When IoT sensors sound the alarm, quick action is usually required: if the refrigeration in a fresh goods transport fails in summer, spoiled goods such as dairy or vegetable products need to be replaced immediately. The sensors measure which part of the load is affected, while the ERP system immediately plans and controls the subsequent delivery. But how does the information from the IoT data pool reach the ERP solution? How can the IoT systems be interlinked with SAP business processes, for example? IT providers are looking for and finding answers in the cloud.

A company can only monitor and control its supply chains in real time if it digitalizes them end-to-end: This message seems to have gotten through. Almost 60% of small and medium-sized enterprises (SMEs) are already managing their machines, vehicles and systems using IoT solutions. This was the finding of a recent study on the Internet of Things in German SMEs by the consulting firm PAC. The aim of SMEs is to use real-time data to reduce downtimes, optimally plan traffic routes and better meet delivery deadlines.

And there is plenty of potential for optimization. According to a study by logistics provider GEODIS, one in three deliveries arrives damaged or late. Theft is also a major problem in logistics. In Germany alone, criminals steal transported goods or vehicles every 20 minutes, according to the German Insurance Association.

Sensor technology on the high seas

For example, the shipping company Deutsche Afrika-Linien (DAL) has networked its containers using an IoT solution from Deutsche Telekom. The containers now use sensor technology to provide information several times a day as to whether they have been opened without authorization, tipped over en route or fallen from a great height and the goods are damaged. This is because a so-called Smart Container Device is installed near the container door. The small device contains a GPS sensor for localization as well as five other sensors that register door opening, vibration, inclination, temperature and battery voltage. The Smart Container Device also sounds an alarm if someone dismantles or even destroys the device without authorization.

The success of any IoT solution depends on the scope and quality of the data collected. Above all, it must be available at a very granular level. To ensure that data collection remains cost-effective, Deutsche Telekom uses "Cloud of Things Asset Tracking", for example. It enables companies to keep an eye on everything that is relevant to their business: from cable drums to excavators. Anyone who installs the tracking module with sensors and logs into the online portal can see all registered devices and vehicles on an overview map based on their position data. Clicking on the individual asset also provides information on temperature, load status, inclination or vibrations. Limit values can be set for these characteristics. If they are exceeded, the solution triggers an alarm via SMS or e-mail.

The tracking module used is robust and therefore suitable for tough operating conditions. It is installed by simply sticking it on, screwing it on or attaching it with a magnet. The battery supplies each module with power for up to two years and is rechargeable. Deutsche Telekom collects all real-time data via its own mobile networks and those of its network partners. This ensures protection and security during data transmission as well as global connectivity.

Integrate existing systems

The added value increases further if companies can integrate their usual inventory systems, such as ERP, SCM and WM solutions in particular, into the IoT solution. Supply chains and value creation networks can thus also be mapped across companies. SAP and Deutsche Telekom have therefore developed a suitable interface: the Cloud-2-Cloud Connector (C2C). The solution brings together the Deutsche Telekom Cloud of Things with the SAP Cloud by connecting hardware, sensor data, platforms and the SAP landscape.

In this way, live data from Deutsche Telekom's IoT platform can be integrated directly into SAP applications. The advantage: if the information collected by the IoT applications initially ends up as raw data in the Cloud of Things, the C2C connector filters it according to individually defined parameters - such as temperature data for an uninterrupted cold chain when transporting food. The cloud interface acts as a kind of universal adapter that automatically integrates all relevant information into the customer's SAP landscape. In this way, position and status data from the supply chain finds its way into the SAP systems in real time.

The advantage for users: they continue to work in their familiar SAP environment, while the real-time data flows into applications such as SAP Global Track and Trace, SAP Connected Goods or SAP Vehicle Insights via a standardized interface. For example, companies are able to automatically start the ERP invoice run when the delivery leaves the yard.

IoT ready-made solutions for individual industries

Deutsche Telekom and SAP are making it easy for their customers to get started with ready-made solutions for specific industry scenarios. "We are now making it very easy for our customers: simply attach sensors and switch them on. In this way, the Internet of Things can be used for process automation," said Adel Al-Saleh, CEO of T-Systems, at this year's Hannover Messe.

A solution for logistics will kick things off. The telematics module not only detects the position of goods via GPS, but also their speed. It also provides data on vibrations and temperature. Deutsche Telekom also offers other devices such as an IoT order button or a module that collects sensor data from machines. And for logistics, there will be a digital label in the future to replace paper labels.

Components like these collect data and transmit the information encrypted via mobile communications to the T-Systems IoT platform. By linking the Deutsche Telekom and SAP clouds, this data is now automatically transferred to SAP Leonardo IoT - SAP's IoT solution - and from there automatically to the appropriate SAP systems.

Important success factors

Not all data is the same:
There is little point in simply collecting data. First of all, companies and their employees need to determine what data they want to collect and what value it has. This is the only way to create a structured and high-quality database. All information must also be easy to read: a simple and comprehensible evaluation and presentation of the data is therefore a must.

External transparency too:
Supply chains usually involve more than just one or two companies. This is why companies must also make IoT status data available to partners and customers in real time - for example via sensors, localization technologies and appropriately integrated IT systems. Today's IoT solutions offer a wide range of configuration options for this: This allows a company to choose down to the last detail which data it wants to make available to which partners and customers.

Legally on the safe side:
Anyone who shares operational information extensively with suppliers, customers and partners needs legal certainty. The exchange of information should therefore be legally and contractually regulated. Clearly defined
standards - for data transfer, for example - provide orientation and security.

Prepare for automation:
Systems only communicate with each other across companies and control themselves if enough preparatory work has gone into automation. It is therefore particularly important to overcome media discontinuities and the diversity of IT systems.
systems, consistently implement data standards and expand broadband networks. Intelligent components, such as identification tags, also promote networking - both internally and externally.

Authors:
Sebastian Berg is an IT architect at T-Systems International;
Henning Neuse is an IT architect at T-Systems International.