Telematics has been a practice since at least the 1970s. However, recent developments in automation and artificial intelligence have made telematics more relevant and more accessible to small businesses. Using a telematics device, merchants of all sizes can track GPS locations, vehicle diagnostics, and driver behavior to ensure their fleet runs as smoothly and efficiently as possible.
Telematics has implications for your budget, your sustainability efforts, and your customer satisfaction. Read on to learn more about telematics and how it can be applied to your fleet of vehicles.
What is telematics, and how does it work in fleet management?
Telematics is technology that stands at the intersection of telecommunications and informatics. In practice, telematics combines phone lines and cables (telecommunications) with computer systems (informatics) to monitor, collect, and transmit data.
Telematics is most prevalent in fleet management. This technology collects data from vehicles using GPS and onboard diagnostic systems, providing real-time insight into vehicle location, driver behavior, engine diagnostics, and more.
“At its core, a telematics system includes a vehicle tracking device installed in a vehicle that allows the sending, receiving, and storing of telemetry data,” wrote Verizon. “The device collects GPS data as well as an array of other vehicle-specific data and transmits it via a cellular network or satellite communication to a centralized server. The server interprets the data and enables it to be displayed for end users via secure websites and apps optimized for smartphones and tablets.”
A telematics device is typically plugged into the OBD II or CAN-BUS port of the vehicle. These devices, often called “black boxes,” include a GPS receiver, engine interface, accelerometer, SIM card, and modem. A black box can gather data on everything from vehicle location and speed to driver actions, including harsh braking.
Instead of manually tracking odometer readings and calculating when fleet maintenance is due, software automates these processes by pulling current telematics data to ensure your fleet maintains a proactive preventative maintenance schedule.Rachael Plant and Zach Searcy, Fleetio
Key benefits of real-time telematics data for small fleets
Telematics can be useful even for just one vehicle, as these devices help track fuel consumption, improve safety, and make vehicle maintenance easier. For small fleets, telematics helps manage fuel consumption, optimize routes for more efficient delivery, and reduce idling times, ultimately making your fleet more cost-effective and energy-efficient.
Telematics also benefits your drivers. Real-time data points, such as speeding, harsh braking, or rapid acceleration, can alert your central command when a driver needs to take a break, address risky driving habits, or identify drivers who require training. A track record of good driving behavior may even lower your insurance premiums.
“You could qualify for a lower rate, for example, if your data shows improvements in driver safety. Does your fleet use driver-identification tools? Then you could also qualify for a lower rate, since driver identification is key to driver safety while preventing vehicle theft,” wrote WebFleet.
Telematics improves safety by also monitoring maintenance, alerting you when it’s time to perform routine service or when there’s a potential mechanical issue. “Instead of manually tracking odometer readings and calculating when fleet maintenance is due, software automates these processes by pulling current telematics data to ensure your fleet maintains a proactive preventative maintenance schedule,” wrote Fleetio.
[Read more: How to Keep Track of Company Vehicle Use]
How to choose the right telematics system for your business
As you vet your options, consider the hardware and the software each provider offers. Hardware can vary from dash cams to GPS trackers to electronic logging devices. Figure out which features you need in order to guide your evaluation of telematics hardware.
Software can also vary widely. Look for a provider that integrates well with your existing tech stack, has strong data security protocols, and is easy to navigate (no pun intended). Read reviews to see what other customers have to say about each vendor’s customer support.
Finally, compare the costs of different providers. Some telematics are priced as a monthly fee per vehicle, while others have a pay-as-you-go structure. Depending on the features you need and the size of your fleet, costs can escalate quickly. Explore your free trial options to make sure you find a provider that works before you sign on the dotted line.
[Read more: Fleet Management Tools for Small Businesses]
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