In its second-largest acquisition, Amazon buys the company for $970 million.
H-E-B says connecting to suppliers through Global eXchange`s TradeWeb will provide faster, more accurate document exchanges. Gains in efficiency will allow it to keep a lid on prices.
As the low-margin retail grocery business becomes more competitive, more grocers are turning to the web to increase efficiency. H-E-B Grocery Co., with 300 stores, is building on its reputation as a technology leader by extending electronic documents transactions through the web with more than 250 suppliers.
H-E-B operates in Texas, Louisiana and northern Mexico, where it competes with efficiency king Wal-Mart Stores Inc., now the world`s largest grocer as well as general retailer. H-E-B is working with Global eXchange Services Inc. to connect electronically with more of its small and medium suppliers for exchanging forms-based documents such as purchase orders and invoices. The connection through Global eXchange`s GXS TradeWeb requires no additional software for suppliers other than a web browser.
Alan Markert, vice president of e-commerce for H-E-B, says connecting to suppliers through GXS TradeWeb will provide for faster, more accurate document exchanges. "The greater efficiency will translate to lower costs and, ultimately, lower prices for our customers," Markert says.