Inside Newegg.com

I found this article about the way Newegg.com runs it's warehouses and it is quite nice. However, to put a disclaimer out there (or an opinion if you like that word better), I have a feeling that Newegg and the site that wrote the article have more then the normal journalistic relationship going on. It made me feel a little strange to dig too deeply into it but I am glad that I did. It just shows that you can't always trust your first instinct (in this case I thought the site was writing an advertisement but not admitting that it was advertising). Although my first instinct may still be correct the article is a fascinating view into how the warehouse operations of a retail web site function. The automation and methods used to make the operation more efficient are nothing short of amazing. I have always liked to look at the way other businesses conduct their operations. It always gives me ideas for improvements that I can make in my own business, even if the business I am looking at has nothing to do with my own. I may not always pick up on something that directly applies but the idea behind the processes usually will get my juices flowing. In this case the way in which the company makes sure that only the correct quantity of the correct product is selected for an order interested me. They essentially took out the need for the person setting up the order to look for product locations or to match the required quantities up with orders. By using a mechanical and computerized process, the worker's job consists of quality control and quality control is one area where humans excel over machines. In the end the company makes the mechanical systems, computers and humans do what they do best and they thereby increase the overall efficiency of the business. As a business owner how can you not like this? - Doug Kersten The New Boom "Established in 2001, Newegg has quickly become a household name among AnandTech readers. They originally won the hearts of many readers by offering extremely competitive prices and keeping customer service a top priority. Since their humble beginnings the company has grown tremendously, with net sales in 2005 of approximately $1.3 billion, a 30% increase over the prior year. Newegg currently stocks over 60,000 different products and ships up to 25,000 orders per day, 98% of them within 24 hours. On a recent trip to Los Angeles we were given the opportunity to take a tour of one of Newegg's warehouses. While we've been able to tour Newegg's facilities in the past, this time they let us publish pictures and take you on a virtual tour of their facilities - effectively letting us follow the path of an order after it is placed online. Newegg sweetened the deal even more by working with us to give away some of their product to you all, but more on that later."