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1、1.,Company Background,2.,Key elements of supply chain,1.,IT System,2.,Distribution System,3.,Supply Chain Conclusions,4.,Questions,?,2,nd,largest online only retailer in the US.,?,$2.1 Billion in sales last year (1/8 of A),?,Over 40,000 SKUs stocked / distributed,?,1 million + square feet of warehou
2、se space in the US.,(CA, KY, NJ, TN),?,12 million register customers.,?,Customer centric mission,?,Achievement points:,?,Distribution - Efficiency and well planned,management of products,?,IT Systems,Well designed e-commerce site and,software to manage all aspects of the company.,?,Majority of manag
3、ement and deal cutting is,done in China.,?,Deals are constantly sought with young,company with newer innovative products.,?,Deals are cut both directly with companies,and also through brokers depending on,manufacturer location.,?,All business software / sites are developed,and maintained in house.,?
4、,Financial transactions are handle by SAP,.,Distribution is handled by Dematic.,?,Class III IT system,?,Business to,Customer,?,Customer features,?,Easy intuitive layout,?,Forums,?,How to,?,Reviews,?,24/7 Automated, Live,chat capabilities,?,RMA Support / Purchase,Protection,?,Data warehouse backups,?
5、,Standard web security /,certifications,?,Distributor storage with small carrier delivery.,?,Three primary DC sizes:,?,Small,Small orders with quick turn around,?,Medium,Combination large/small orders.,?,Large,Large bulk order storage.,?,All DC function handled by a Logistics,company.,?,Expanded to
6、East Coast in 2003,?,Cranberry, NJ / 75,000 sq. ft. warehouse,?,Edison, NJ / 50,000 sq. ft. warehouse,?,Rapid growth,?,40% total sales,?,2007,?,New 380,000 sq. ft.,Distribution Center,?,World wide logistics company; All-in-one.,?,Specialize in full DC automation.,?,Increasing order efficiency, accur
7、acy and,speed.,?,Implemented Dematic System,?,Pick-to-light system,?,Conveyor platform,Warehouse inventory,ordered from offices,attached to the,warehouse,Pallets are received,unpacked, and sent to,receiving a mere 30 feet,away,?,Every item that comes into Newegg is scanned,?,Information associated w
8、ith each barcode,?,Product specifications,?,Physical dimensions / Weight of product,?,System knows what box to use,?,Weight and barcodes checked,against database,?,Pictures taken of all,items for website,Staging area,closest to receiving,area,Staging Area farther away,from receiving area,?,3 levels
9、organized by,“velocity”,?,Medium / Low velocity,products on 2,nd,and 3,rd,?,High velocity products,found on 1,st,floor,?,Bar-coded tub,assigned to each,order received,?,Items for order,?,Location of items,?,Tub travels on,conveyer stopping,at each location of,items for order,Main System Controls,Pro
10、ducts grouped by frequency of purchase,Elevator to Express Lane,Express Lane,Secure Area,?,Order sorting,for boxing,?,Order,checking,?,Label printing,Peanut Gun,packing station,Bubble Wrapping &,Box taping,?,Out the door!,?,2 day turn around goal,?,Accuracy and quality of orders received by,customers damage-free - 99.9%,?,Orders received by 3 p.m. local time ships,same-day about 98 percent of the time,?,Now #1 in customer satisfaction for online,retailers*,*,American Customer Satisfaction Index survey by the Univ
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