Military Gear & Army Surplus Gear Blog

Inside the Newegg.com 400,000 sq. ft Robotic Distribution Center

Inside the Newegg.com 400,000 sq. ft Robotic Distribution Center



Newegg is a leading e-commerce retailer providing customers with competitive pricing and unparalleled product selection the company seeks to become the most trusted and respected ecommerce company in the world by providing the best value and service to its millions of customers the company's motto of shopping upgraded is at the heart of its supply chain strategy faster delivery and world-class customer service new eggs 400,000 square foot distribution center in Indianapolis was constructed and designed to ship the company's standard product line of consumer electronics online gaming and IT products but has since transformed with the introduction of two new services new egg marketplace a platform for users to sell through the new egg website and shipped by new egg a third-party logistics service today new eggs Indianapolis facility has more than doubled its required throughput and SKUs but with an advanced order fulfillment system in place the company has been able to quickly and easily scale operations to meet demand it's a goods to person system and you don't have the travel time the safety the ergonomics you can't pick the item put it into the box or tote and we could do that within a few seconds versus in a pic module you have all the travel time and perfect pick you have the force support uh chah's instead of ten touches it just makes sense to double the productivity and perfect big perfect picks been operating since the grand opening it helps to improve on the three most important things in warehousing safety quality production UX fulfillment process begins when orders are released from its homegrown warehouse management system into the exacta warehouse execution system as orders are received custom sized shipping containers are automatically built a license plate number is applied and the containers are routed through the system based on what pics are needed to complete the customers order containers can travel through a three level pick module where operators use high velocity light directed picking on the first level and voice directed picking on the second and third levels from the pic module containers travel to new eggs robotic goods to person system called perfect pip this solution houses the bulk of new eggs small to medium sized high-value SKUs the two wiles of perfect pic are 100 feet long by 28 feet high with 15 eyebots per aisle delivering goods to operators the system is designed to handle up to 18,000 orders per eight-hour shift and since goods are brought directly to operators at the perfect pick workstations operators can pick nearly double the units per shift as operators using traditional voice and light directed picking once all picks are completed in order travels via zip line conveyor to receive a final weight check and packing materials before being labeled taped and sorted to the appropriate shipping lane for delivery to the customer from the very beginning the bastion group has just been phenomenal as far as communication we've talked to all the project managers the engineers they kept us up to speed on what was going on constantly and you're talking about a lot of complex systems you have our WMS which is from Newegg and that in conjunction with Bastion exacta system exact is very vital to our daily operation to ensure the orders get done in a timely fashion exactly helps to control multiple areas with order dispatching carton release balancing the conveyor and also completing the orders at the end of the day we started the project in in January of 2014 we started shipping orders in August of 2014 and in October we had our Grand Opening and we have just grown and batching is grown with us I mean with weekly phone calls conference calls we talked about balancing the pick module and balance with a perfect pick and they're already good but they get better and this is going on for years now so it's good to have that network behind you Vasanth provided knowledgeable hard-working dedicated professionals from the start of the project and they continue to help support us to this day you


Reader Comments

  1. I am hoping Newegg will have physical retail store around the U.S. I'd like to have one in Arizona.

  2. this is an interesting project. I am confused about a few things. The loading efficiency of creates is very low. Speed is low, and boxes loaded into the container are not fixed on the pallet. I think there is still space for efficiency increase. if you need help, just contact me.

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