E-procurement business expands globally

First Index invests part of recent $11m funding from venture capital consortium in new offices in the USA and Germany.

UK-based First Index is investing part of a recent $11m funding from venture capital consortium in new offices in the USA and Germany Leading e-procurement service company.

The company has opened two more offices abroad as part of a global expansion plan that will see the UK company consolidate its position as a major player in the escalating marketplace for internet-based buying and selling portals or trading exchanges.

Opened in January this year, the locations of the new offices, in Hannover, Germany, and Spokane, Washington, USA, were chosen because of their close proximity to densely industrialised areas and the manufacturing industries that need the specialised procurement facilities First Index offers.

The new site in the USA, in the West of the country, directly complements an existing First Index office, established in 1996 in New Jersey, in the Eastern USA.

"First Index has high expectations for success in both the USA and Europe, not only because we have now doubled our presence in North America, but also because we offer a different kind of internet-based procurement service, which meets a real need", said Hans Wigart, founder and chief executive officer of First Index Group.

"The First Index e-procurement service, called Findfast Online, is recognised and sought after because it delivers measurable benefits to both sides of the supply chain - the buyer and the supplier.

It achieves this in a quicker, more efficient and less costly way than any other method".

In addition, said Wigart, an important factor is that Findfast Online is a profitable service, whereas many e-business ventures struggle to show a return on investment.

A recent allocation of funding worth nearly $11 million, raised by a consortium of leading venture capital firms in the USA and the UK, meant that First Index was able to take an important step and invest in establishing the new offices.

Hans Wigart said: "The funding has allowed us to accelerate our business plan and intensify our sales campaigns on a broader basis.

The new offices will act as an important springboard into other parts of the USA, Germany and further afield in Europe".

The company's Peter Cook, vice president for Western US operations, said: "First Index in the West is endeavouring to replicate the tremendous success achieved already by the company's US headquarters in New Jersey over in the East.

Our location in Spokane means that we can draw on a highly qualified reserve of human resources in the area to staff the new spearhead office.

We aim to rapidly develop sales in a region that has a multitude of prominent names in many sectors of the manufacturing industry including aerospace, electronics and consumer goods".

Cook, who joined First Index in July 1996 became sales manager and under his leadership, First Index in the USA has consistently achieved its sales targets each year.

Prior to joining First Index Cook practiced as an attorney for five years in prominent East coast law firms.

He possesses a BA in English and political science from Rutgers University in New Brunswick.

Dirk Schoening, managing director of the new First Index office in Germany, is equally buoyant about prospects in Europe: "The Hannover location is well-positioned in relation to all the major industrial areas within this country.

Initially, we will concentrate on Germany and then extend our efforts further afield.

Since starting operations in January this year already we have received an excellent response from buyers and this will provide a good introduction to the suppliers.

We are focusing on the Findfast Online Internet-based product from the outset and this, rather than the paper-based directory, is proving to be the preferred option for customers".

Schoening, 36, has a successful record of marketing and of managing companies and previous experience of establishing e-business enterprises with leading publisher Bertlesmann.

He has a Swiss education at Master of Business Administration (MBA) level and his academic work also included a year at Aston University in Birmingham, UK, studying business administration.

Later, to extend his professional capabilities, he attended management development events at Harvard Business School, London Business School and INSEAD.

The First Index service is different to many other internet-based trading exchanges.

Most of these enable buyers and suppliers to find, compare prices and place orders for off-the-shelf components or standard commodities.

In contrast, the Findfast product range addresses another and demanding aspect of the procurement process in the design and manufacturing industries, that of finding or selling bespoke or custom-made parts and assemblies.

This requirement is often encountered, but until Findfast Online became available - and its counterpart, the First Index paper-based directory - the task represented a time-consuming and costly process for buyers and sellers.

Those who will be attracted by Findfast products are not only buyers (and in many cases designers) and suppliers, but also senior management who are looking for new and more efficient methods of procurement and marketing.

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