Newegg’sSupplyChainMikeBarthToddHillardAgendaCompanyBackgroundKeyelementsofsupplychainITSystemDistributionSystemSupplyChainConclusionsQuestionsWhatisNewegg?CompanyStatistics2ndlargestonlineonlyretailerintheUS.$2.1Billioninsaleslastyear(1/8ofAmazon)Over40,000SKUsstocked/distributed1million+squarefeetofwarehousespaceintheUS.(CA,KY,NJ,TN)12millionregistercustomers.CompanyvaluesCustomercentricmissionAchievementpoints:Distribution-EfficiencyandwellplannedmanagementofproductsITSystems–Welldesignede-commercesiteandsoftwaretomanageallaspectsofthecompany.ObtainingproductsMajorityofmanagementanddealcuttingisdoneinChina.Dealsareconstantlysoughtwithyoungcompanywithnewerinnovativeproducts.Dealsarecutbothdirectlywithcompaniesandalsothroughbrokersdependingonmanufacturerlocation.ITSystemsAllbusinesssoftware/sitesaredevelopedandmaintainedinhouse.FinancialtransactionsarehandlebySAP.DistributionishandledbyDematic.ClassIIIITsystemE-CommerceWebsiteBusinesstoCustomerCustomerfeatures EasyintuitivelayoutForumsHowtoReviewsWebsiteSupport24/7Automated,LivechatcapabilitiesRMASupport/PurchaseProtectionDatawarehousebackupsStandardwebsecurity/certificationsNewegg’sDistributionSystemDistributorstoragewithsmallcarrierdelivery.ThreeprimaryDCsizes:Small–SmallorderswithquickturnaroundMedium–Combinationlarge/smallorders.Large–Largebulkorderstorage.AllDCfunctionhandledbyaLogisticscompany.DistributiongrowthExpandedtoEastCoastin2019Cranberry,NJ/75,000sq.ft.warehouseEdison,NJ/50,000sq.ft.warehouseRapidgrowth40%totalsales2019New380,000sq.ft.DistributionCenterDistributionCycleDematicLogisticsWorldwidelogisticscompany;All-in-one.SpecializeinfullDCautomation.Increasingorderefficiency,accuracyandspeed.ImplementedDematicSystemPick-to-lightsystemConveyorplatformHowdoesDematicsystemwork?WarehouseinventoryorderedfromofficesattachedtothewarehousePalletsarereceived,unpacked,andsenttoreceivingamere30feetawayTheDematicSystemEveryitemthatcomesintoNeweggisscannedInformationassociatedwitheachbarcodeProductspecificationsPhysicaldimensions/WeightofproductSystemknowswhatboxtouseWeightandbarcodescheckedagainstdatabase

PicturestakenofallitemsforwebsiteTheDematicSystem←StagingareaclosesttoreceivingareaStagingAreafartherawayfromreceivingarea→TheDematicSystemTheDematicSystem3levelsorganizedby“velocity”Medium/Lowvelocityproductson2ndand3rd

Highvelocityproductsfoundon1stfloorTheDematicSystemBar-codedtubassignedtoeachorderreceivedItemsfororderLocationofitemsTubtravelsonconveyerstoppingateachlocationofitemsfororderTheDematicSystemTheDematicSystemMainSystemControlsProductsgroupedbyfrequencyofpurchaseTheDematicSystemTheDematicSystemElevatortoExpressLaneTheDematicSystemExpressLaneTheDematicSystemSecureAreaTheDematicSystemOrdersortingforboxingOrdercheckingLabelprintingTheDematicSystem←PeanutGunpackingstationBubbleWrapping&Boxtaping→TheDematicSystemOutthedoor!2dayturnaroundgoalTheDematicSystemResultsAccuracyandqualityofordersreceivedbycustomers'damage-free-99.9%Ordersreceivedby3p.m.localtimeshipssame-dayabout98percentofthetimeNow#1incustomersatisfactionforonlineretailers**AmericanCustomerSatisfactionIndexsurveybythe