Watts was promoted to the newly created role before the float of Ocado last week. He has worked at Ocado for two and a half years running a strategy and consulting team and previously worked at OC&C Consulting.
The job means Watts has full responsibility for supplier relationships, product and promotional offers as well as pricing. He heads up a team of 18, which was formed from the merger of the trading services and trading teams at the online retailer.
"I will be focusing this year on the core supermarket range and making sure we are working closer with our supplier base and making existing relationships stronger," he said.
Ocado also appointed Matthew Knight as its first head of marketing, insight and communications, in May. Knight has been working on various marketing projects for Ocado since March. He has responsibility for Ocado's marketing strategy and customer analytics, and reports into Ocado's head of retail Jon Rudoe.
"We are looking at different marketing channels. We are experimenting with digital marketing including Facebook and Twitter," he revealed.
Ocado floated on the stock exchange last week after a tumultuous few weeks when analysts claimed the online retailer was over-valued, but it succeeded in raising the £200m it wanted for expansion.