyout 1999.
Because of the acquisition process, the company found itself with five or six different legacycomputing systems. “In the UK, the systems were largely similar,” says Paul Curran, finance director at Jones Distribution. “But we felt it was important to streamline our operation and get the same processes in each location. We wanted one finance and credit function physically and we wanted one platform for both the UK and Ireland.”
The company recognised however, that to implement such a solution itself would have required a quite high skills base. “We didn’t want to have to set up an IT department, so we looked at what we could do and we decided to outsource our IT function,” Curran explains.
The company turned to the IT industry and, after a tender process, selected Mentec and Interfusion Networks - both Dublin-based companies - not just to install the new information and communications technology (ICT) systems but to take on its entire management. “It was very much a strategic project for Jones Distribution,” explains Noel Meenan, the prime contractor. “It manifested itself firstly in the replacement of the various financial systems with various financial systems with Agresso. That was the first part of the outsourcing element of the plan.”
Once the financial package was in place, much of Jones Distribution’s IT infrastructure
Paul Curran, finance director of Jones Distribution (left), with Derek Daly, Managing Director of Interfusion Networks an Kevin Haverty, Managing Director, Mentec International
‘We didn’t want to have to set up an IT department, so we looked at what we could do and we decided to outsource our IT function’
was relocated to Mentec. This included the oil sales system as well as file and print servers. All of the software now resides on Mentec’s managed services suite and is accessed via Citrix, so Jones Distribution staff in both Ireland and the UK can access the software. To do this, however, requires bandwidth and this is supplied by Interfusion Networks.
“We are a managed networking company,” explains Derek Daly, managing director of Interfusion Networks. “We provide a range of different connectivity services such as head office to branchand so on, at a range of different prices. We also offer a lot of other managed services such as managed email and managed firewalls. In the end, it all stems from managed connectivity. We have an infrastructure where we can buy [capacity] from the UK and Ireland and interconnect the two, so we get the best of both worlds and we deliver to the client as a single solution.
“We run Jones Distribution’s Irish network over Eircom’s Business IP platform and we run the UK network at the moment on a mix of Energis Frame Relay for the larger sites and a virtual private network over leased lines for the smaller ones. But the customer can’t tell the difference because we have put in a single IP network overlay. Combine that with fact that Jones is a Citrix company means anyone in Jones can go to any terminal in Ireland or UK, log on, get their emails and get access to their applications,” Daly adds.
“We are a managed networking company,” explains Derek Daly, managing director of Interfusion Networks. “We provide a range of different connectivity services such as head office to branchand so on, at a range of different prices. We also offer a lot of other managed services such as managed email and managed firewalls. In the end, it all stems from managed connectivity. We have an infrastructure where we can buy [capacity] from the UK and Ireland and interconnect the two, so we get the best of both worlds and we deliver to the client as a single solution.
“We run Jones Distribution’s Irish network over Eircom’s Business IP platform and we run the UK network at the moment on a mix of Energis Frame Relay for the larger sites and a virtual private network over leased lines for the smaller ones. But the customer can’t tell the difference because we have put in a single IP network overlay. Combine that with fact that Jones is a Citrix company means anyone in Jones can go to any terminal in Ireland or UK, log on, get their emails and get access to their applications,” Daly adds.
All Jones Distribution locations are equipped with Compaq Evo T20 thin-client terminals. “These give us all the functionality of a PC but at half the cost.” says Curran. “As and when we want to put people on email we just push a button. Or if there is an update or upgrade to say Excel, its done automatically so we know everyone is using the version.”
Now that the basic IT and network infrastructures are in place, Jones Distribution is looking to the future. “What we would like to do is have onboard computers,” says Curran. “When the trucks make a delivery the transaction details can be captured electonically and rather than take the paperwork back to depot, it can be sent back straight away by GPRS or overnight by putting the handheld computer in a cradle.”
Because the company uses the same ICT set-up in both Ireland and the UK says Curran, he can be sure that if the onboard computers work in one country they will work in another. “The customers are different so the front end has to take account of that, but in terms of the back end, it would be more efficient and that’s where we can give better customer service.”
Now that the basic IT and network infrastructures are in place, Jones Distribution is looking to the future. “What we would like to do is have onboard computers,” says Curran. “When the trucks make a delivery the transaction details can be captured electonically and rather than take the paperwork back to depot, it can be sent back straight away by GPRS or overnight by putting the handheld computer in a cradle.”
Because the company uses the same ICT set-up in both Ireland and the UK says Curran, he can be sure that if the onboard computers work in one country they will work in another. “The customers are different so the front end has to take account of that, but in terms of the back end, it would be more efficient and that’s where we can give better customer service.”
