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Inside Newegg: They give us a Tour and you a Prize
Inside Newegg: They give us a Tour and you a Prize
Date: February 14th, 2006
Topic: IT Computing
Manufacturer: None
Author: Anand Lal Shimpi
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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:


Click to Enlarge

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.


Click to Enlarge

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:


Click to Enlarge

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121 Comments - Last by Minot, 1449 days ago
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I love Newegg! by gofor55, 1456 days ago
First post!

Reply
Impressed... by Cygni, 1456 days ago
I have to say, im pretty impressed. I didnt expect that level of automation and technology. Guess i shouldnt be surprised. It IS newegg, afterall.

Reply
RE: Impressed... by gerf, 1455 days ago
I expected a little more automation. Of course, I work for a company that makes things like this (similar at least). Mostly we do automotive machines though.

But, there are a few factories in the world that are completely automated similar to this warehouse, but even more so.

Pallets can be tracked and moved to the exact part of the plant that the parts are needed, automatically loaded, and automatically assembled, including a multitude of safeguards for people, quality, machine production...

Yeah, it's neat stuff.

Reply
Nice by F22 Raptor, 1456 days ago
Nice in depth article and pitures, it was very interesting!

I also entered the giveaway!

:)



Reply
Interesting read by creathir, 1456 days ago
Though Anand, use your sway to get them to GET RID OF PEANUTS!
I would MUCH rather get those plastic bags of air than messy peanuts...
- Creathir

Reply
RE: Interesting read by CheesePoofs, 1455 days ago
Same here. Air bags are much cleaner and don't get everywhere like peanuts have a tendency to do.

Reply
RE: Interesting read by johnsonx, 1454 days ago
yeah, hate those peanuts. They're so hard to pick up if you happen to spill some.

BUT, I bet peanuts are a good bit cheaper for such a high volume shipping operation. Do you want to pay more for bags of air?


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I can't access page 9. by Howard, 1456 days ago
Strange.

Reply
Peanut Gun? by Rapsven, 1456 days ago
What's that for?

Reply
RE: Peanut Gun? by Jynx980, 1455 days ago
The peanut guns are employed by security at the New Egg facility. They shoot about 15 peanuts in a tight grouping which leave painful welts for slacker employees and persons accused of theft.

Reply
Comments Page 1 of 13

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