HOMEGROCER.COM PURSUES HOSTED IT E-SOLUTIONS

PATRICK SCIACCA

KIRKLAND, Wash. -- Homegrocer.com, the Internet grocery retailer here, has reportedly inked a deal with two third-party companies to lease its human resources information system software and install an e-marketing solution.

Homegrocer.com will now lease its human resource information system from Corio, Redwood City, Calif., an application service provider, according to a source familiar with the situation.

"We continually look for ways to leverage technology to deliver the superior level of customer service that we are building our reputation on. After evaluating the options available to us, we decided to pursue a hosted solution to enhance our IT infrastructure," said Dave Pace, senior vice president of people capability for HomeGrocer.com.

The agreement allows the retailer to forego the cost that can come with purchasing a license for software, which can sometimes run six figures. Instead the retailer will pay a fee to the third-party for access and use of the software.

The agreement should eliminate the cost of system upgrades, licensing fees and take paper out of the system.

A second agreement with another third-party company calls for the installation of a solution that should help the retailer acquire and utilize consumer information. The new technology will provide the retailer with an integrated view of customer information, as well as the ability to define and execute campaigns and analyze campaign performance, according to a source familiar with the situation.

The technology should help to expand the retailer's presence in the increasingly competitive home grocery-shopping arena.

"HomeGrocer.com's mission is to provide unparalleled customer service," said Jon Landers, senior vice president of sales and marketing for HomeGrocer.com.

The closed loop solution combines robust analytics and a deep understanding of the customer, with marketing campaign management and e-mail execution capabilities, Landers added.

The system is from E.piphany, San Mateo, Calif.