Fleet Telematics: Everything You Need to Know

April 22nd, 2022

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Establishing a telematics system coupled with fleet management software can help fleet managers be more efficient. These systems can improve day-to-day workflows for decision-makers to run their fleets effectively. Maintenance, driving patterns, analytics, fuel usage, and inventory tracking can all benefit from these system optimizations.

Let’s discuss the meaning of fleet telematics, how it works now, and how it’s able to enhance safety, production performance, and customer service.

What are Fleet Telematics?

Graphic showing the anatomy of fleet telematics and some of the features that it offers.

Think of fleet telematics in the following formula: telecommunications combined with informatics. Combining the two allows for sending, receiving, and storing data about fleet cars. The process involves transferring data over great distances remotely.

Telematics is being utilized for both business and non-commercial reasons in a variety of industries. It has become a vital part of successful fleet operations due to the growth of the internet and communication across networks.

By having a central operator, data from fleet tracking can allow companies to know where money can be saved throughout their process. Knowing this information, fleets can be more cost-effective. Fleet gps tracking can be attached to each vehicle and be monitored from a central hub. The data from the fleet tracking system can also auto-refresh, signal alerts, and more. As the telematics industry advances, more fleet telematic-based companies and jobs will power forward the market for fleet tracking.

How Does Fleet Telematics Work?

The current fleet telematics systems have progressed from simple vehicle location data to a data pipeline that gives a variety of information about the vehicle and its operator. All telematics is transmitted over a high-speed wireless network or cellular connections.

From improving fuel efficiency and locating vehicle locations to minimizing collisions, trucking telematics system data includes clues indicating opportunities for development. It’s no surprise that fleet managers and operators are investing extensively in modern telematics systems-particularly video telematics. To protect their assets, this is the way they can gain a competitive advantage in their markets.

The three main components for a proper fleet tracking system in a vehicle are:

  • Cell service-connected to secure servers
  • GPS telematics radar
  • Telematics device

From the significant gains in the industry, trucking telematics can now see vehicle and driver performance as well as maintenance management. In addition to fleet gps tracking, there are live insights that show vehicle location, speed, and movement. Sensors also capture data insights based on harsh braking, door opening, trailer temperature, and more. All of these analytics are then held securely by servers in a fleet management software that can be used for reference.

Types of Vehicles That Can Use Fleet Telematics

Fleet managers can profit from integrating a vehicle telematics system into their fleet in many ways. These measures reduce costs, promote safety, initiate preventive maintenance, and include fleet gps tracking. A fleet tracking system can provide solutions that are compatible with all fleet vehicles.

For example, buses, delivery trucks, local and long-haul delivery trucks, services vehicles, and vans are popularly used with fleet telematics. Even other assets like shipping containers, special tools, and heavy equipment can use the system. Off-highway vehicles are now allowing for additional players across the chain to build on long-term strategies.

How Does Telematics Impact Commercial Fleets?

Fleet telematics can benefit for business operations as well. The data pulled can be used to implement telematics solutions to adopt and integrate operations to meet needs regardless of company size. Let’s look at the benefits and drawbacks of fleet telematics.

Benefits of Fleet Telematics

Graphic showing the benefits of using fleet telematics.

Devices can gather a wealth of information on behalf of each vehicle in a fleet. Three benefits from the data shared between commercial vehicles and central locations are as follows:

  1. Increased Productivity: A fleet manager can make real-time business decisions like automating payroll management, rerouting vehicles, or deploying additional vehicles for a job. This way the driver’s productivity isn’t interrupted, and the organization’s bottom line is protected.
  • Improved Vehicle Maintenance: With trucking telematics, issues with vehicle maintenance can be proactively addressed. For example, engine fault codes can be flagged before the vehicle becomes inoperable, leading to a loss in revenue. Strong maintenance measures protect drivers and aid in avoiding unsafe scenarios on the road.
  • Improved Safety: Just one crash can significantly impact a company’s bottom line. Unsafe driving practices can be detected and allow monitoring driver performance to be corrected. Fleet tracking alerts fleet managers so they can protect their fleet and the well-being of drivers.

Drawbacks of Fleet Telematics

Graphic explaining the drawbacks of using fleet telematics.

There’s a big impact fleet telematics can have on a business if not executed well. Three drawbacks from the data shared between commercial vehicles and central locations are as follows:

  1. Driver Privacy: The distraction of telematics is the transparency of data and private information being vulnerable. For example, knowing the exact routes of a company that falls into the wrong hands could lead to theft incidents.
  • System Install Time: Aside from being a costly addition, it takes time to install all devices needed. Monitoring and maintenance costs when it’s time for upgrades also need to be factored into the investment of a fleet tracking system.
  • Telematics Takes Time: The key takeaway is the collected data. This rich data can be actionized into business activity but also takes time to sort through.

Is Fleet Telematics Worth It?

Knowledge and analysis are essential for adapting your company to new opportunities. Fleet telematics is rapidly evolving and has become a major competitive differentiator stemming from key fleet management tips. For larger fleets, the addition of trucking telematics could pose a reasonable ROI. The benefits will increase your productivity and simplify developing an effective fleet asset plan. Consider reinventing your fleet in a digital environment by implementing telematics.

What Costs to Expect With a Fleet Telematics System

Costs should be fairly straightforward for a telematics system. Outside of the devices themselves, there will be installation and subscription fees for services to run seamlessly. Incorporating a fleet tracking system will be key in optimizing your fleet operations. After all, your overall goal with a telematics software budget needs to offer the features you’re in need of and reliable support from your service provider.

Predicting the Progress of Fleet Telematics with Hale Trailer

In the trucking and transportation industries, telematics is a necessary component. There’s no need for guesstimates when fleet telematics can give accurate data in real-time. Today, trucking telematics can deliver connectivity for endless growth to put data-driven analysis in the hands of fleet managers.

The more leadership understands telematics, the better the decisions can be made at any given moment for clients and drivers. The versatility of telematics is guaranteed to be instrumental for fleet management. Using a fleet tracking system can deliver major improvements to continue to reap a high payoff with efficient workflows.

Our team is committed to being leaders in the trucking industry. By doing our due diligence, we can enable you to run a safe, and more efficient fleet. We have an expansive line-up of trailers ready for the road now available for purchase or rent. Browse our collection online or stop by one of our locations to learn more about how we can help you.

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