Telematics might sound like Eleven’s ability to move objects with her mind in Stranger Things, but it’s not (you’re thinking of telekinesis). This fleet management tool allows long-distance transmission of data in real time. In commercial fleet businesses, it’s commonly used for managing fleets through GPS tracking and helps track vehicles instantly from the office.

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This Article Covers the Following:

• What Is Telematics?
• How Does It Work?
• Device Installation
• Key Features
• Primary Benefits
• Future
• Final Thoughts

What Is Telematics?

Telematics is a technology that combines telecommunications and informatics to transmit information back and forth in real time. It has gained popularity as a branch of fleet management software that businesses use to efficiently manage and maximize the productivity and profitability of large fleets.

You can imagine telematics as a smart system installed in your vehicle that can track speed, live location, tire pressure and fuel usage and report back to you.

A small device, also known as a “black box,” records vehicle information and connects to the OBD-II port. Then a modem or a sim card installed in the device allows the transmission of information.

The primary components of telematics include:

• GPS receiver
• Input or output interface
• Engine interface
• SIM card
• Buzzer
• Accelerometer

Apart from these hardware components that create a telematics system, the GPS logging algorithm plays a crucial role in providing accurate and quality data.

How Does It Work?

Now that you have an idea of what telematics is, let’s understand how the system works from top to bottom:

1. A GPS receiver collects data such as the vehicle’s location, speed and idle time via on-board diagnostics.
2. Then, it transmits data to the server through a wireless network such as GPRS, cellular data satellite communication and Wi-Fi.
3. The server or a third-party telecommunications manager interprets and handles the information flow between the vehicle and the provider and displays it to end users.
4. Fleet managers receive information from the telematics provider on a mobile device or computer through the internet.

Both private and public fleet management companies use telematics data to track location, improve community safety and monitor driver behavior. It also aids in dispatch, diagnostics, analysis and preventative maintenance.

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Device Installation

You can follow these steps to install a telematics device without assistance:

1. Turn off the vehicle’s ignition and use a digital multimeter to check the voltage.
2. Now remove dash panels to find OBD-II ports and open them by removing bolts.
3. Put the mounting bracket on the replacement port and hold it in place.
4. After connecting a bypass wire, plug in the replacement port and pull the bypass wire through the dashboard.
5. Now connect the bypass wire with the plug-n-play (PNP) device and secure them. Remember not to leave anything bouncing around; tie them with zips if necessary.
6. After completing the hardware setup, follow the installation and activation instructions in the manual but don’t start the ignition of the vehicle till it’s fully activated.
7. Reassemble all panels and tighten screws.

In several instances, a bypass wire or connector isn’t even necessary. You just need to connect the telematics device to the port and follow registration and activation instructions. Vendors generally provide clear guides if any device requires you to perform different installation steps. You can always seek professional assistance if your fleet consists of atypical vehicles.

Key Features

Fleet telematics devices offer GPS technology to optimize your fleet management and maintenance. Let’s take a look at some of the key features:

Real-time Location Visibility

The core feature of telematics or fleet tracking software is real-time location tracking. The platform uses electronic logging devices (ELD) and GPS trackers to send live location updates to fleet managers. You can also know if the vehicle is stationary or moving and which driver is driving. With continuous monitoring, you can also mitigate the risk of theft.

You should remember that all solutions don’t offer quick updates. Some provide periodic updates with a gap of two minutes to two hours, depending on the tracking hardware.

Real-time Communication

Simply tracking fleet activities isn’t enough if you’re not receiving the information instantly. Delayed updates can prevent you from interfering and handling critical situations.

Telematics devices notify drivers about deviations, events, impending dangers and infringements in real time. They also create a two-way communication channel between the office and drivers.

Asset Management

This is another important feature that helps track and locate assets. It also helps manage them securely and provides benefits like inventory, compliance and transportation management.

Customizable Alerts

Real-time notifications and alerts about vehicle diagnostics, driver behavior and inventory help drivers avoid accidents and other disasters. They can also get customizable speeding, odd hours and maintenance due alerts.

With maintenance alerts, you can track engine hours or mileage to ensure safety and improve performance.

Business Analytics

The best telematics systems provide in-depth analysis of driver behavior, speeding, fuel usage and mileage. You can use business analytics tools to address impending issues at the appropriate time.

These tools produce performance snapshot reports that contain quantitative and qualitative data to provide insights into business strategy. Fleet managers can add value to this data and optimize their fleet’s performance.

Dispatch Management

Dispatching is the first step for fleet companies to start their operations. Fleet managers generally handle dispatching after analyzing factors like proximity, inventory, size and availability of trucks for delivery.

Telematics automates the process by collecting and analyzing requirements and capabilities, comparing them, and sending the most appropriate vehicle to the nearest destination.

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Primary Benefits

Telematics is a revolutionary technology that primarily helps lower the risk of accidents and enhance vehicle safety. It provides some other benefits as well, such as:

Improve Performance and Safety

One of the most critical factors in increasing fleet efficiency is monitoring driver performance. Imagine being unaware of a drunk driving incident involving one of your drivers, which could result in legal trouble and damage your supply chain. Telematics provides alerts about reckless driving so you can handle the situation before a major incident occurs.

You can also improve drivers’ performance by understanding their skills and strengths with dash cams and driver ID trackers. Some solutions also offer scorecards and driving reports to monitor driving behavior.

Additionally, by analyzing driving metrics, you can identify drivers who need additional training. A few vendors use a rewards system to motivate drivers and promote a culture of safety.

Optimize Operations

Managing a fleet of vehicles is nothing short of juggling multiple balls in a circus. Without efficient operations, you risk dropping all balls, but optimized processes can give your business an advantage over competitors.

Taking quick decisions and communicating them to the right people at the right time plays a key role in managing a large fleet and averting disasters. The use of analytics and alerts can assist in making accurate and timely decisions. You can also streamline scheduling and dispatching while reducing the fleet’s idle time.

Reduce Costs

Rising fuel prices are causing financial strain on transportation and logistics companies. To ensure minimized cost and good ROI, you need to keep your fuel usage and vehicle condition in check.

Fuel and engine heating indicators, vehicle maintenance alert systems and diagnostics can help track your vehicle’s status. Staying on top of maintenance issues like wheel alignment, engine oil changes and air pressure in wheels with timely alerts mitigates risks of fuel surcharges, vehicle inspections and replacements.

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Future of Telematics

The growing usage of telematics technology and continuous GPS improvement has been an absolute game-changer for the automotive industry. We can expect the industry to make incredible strides as more fleet businesses realize the crucial role of close monitoring, tracking and maintaining their vehicles while complying with government regulations.

Here are some of the trends to look out for:

• Remote fleet management is gaining momentum since the pandemic has made it impossible to rely solely on static systems to fulfill increasing demands.
• The 5G cellular network has the power to disrupt current telematics systems with low latency rates and increased capacity.
• Modern real-time monitoring systems provide in-depth visibility into driver identification and behavior, alarm systems and geofencing to boost fleet safety.
• We can witness an additional focus on endpoint security and data safety and a shift from tactical to strategic management.
• The rise of IoT is redefining supply chain management. It’s creating “infostructure” by connecting the digital and real world and helping telematics solutions with analysis, tracking and AI-enabled solutions. This increases visibility into every supply chain layer, including transactions and processes.
• With the rise of technology, it will incorporate different modules like ERP, workforce management and business management software.

The increasing demand of telematics in fleet businesses is contributing to rapid market growth. The global telematics market is estimated to reach $158.31 billion in 2028 at a CAGR of 21.6%.

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Final Thoughts

Since the success of fleet organizations depends on optimized operations, customer satisfaction, fuel efficiency and driver performance, you can no longer ignore the importance of telematics. It is reshaping the fleet management industry by enabling companies to seamlessly track, maintain and sustain their fleets.

If you need help selecting the right system for your organization, check out our free comparison report. We also recommend creating a requirements template to start your software selection journey.

Which of your software uses telematics systems? What do you think will be the future of telematics? Do let us know in the comments below!