All-in-one Guide to Telematics- Why and How is it Useful for Fleet Businesses?

July 12, 2022

Businesses today require technological solutions for a wide variety of activities and processes. Among them, telematics is a notable technology type that has high popularity in varying industries, especially those handle fleet management. This is especially interesting to companies that operate their own fleet of vehicles regularly, like those in the transportation and logistics industries.

However, what exactly does Telematics mean, and why is it useful in companies? To understand that, here are all the details you would require about this information technology section, focusing on its uses and benefits.

What do you mean by telematics?

Telematics systems are responsible for transmitting Fleet tracking information to drivers and vehicle fleets across long distances. Therefore, in essence, it assures safe information processing and transfers via remote communication tracks. It incorporates using two major technological approaches: informatics and telecommunication.

Also referred to as Fleet Telematics, these systems acquire and store GPS-based data. Similarly, it collects data from other evaluation systems like onboard diagnostic coding and sensors. Overall, the gathered information includes details like vehicle location, real-time diagnostics on the engine, vehicle activities, and driver behavior.

Benefits to consider for businesses

There are many ways in which telematics technology helps companies with their management requirements. Here, we shall discuss the best advantages you can expect when you utilize these services in your company.

1. Vehicular tracking

It is simpler to keep track of every vehicle your company owns and operates using this system. In fact, the software is compatible with an intuitive map for easier visual tracking. For example, taxi service companies can note their taxis' location and working status, whether they consider the whole fleet or singular cars.

While this solution is useful for tracking the current details of cars, users can also get access to past routes and travel history. Additionally, one can notice details related to the performance of the vehicles, like the time of traveling, speed, and internal conditions.

So, with these solutions, you can improve business efficiency.

2. Ensure better vehicular efficiency

Companies that rely on telematics technology to get real-time fleet-related data can easily improve vehicular response time and efficiency rates. This is because communications occur better between the fleet manager and fleet, and all members can coordinate their work properly.

Therefore, the fleet manager gets to know crucial information about the condition of vehicles faster and checks if drivers are using them responsibly. For example, if one is driving their assigned car for longer periods without having any clients, they might be using the vehicle for personal reasons. Fleet managers can track these details and take appropriate measures.

3.Manage drivers better

Companies running their fleets can track and manage drivers of their vehicles better since they get accurate driver behavior data through the telematics systems. Details that are calculated include speed and acceleration of the drivers, the safety protocols they follow, braking, and overall responsible driver measures.

Consider points like the fuel they use, their braking/speeding habits, the number of hours they clock in for days, and more. Using these details, you can plan proper routes for them, give appropriate warnings, and provide encouragement for good driver behavior.

4. Route planning

Since you can notice the real-time location of the fleet of vehicles at all times, you can also judge their paths using these solutions. For example, for companies dealing with emergency services, like firefighters and paramedics, quickly reaching Point B from Point A is the first priority.

Therefore, telematics systems greatly benefit transportation and delivery-centric companies since they can track the traffic within different routes in real-time. Therefore, the vehicles can take the least congested routes and reach their destinations within record time.

On the other hand, in taxi service companies, you can use this same route-tracking feature of telematics systems to find inactive cars and their nearest clients. The admin support can assign the right trip to the closest drivers, saving time.

5. Manage overall fuel consumption

The telematic systems allow fleet management and admin teams to note all vehicular details, like fuel consumption rates. A few advanced tracking devices showcase the drop or increase in fuel usage.

Plus, the system also helps track which routes are shorter and would naturally contribute to lesser fuel consumption. So, using these systems, it is easier to manage a healthy usage of fuel amount and avoid wastage.

Additionally, anti-siphoning device types are also available. Companies can use these to protect the fuel from getting stolen. On another note, companies with a fleet, like delivery service providers, can use telematics data to show which drivers use more fuel or less. Therefore, they can address the right performance evaluations of these providers.

6. Analyze necessary business data

With this collected information about vehicles, drivers, and routes, you can measure the conditions of your business better. For example, you can note problem areas like having more inactive vehicles than active ones due to low customer count daily. If your vehicles are consuming too much fuel, understand the reasons for that.

After that, it is easier to plan the right solutions for these issues, like only available a select number of vehicles or targeting specific areas, etc. This is useful for controlling expenses better.

How does it differ from GPS tracking?

Telematics is not the exact same as GPS tracking- it includes that as one of the components of the technology. Typically, engineers install a GPS receiver below the dashboard of the fleet vehicles. This device tracks and collects real-time vehicle data, like its status and location. That is the extent of GPS tracking.

However, telematics systems get this data and transmit them over the cellular network to the central servers of the fleet system. This processes the information and turns it into usable information, passing it to drivers and fleet controls.

While you can use different devices and services for either system, taking the help of a comprehensive service partner like Spectrum Tracking would benefit you. They offer GPS trackers and telematic system solutions, which are useful for varying business types.

Conclusion

Overall, telematics systems are highly useful for fleet management companies and assure high-quality tracking benefits in diverse aspects. Businesses can use this technology for many activities, from understanding drivers' behavior to getting details on the vehicles themselves. So, take the help of the right telematics company for these solutions.