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 Beginning
Our journey starts in receiving, this part of the process actually has nothing specifically to do with your order but what's done here makes the rest of the process infinitely easier. Shipping trucks will pull up to the warehouse and unload cargo pallets filled with computer products. A pallet is a wooden or plastic platform that can be picked up using a forklift; palletized cargo is cargo placed on a pallet, which is how Newegg's inventory is shipped to them.
Once the pallets are received and unpacked they are sent off to receiving, which is a mere 30 feet away. The pallets don't just magically appear at Newegg, they are ordered from a set of offices and cubicles attached to the warehouse:
What you see in the picture below are a few Newegg employees at computer terminals surrounded by hundreds of boxes. What they are doing is scanning each and every item that comes into Newegg. If it's a retail product, such as a boxed AMD CPU, then the retail barcode is used and information is attached to it. If it is an OEM product, such as an OEM AMD CPU, then Newegg will create their own barcode for the product. The bar-coding process is quite important because Newegg's system actually associates a great deal of information with each barcode.
For every product that's scanned not only are its specifications entered into the system but so are its physical dimensions and the weight of the product. The importance of this is that when your order is placed, Newegg's system knows exactly what size box(es) to ship your order in as well as how heavy your order will be. After your order is complete and before it is boxed up, the weight of the order (as well as the barcodes on each item) is checked against Newegg's database to make sure that you are indeed getting what you ordered.
In the far left corner of the picture above is a station where Newegg will take pictures of any new products coming into their warehouse, which end up being listed along with the product on their website.
After the products are received by Newegg, they are then sent to one of two places - the staging area or "the racks" where actively shipping product is organized and ready for orders that are being placed immediately.
The picture above is closest to the receiving area, and thus is the emptiest of the staging area. Newegg's facility here is no where near full capacity but also important is the fact that Newegg doesn't keep product for very long at all, which allows them to usually take advantage of the best pricing possible and in turn offer highly competitive prices to their customers.
The farther away you get from the receiving area, the more crowded the warehouse becomes:
122 Comments
View All Comments
jamesbond007 - Tuesday, February 14, 2006 - link
Thanks Anand and NewEgg for the great pics and tour! As a long-time NewEgg customer, it was very intriguing to read the article and gaze at the pictures because I've always wondered how a place like that worked. =)Cheers!
~Travis W.
flexy - Tuesday, February 14, 2006 - link
this looks sooooooooooooooo much like my f****g work - except that the items at newegg are approx. 10000000 times more interesting than what we deal with every day ;)bbomb - Tuesday, February 14, 2006 - link
I worked on an aembly line putting together boxes for vent hoods to go in. That was the longest fucking week of my life. I wonder why the vent hood people didnt have the box-putter-together machine.PandaBear - Tuesday, February 14, 2006 - link
The last company I worked for used to be part of Mitsubishi, and you would be surprised how much cheaper our shipping was compare to you going to Kinko's yourself, it was almost 1/2 off.I would imagine Newegg got a deal with UPS that makes it much cheaper than FedEx Ground.
Reflex - Tuesday, February 14, 2006 - link
Been a customer of theirs for years, pretty much since Egghead went under(remember them?). Service has always been great and they are the first place I reccomend to techs and resellers. Sure beats the old days of having to have a tax ID and account with a distributer.Powermoloch - Tuesday, February 14, 2006 - link
Thanks for the article Anand...really appreciate it. I didn't expect the warehouse to look like that !cw42 - Tuesday, February 14, 2006 - link
pics coulda been better, but AWESOME ARTICLE.Thanks newegg.
bob661 - Wednesday, February 15, 2006 - link
Pics looked good to me.StevenYoo - Tuesday, February 14, 2006 - link
nice read.man, part of me really wants to win that CPU!
but the other part of me doesn't so I don't have to buy a new mobo, etc.
NeonAura - Tuesday, February 14, 2006 - link
Contest for AMD X2s.. excellent :)And, there shouldn't be many entries outside of Anandtech, because the contest entry isn't open for a long time and because the link's broken. Noobs won't get it :)