Newegg’sSupplyChainMikeBarthToddHillardAgendaCompanyBackgroundKeyelementsofsupplychainITSystemDistributionSystemSupplyChainConclusionsQuestionsWhatisN?CompanyvaluesCustomercentricmissionAchievementpoints:Distribution-EfficiencyandwellplannedmanagementofproductsITSystems–Welldesignede-commercesiteandsoftwaretomanageallaspectsofthecompany.ObtainingproductsMajorityofmanagementanddealcuttingisdoneinChina.Dealsareconstantlysoughtwithyoungcompanywithnewerinnovativeproducts.Dealsarecutbothdirectlywithcompaniesandalsothroughbrokersdependingonmanufacturerlocation.ITSystemsAllbusinesssoftware/sitesaredevelopedandmaintainedinhouse.FinancialtransactionsarehandlebySAP.DistributionishandledbyDematic.ClassIIIITsystemWebsiteSupport24/7Automated,LivechatcapabilitiesRMASupport/PurchaseProtectionDatawarehousebackupsStandardwebsecurity/certificationsNewegg’sDistributionSystemDistributorstoragewithsmallcarrierdelivery.ThreeprimaryDCsizes:Small–SmallorderswithquickturnaroundMedium–Combinationlarge/smallorders.Large–Largebulkorderstorage.AllDCfunctionhandledbyaLogisticscompany.DistributiongrowthExpandedtoEastCoastin2003Cranberry,NJ/75,000sq.ft.warehouseEdison,NJ/50,000sq.ft.warehouseRapidgrowth40%totalsales2007New380,000sq.ft.DistributionCenterDematicLogisticsWorldwidelogisticscompany;All-in-one.SpecializeinfullDCautomation.Increasingorderefficiency,accuracyandspeed.ImplementedDematicSystemPick-to-lightsystemConveyorplatformHowdoesDematicsystemwork?WarehouseinventoryorderedfromofficesattachedtothewarehousePalletsarereceived,unpacked,andsenttoreceivingamere30feetawayTheDematicSystem←StagingareaclosesttoreceivingareaStagingAreafartherawayfromreceivingarea→TheDematicSystemTheDematicSystem3levelsorganizedby“velocity”Medium/Lowvelocityproductson2ndand3rd

Highvelocityproductsfoundon1stfloorTheDematicSystemTheDematicSystemMainSystemControlsProductsgroupedbyfrequencyofpurchaseTheDematicSystemTheDematicSystemExpressLaneTheDematicSystemSecureAreaTheDematicSystemOutthedoor!2dayturnaroundgoalTheDematicSystemResultsAccuracyandqualityofordersreceivedbycustomers'damage-free-99.9%Ordersreceivedby3p.m.localtimeshipssame-dayabout98percentofthetimeNow#1incustomersatisfactionforonlineretailers**AmericanCustomerSatisfactionIndexsurveybytheUniversityofMichiganandForeSeeResults