It would not be an understatement to say that German shepherds can smell very well. In fact, they have a much better sense of smell than humans and it is thought that their olfactory center in the brain is twice as large as in human beings. Dogs even have fifty times more odor receptors in their nose than people do! German shepherds also use their sense of smell for navigation and following scents.
The neurological processes behind how this all happens make up such things as olfaction (recognizing smells), chemesthesis (smells sensation), and polyphenism (animal type)…