While most Web companies are laying off people and trying to redefine themselves, iStarSystems is working with headhunters to hire more people.
iStarSystems was formed last year as a joint effort of Dallas-based i2 Technologies Inc. and Toyota Motor Sales to provide Internet-based supply chain management systems for the automotive replacement parts industry.
The company has about 80 employees at its Irvine headquarters, 20 of whom came in the last quarter.
“We are attracting some of the top people in the industry,” said E.J. O’Leary, iStarSystems’ president and chief executive. “We’ve hired automotive industry-savvy people who have worked at top-notch firms within the industry.”
Most of the new hires are software developers, but the company also has brought on more sales staff and business development personnel.
“We are continually hiring. We are almost ready,” said Donna Dyer, a company spokeswoman.
IStarSystems counts an undisclosed amount of revenue and expects to be profitable in early 2002, according to O’Leary.
“We have plenty of funding through Toyota,” he said. “They have looked at tech for the future.”
The targeted end-users of the company’s product are auto parts stores, dealerships and mechanic and auto body shops. But the company also is looking for original equipment manufacturers to use the system to make better use of warehouses and distribution by developing forecasts and coordinating shipments to dealerships and other companies.
“It’s overwhelming to hold all the parts,” Dyer said.
There already is a similar company, Covisint LLC, offering the same type of supply-chain management systems to the new auto parts industry. Southfield, Mich.-based Covisint was formed as a joint effort by General Motors Corp., Ford Motor Co., DaimlerChrysler AG, Nissan Motor Co., Renault SA, Commerce One Inc. and Oracle Corp.
IStarSystems recently went through a name change from iStarXchange to better reflect the company’s business platform, the company said.
Doug Formby, a Toyota employee, came up with the idea for the company and convinced Toyota’s management to give it a shot. Toyota brought in i2 Technologies and the two companies decided to form a new company to give life to the idea. In April of last year, the company moved its offices to Irvine, and a month later it hired O’Leary to run the company.
IStarSystems already has developed some partnerships with online outlets for car parts, such as MyRepairShop Inc. The company also got together with Irvine-based Wynn Oil Co., a recently acquired division of Cleveland-based Parker Hannifin Corp., to help the company’s distribution channels. Wynn makes oil and chemical products for the automotive industry and will use the iStar system through its 83 distribution centers. n
