Newegg’sSupplyChain黄刚-物流与供应链推荐.ppt

Neweggs Supply ChainMike Barth Todd HillardAgenda1.Company Background2.Key elements of supply chain1.IT System2.Distribution System3.Supply Chain Conclusions4.QuestionsWhat is N?Company Statistics2nd largest online only retailer in the US.$2.1 Billion in sales last year(1/8 of A)Over 40,000 SKUs stocked/distributed1 million+square feet of warehouse space in the US.(CA,KY,NJ,TN)12 million register customers.Company valuesCustomer centric missionAchievement 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.Obtaining productsMajority of management 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.IT SystemsAll business software/sites are developed and maintained in house.Financial transactions are handle by SAP.Distribution is handled by Dematic.Class III IT systemE-Commerce WebsiteBusiness to CustomerCustomer featuresEasy intuitive layoutForumsHow to ReviewsWebsite Support24/7 Automated,Live chat capabilitiesRMA Support/Purchase ProtectionData warehouse backupsStandard web security/certificationsNeweggs Distribution SystemDistributor storage with small carrier delivery.Three primary DC sizes:Small Small orders with quick turn aroundMedium Combination large/small orders.Large Large bulk order storage.All DC function handled by a Logistics company.Distribution growthExpanded to East Coast in 2003Cranberry,NJ/75,000 sq.ft.warehouseEdison,NJ/50,000 sq.ft.warehouseRapid growth 40%total sales2007 New 380,000 sq.ft.Distribution CenterDistribution CycleDematic LogisticsWorld wide logistics company;All-in-one.Specialize in full DC automation.Increasing order efficiency,accuracy and speed.Implemented Dematic SystemPick-to-light systemConveyor platformHow does Dematic system work?Warehouse inventory ordered from offices attached to the warehousePallets are received,unpacked,and sent to receiving a mere 30 feet awayThe Dematic SystemEvery item that comes into Newegg is scannedInformation associated with each barcodeProduct specificationsPhysical dimensions/Weight of productSystem knows what box to useWeight and barcodes checked against database Pictures taken of all items for websiteThe Dematic System Staging area closest to receiving areaStaging Area farther away from receiving areaThe Dematic SystemThe Dematic System3 levels organized by“velocity”Medium/Low velocity products on 2nd and 3rd High velocity products found on 1st floorThe Dematic SystemBar-coded tub assigned to each order receivedItems for orderLocation of itemsTub travels on conveyer stopping at each location of items for orderThe Dematic SystemThe Dematic SystemMain System ControlsProducts grouped by frequency of purchaseThe Dematic SystemThe Dematic SystemElevator to Express LaneThe Dematic SystemExpress LaneThe Dematic SystemSecure AreaThe Dematic SystemOrder sorting for boxingOrder checkingLabel printingThe Dematic System Peanut Gun packing stationBubble Wrapping&Box taping The Dematic SystemOut the door!2 day turn around goalThe Dematic SystemResultsAccuracy 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 timeNow#1 in customer satisfaction for online retailers*American Customer Satisfaction Index survey by the University of Michigan and ForeSee Results ConclusionsProsAlways about the customerReliance on other companiesImprovements?Class IV level of IT integration.Future NQuestions?