By Rob Meilen

During the vendor selection process, it’s critical to evaluate the stability and long term viability of a vendor. Sports Authority, like most companies, must ensure that the solutions we implement don’t put the business at unnecessary risk and have the right longevity. If we are doing something leading edge, more risk is acceptable, but the overall risk/benefit scenario is scrutinized heavily.  

My team uses several approaches to evaluate a potential vendor’s stability and viability. First, we’ll look at the vendor’s financials. We partner with our Finance organization to ensure we are looking at every detail.

Second, we look at the vendor’s track record. How long have they been in business? How long have they been implementing this specific product or service? What and where is the install base? Are they a mature organization or an early stage start up?

Long-term support is the critical third component and a facet that simply can’t be overlooked in the process. Where is the support organization? What are the processes? Will we be able to count on vendor support in the short and long term?

There are pros and cons to partnering with a small vendor versus a large vendor. The large vendor is more stable in terms of risk, years in service, and ability to provide support. However, they are often less flexible and more costly. The small vendor may be less stable and a higher risk—but they can be more flexible, agile and hungry for business.  

Higher risk is sometimes acceptable; the benefits must outweigh these risks, however. Each decision must take into account a thorough cost/benefit analysis balanced against the risk profile.

Rob Meilen is CIO of Sports Authority, which operates more than 460 stores in 45 states.