The challenge: Ship 98 percent of orders within one business day
Newegg.com needed a solution that could deliver on their goal of shipping 98 percent of orders within one business day. "To facilitate this, we invested in our New Jersey distribution center to consolidate two of our smaller operations into one large automated facility," says Bob Zelis, Vice President Logistics at Newegg.com. "We wanted to better service the eastern U.S. where we have a significant customer base. Our business has grown so dramatically over the past couple years that it necessitated a new DC to keep up with it."
The solution
Once the products are received, they go into one of two locations. Most of the product goes into primary pick locations within the picking system. Some of the product is purchased in quantity, where it goes into a secondary pallet location for storage. Integrating with Newegg’s proprietary Warehouse Management System, Dematic’s SortDirector is being used for the warehouse control system (WCS) which provides state-of-the-art graphic system monitoring for the entire conveying, zone routing and sortation operations.
The results are in
The time to process one order in the New Jersey DC averages 20 minutes. Processing speed allows more orders to be shipped at ground rates, which is better for Newegg’s customers. Also, the high-capacity design of the system means that order processing can occur on one shift, as Newegg is doing now, instead of being spread out into another shift. That leaves a lot of room for expansion as volumes increase.
"After a rather intensive review of our needs and suppliers, we settled on Dematic to handle the design and system integration for all of the material handling equipment. We wanted the latest technology to move our products through the DC, so we could capitalize on the fastest and most efficient systems. Dematic’s complete automation solution covered our entire operation, from picking through to shipping."
- Bob Zelis, VicePresident Logistics at Newegg.com
