What Is Fleet Telematic & How Can Your Business Can Benefit From It?

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Technology never ceases to amaze us, especially in the 21st century. Being part of a tech-driven world as a fleet manager, you’ve probably heard of telematics and are immediately associating it with GPS tracking, but do you know there’s more to it? If we take statistics into account, we’ll see that the global market for fleet telematics is set to become a 75 - Billion Dollar Industry by the end of 2025, due to fleet management companies embracing it at a rapid pace in the last six years. Location tracking has been a thing for quite some time now, so what is causing these rising numbers lately?

The answer is simple. People are starting to understand that this advanced technology is surpassing expectations and is not made for one sole purpose. Think of it as an all-in-one device to help you improve the maintenance of your fleet, as well as the well-being of your drivers.

In addition, this article will discuss the importance and benefits of using telematics, so let’s get to it!

Why the use of fleet telematics is important

Did you know that there are cars that offer built-in telematics systems? Some of these include BMW, Hyundai, Volvo, Toyota, and Tesla. 

A telematics device inserted into a vehicle shares every piece of information with the dispatching office with the help of the Global Positioning System (GPS), sensors, and engine data. Fleet managers will be informed about everything that’s happening to their fleet including:

  • vehicle location and speed

  • drivers’ behavior

  • trip distance

  • idling time

  • seatbelt use

  • battery voltage

Why is all this information vital? Knowing the exact vehicle location, for example, can help dispatchers make the necessary routing adjustments to make sure deliveries reach customers at the right time while being aware of the drivers' behavior in real-time. It also provides peace of mind for fleet managers in regard to drivers’ well-being and vehicle conditions. so basically, it is a win-win situation.

Top 5 benefits of fleet telematics in fleet management

By now, you surely understand the purpose of fleet telematics.Without further ado we’re going to explain the top five benefits fleet telematics has to offer you:

1. Reduced fuel costs

Considering the fact that this is one of the largest expenses for fleets, one wonders how to significantly reduce fuel costs.

By being able to address any kind of unauthorized use of the equipment and excessive fuel usage, fleet managers are going to be able to handle them properly and address them on time. It can also be beneficial for route planning, by finding the best and shortest route for the drivers, which is going to result in not having to travel extra miles.

2. Increased safety

I think we can all agree that safety always comes first. With the help of telematics, you’re going to have constant feedback regarding driving style and can stop all forms of bad driving habits, allowing any emergency to be addressed promptly.

3. Productive maintenance management

Once the fleet telematics system is installed, it can address every workflow in the vehicle in real-time, so unnecessary downtime can be avoided. If the vehicle engine is diagnosed as needed, you’ll have better chances of improving the lifecycle of the assets, and with constant tracking, you won’t risk unexpected malfunction.

4. Improved communication

Don’t you just love the way technology can help you reach anyone at any time? This is what fleet managers also find fascinating when it comes to fleet telematics.

Addressing problems on time and communicating them across the whole team can be a real challenge for operators, especially in the old days.

5. Enhanced productivity

GPS tracking is also helpful for route planning while observing changes in weather and traffic delays and helping your driver to get everywhere on time. By using GPS tracking, you can also improve customer service and have more satisfied customers. 

All set for future improvement

Even though the use of telematics has significantly increased in a short period of time and has been adopted by various industries, it is continuing to grow with each passing day with 86% of fleets having it implemented nowadays. Needless to say, the telematics system will continue expanding simultaneously with technology.

There are countless companies where telematics are used including construction and towing businesses, utility companies, taxi companies, mining industries, etc., but they mostly come in useful among haulage companies. 

It’s abundantly clear that telematics is starting to take over the business world and is being widely accepted. Hopefully, this clarification has been enough for you to start thinking about the future of your business and embarking on your telematics journey!

Author bio

Makedonka Micajkova is a freelance content writer and translator, always bringing creativity and originality to the table. Being multilingual with professional proficiency in English, German and Spanish, it’s needless to say that languages are one of her biggest passions in life. She is also a skilled communicator, as a result of having three years of experience as a sales representative. You can find her on Linkedin.