Kroger plans to join founding partners Sears, Roebuck and Co., Carrefour and Oracle Corp., as well as METRO AG and J Sainsbury plc, in the developing web-based business-to-business marketplace. Together, the retailers account for approximately $175 billion in annual purchases from more than 50,000 suppliers, partners and distributors around the world. Kroger’s participation is subject to the completion of a definitive agreement among the parties.
GlobalNetXchange allows exchange members to buy, sell, trade or auction goods and services over the Internet using standard web browsers. GlobalNetXchange supports a variety of retail merchandise, including food, apparel, consumer products and “not for resale” products. Oracle provides software, implementation and support.
Kroger expects the alliance to reduce its purchasing expenses and improve the efficiency of its supply chain. The Company said the cost savings generated from Internet-based transactions will allow its purchasing and procurement staffs to focus on product quality, supplier competitiveness and performance.
“We are delighted to join this impressive roster of international retailers. We believe that GlobalNetXchange offers tremendous opportunities to improve the total supply chain,” said Rodney McMullen, Kroger’s executive vice president of strategy, planning and finance. “We expect GlobalNetXchange to reduce Kroger’s purchasing and procurement costs and help automate our supply chain.”
“We are pleased to celebrate the one-month anniversary of our announcement of GlobalNetXchange by having the largest grocery retail chain in the United States join us,” said Sears Executive Vice President and Chief Operating Officer Julian C. Day.