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:


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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.


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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:


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  • 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
    Reply
  • 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
    Reply
  • 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)
    Reply
  • 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. Reply
  • 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. Reply
  • Staples - Wednesday, February 15, 2006 - link

    I am surprised it took someone so long to mention that this is 100% pure advertisment. Reply
  • 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. Reply
  • 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. Reply
  • ohnnyj - Wednesday, February 15, 2006 - link

    quote:

    As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.


    Just ordered a Logitech G7 mouse on Sunday, arrived today (using UPS Ground). Great work Newegg!

    John
    Reply
  • Harkonnen - Wednesday, February 15, 2006 - link

    Canadians can't enter :(

    boo

    *cries*
    Reply

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