Issue #9 | December 16, 2004

In your pursuit of the perfect gift this season, consider this: would you buy, say, a book that was missing pages? A toy that only worked half the time? Of course not. Well, the same logic should apply when making major RFID purchases.

Strangely, this is not always the case.
Several columns ago, I warned you about "announcement-ware," products that are announced as being available, but are not really accessible because the company has only thrown a demo together for a trade show to see who will nibble.

Some players in the industry are taking this to the next level - I call them RFID "pseudo-service providers." These are companies that try to capitalize on the burgeoning RFID marketplace without the requisite knowledge or experience. Their actions are not only damaging, but impeding the adoption of RFID technology.

Since Wal-Mart and DoD made their mandate announcements, the number of companies that offer RFID services has grown exponentially. It is understandable when you consider there are over 10,000 Wal-Mart suppliers and DoD has over 40,000 suppliers. Combined, Wal-Mart and DoD represent 6% of the U.S. GDP.

An opportunity this big attracts a very diverse crowd.

The opportunity is even more tantalizing when you consider that RFID is new to the majority of these suppliers. And few understand enough about the technology to make informed purchasing decisions. As these suppliers struggle to become savvy shoppers, they become targets of the pseudo-service providers.

My goal is not scare anyone or take away from the legitimate RFID service providers out there. But I do feel it is essential that consumers of RFID solutions conduct due diligence and demand only the best quality from providers ? it will raise the bar for the entire industry.

Here are some recommendations I strongly suggest when selecting a RFID service provider:

How many full-time, experienced RFID resources does the company have? The key word here is "experienced." I personally know guys who have started their own RFID companies just by putting up a Web site. Heck, several years ago, I was one of them. These guys are very up-front with customers as to their areas of expertise and what services they can realistically provide. However, I've seen larger companies advertising RFID services that have no RFID engineers on staff. They are either subcontracting from another source that does or they've sent someone to a training class. Which leads to the next point...

Obtain resumes of the people that will be working on the RFID project. Ask if they are employees or contractors. Ensure your services contract specifically states what role the experienced resources will play. Be sure they will not just be assisting by telephone.

Ask for a presentation that will provide an overview of the RFID solutions developed for other customers. To be fair, keep in mind there will be a nondisclosure agreement in place with the other customer so details may be left out. A legitimate company should be able to state what equipment was used, how it was integrated, what challenges were overcome, and the current status.

Watch for 'smoke and mirrors' demonstrations. Earlier this year, I toured a facility that had RFID readers installed in dock doors. I happened to have some RFID tags in my pocket and decided to see what would happen if I introduced some stray tags into the system. When no-one was looking, I put the tags next to the antennas and watched the screen. To my surprise, nothing happened. Upon closer examination of the readers, I saw the readers were connected to the network switch, but the network switch was not connected to the computer!

Don't just ask for RFID customer references, thoroughly verify them. I recently read an e-mail from a RFID solutions provider touting a major retailer as a customer. After a few calls, I verified that this company is not providing RFID services to the retailer.

Finally, what hardware manufacturers do they have experience with? Ask the RFID manufacturer for a reference. Are they certified on the equipment?

Like finding that perfect present, this process may take longer than you would like. But it is worth it in the end.

Written by Louis Sirico
Copyright ? 2004 Louis Sirico