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What Is Smart Sensing?
Sensors have been used in industry for decades to capture specific parameters like temperature. Smart sensors are an evolution of legacy sensors and leverage recent advances in technologies like Internet of Things (IoT) and cloud. Unlike a traditional sensor, a smart sensor can perform advanced tasks such as data conversion, data processing, analytics, and communicating with external devices and the cloud. Many smart sensors can do self-assessment and self-calibration, making them an essential part of digital twins. The data from smart sensors can be leveraged for a plethora of applications, like predictive planning.
What Is Smart Sensing?
Sensors have been used in industry for decades to capture specific parameters like temperature. Smart sensors are an evolution of legacy sensors and leverage recent advances in technologies like Internet of Things (IoT) and cloud. Unlike a traditional sensor, a smart sensor can perform advanced tasks such as data conversion, data processing, analytics, and communicating with external devices and the cloud. Many smart sensors can do self-assessment and self-calibration, making them an essential part of digital twins. The data from smart sensors can be leveraged for a plethora of applications, like predictive planning.
What Is SAP Smart Sensing?
Smart sensing is a capability within the SAP Internet of Things offering that leverages SAP Fiori to identify and track physical objects maintained in SAP S/4HANA. The identification and tracking is done primarily by scanners and smart sensors. Compared to classic IoT scenarios, the SAP smart sensing approach brings the following advantages:
- Tracking of single events rather than recording of continuous data streams significantly reduces the amount of data to process.
- Using auto-ID tags instead of sensors reduces costs.
- Tagging of single items that are part of a delivery or a handling unit allows for a finer granularity and higher precision of the data collected.
While the applications can span multiple functions, a key function that can leverage smart sensing extensively is supply chain. With the help of smart sensors and other technologies like artificial intelligence and machine learning, organizations can build smart, kinetic supply chains, as highlighted in this webinar.
Key Considerations for SAPinsiders
SAP smart sensing is a robust capability to help organizations build components of the intelligent enterprise. However, there are certain key aspects that SAPinsiders need to keep in perspective when embarking on this journey:
Understand the difference between conventional and smart sensors. As mentioned earlier, sensors have been used in industry for a while, but smart sensors take this capability much further. Understanding the “smart” aspect of sensors will allow you to understand where and how to use them.
Think beyond just tracking. While there is no doubt that smart sensors can help track flows or processes in real time, the data often captured by these sensors can be used extensively for generating additional insights. Key advanced analytics approaches like simulation, optimization, and predictive analytics can be leveraged using this data to generate new insights for organizations.
Think end-to-end. A powerful capability of smart sensors is that they can be used to build end-to-end solutions, specifically in process intense functions like supply chains. You can design end-to-end solutions to make your enterprise more resilient and agile.
11 results
Why SAP Customers Are Rethinking Supply Chains Amid Policy and Performance PressuresJun 23, 2025 — In response to global uncertainty and technology challenges, Baer Group is finding that SAP customers are increasingly turning to AI to transform their supply chain management by enhancing resilience, visibility, and efficiency.
3 minute read
SAP AI – Powering the Digital Supply ChainsJul 14, 2023 — AI is not new to supply chain management. Many companies are already using AI to resolve supply chain challenges like sales and operations planning and other supply chain data pools to manage demand fluctuations, supply constraints, production scheduling, and dynamic distribution. Data reveals that AI-enabled supply-chain management has allowed early adopters to improve logistics costs by 15 percent, inventory levels by 35 percent, and service levels by 65 percent, compared with slower-moving competitors. From prediction and forecasting, preventing out-of-stock situations, curtailing late deliveries, handling product recalls efficiently, averting inventory spoilage, and decreasing supplier risk, the potential of AI use in supply chain management is vast.
SAP is strategically positioned to help companies adopt AI across the entire design-to-operate business processes with its integrated approach that allows businesses to digitally connect and enhance their operations throughout multiple stages of product and asset lifecycles.
4 minute read
Opportunity for IoT Based Innovation on SAP BTPSep 2, 2022 — Internet of Things (IoT) is at the core of building many intelligent enterprise capabilities, including Industry 4.0. From Mobile assets like tractors or trucks to remote assets like a drilling rig in the ocean, IoT devices capture and relay critical data that can be leveraged in many ways. For many organizations, real-time end-to-end visibility in their operations and supply chain is not attainable if they do not include IoT in their infrastructure. An important aspect to note is that the only way to capture this data, in streaming format, in real-time, from IoT devices, most times, is through interconnectivity with infrastructure as a service (IaaS). The opportunity to create new products, solutions, and markets is huge. Figure 1 from Fortune Business Insights illustrates the opportunity for Industry 4.0 market by 2029. I think these projections are conservative, even for Industry 4.0, and applications of IoT extend beyond Industry 4.0. This also means a big opportunity for hyperscalers and SAP BTP to leverage IoT with other emerging technologies to create huge market opportunities. This article discusses why we believe there is an opportunity for SAP BTP to harness the IoT knowledge gap that exists today.
5 minute read
A Look into the New World of SAP Integrated Business PlanningJun 29, 2016 — Learn an approach for evaluating migration from SAP Advanced Planning and Organization (SAP APO) to SAP Integrated Business Planning based on two real-life case studies. Learn how some implementation considerations of a cloud-based planning solution such as SAP Integrated Business Planning are different from a traditional SAP APO implementation. Key Concept Planning operator functions or […]
22 minute read
Meet Demand-Driven Scheduling Requirements with SAP ERP and SAP APO: Q&A on When to Use Which for Enhanced Supply and Production PlanningMay 1, 2016 — SAP ERP and the production planning and detailed scheduling (PP/DS) and supply network planning (SNP) components of SAP Advanced Planning and Optimization (SAP APO) offer functionality that can be utilized in a variety of design options to optimize production plans and provide greater visibility into your inventory management, but when do you use which? Especially […]
31 minute read
Leveraging Smart Grid and AMI Using SAP Application SuitesSep 28, 2012 — Discover how to administer and use smart grid, advanced metering infrastructure, and smart meters to improve consumer experience and optimize associated energy and operational costs. Gain an understanding of the fundamentals, application, and impact of these emerging technologies and how the SAP Business Suite helps deploy and leverage the value they provide. Key Concept Smart […]
23 minute read
Digital Transformation Opportunities and Future Trends for 4PL, Supply Chain OrchestrationFeb 5 — The rise of digital transformation presents 4PL providers with the opportunity to automate manual processes and enhance efficiency through AI and machine learning, although they must still address various security and logistical challenges to achieve supply chain transparency.
4 minute read
How Supply Chain Orchestration is Reshaping the Modern EnterpriseDec 2, 2025 — Modern supply chains have transformed into complex, globally integrated systems requiring real-time orchestration and AI assistance to enhance efficiency, agility, and sustainability, positioning them as strategic competitive advantages.
9 minute read
Building Cognitive Supply Chains with BristleconeOct 19, 2023 — Digital transformation is not only optimizing but revolutionizing supply chain operations, enhancing adaptability to unforeseen challenges. The adoption of AI and ML is on the rise, not just for their automation capabilities, but for their capabilities in managing the ever-increasing big data. As AI takes the lead, digitized processes, efficient workflows, and precise data operations have become standards. Such advancements facilitate the convergence of expansive data systems, with planning and execution strategies evolving from predictive phases, progressing to prescriptive, and ultimately aiming for complete autonomy. Catalyzed by unexpected adversities, this transformative journey has bolstered and redefined the very foundation of global trade.
Bristlecone stands at the forefront of AI-enhanced application transformation services tailored for the digital supply chain. Rooted in the robust foundation of the Mahindra Group, Bristlecone has an expansive global presence with over 12 hubs worldwide. Its team of over 2,700 supply chain and technology specialists further cement its reputation as a premier digital supply chain system integrator.
5 minute read
Building a Digital Framework for the Supply ChainJan 18, 2023 — Companies need to align their strategic and operations plans and find ways to maximize their working capital investments to ensure that they get the products they want when they want them. They also need to orchestrate the transition from planning to execution, remove fixed lead times, and balance agility and efficiency. With fast and responsive production planning and scheduling scenarios that are closely linked to manufacturing execution, companies can generate production plans to fulfill demand and replenishment signals considering the production rules of manufacturing sites. This article focuses on the key enablers of demand-driven business planning with response and supply orchestration and how SAP solutions for inventory helps companies gather data and perform analyses to manage uncertainty and capitalize on opportunities.
8 minute read