Final Words

There's not much you can conclude about touring a warehouse like Newegg's, there's no buying recommendation, there are no roadmaps to talk about, or upgrade paths to plan out. That being said, there are a couple things that we took away from the experience:

Quite possibly the most impressive part of the tour was the automated setup of the warehouse that Newegg's logistics team lead by VP, Howard Tong designed. Wherever possible the room for human error was minimized or completely removed, and the system itself is constantly learning from the way that Newegg's customers shop to further optimize itself as time goes on. The likelihood of your order getting damaged at Newegg's warehouse is very slim from what we saw, everything is handled very carefully and wrapped very meticulously. As we mentioned earlier, the potential for human error is as minimal as possible; we can only imagine what the Newegg folks would do to their warehouse if they had a few capable robots.

The other very impressive aspect of the tour was exactly how clean the warehouse was. While we wouldn't want to eat off the warehouse floor regardless how clean it was, we were quite impressed at how tidy the whole operation is.


From left to right: Howard Tong (VP), Anand and Ken Lam (Vice Chairman)

Given that the AnandTech readers were some of the most vocal in favor of Newegg in its early days, VP Howard Tong did have some nice things to say for you all:

"As you can see Anand, we put great effort into building a bulletproof infrastructure because we are committed to ensuring our customers have the best service. Sure, you can find smaller companies that may be a dollar or so cheaper, but at Newegg we decided we wanted to give our customer the best experience every time, and that is why we must invest into advanced systems that other companies do not have. We built all this with the customer specifically in mind.

Newegg has never before given the public this kind of exclusive look into its internal business proceses. At Newegg we have always loved the AnandTech reader. These are people whose deep love and understanding of technology help drive its innovation and advancement. In appreciation for this passion we will always do our best to give our tech customers the best selection, prices and service."

We hope this tour has been enjoyable and we'd like to thank Newegg for giving us the opportunity to present you with it. Now head on over to the entry form and try to win those Athlon 64 X2 4600s.

Shipping and the UPS/FedEx Debate
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  • Rapsven - Tuesday, February 14, 2006 - link

    What's that for?
  • peldor - Wednesday, February 15, 2006 - link

    I just want some stats.

    You know like megapeanuts/s.
  • Jynx980 - Wednesday, February 15, 2006 - link

    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.
  • Howard - Tuesday, February 14, 2006 - link

    Strange.
  • creathir - Tuesday, February 14, 2006 - link

    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
  • CheesePoofs - Tuesday, February 14, 2006 - link

    Same here. Air bags are much cleaner and don't get everywhere like peanuts have a tendency to do.
  • johnsonx - Thursday, February 16, 2006 - link

    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?
  • F22 Raptor - Tuesday, February 14, 2006 - link

    Nice in depth article and pitures, it was very interesting!

    I also entered the giveaway!

    :)

  • Cygni - Tuesday, February 14, 2006 - link

    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.
  • gerf - Tuesday, February 14, 2006 - link

    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.

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