Sotheby's Case Study
Secure, Reliable Management of High Value Assets
Some of the world’s most fascinating—and valuable—books,
artworks and jewelry pass through the vaults and galleries of Sotheby’s each
year, one of the world’s oldest and largest auctioneers.
From the personal libraries of Napoleon Bonaparte and Prince Talleyrand, to the jewels of the Duchess of Windsor, prized collections of diamonds and fine wines, and original works by Rembrandt, Van Gogh and other great masters, Sotheby’s routinely oversees the sale of iconic works of art, culture and commerce.
It is no surprise, then, that Sotheby’s takes great care to track and protect artworks and other items often valued in the millions of dollars. With 2006 auction sales of $3.7 billion and more than 100 offices around the world, Sotheby’s wanted the most precise and reliable technology available to monitor the location and movement of those assets.
Sotheby’s can now pinpoint the precise location of those valued items, thanks to an advanced asset tracking solution from Xterprise.
Challenge
Although Sotheby’s does not operate a traditional supply chain, and does not have manufacturers or distribution centers, the auctioneer does face a crucial “inside the four walls” inventory challenge. Given the value of the items they appraise and sell, Sotheby’s must know where those assets are at all times.
The auctioneer has established sophisticated and effective security systems for all of its storage and auction facilities. But in the past, it was sometimes difficult and time-consuming to locate a particular item in a timely fashion. Sotheby’s handled a large volume of items worldwide, and does not organize its inventory using traditional warehouse methods. Appraisers and photographers examine and document assets before they are stored and potential buyers make appointments to view and evaluate items before an auction. So artworks and other items are moved, and must be located, on a frequent basis.
The auctioneer previously used a barcode-based inventory system to track and manage this unique inventory. But because that barcode system was not always updated as needed, Sotheby’s staff often located assets the old fashioned way … with a physical, manual search.
To ensure the security and integrity of those assets, Sotheby’s conducted a twice-yearly manual inventory audit, counts that required some 300 man hours of labor and that caused significant disruption to normal operations.
Those methods were sufficient for a time, but as Sotheby’s grew into an integrated global business, the company wanted a more reliable way to track and monitor those assets. Sotheby’s goal was to enhance their existing security and monitoring systems with a more capable and precise asset tracking solution.
A High Definition Solution
Xterprise responded by implementing a Radio Frequency ID (RFID) solution that employs active asset tags, a real time location system (RTLS) and other technologies to track and manage Sotheby’s inventory assets.
A proven leader in RFID supply chain solutions, Xterprise delivers a new class of process and execution applications designed to support the High Definition Enterprise. Xterprise solutions combine Microsoft technology, continuous improvement and lean supply chain expertise and advanced RFID technologies to deliver previously unachievable levels of timeliness, resolution, adaptation and integration.
At Sotheby’s locations, active tags are now attached to an inventory item, then programmed to transmit a signal whenever they are moved or at a pre-set interval. Xterprise then placed Active Tag Sensors at strategic locations throughout Sotheby’s storage and warehouse facilities. Each tag carries and unique identifier code, and when a sensor receives a signal from the tag, Sotheby’s can determine the general-to-specific location of the tag, and thus the asset.
The RTLS allows Sotheby’s staff to instantly and automatically generate a real-time inventory balance of all tagged assets. This is an important capability, since high value items often move very quickly through Sotheby’s unique storage and auction house operation. This RTLS feature also greatly enhances Sotheby’s security systems. By integrating the RTLS technology with existing security cameras, the company can now automatically record the movement of all tagged assets as they move in hallways, between floors or in Sotheby’s warehouses.
The Sotheby’s solution also incorporated fixed and hand-held scanners, zone-based asset tracking, alarm and messaging, error handling and management reporting capabilities.
World-Class Asset Tracking
This renowned auctioneer now protects its artwork and collections with truly world-class asset tracking technologies.
Sotheby’s selected a solution that uses active asset tagging and real-time location technology. The company established a more rigorous asset management policy and began to attach active tags to every inventory item. Based on the positive results of an initial pilot deployment, Sotheby’s now recognizes the significant benefits of integrating RFID-based asset tracking into their comprehensive security systems. The company is now also evaluating the Xterprise single-source solution for the company’s warehouse and auction facilities around the world.
Now, thanks to this High Definition Enterprise solution, Sotheby’s can track those rare artworks and assets from the time they arrive to the moment they are delivered to the buyer.
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