What is Fleet Telematics and How Does it Differ from Fleet Management?

The concept of fleet telematics has been around for quite some time, dating back to the 1960s, although the term itself wasn’t introduced until about 1978. But what does telematics mean? Simply put, telematics is the merging of 2 fields: telecommunications, which deals with transmitting information over distances, and informatics, which involves data collection and analysis.

In recent years, telematics has become particularly relevant for commercial vehicles, where it involves using telecommunications to gather and share data about the vehicle. This technology lets companies monitor things like location, fuel use, and maintenance needs, which can help improve the way vehicles are used and managed over time. In this article, we are taking a look at fleet telematics while also covering how it differs from fleet management. Let’s get started.

What is Fleet Telematics?

Fleet telematics is a system that brings together communication and data-sharing technologies to gather and send information from a group of vehicles. Through this technology, fleet operators can track where their vehicles are in real time, monitor their performance, and analyze various types of data. This information helps in managing the fleet more efficiently, allowing for better planning, resource allocation, and safety measures.

For fleets equipped with telematics, there’s a proactive approach to issues, as managers can assess situations and identify needs before they become problems. This contrasts with fleets without telematics, which often have to address issues only after they occur, leading to more reactive decision-making.

How Does Telematics Work?

As mentioned earlier, telematics is a system that allows data to be sent from a vehicle to other devices or locations in real-time, offering a clear view of the vehicle’s location, operations, and overall functioning. This technology works by collecting and transmitting detailed information on a vehicle’s activities, which can then be analyzed to improve productivity and streamline various tasks.

The system collects various types of data, such as how long a vehicle idles, how brakes are used, its location through GPS, the distance it travels, speed, engine health, and fuel consumption. This information is useful for several purposes, such as managing vehicle fleets, tracking assets, setting up emergency alert systems, managing toll payments based on mileage, and verifying insurance claims or charges. In the future, telematics could also play a role in smart city projects by helping manage traffic through real-time vehicle data.

How Can Fleets Benefit from a Telematics System?

Telematics systems can connect with existing tools and software to offer several benefits for fleets of all sizes. Here’s a closer look at how they work:

1. Tracking Vehicles

   Telematics systems allow real-time tracking of vehicles using GPS technology, cellular networks, and cloud computing. A GPS receiver collects data from satellites and processes it to help with tasks like driver navigation. This data is then shared through cellular networks with office-based staff, who can use it to assign the nearest driver to a new job or monitor vehicle movements.

2. Tracking Trailers and Assets

   Fleet managers can attach GPS devices to trailers and non-motorized equipment to monitor their locations. This helps ensure that these assets remain secure and makes it easier to guide drivers to trailers when needed. Drivers can also mark the location where they leave a trailer, and those details can be shared, making it simple to locate the trailer later. Additionally, the system can send alerts to managers if a trailer or asset is moved without approval.

3. Improving Maintenance

   Telematics systems help streamline maintenance by tracking vehicle usage and scheduling routine servicing. Fleet managers can monitor various engine diagnostics, such as battery health, coolant levels, and potential issues like sensor or valve malfunctions. The system also keeps track of service records, engine hours, and warranties. This proactive approach reduces repair costs and helps ensure vehicles stay in good working condition.

4. Monitoring Safety

   Fleet managers can use telematics to track important safety details such as vehicle speed, location, seat belt usage, and instances of harsh driving, like sudden braking or sharp turns. These systems provide a detailed record of how vehicles are being operated, helping managers identify areas where driver safety can be improved or where measures could reduce the chances of accidents.

5. Insurance and Risk Management

   Insurance companies can also benefit from telematics by assessing driver behavior more accurately. This information helps insurers better understand risk levels and adjust premiums based on actual driving patterns. Additionally, telematics can alert managers when a vehicle is driven outside of a set area, often called a geofence, providing better oversight and reducing the chances of unauthorized use.

What Vehicles Can Use Fleet Telematics?

Fleet telematics can be used in a variety of vehicles to improve efficiency and provide important data about how the vehicles are performing. Here are some of the main types of vehicles that can benefit from telematics:

1. Commercial Fleets

   Vehicles like delivery vans, buses, trucks, and taxis are part of commercial fleets that can use telematics systems to track driver behavior, monitor vehicle performance, and measure overall efficiency. These systems help businesses stay on top of their operations and make data-driven decisions.

2. Construction Vehicles and Heavy Machinery

   Telematics is also useful for construction vehicles and large machinery such as cranes, bulldozers, and excavators. By using telematics, companies can keep track of the location, usage, and maintenance needs of their equipment. This technology helps prevent theft, improve productivity, and ensure that machines are serviced on time.

3. Public Transportation

   For buses, trains, trams, and ferries, telematics plays an important role in improving service by tracking routes and schedules in real-time. It can help reduce delays, optimize routes, and provide passengers with up-to-date information, making public transport more reliable and convenient.

4. Rental and Car Sharing Services

   Rental cars and car-sharing services also make use of telematics to offer a smoother customer experience. These systems allow for remote vehicle tracking, keyless entry, and monitoring of vehicle conditions. Telematics makes it easier to manage vehicle availability, check on the condition of cars, and handle billing, simplifying the process for both service providers and customers.

5. Agriculture and Farming Equipment

   Farm equipment like combines, tractors, and sprayers can be equipped with telematics to monitor their usage, track fuel consumption, and schedule maintenance. This helps farmers optimize their operations, track field activities, and maintain their machinery, all of which support more efficient and sustainable farming practices.

6. Marine and Aviation

   Telematics is also used in the marine and aviation industries. For ships, it can track location, monitor fuel usage, and schedule maintenance. In aviation, telematics systems collect data on flight performance and engine health, providing early warnings for maintenance and ensuring safer and more cost-effective flight operations.

In all of these industries, telematics helps with monitoring, managing, and maintaining vehicles and equipment, making it a useful tool for improving performance and reducing costs.

Difference Between Telematics and Fleet Management

Fleet telematics and fleet management are related terms that are often used interchangeably, but they refer to different things. Telematics focuses on gathering and sending data from a vehicle to a central system, while fleet management covers a wider range of activities that include the use of that data.

Telematics is the technology that collects and sends information from a vehicle to a central server. This can be done through a mix of hardware, software, or both. It’s mainly used to track things like how the vehicle is performing and how the driver behaves on the road.

Fleet management, on the other hand, is a broader concept that includes telematics but also involves other aspects of managing a fleet. This can involve:

• Monitoring the overall performance and efficiency of the fleet
• Keeping track of costs and ensuring the fleet is providing a good return on investment (ROI)
• Making sure the fleet complies with regulations and industry standards
• Managing the buying and selling of vehicles
• Overseeing driver behavior and ensuring they follow best practices
• Scheduling preventive maintenance to keep the vehicles running smoothly

In short, telematics is just one part of the larger fleet management system, which involves a range of tasks to keep the fleet running efficiently and within budget.

Choosing the Right System for Your Fleet

If you want to keep track of your fleet, vehicle telematics is essential. A basic system can give you a clear idea of where your vehicles are and how they are moving.

However, for businesses that manage a large fleet, investing in a full fleet management system might be more beneficial. Such systems can cover all the important aspects of fleet operations and are closely connected to vehicle telematics.

With a fleet management system, you can better manage fuel costs, monitor safety practices, plan maintenance, and track trips. These improvements can help save money and make your operations run smoother, whether you’re in service, repairs, construction, or delivery.

Keeping your vehicles in good shape is crucial for any organization that depends on them, from small businesses with a few delivery vans to large companies with fleets of vehicles.

NEXGEN’s Fleet Management Software is designed to help you take care of your vehicles. It lets you easily track their status, record maintenance work, and stay on top of everything that keeps your fleet running.