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Inside Newegg's East Coast Distribution Center
MrSeb writes "Did you know that Newegg is the second largest e-tailer in the U.S., after Amazon? Perhaps building your own computer isn't dead yet! Matthew Murray was recently invited to take a tour of the Newegg east coast distribution center and see what goes on behind the scenes. 'The 350,000-square-foot Edison warehouse not only houses some 15,000 SKUs of products, it also ships as many as 15,000 packages a day ... All of the different products the company carries are sorted both by category and how easy they are to move: Obviously, HDTVs are more cumbersome and difficult to remove safely than processors. Some mobile equipment, such as laptops, netbooks, and tablets, are stored in a special “high-value” area behind a chain-link fence that’s been erected within the warehouse itself.'"
"Some mobile equipment, such as laptops, netbooks, and tablets, are stored in a special 'high-value' area behind a chain-link fence thatâ(TM)s been erected within the warehouse itself."
Prediction: Multi-million dollar tablet heist within 6 months.
That fence isn't there to keep you or me out. The walls and doors of the building do that. (Presumably. I haven't been to NewEgg's warehouses myself.)
The fence is to protect the products from employees and other staffers already in the building. Only the more trust-worthy employees can get into the cage. The minimum-wage semi-transient workers are kept out. It's a fairly common technique -- most retail stores do something similar. Certain items (typically small, high-value, and popular) are frequent targets of employee theft, and that's where that stuff goes.
dragonhawk@iname.microsoft.com
I do not like Microsoft. Remove them from my email address.
I RTFS and all I can think is "I have never heard the word 'e-tailer' before, but I already hate it."
OK, Clueless guy visits an order fulfillment center. Not even a very interesting one. No Kiva robots like "soap.com", no incredibly fast processing on long orders for many tiny items like "digikey.com", no unusual outsourcing like UPS's laptop repair center.. Just an ordinary fulfillment center.
Maybe next he'll get out of Manhattan and visit a factory.
(Then again, "Pawn Stars" and "Storage Wars" are actual reality shows.)
That didn't matter at Computer City or CompUSA. A buddy of mine worked at both of those (by virtue of one absorbing the other) and when both stores were closed he was kept on to help close them. One store apparently never had its camera system installed, and they found that out when they took down those fisheye covers in the ceiling to find them devoid of cameras but chock full of empty merchandise packaging, mostly memory and hard disk drive packaging. Literally a couple-hundred-thousand dollars worth of missing merchandise. Based on where the storage for these products was, it looks like employees were opening packages, stuffing the products into their clothes, and then tossing the packaging up above the drop ceiling that was about 7' up, so the packaging went out of sight to anyone coming in to inspect the room. The other store was equally bad, as apparently warehouse staffers who were paid to bring secured merchandise out to customers were bringing more than one of an item out at a time, loading one in the customer's car, then loading the other into their own. This was finally caught on to by a CUSTOMER who saw a worker load a TV into his own car, and asked the store manager about it. Jailtime was the sentence in the latter, but no one was caught in the former.
The only way, in my opinion, to keep this crap from happening is to find a way to only let real managers (ie, not people promoted to manager so that they can be paid a crap salaried wage while working too many hours) have access to the secured merchandise, and to tie their salaries to the sales and inventory results of the secured merchandise. If the store's inventory gets too out-of-whack, the managers get penalized. Technically they could let non-managers in to these spaces, but if their salaries are based on such numbers they'd be much less inclined to let anyone whose salary isn't based on those numbers in to the area.
Do not look into laser with remaining eye.
Ya know, I hate to say this, but at least they were only stealing from the stores. i used to work in a little shop down the street from a Best buy and we were always swamped taking care of the PCs Worst buy "fixed". it was bad enough when we would get floppies put in upside down, hard drives literally beat into the cage because some clueless GS worker didn't know how to release the latch, but i don't know how many time i had to tell folks the reason their PC was slow, or their new graphics card was running like shit was because somebody at Worst Buy palmed it and gave them some shit out of the back if they didn't just rip it straight from the hinges like they'd do with RAM. That was how I met my last GF, I had to tell her the reason her PC was slow after she took it in to get cleaned was because while her PC was supposed to have 1Gb of RAM someone had helped themselves and left her a 256Mb stick in its place.
The bitch is the guy running that BB had to know something was hinky just from all the complaints he got from folks that would call them right from my counter but he made it clear that unless they had some before and after pics or some other proof he didn't give a crap what they or even the label on the side of the PC said, it wasn't his problem. Frankly I really wasn't surprised when they ended up moving to a new location because 'business was down' in that area. No shit, ripping off your customers can have that effect or so I hear.
as for TFA Newegg, Tiger, and Amazon are my three favorite places to shop anymore, never have a bit of hassle, never have a problem. Every time i've tried dealing with local shops I've found piss poor selection, clueless help, and insane prices. With Newegg you can tell pretty easily if something is junky just by the amount of negatives, just look at the rating on some of the Seagate drives for an example. Personally i'd rather shop there than deal with retail hassles, thanks Newegg!
ACs don't waste your time replying, your posts are never seen by me.
Some more photos would have been good...you go all the way to New Jersey and you only took three pictures? That Pick to Light system sounded interesting, but a photo would have made it all clearer.
I thought that this story had already been done, and sure enough, it has. Of course I'm sure Newegg is happy to give a warehouse tour to any blogger who wants one. I'm not even sure the story I linked is the one I've seen before. Wait, maybe that was this one! Anyway, both of those had more photos.
Penny - plain text accounting
I don't agree. There are always people who will attempt to milk the system even when they're happy. I've had a roommate like that.
I won't dispute that less employees will steal, but it certainly won't eliminate the problem.
Do not look into laser with remaining eye.