Exclusive Camilla Palmer Sainsbury has confirmed expectations it is making e-commerce a priority with news it is to invest millions in its flagging Orderline home shopping service in the next few months. New director of e-commerce Patrick McHugh said he would increase the company's £30m budget by "several hundred percent" in a bid to make Orderline "better than Iceland's". McHugh, appointed by Sir Peter Davis two weeks ago to shake up e-commerce, said more cash was needed if Orderline was to roll out nationally. The company announced its £30m e-commerce spend last November. Orderline's new strategy will involve a hybrid picking system built around dedicated centres at Harlesden as well as local stores. "Orderline suffered because we did not move quickly enough when it was first launched," admitted McHugh. He also outlined details of its 5% stake in GlobalNetXChange, the business to business internet exchange site set up by Carrefour, Sears and technology giant Oracle, costing £30m. He said Sainsbury had beaten Tesco to be the first UK company involved in the US venture and stressed 75% of supplies would be negotiated via the exchange within 18 months. "It won't be compulsory for suppliers to use the system ­ but it will save everyone time and money." He said the venture would be floated after 18 months. Revenue is made through a 1% charge on each transaction. "Retailer-formed exchanges will cut costs and improve the supply chain," he predicted, and dismissed claims the increasing number of internet supply chains would create more work for suppliers. He also said it was unlikely Wal-Mart would join up to GlobalNetXchange: "Wal-Mart will stay single ­ it has a sophisticated system in place and would see no advantage in teaming up with others." {{NEWS }}

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