STORES Magazine - October 2008 - (Page 74)

NUTS AND BOLTS / WAREHOUSE SYSTEMS calls a “top-notch customer experience. “Every day we make thousands of Newegg customers happy by delivering Dematic serves up hardware/software combo for their purchases to them within three business days of placing their orders,” Newegg distribution center he says. “In fact, we are able to do so 99 BY LIZ PARKS percent of the time without costly express shipping charges.” ewegg.com is the second-largest pure-play e-tailer in the United Newegg’s first investment in digital States, according to Internet Retailer’s Top 500 Retail Web Sites picking was in its California facility in list. It registered sales of close to $1.9 billion from 8.7 million regis2005, and its second was in Tennessee in tered users in 2007 and is continuing to grow rapidly. 2006. The Edison facility, the first to use Dematics’s digiTo manage growth and sustain high tal solutions, says Newegg vice NEWEGG PROJECTS levels of customer service, the IT and began making its president of logistics consumer electronics seller recently conBob Zelis, “so we first shipments of 20% improvement in productivity solidated two small distribution facilicapitalized on the small items in with Dematic DC system October 2007. ties in New Jersey that totaled approxifastest and most effimately 70,000 sq. ft. into a single cient systems.” Pick-to-light system 374,000-sq.-ft. DC in Edison, N.J. In According to Zelis, the C-L 100 zone As an Internet fulfillment house, total, Newegg now has close to 1 million routing conveyor system and SortDirecNewegg required a system where SKUs sq. ft. of distribution space for a product tor software, in combination with Dewere easily accessible once orders were mix that numbers approximately matic’s pick-to-light system and PickDi40,000 SKUs. received, says Stewart Resnick, the Derector software, offered the best soluNewegg chose Grand Rapids, Mich.matic senior account manager who tions for “storing our inventories so that based Dematic, a materials handling helped supervise the installation at the we could access products quickly and efequipment manufacturer, designer and Edison facility. ficiently. They gave us the ability to costsystem integrator, to supply the soluDematic, he says, “provided a system effectively pick orders for our customers tions for the new facility. with multiple synchronized modules and get them shipped the same day.” “We wanted the latest technology to that gives Newegg picking space for all One of Newegg’s key points of differenmove our products through the DC,” tiation is the ability to provide what Zelis their fast-moving products, as well as Over Easy N 74 STORES / OCTOBER 2008 WWW.STORES.ORG http://www.newegg.com http://www.newegg.com http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - October 2008

STORES Magazine - October 2008 Contents Executive Editor's Page President's Page Force of a Different Collar What Shoppers Think Bagging the Competition 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Favorite 50 Sticky Strategies for Retention Concept2Watch Kiosks Online Business Intelligence RFID NRFtech Wrap-up E-Commerce Credit Warehouse Systems Logistics Selling Tools Supply Chain LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - October 2008

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