Inside Newegg: They give us a Tour and you a Prizeby Anand Lal Shimpi on February 14, 2006 3:31 PM EST
- Posted in
- IT Computing
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.