Vendor Selection Approach

In Chapter 5, we outlined the framework needed to embark on an RFID solution implementation and deployment. In the Build and Deploy phase of the framework, we presented the need for appropriate vendor selection. In this section, we discuss three major approaches to vendor selection.

Best-of-Breed

The Best-of-Breed approach involves selection of the best vendor for each specific portion of an RFID project. For example, you can select the best vendor of tags and readers, select another vendor that is best at installing and testing, and select yet another vendor that is best qualified to do application integration or training within your enterprise. The choice of which vendor is the best often depends on the specific application and industry. For example, a particular vendor may offer the best high frequency (HF) tags and readers for rugged environments in factory floor automation applications. The same vendor may not be the best choice for UHF tags and readers for inventory management applications in a packaged goods warehouse.

The Best-of-Breed approach implies that you are in control and manage all aspects of the project in-house.

Top Three Advantages

• Ability to meet the requirements of the project as specified

• Higher chance of a successful project outcome

• More flexibility in substituting another vendor if one does not work out as planned

Top Three Drawbacks

• In-house project management function may drain already scarce resources

• Lack of in-house expertise may lead to inappropriate or incorrect vendor choices

• Integrating multiple vendors' products may escalate the cost of the overall project

One-Stop-Shop

The One-Stop-Shop approach approach requires the selection of one single vendor to act as the primary contractor vendor for the RFID project. In this case, the primary contractor often manages the entire lifecycle of the project from design and planning to deployment and maintenance. This usually means that a single vendor is responsible for all phases of the project and takes responsibility for selecting subsequent vendors (sub-contractors) if it cannot fulfill certain aspects of the project on its own. For example, if the primary contractor is a systems integrator, it is likely to rely on an RFID hardware vendor to select the type of tags and readers most suitable for the project.

The One-Stop-Shop approach means one vendor is primarily in control, manages all aspects of the project, and takes responsibility for the overall outcome of the project.

Top Three Advantages

• Single point of contact responsible and accountable for all aspects of the project (a.k.a. one throat to choke)

• More in-house resources available to focus on business-related aspects of the project such as setting up success metrics, return on investment (ROI) analysis, and stakeholder buy-in

• Faster time-to-deployment as project is less dependent on in-house resource and skills constraints

Top Three Drawbacks

• Single point of contact may result in expensive "project restart" in case of a failure

• More complex upgrade/maintenance path due to lack of visibility in details of the project

• Shortfall in required functionality due to inadequate vendor expertise, experience, or focus

Trusted Advisor

The Trusted Advisor approach is a hybrid version of Best-of-Breed and One-Stop-Shop. This approach requires you to maintain the overall project management responsibility in-house and hire a vendor to act as a trusted advisor. This trusted advisor helps you with your vendor selection in an objective manner. In this scenario, a trusted advisor often directly helps with certain aspects of project implementation. For example, if the trusted advisor is a systems vendor, it should be fully capable of architecting the project and deploying both the hardware and software related to the project. For RFID projects in particular, this approach is often the most sensible one. First, due to the fast evolving technological advances, it is much harder for a business implementing an RFID project to keep up with the most recent vendor offerings. A trusted advisor's primary responsibility is to continue to enrich its knowledge base and is more likely to always know the "latest" and the "greatest." Second, a trusted advisor is likely to have a more objective view of other vendors and is not likely to be "tied" to any particular set of vendors.

The Trusted Advisor approach means you are primarily in control and manage most aspects of the project in-house. This approach can often maximize the advantages, and minimize the drawbacks of the other two approaches discussed earlier. However, the Trusted Advisor approach may require more out-of-pocket cost than the other two, as you need to spend extra money to hire this trusted advisor. Over the long term, this up-front cost is compensated by a better project outcomeone that provides the most robust design with minimal risk.