How to choose an AGV supplier? Criteria, RFP and TCO pitfalls

Choosing an AGV supplier is a decision that will weigh on the success of the entire implementation — more than the vehicle model itself. Equipment can be replaced; a partner for the next 5–10 years is much harder to change. This guide sets out five evaluation criteria, a structured process from research to a decision matrix, and the cost pitfalls that are easy to overlook if you look only at the purchase price.

Five criteria on which to base your choice of AGV supplier

Before you start talks, decide up front what you will evaluate the bidders against. Without defined criteria, the decision will come down to a price comparison, and that is a misleading point of reference in an automation project. Five dimensions that are decisive in practice:

• Technological fit. Will the proposed system integrate with your IT systems (ERP/MES/WMS) and the processes on the shop floor? Does it meet the key functional requirements — the right vehicle type, load capacity, navigation method? A solution that does not talk to your WMS will generate hidden integration costs right from the start.
• Experience and references. What implementations does the supplier have behind it in a similar industry or environment? A supplier with a track record of proven projects offers more certainty than the lowest bid without a portfolio. Ask to be put in touch with a reference customer.
• Support and service. Is there a local service team or branch able to respond quickly to a breakdown? What are the warranty terms, SLA service agreements, response time and spare parts availability? In shift work, an hour of fleet downtime costs real money.
• Flexibility and scalability. Can the system be expanded — adding vehicles, changing routes, extending functions — without replacing the entire infrastructure? Is the supplier prepared to adapt the software to an unusual scenario?
• Total cost of ownership (TCO), not the purchase price. A cheaper system can generate higher operating costs if it requires frequent servicing or more vehicles to do the same work. We will return to this in a separate section.

The selection process step by step

A well-run AGV supplier selection is a sequence, not a one-off decision. The order matters, because each stage provides data for the next.

1. Market research

Find out which suppliers offer solutions that match your needs. Market reports, automation and logistics trade fairs and industry consultations will help. On this basis, select a shortlist — usually 2–4 companies — for detailed talks. Too long a list will scatter your attention; too short a list will deprive you of points of reference.

2. Request for proposal (RFP)

Prepare an RFP with a description of the application, the functional and performance requirements, and a request for a preliminary solution proposal together with a price quote. The more specific the description (facility dimensions, aisle widths, types of load, cycle times, number of orders per day), the more accurate and comparable the responses you will receive.

3. Talks with suppliers

Before the meetings, gather all the data on the processes and the facility layout — the suppliers will certainly ask for it. Prepare a list of questions: how their system handles a specific challenge, what integration with IT systems looks like, what the infrastructure requirements are, how service and training work. Clearly stated expectations let you judge to what extent the offering actually meets your needs.

4. Site visits

Invite the selected suppliers to the plant. On site, they will better understand the specifics of the environment — the layout of the buildings, traffic intensity, potential obstacles. It is also an opportunity to work together on the solution: a good supplier will propose modifications to the concept (a different arrangement of drop-off points, a different vehicle type) that increase the chances of success. Make sure the key members of your project team are present.

5. A 1–5 evaluation matrix and the decision

Once you have collected the detailed quotes, carry out a comparative analysis. Build an evaluation matrix in which you award each supplier points (on a scale of 1–5) for compliance with requirements, cost, level of support, ease of integration and the other criteria. Take the soft aspects into account: whether communication went well, whether the supplier comes across as a trustworthy partner, how it approached solving your problems. This often foreshadows how cooperation will go during the implementation. Choose the solution that best meets the criteria and that you are able to trust.

TCO pitfalls that are easy to overlook

The price shown in a quote is usually the smaller part of the actual cost. Look at the total cost of ownership over a period of several years — include integration, implementation, training, maintenance, service and any expansion. Four areas generate the most hidden costs:

• Batteries and charging. Batteries are a consumable — they have a limited number of cycles and need replacing after some years. The charging model (opportunistic top-ups vs battery swapping) affects how many vehicles you actually need to maintain continuity of work.
• Service and spare parts. The SLA agreement, response time and parts availability are a recurring cost. A system that requires frequent interventions can, over the years, outweigh the difference in purchase price.
• Software licences. Fleet management software is sometimes billed on a licence or subscription model. Check what the licence covers, how updates are priced and whether expanding the fleet incurs additional fees.
• IT integration. Connecting the AGV system to ERP/MES/WMS via APIs is real engineering work. Integration errors are one of the most common causes of implementation delays — and every day of slippage has its price.

Supplier stability over 5–10 years

Choosing an AGV supplier is not just a cool numerical calculation — it is a decision to enter into a partnership. You are buying not a single vehicle but a service and development relationship for years. Ask directly: will the company exist and support you in 5–10 years' time? What is its financial situation, the size of its installed base, its plans for developing the platform? A supplier that disappears from the market or drops support for your version of the system will leave you with a fleet without parts or updates. The partner's stability is a criterion as hard as the technical parameters.

The role of the integrator

For organisations with no previous experience of automating internal transport, a good AGV/AMR system integrator is a partner who brings the criteria, the process and the implementation together into a single whole. The integrator helps to define the requirements, select the right type of AGV/AMR robots for specific loads and routes, and guide you through the RFP and site visits, and then takes responsibility for integration with IT systems and health and safety safeguards. Where your own team does not yet have experience in designing route layouts or configuring a fleet, the integrator's experience shortens the path to a working system and reduces the risk of costly mistakes.

Checklist before the decision

• Evaluation criteria defined (5 dimensions) and written down before the talks.
• A shortlist of 2–4 suppliers after market research.
• An RFP with a full description of the application and the requirements sent out to bidders.
• Talks held with a prepared list of questions on integration, service and training.
• Site visits with the project team taking part.
• A 1–5 evaluation matrix completed for each quote, taking soft aspects into account.
• TCO calculated over a period of several years — batteries, service, licences, integration.
• The supplier's stability over 5–10 years verified.

FAQ

How many suppliers should be invited to talks?

Usually 2–4 companies from the shortlist after market research. This number gives you real points of reference in the evaluation matrix, while still allowing you to give each conversation and site visit due attention.

Why not simply choose the cheapest quote?

Because the purchase price is the smaller part of the total cost of ownership. A cheaper system may require more frequent servicing, more vehicles or costly integration, which means that over several years it works out more expensive than a pricier, better-matched quote.

Do I need an integrator if I have my own technical department?

It depends on the team's experience. If the company has not implemented AGVs before, an integrator brings practical experience in route design, vehicle selection and integration with IT systems, which reduces risk and shortens the time to go-live. With a mature team, the integrator's role may be limited to selected stages.