Inside Newegg: They give us a Tour and you a Prize
by Anand Lal Shimpi on February 14, 2006 3:31 PM EST- Posted in
- IT Computing
The Picker
Finally, at the very back of the warehouse there's a three-level rack/picker setup and this is where your order from Newegg is actually born.
The three levels are organized in terms of product "velocity" or the speed at which Newegg sells through of that particular product. A proprietary algorithm designed in-house by Newegg determines velocity. High velocity products (pictured below) such as in-demand motherboards or video cards will be found on the first floor, while medium and low velocity products such as server boards, certain optical drives, etc... will be found on the second and third floors respectively. The idea is that the easiest to load floor is the first floor, and that's where product that needs to be frequently replenished should be.
Some "medium velocity" items
As soon as Newegg receives your order it is allocated a bar-coded tub; the encoded in the tub's label is data on every item that's in your order as well as where it is located within Newegg's warehouse. The automated system will not print a shipping label for your order unless every item in your order matches all of the barcodes in the tub.
The tub glides along a rolling conveyer, which will carry the tub from the start on the first floor all the way up to the third floor. Along its journey it will pass by Newegg's inventory; the system (pictured below), knowing exactly what your order should contain, will stop the tub whenever it gets to an item that needs to be put into it.
Facebook
Twitter
RSS
122 Comments
View All Comments
aslaw - Wednesday, February 15, 2006 - link
This is my first post: I've perused your site but linked in today through Ben's Bargains, and I was fascinated by the Newegg story! I've purchased from those guys and they are, indeed excellent vendors. Having now "seen" their operation and read about their commitment to quality, they'll remain a first choice when I am shopping.And you, Anand, have performed a real service by showing this to the web community. I'm only sorry that when I was in Los Angeles 2 weeks ago that I didn't happen upon the Newegg facility (hard to miss with the big sign on the front wall!!
Andy
Johnclarkiii - Wednesday, February 15, 2006 - link
I have been reading your articles fairly often because I am a web subscriber to CPU. I really do enjoy your writing. In this case I enjoyed it so much I had to join your site and tell you thank you for your excellent writing but especially for the Newegg warehouse article. I buy primarily from Newegg and I work in the warehouse at Carpet Bonanza in Zeeland MI. It is a different kind of warehouse but it is very intersting for me to see just how Newegg handles the product. Again, thenk you very much. Keep up the great writing and I look forward to more interaction with you in the future.John
Wesleyrpg - Wednesday, February 15, 2006 - link
hey....anandtech is a worldwide site, so why is the competition only for americans?not very diplomatic....us aussies get screwed over again. (grrr stupid xbox360 delay)
Ricardo - Wednesday, February 15, 2006 - link
Wow Anand, how much are they paying you? Those are some seriously cool conveyors and bins, but this article reads like an advertisement or promotional campaign the whole way. Great detailed overview of the order process, nonetheless.kmmatney - Wednesday, February 15, 2006 - link
NewEgg has been an advertiser on Anandtech for quite a while - these advertisers help keep Anandtech running, so any advertisement is deserved. Regardless, it was an interesting article.Staples - Wednesday, February 15, 2006 - link
I am surprised it took someone so long to mention that this is 100% pure advertisment.nomagic - Wednesday, February 15, 2006 - link
Newegg could be paying AnandTech, but who cares as long as it is a good read. This article is informative and interesting.krwilsonn - Wednesday, February 15, 2006 - link
I love Newegg...been perfect so far and even sent me a thank you for being a customer letter with a free t-shirt, eVGA keychain, and Newegg sticker out of nowhere just because I placed a couple orders earlier in the year. Oh and as far as the UPS vs. Fedex debate, would you feel more comfortable if Fedex left your $500 CPU on your porch just because you are not home? Sure it is a pain but come on, it is worth the extra hassle to keep your gear out of harm's way.ohnnyj - Wednesday, February 15, 2006 - link
Just ordered a Logitech G7 mouse on Sunday, arrived today (using UPS Ground). Great work Newegg!
John
Harkonnen - Wednesday, February 15, 2006 - link
Canadians can't enter :(boo
*cries*