Inside Newegg: They give us a Tour and you a Prize
by Anand Lal Shimpi on February 14, 2006 3:31 PM EST- Posted in
- IT Computing
Shipping and the UPS/FedEx Debate
With the box taped your order is now on the last leg of its trip through Newegg's warehouse as it heads down the final set of rolling conveyers.
The metal crates and employees that you see below are all for Army Post Office and Fleet Post Office (APO/FPO) shipments to the US Military. "Shipping to the US Military is requires extensive paperwork in comparison to our normal shipping operations," says Howard Tong, Vice President of Newegg.com. "Not many companies provide this service but we feel it's worth the extra effort to support our troops and our nation."
With your box packed, labeled and taped up it's off to shipping and it's in Newegg's shipping that most of the recent controversy has been about. Newegg's default shipping is through UPS, although you can pay extra for FedEx. Newegg used to be a FedEx shop by default, however recently FedEx significantly raised their rates, which Newegg passes directly onto their customers. Newegg claims that the rate hike was an attempt by FedEx to discourage customers from shipping via 3-day air, which loses money for FedEx, and instead choose FedEx ground which is profitable.
However FedEx Ground isn't as good as UPS ground, so the end result is frustrated FedEx 3-day air customers that have to pay more, or customers forced out of pricing to go with UPS, which hasn't always had the best track record. In response to complaints about UPS VP Tong says, "We're serious about providing our customers with the best service. We've taken the criticisms about UPS constructively and have greatly improved the situation. However we're always striving for perfection and always welcome further feedback."
With the truck loaded, it's off to your delivery address. As we mentioned at the start of this article, Newegg's goal is to be able to have your shipment to you within 2 days of ordering it regardless of shipping method. It's not a guarantee, but rather an internal goal that they've been striving for ever since their inception.
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Rapsven - Tuesday, February 14, 2006 - link
What's that for?peldor - Wednesday, February 15, 2006 - link
I just want some stats.You know like megapeanuts/s.
Jynx980 - Wednesday, February 15, 2006 - link
The peanut guns are employed by security at the New Egg facility. They shoot about 15 peanuts in a tight grouping which leave painful welts for slacker employees and persons accused of theft.Howard - Tuesday, February 14, 2006 - link
Strange.creathir - Tuesday, February 14, 2006 - link
Though Anand, use your sway to get them to GET RID OF PEANUTS!I would MUCH rather get those plastic bags of air than messy peanuts...
- Creathir
CheesePoofs - Tuesday, February 14, 2006 - link
Same here. Air bags are much cleaner and don't get everywhere like peanuts have a tendency to do.johnsonx - Thursday, February 16, 2006 - link
yeah, hate those peanuts. They're so hard to pick up if you happen to spill some.BUT, I bet peanuts are a good bit cheaper for such a high volume shipping operation. Do you want to pay more for bags of air?
F22 Raptor - Tuesday, February 14, 2006 - link
Nice in depth article and pitures, it was very interesting!I also entered the giveaway!
:)
Cygni - Tuesday, February 14, 2006 - link
I have to say, im pretty impressed. I didnt expect that level of automation and technology. Guess i shouldnt be surprised. It IS newegg, afterall.gerf - Tuesday, February 14, 2006 - link
I expected a little more automation. Of course, I work for a company that makes things like this (similar at least). Mostly we do automotive machines though.But, there are a few factories in the world that are completely automated similar to this warehouse, but even more so.
Pallets can be tracked and moved to the exact part of the plant that the parts are needed, automatically loaded, and automatically assembled, including a multitude of safeguards for people, quality, machine production...
Yeah, it's neat stuff.