What is Telematics and How Can You Use It? Rastrac Team | Feb 20, 2020 8:10:48 AM

If you’ve read some of our previous blogs, you might have come across the term telematics once or twice. For those of you who might not be familiar with the term, it’s basically a combination of telecommunication and informatics into a single word.

But what does this term really mean, and how can it affect your business and day-to-day fleet operations?

What is Telematics?

Telematics refers to a method of monitoring an asset that uses GPS tracking and onboard diagnostics to record movements on a computerized map. 

Telematics Role in Vehicle Tracking

Telematics can be used to track your fleet vehicles in real-time from any remote location. This way, you will always be able to pinpoint the exact current location of any vehicle in the field, plus see any stops it has made along the way during a trip.

How Telematics Work

When using a telematics device such as a GPS tracker, data collected by the device will be  sent to a data center, where it is then decoded.

This data can then be stored in the cloud and connected to your fleet management software system, where it will be accessible from a desktop computer or mobile device such as a smartphone or tablet. Then, fleet managers can go into their fleet management software, view and export comprehensive data reports, and use those insights to improve daily fleet operations.

The Benefits of Telematics

A vast amount of information can be collected via telematics devices, especially when connected with additional hardware or sensors. By using telematics, you will have access to data including:

• Real-time location of a vehicle or asset 
• Vehicle speed
• Total trip distance and time
• Engine idling
• Instances of harsh braking or other unsafe driving habits
• Fuel consumption
• Vehicle condition and engine data

With this information, fleet managers can make more well-informed and strategic decisions backed by exact data rather than guesses or general trends. For example, data reports that reveal when drivers are harshly braking or accelerating too quickly through intersections can help fleet managers quickly develop if a particular driver is frequently practicing unsafe driving habits. This way, they can course-correct by having a conversation with that driver, giving additional safety trainings, and closely monitoring their future habits in order to make sure they are making improvements. 

Another example of using telematics to your advantage is utilizing data on vehicle and engine conditions to optimize maintenance scheduling. This enables you to identify when a vehicle needs a minor repair or routine maintenance before a small issue results in total vehicle failure. In the long run, you'll save on repair costs and minimize vehicle downtime.

Who Can Benefit From Using Telematic Technology?

Fleet managers aren't the only one who can benefit from using telematic technology. Your drivers and your customers will be able to experience the advantages as well! 

Let's go back to our two previous examples. In the first example, a fleet manager uses telematics to identify a particular driver that is practicing unsafe driving habits. This lowers the risk that they'll get into an accident, which prevents the business from having to pay for additional insurance expenses, worker's compensation if an injury occurred, and vehicle repairs or replacement. While the fleet manager and entire business obviously benefits here, so does the employee. By improving their driving habits, they can feel safer on the road and minimize the risk of an accident that could put their life and ability to work at risk.

In the second example, a fleet manager uses telematics to monitor vehicle conditions and optimize maintenance scheduling. This minimizes the risk of total vehicle failure, which means your drivers won't be left stranded on the side of the road when a minor repair was ignored and their vehicle broke down while they were driving it. 

Finally, telematics can help you provide a more seamless customer experience to your clients. By being able to verify where your vehicles are in real-time, you'll be able to give more accurate delivery or service arrival times. This transparency can go a long way with your customers and help you build loyalty and repeat business.

The Future of Telematics for Fleet Managers

As modern technology evolves, all kinds of businesses across various industries are turning to data to make more strategic decisions. The fleet management industry is no different.

Over previous years, the technology behind fleet telematics and how it is used has changed greatly. Today, telematics is an incredibly valuable tool, but as as technology continues to improve, it will only become better and more beneficial. 

For example, it is predicted that nearly component of a vehicle fleet will become more integrated with telematics solutions as time goes on. Think about the most modern GPS tracking devices that can monitor when trailer doors open and close or when changes in temperature occur in a vehicle. These capabilities grew out of some need that users had, and as companies and workers continue to identify new needs and face different challenges, technologies will continue to be made to meet them.

The future of telematics for fleet managers looks bright! Are you ready to get on board? If you want to learn more or implement telematics in your fleet today, reach out to a Rastrac expert.