HomeResourcesBlogWhat is Telematics and How Does it Benefit Fleets?
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What is Telematics and How Does it Benefit Fleets?

By Jackson Hand February 2, 2021

A combination of the words telecommunications and informatics, it was the joining of these two sciences that resulted in the field of telematics.

In its broadest sense telematics actually includes the internet itself, since it combines telecommunications (phone lines, cables, etc.) with informatics (such as computer systems). However, the term is now more commonly used to apply to vehicle telematics, where vehicle location information is used in different business applications to ultimately help business owners better manage a fleet-based workforce.

technology enables the collection of vehicle tracking  information   a tracking device that plugs into the OBD II port or is wired into the vehicle’s CAN-BUS, and communicates with central servers using mobile networks. Telematics tracking is often understood to just show GPS vehicle location, but  this does not begin to cover the breadth of actionable intelligence that telematics provides for vehicle fleets.

But, before we get into the details of what telematics can really do, let’s quickly look at how it came about in the first place.

The early days of telematics

The term ‘telematics’ was coined back in 1978 by Simon Nora and Alain Minc in their report titled ‘L'Informatisation de la société’ – which was prepared for the French Prime Minister in response to the development of computer technology and the dawning of the information age) 

Since then, telematics technology has developed alongside the internet.Computer processors have become smaller and more ubiquitous, while telecommunication networks have become widespread and effective in transferring larger amounts of data, regardless of where the computer is located. Whether it's on a truck driving through the remotest parts of the Southland or a delivery van in Auckland CBD, telematics can transfer near real-time data to central offices to help business owner’s better manage their fleet.

How does a telematics system work?

At the core of a telematics system is a vehicle tracking device. It collects GPS data as well as a huge range of vehicle use  data from the vehicle’s Engine control modules  and transmits it via either GPRS (General Packet Radio Service), 4G mobile data or satellite communication to a centralised server that then interprets and displays the data to end users.

There is a multitude of data collected by the telematics device, which when decoded, can provide in-depth vehicle information such as location, speed, idling time, harsh acceleration or braking , fuel consumption, vehicle faults and much more.

All this data is then layered over a map in our fleet management software in near real-time and can be viewed via secure websites and apps optimised for smartphones and tablets. 

So what can telematics really do?

Today there is practically no limit to the different applications for telematics. The world is becoming more connected every day as more devices are networked into the internet of things (IoT) and new ways to use location-based information are being developed constantly.

Yet still there is an ongoing misconception by many that vehicle telematics just shows GPS vehicle location – a simple dot on the map as it were. With this telematics data, you can get near real-time alerts about  driver performance and overall road safety of your fleet, check the idling status of each vehicle and update drivers to show them the fastest, most efficient routes to take. Further to this, you can also monitor fuel consumption, individual driving behaviour, time spent at (and outside of) specific locations and whether your vehicles require urgent maintenance.

The use of telematics technology is growing in New Zealand and worldwide. According to a research of Berg Insight, the number of FM systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 14.9 percent from about 1.2 million units in 2020 to over 2.4 million units by 2025.1 

This means that the penetration rate in the total population of fleet vehicles used by businesses is at the same time estimated to increase from 23.6 percent in 2020 to 42.8 percent in 2025, Berg Insight shows.

Find the right solution for your business with our free Fleet Management Buyer’s Guide.

Simply having telematics, however, is not enough. Not all telematics solutions are created equal and in order for you to make the most out of the intelligence available, you need to find one that’s right for your business.  

How to make the most of telematics

Adopting a telematics solution is crucial for truly efficient and effective fleet management and there are a number of significant advantages that implementing an intelligent telematics solution will bring to your business. 

For starters, who wouldn’t want a complete picture of their entire fleet at their fingertips, via intuitive and easy-to-use dashboards delivered through a mobile app?

Here are six fundamental ways telematics-adopting companies are enhancing the potential of their fleets: 

  1. Decreased fuel costs: Tracking driver behaviour could help you to identify areas of waste and act upon them accordingly, which ultimately helps towards improving fuel efficiency . Also, with the right fleet management solution you’ll be able to plan the most efficient route for each of your drivers at the touch of a button. This helps to reduce any unnecessary mileage.

  2. Improved driver safety: Because feedback on driving style and behaviours are continuous, fleet managers are in the best position to coach drivers about their bad habits (speeding, hard cornering and harsh braking) and also acknowledge those who perform well. Whilst your drivers are likely to have good intentions and don’t set out to jeopardise the safety of other road users, they are only human and can easily slip into bad habits. With a telematics solution you can closely monitor these bad habits and produce reports, or league tables, which highlight your driver’s performance  and help to improve driver training

  3. Boosted productivity: With near real-time GPS data, your drivers can lessen traffic delays, as well as giving you the ability to quickly and easily assign any new or additional site visits to the nearest vehicle and instruct them on the most efficient route to get there.

  4. Better payroll management: By tracking the precise time a vehicle starts at the beginning of the day to the moment it shuts down at the end, a fleet tracking solution provides an accurate, automated record of how long an employee worked and where. By automating payroll, business owners not only help ensure their employees are paid accurately for the hours they have worked, but they can also take back the time currently spent manually matching up timesheets and job tickets.

  5. Reduce unauthorised use: One way fleet vehicle owners could lower the risk of accidents is to verify that your fleet vehicles are only on the road when they need to be, during business hours. However, are you certain none of your vehicles are used in a driver’s own time without consent? With a telematics solution, you can monitor when a vehicle is used out of hours as well as having the option to geofence certain areas so that your individual vehicles are where you expect them to be at all times.
  6. Lower maintenance costs: Fleet telematics can be set-up to deliver alerts based on odometer readings , engine use or vehicle age. Couple this with information on driving behaviour and you can monitor the wear and tear on your fleet vehicles in order to plan and carry out timely  vehicle maintenance. A comprehensive solution can alert you of diagnostic trouble codes such as engine warning lights, removing the need to rely on the driver to report faults and enabling you to resolve the issue quickly, reducing vehicle downtime.

Find the right telematics solution for your business

So, how do you know which solution is right for you and your business?

There are many telematics service providers out there but few are flexible enough to offer the right mix of features to ensure you receive the maximum benefits of tracking your fleet. The best of the bunch will give you simple usability, easy-to-understand technology and financial clarity from start to finish. What’s more, GPS tracking systems are only becoming better at integrating with your existing business applications so it’s the perfect time to consider one for your business. 

Verizon Connect provides solutions to help solve all of your biggest fleet management challenges. If you want to explore this or you have more questions regarding telematics, why not schedule a short demonstration?

1. https://media.berginsight.com/2021/12/06224357/bi-fmaustralia6-sum.pdf

Jackson Hand

An industry specialist and regular contributor, dedicated to help businesses of all sizes save money and overcome challenges associated with managing fleets.

Tags: Field Management, Cost Control, Performance & Coaching, Productivity & Efficiency, Team Management, Safety, Vehicle & Asset Security, Vehicle Maintenance

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