VELOCITY VIDEO CASE HISTORY
Newegg hatches a smart and
scalable fulfillment system
HIGH TECH IS HOT. AND AS ONE OF E-COMMERCE’S FAST-
est-growing suppliers of computer components and electronics,
Newegg found itself challenged with handling its exponential
growth while maintaining its promised “lightning-fast delivery” to its
more than 25 million registered users. Founded in 2001, the company
now has multiple distribution centers, with the most recent opening
in Indianapolis in 2014. The facility
supplies a wide range of products,
including hard drives, computer mem-
ory, printers, televisions and monitors,
and other small electronics.
Newegg boasts a vast inventory of
Perfect Pick is a cutting-edge robot-
ic goods-to-person order fulfillment system. The Perfect Pick in
Indianapolis consists of two enclosed aisles of dense storage with
processing workstations located on the ends of each aisle.
NO MORE TRAVEL TIME
Items stored inside Perfect Pick include small parts, cameras, computer drives, cellphones, and other fast-moving products. They represent
about 4,400 of the building’s 20,000 overall SKUs. The Perfect Pick
storage aisles are 32 feet high and hold 3,500 totes that are transferred in and out of their positions with small robots called iBOTs.
There are 15 iBOTs per aisle – 30 in total.
To fill orders, the iBOTs bring totes containing the inventory directly
to the four picking stations that are integrated into the aisle itself.
This unique goods-to-person design reduces travel time and product
handling. “There are very few touches now,” explains Chuck Cornwell,
Once the pick is completed into an
order tote via pick-to-light, the product
tote is taken away and the next tote
is immediately presented. This allows
workers to typically pick over 400
items an hour, compared with the 200
items that workers in the facility’s pick
module select, so it is twice as productive. Orders can now be completed
within 30 minute of being inducted,
which allows Newegg to meet its
same-day shipping goals.
