Manufacturers' representative for OEMs since 1983
Manufacturers' representative for OEMs since 1983
Home/Advisory services/Major Expense Reductions
Overhead outside the bill of materials
Our OEM customers trust us to lower what they pay for components. The Back Bay Associates also works with specialist partners to provide cost-reduction services for indirect spend, overhead costs outside the bill of materials. Current programs cover employee preventive care benefits through EHP/Revive and technology and software licensing through HonestStok Technology Partners.
JKReviewed by Jeff Ketterer, CEO/Principal, The Back Bay Associates
Our OEM customers trust us to reduce their component costs. Several asked whether we could do the same for overhead, and this is our answer.
Direct spend is what goes into your product: components, materials, assemblies. Indirect spend is everything you buy to run the business, such as benefits, software, telecom, and facilities. Direct spend usually gets a purchasing team's full attention. Indirect spend often gets renewed without a second look.
Indirect costs grow quietly. No single person owns them, contracts auto-renew, and few companies have the time or benchmarks to challenge them. Specialists who review these categories every day know what good terms look like. Through our owners’ relationships, we also offer independent sponsor and private equity access.
Through EHP/Revive, employers with more than 25 full-time W-2 employees can offer preventive care, urgent care, mental health, prescription, and weight-loss benefits with 24/7 access and no copays. The program sits on top of your existing health plan.
Through HonestStok, we review and renegotiate technology contracts, including Microsoft licensing.
We are compensated based solely on the success of these selected programs, driven and measured by the value creation and cost reduction size and scope realized by our interested customers.
One conversation to see whether benefits or technology spend is worth a closer look.
It’s the goods and services a company buys to operate, rather than the materials that go into its products. Examples include employee benefits, software, telecom, and facilities.
They review spending categories, benchmark prices and terms, and renegotiate or restructure contracts to lower costs.
Not necessarily. Many savings come from better terms with the providers you already use.
Thirty minutes to see whether it's worth a closer look.
Manufacturer's representative for HVACR and Food Service Equipment OEMs since 1983.
