Fleet Telematics: Real-Time Vehicle Tracking and Management | Itefy

Fleet Telematics: Real-Time Vehicle Tracking and Management

Fleet telematics has the potential to take your fleet management to the next level. We will understand what it is and how it works in this detailed guide. 

In this article:

You must have experienced the word ‘fleet telematics’ thrown around during a discussion on fleet management. For the uninitiated, it could feel like a complex term you cannot benefit from unless you are an expert. The good news is that its fundamentals are not that hard to understand. 

Telematics can change the way you manage your fleet. Your fleet will be more efficient, compliant, and cheaper with valuable insights and automation. Around 67% of logistics companies say they have a formal digital transformation strategy that will help them enter a modern era of transportation and fleet management. 

In this guide, we'll explore this technology, how it works, its impact on fleet management, and much more. 

What is Telematics? 

Before understanding fleet telematics, we must explore the fundamental concept of telematics technology. 

At its heart, telematics combines telecommunications (the electronic transmission of data) and informatics (computer systems and data storage). Its purpose is to transmit information over long distances for both commercial and non-commercial uses. Since it is an efficient data retrieval method, all industries have reaped its benefits, including construction, home delivery, field service, and the like. 

Telematics has helped these industries in multiple aspects, which include:

  • Fleet management 
  • Electronic proof of delivery 
  • Asset management 
  • Customer experience 

What is Fleet Telematics? 

The automotive and haulage industry has adopted telematics because of its flexibility and ability to transfer data in real-time. Managers use it to make fleets more sustainable, enhance their visibility, and improve driver safety. Using GPS, managers can track the location of their vehicles.

Fleet telematics sends and receives information about vehicles through dedicated devices. These devices have SIM cards or built-in SIM functionality to send data to fleet managers, which helps them keep track of driving habits, planned routes, current locations, and the like. 

The Devices Used for Fleet Telematics 

A comprehensive fleet telematics system includes multiple devices, each with particular use cases and advantages. 

Fleet Telematics

Commercial fleets use telematics for multiple reasons. 

1. GPS 

Modern fleet management is simply incomplete without GPS tracking devices. These devices track their locations through satellite signals and send the information to the fleet management software. 

This means that fleet managers can track the location of their vehicles on smartphones or computers with extreme precision at any time. Telematics vehicle tracking has several benefits for fleet managers, such as:

  • Resource optimization 
  • Theft prevention 
  • Managing fuel consumption 
  • Better safety 

A small device can help you unlock all of these upgrades. GPS tracking devices work with asset management software, providing alerts for suspicious activity. In addition, they are user-friendly, making it easier for fleet managers and drivers to use them. 

If you're considering implementing a fleet telematics system, GPS tracking should be one of your main considerations. 

2. Dash Cameras 

GPS tells you your location, while dash cameras show you what's happening as your fleet moves on the road. Thanks to their smaller size, dash cameras can be mounted on dashboards and enhance driver accountability. They are also useful in making drivers aware of their surroundings to help them drive safely and make roads safer for everyone. 

In the wake of an accident or any other mishap, the footage from these dash cameras serves as concrete evidence to help stakeholders have an unbiased analysis. It is estimated that the global dashcam market will be worth $8.61 billion by 2030, suggesting a significant uptick in dashcam use. 

The managers using dashcams on their fleets are immensely satisfied with their performance and overall functionality. They might not be as popular among fleet managers as GPS devices, but that certainly doesn't dilute their value in ensuring road safety and driver accountability. 

With dashcams in your fleet, you can be worry-free, knowing you have an extra layer of protection. 

3. Vehicle Sensors 

Fleet telematics has moved far ahead of simple location tracking. Today, fleet managers have access to a large variety of vehicle sensors that track several parameters, such as:

  • Fuel levels 
  • Speed
  • Acceleration
  • Braking patterns 
  • Temperature and air pressure 
  • Seatbelt use
  • Tire pressure 

The list is much longer than that, which means tracking them with dedicated sensors becomes a necessity. 

Such intensive tracking has a positive impact on businesses. Telematics and fuel efficiency go hand in hand, making your company more productive and increasing profits by reducing costs. 

These sensors guarantee quality data throughout the fleet's lifecycle, helping you make smarter decisions. This extends the fleet's lifespan, and you don't have to spend as much on repairs and maintenance. The data coming from these sensors can help you detect unwanted behavior and rectify smaller issues before they become too big to handle. 

A Caveat 

It is easy to get overwhelmed by the extensive data coming from these fleet telematics sensors. Remember that tracking every single data point from these sensors isn't mandatory, and it could actually slow down your operations. Before purchasing these sensors, determine your needs instead of purchasing every single sensor available. 

For instance, if your concern is extensive fuel usage, focus on data related to that instead of spending too much time tracking the air pressure. Thinking more data is always better is a trap that can easily lead you astray and cause more harm than good. 

4. Electronic Logging Devices (ELDs)

ELDs are tablets installed inside vehicles to record data regarding driver activity, usually focusing on record of duty hours (RODS) and driver hours of service (HOS). Since December 18, 2017, the United States Federal Motor Carrier Safety Administration has made the usage of ELDs mandatory for commercial drivers to prevent driver fatigue, which causes 328,000 crashes each year. 

Here is what ELDs track:

  • Date and time 
  • Location
  • Miles traveled 
  • Driver log-on/log-off
  • Service hours
  • Duty status change 
  • Vehicle, motor carrier, and driver identification 

Implementing ELDs in fleet telematics navigation makes you compliant with the federal hours of service laws. Before ELDs, managers relied on traditional log books that were full of errors and created compliance headaches. ELDs streamline the record-keeping process, ensuring all the above data points are accurately captured and stay tamper-proof. 

ELDs ensure that drivers get enough rest to prevent accidents and prevent them from indulging in non-compliant driving activities. 

5. Onboard Diagnostics (OBD) 

Most vehicles manufactured after 1996 have an OBD-II port, where OBD devices are plugged in. OBD devices are popular because they can monitor and notify you about diagnostic fault codes (DTCs) in real-time. These codes pinpoint faults in various vehicle systems for swift diagnosis and resolution. In addition, OBD-generated DTCs prolong the lifespan of assets, cut maintenance costs, and minimize downtimes. 

However, with Onboard Diagnostics, you could also experience a data overload. Not all diagnostic trouble codes hold equal value. Some might indicate critical problems like brake system failure, engine fires, and the like, while others might be mundane. The problem is that Onboard Diagnostics isn't capable of distinguishing between the two. 

That's why fleet managers must have robust software systems that help them filter data. They can categorize DTCs based on their severity and urgency, marking some as high priority while delaying others by marking them as low priority. 

Benefits of Telematics 

Following are some of the best things fleet management telematics can do. 

Fleet Telematics

Fleet telematics offers a range of benefits. 

1. Improve Efficiency Productivity 

Telematics data collected from the fleet can help create more efficient routes. Geofencing allows managers to track every driver and compare their performances against schedules to minimize retention times. 

2. Minimize Operational Costs 

Planning smarter routes with fleet telematics reduces fuel usage and related expenses. By comparing the idle time of all vehicles, managers can determine which fleet members need to do better in this department. Reducing idle time is also advantageous because it helps reduce fuel costs. 

3. Enhance Driver Safety 

Accidents pose a serious risk to your drivers and vehicles and your reputation. Minimizing their chances through quality fleet telematics is a no-brainer for any manager. It helps you assess the performance of various drivers and understand who needs improvements and where. 

Once you have analyzed their performance and required improvements, design a training program corresponding to each driver's deficiencies. For holistic training, try to combine e-learning with on-road experience. 

4. Improve Fleet Maintenance 

With automated tracking and record-keeping, fleet managers can schedule maintenance with minimal impact on productive activities. With a combination of quality software and telematics, managers can set up alerts for maintenance and know when it's needed by tracking metrics such as tire pressure, fluid levels, and more. 

Telematics also ensures that issues arising outside planned maintenance are identified and resolved immediately. Managers receive real-time alerts if a vehicle operates beyond the defined parameters and check for an issue. 

5. Support Drivers 

In most accidents, the driver's testimony is less valuable since courts accept footage as evidence. With footage from the outside, it is easy to declare a driver culpable even if they are not. Dashcams can help overcome this problem by providing the driver's view and protecting your company from legal and financial troubles. 

6. Increases Job Satisfaction 

Electronic logs of a fleet telematics system give drivers more control over their daily routines. With meticulously planned journeys and routes, drivers can avoid spending hours in heavy traffic and complete their daily tasks efficiently.

7. Automates International Fuel Tax Association (IFTA) Reports 

When paired with fleet management software, telematics can automatically calculate fuel costs and distances for drivers in multiple jurisdictions. 

The International Fuel Tax Agreement (IFTA) is a fuel use agreement between the 48 states in the US and Canadian provinces. Its purpose was to streamline fuel use reporting in multiple jurisdictions so that carriers pay their fair share of fuel tax owed in each jurisdiction. 

Telematics and fleet management software automate IFTA calculations and ensure accurate reporting, which reduces the risk of your company being audited and penalized. 

Manage Your Fleet With Itefy’s Transportation Fleet Management Software 

Using telematics can be a transformational strategy for your fleet. With its capability to generate quality data and deliver it swiftly, fleet managers can make strategic and more impactful decisions. But pairing your telematics with capable software like Itefy’s Transportation Fleet Management Software is crucial.

With its advanced features and excellent pricing, you can create a holistic telematics fleet management system that perfectly serves you on each front. Although Itefy doesn't provide live tracking, you can still take full advantage of other features and keep your fleet in top shape. 

Try it for free for the first 14 days, and later pick a bundle that suits your needs. 

Frequently Asked Questions

  • Telematics can be based on software, hardware, or both. The hardware component contains an assortment of trackers, sensors, and devices that send data to a centralized system. This centralized system is software-based, helping managers analyze data and make informed decisions.
  • People often confuse these two, but they are significantly different. Tracking is only about knowing the current location of vehicles through GPS. On the contrary, telematics is a much broader term that includes various kinds of data, such as fuel consumption, driver behavior, and much more.
  • Thanks to advanced sensors, devices, and data-management capabilities, modern telematics systems are highly accurate. When paired with Itefy's Transportation Fleet Management Software, you can fully utilize telematics and ensure your fleet stays safe and productive.
  • With demand for fleet telematics increasing significantly, it is safe to say that it has a bright future. Predictive analytics and artificial intelligence (AI) will be major trends going forward. Predictive analysis uses historical data, statistical techniques, and machine learning to predict the occurrence of events.
  • Fleet telematics makes fleet management more efficient and productive. By providing quality data to a central authority using multiple sensors and devices, it arms managers with data-driven decision-making capabilities.
Updated