New Era Group functional outsourcing process is an alternative to permanent employment.

We are very confident that the NEG Functional Outsourcing service offering provides our clients with the ideal alternative to the traditional labour broking solution, whilst retaining the flexibility and cost effectiveness of the aforementioned model.

The traditional temporary employment service will remain intact for employment shorter than 3 months and for fixed term contract requirements.

Functional Outsourcing, is an outsource process (logistics, picking and packing, sales, cleaning, etc.) to a third party which allows the outsource partner to assume the entire labour law risk. This model establishes an “Arm’s Length” relationship between NEG and the Client, as NEG assumes de facto control over the outsourced process and provides the Client with labour flexibility within the confines of a service level agreement.

You can basically outsource any process of your choice, i.e. your core business is what you choose it to be.
The New Era Group Functional Outsourcing solution establishes an independent contractor relationship between New Era Group and the Client and is underpinned by the following elements:

• Service level agreements with specific outcomes;
• Outcomes based remuneration (paid per unit);
• Physical process rests with New Era Group;
• Planning and quality is managed jointly, controlled by Client.

We have had the New Era Group Functional Outsourcing concept tested by some of the leading labour experts in the country who have been working closely with CAPES, Business Unity South Africa and National Government.

There are many reasons for outsourcing, but here is a look at the top 7 reasons companies might decide to outsource their warehouse and distribution needs:

1. Get a better return on your assets. By reducing the significant investments in warehouse facilities as well as material handling and order picking labour, you are able to eliminate huge upfront capital costs and your returns can be enhanced significantly.
2. Save time and increase personnel productivity. By emphasizing your core business and focusing your time on what you do best – selling and marketing your product – utilization of your personnel can be more effective.
3. Labour flexibility. As new markets and new products are developed, it is often impossible to predict future logistics needs accurately. Similarly, as existing market and product characteristics change, logistics needs change as well. Many companies experience great seasonality throughout the year. The use of a warehouse provider greatly reduces the risk of misplaced labour, outdated facilities, and equipment.
4. Eliminate the headache of labour issues. While labour issues can be somewhat delicate depending on your own labour environment, labour considerations should not be ignored when considering outsourced warehousing. Third party warehouse providers have the human resource expertise to effectively manage their workforce and stay on top of constantly changing requirements.
5. Achieve cost savings. In addition to capital savings, outsourcing results in lower cost and improved savings than what could be generated internally.
6. Increase customer satisfaction. In today’s environment of error-free, prompt deliveries and unique business and consumer requirements, customer service has to be the most important consideration for any firm.
7. Improve technology. Whether you are engaged in e-commerce, retail fulfilment, or both, increasing demands for new information technology systems and resources can often be met more efficiently through outsourcing. Because warehousing is their core business, a third party warehouse provider has the resources and expertise to invest and maintain robust warehouse management systems, stay on top of routing guide requirements, generate required EDI transactions, and enhance systems as needed.