Telematics

Telematics is revolutionising the fleet management industry by enabling real-time data collection, monitoring and analysis of vehicles and equipment. From fleet management to insurance, telematics systems provide insights into driving behaviour, vehicle performance, and fuel efficiency, helping businesses improve safety, reduce costs and increase operational efficiency.

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What is telematics?

Telematics is the technology that combines telecommunications and informatics to monitor and manage vehicles, equipment or assets remotely.  

 

It uses GPS, sensors and other data-gathering tools to collect information such as vehicle location, speed, fuel consumption, driver behaviour and engine diagnostics. This data is transmitted over networks to centralised systems, which can be analysed in real time or stored for later review.  

 

Telematics is used in the transportation, logistics, and insurance industries to optimise fleet management, allowing managers to see the health, profitability and productivity of the entire fleet.  

How does telematics work?

To track assets, information from the vehicle is recorded via a small telematics device known as a black box. The device collects GPS and other vehicle-specific data via IoT sensors and transmits it via a cellular network or satellite to a centralised server. The server interprets the data and enables it to be displayed for end users via secure websites and apps optimised for smartphones and tablets. 

 

The telematics device retrieves data generated by the vehicle, such as:  

  • Position 
  • Vehicle speed
  • Trip distance/time 
  • Idling time 
  • Harsh braking and driving 
  • Seat belt use 
  • Fuel consumption 
  • Vehicle faults 
  • Battery voltage and other engine data 

Telematic devices decode the data they collect and brings them into fleet management software for visualisation, reporting and analysis.  

 

Data analytics and machine learning offer fleet managers ways to use vehicle telematics data more effectively. Through applications like predictive maintenance, driver behaviour analysis, route optimisation and fuel efficiency improvements, AI enables businesses to manage fleets more efficiently and reduce costs. For example, fleets can use benchmarking to see how their fleet performs in safety compared to similar fleets or understand whether routes are structured optimally. 

 

Integrating telematics with IoT leads to more intelligent and connected vehicle systems. As 5G and AI technologies mature, telematics systems can process even more data faster, enhancing automation, real-time decision-making and predictive analytics. This could revolutionise areas like autonomous vehicles, where telematics and IoT will play critical roles in vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. 

Benefits of telematics

Telematics software assists in six core areas of fleet management: productivity, safety, fleet optimisation, fleet compliance, integration and sustainability. 

  • Productivity: Telematics improves customer service through real-time GPS tracking, trip reporting, dispatching and routing tools. 
  • Safety: Telematics increases safety with in-vehicle driver coaching, risk and driver behaviour reporting, collision notifications and reconstruction and the ability to locate a stolen vehicle. 
  • Fleet optimisation: With telematics, fleet managers can streamline vehicle maintenance with predictive maintenance abilities, remote diagnostics and fuel management by tracking idling and other fuel-guzzling habits. 
  • Compliance. Telematics offers more precise data for electronic logging and hours of service, IFTA reporting and vehicle inspections 
  • Integration: Telematics can integrate with other software systems, such as onboard camera technology or CRM software and even build new applications. 
  • Sustainability: Telematics can reduce the fleet’s environmental impact and carbon emissions, plus managing electric vehicles. 

Connected vehicles: The road ahead is wide open for innovation

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Challenges with telematics

While telematics offers several benefits, it also presents some challenges, including: 

  • Data privacy and security: Protecting sensitive data from cyberattacks and ensuring compliance with data privacy regulations like GDPR is a major concern for telematics businesses. 
  • High implementation costs: The initial investment in telematics hardware, software and ongoing maintenance can be expensive, particularly for large fleets. 
  • Data overload: Telematics generates vast amounts of data, and without proper tools to process and analyse it, businesses can struggle to extract valuable insights. 
  • Driver resistance and privacy concerns: Drivers may resist telematics due to fears of constant monitoring and privacy invasion, leading to potential friction during implementation. 
  • Network and connectivity issues: Telematics rely on stable data transmission, but poor network coverage or unreliable internet connectivity can hinder its effectiveness. 

Telematics use cases

Telematic solutions can integrate with existing applications and systems to enable an array of use cases for fleets of all sizes, including: 

Vehicle tracking

Vehicles can be tracked using a combination of GPS satellites and receivers, cellular networks and cloud computing. A GPS receiver downloads information from GPS satellites and processes it for use with applications such as driver GPS navigation systems. It also transmits that information via a cellular network to the web servers used by office-based staff, where it can dispatch the nearest driver to a new job. 

Trailer and asset tracking

Fleets can attach GPS trackers to trailers and other non-motorised assets to ensure they don't go missing and route drivers directly to stationary trailers. Drivers can tag locations in their GPS unit when unhitching a trailer, and those coordinates can be quickly passed on, allowing them to route directly to the trailer. The system can also be set up so that an instant alert is sent to a manager's mobile device should a trailer or asset be moved without authorisation. 

Maintenance improvements

Fleet telematics can improve vehicle maintenance and asset lifecycle management by tracking hours-of-use records, scheduling preventative maintenance, and monitoring warranty recovery, engine hours and service records. Fleet managers can also decrease expenses and keep vehicles safe by monitoring engine diagnostics, including battery voltage, coolant temperature, powertrain malfunctions, intake valve issues and oxygen sensor problems. 

Safety tracking

Fleet telematics allows managers to monitor vehicle speed, location, harsh driving events and seat belt use. Telematics provides a digital blueprint of every vehicle’s operation, helping fleet managers understand where improvements can be made in accident prevention measures and driver safety standards. 

Insurance risk assessment

Insurance companies can use telematics to monitor driver behaviour, allowing them to determine risk factors and adjust insurance premiums more accurately. Telematics devices can also report when a vehicle is used outside a designated area, known as a geofence. 

 

As the demand for connected vehicles and data-driven insights grows, telematics will remain at the forefront of innovation, shaping the future of mobility and asset management. Telematics offers a powerful automotive digital solution to streamline fleet management, improve risk assessment and keep fleet managers connected and in control.

Further reading

Check out these resources to learn more about telematics and its role in people-centric innovation.

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