Newegg Selects Dematic for Automated Distribution

Paul Demery

New facility to increase capacity, and improve productivity and order accuracy

Grand Rapids, Mich., Tuesday, December 19, 2006 – Newegg.com, a leading ecommerce site for computer hardware and software, consumer electronics and communications products, has selected Dematic Corp., the worldwide leader in logistics automation solutions, systems and service, to provide an automated material handling system for Newegg’s new distribution center in Edison, New Jersey.

Newegg`s growing business required increased capacity and service levels on the East Coast. A company goal is to be positioned to reach all customers in the US with 2 day freight service. With Dematic’s solution, the new facility will allow Newegg to handle a rising order volume, improve productivity and increase order accuracy.

Newegg selected a complete solution from Dematic that includes C-L100 package conveyors, pick to light, and system management software. According to Craig Hayes, Newegg’s Executive Vice President of Product Management, Dematic’s long history of providing first class material handling automation as a single source provider was a key factor in selecting Dematic. “We didn’t want to deal with several different suppliers, or with a supplier that would hire out subcontractors,” said Hayes. “With Dematic, we get a single supplier that manufacturers, installs and services the solution. Dematic’s complete solution of automation and technology was superior to anything else we saw in the marketplace and their innovative technology will allow us to achieve higher throughput rates, increase the amount and diversity of SKUs we can offer, and do this while paying close attention to environmental sustainability.”

Dematic’s new C-L series conveyor products reduce noise and maintenance requirements, as well as reliance on oils/lubricants and compressed air, making them more energy efficient and allowing companies to increase throughput, while being environmentally aware.

“Dematic’s new products are making the supply chain a competitive advantage for our customers and helping improve their bottom line,” said Rob Bork, Dematic’s Vice President of Sales. “Today’s market is demanding not only innovative solutions, but also close attention to yearly operational costs, including energy and maintenance bills. Ongoing sustainability is becoming critical for everyone, and Dematic is designing products/solutions to achieve these goals.”

The Newegg distribution center is slated to go live in spring 2007. “We look forward to supporting Newegg`s growth,” added Bork. “As a supplier of leading edge electronics technology to IT professionals, hard core gamers, small to medium-sized businesses and others, Newegg is acutely aware of the value of technology and full lifecycle support and what it means to success. We are excited to work with Newegg to optimize their supply chain.”

About Newegg - Newegg.com is a pioneering marketer, an e-commerce company that has created a powerful channel for manufacturers of computer hardware and software, consumer electronics and communications products to reach do-it-yourselfers, hard core gamers, students, small to medium-sized businesses, IT professionals, resellers and consumers that desire a comprehensive digital lifestyle. At the Newegg.com website, consumers can find the latest technology parts and products, along with product information, pictures, how-to’s, customer product reviews and opportunities to interact with other members of the technology and game enthusiast community. Founded in 2001, Newegg.com has more than five million registered customers and more than 1000 employees globally. Newegg.com headquarters are in City of Industry, CA. For more information, visit www.newegg.com.

About Dematic Corp. - Based on a rich tradition of over 70 years of worldwide industry expertise in creating logistics results and more than 10,000 systems installed worldwide, Dematic Corp is the world’s leading supplier of logistics automation solutions, systems and service.

With a rich history from gravity conveyors to automated, modular conveyor and sortation solutions; and from Rapistan to now Dematic, our full range of engineered and highly configurable product solutions optimize warehousing and distribution operations. With Dematic companies can reduce distribution costs, maximize overall logistics efficiencies, and increase the operating speed of their supply chain. Dematic Corp. is affiliated with Dematic GmbH & Co. KG of Offenbach Germany. For more information, visit www.dematic.us.

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CONTACT: John Clark
Dematic Corp.
+1 (616) 913-7287


Automation, logistics, Logistics automation, Manufacturing, Newegg