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.
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Postoasted - Tuesday, February 14, 2006 - link
First off great article. Have never bought from Newegg before, but after reading about it here I feel assured that they're not some fly-by-night chop shop. As a potential customer the fact that my package will come with peanut styrofoam is a big negative. But if the price is right I guess I can live with it.allometry - Wednesday, February 15, 2006 - link
I'm not sure if NewEgg is using the biodegradable peanuts made from a corn starch base. When you finally do place an order, grab one of those peanuts and run it under some water to see if it disapears.plonk420 - Tuesday, February 14, 2006 - link
have you a solution as versitile as peanuts? i sure don'tplonk420 - Tuesday, February 14, 2006 - link
how soon until they pay off the setup and their prices can go down to what they were when they first started? i miss those days...lsman - Wednesday, February 15, 2006 - link
Not when they are expanding to like China and rest and have to pay for those. :Dshabby - Tuesday, February 14, 2006 - link
Looks like a basement operation to me, they sure fooled me....Zebo - Tuesday, February 14, 2006 - link
Always like to read about orgins. Maybe next time. I've never had a complaint with newegg but there are others "just as good" and cheaper too such as Mwave.com Zipzoomfly.com for example. What really sets newegg apart is thier fantastic database for customers to search for exactly the prodcuts they are looking for and once found get a set of wonderful 360 degree pictures of the product! Great job!Hondaman4ever - Tuesday, February 14, 2006 - link
This is a good article for those Industrial Engineers, pretty interesting facility layout.JumpyBL - Tuesday, February 14, 2006 - link
Wow, great article. I used to do recieving work and Newegg's setup really makes me want to work there, looks fun, scanning in all the new products and handling tech stuff all day. Looking at all the CPU and memory products laying about is enough to give any tech enthusiast a stiff one. Thanks for the article and the contest Anandtech.thatsright - Tuesday, February 14, 2006 - link
GREAT Article!!One of those rare AT article that held my attention 100%, and I read EVERY page.