When we talk about the trucking and transportation industry, telematics has had a significant impact. With the rise of the internet, the technology has taken off more recently, as it can transfer data to offices in real-time for various purposes that include fleet management.
In this era, fleets become much more efficient by relying on telematics’ data and insights. The word telematics in the broadest sense is a joining of two sciences — telecommunication and informatics. This article will explain the complete insight into telematics, how it works, and its use in diverse sectors to enhance safety, operational efficiency, and customer service.
About Telematics
The word telematics descended from the French word télématique, which refers to the convergence of information technology and telecommunications. It is a branch of informatics that deals with the long-distance transmission of computerized information in technical expressions. In short, it is the basis of modern fleet management systems, evolved over the years, and almost links with GPS tracking for fleet management.
Today, telematics is essential to successful fleet operations, as it transfers data remotely and increases perceptibility into operations. According to Gartner, the wireless device and “black box” technologies collect and transmit data on vehicle use, maintenance requirements, or automotive servicing. The equipment provides real-time information on airbag deployments or car crashes and locates stolen vehicles using GPS technology.
With this technology’s help, diverse industries have profited and improved their communication skills, efficiency, and customer services. Besides, this wireless device serves as the insurance platform like pay-per-use, pay as you drive (PAYD), pay how you drive (PHYD) programs for fleet or teen driving programs for retail business, according to Gartner. Moreover, it is not unusual to see that fleet managers and operators have started to invest heavily in modern telematics systems. Especially in video telematics, to protect their assets while gaining a competitive advantage in their markets.
How Fleet Telematics Works?
For instance, your newly purchased car has the feature of monitoring and communicating your driving style to your insurance company — the question that comes to mind in the first place — How is this possible?
Well, telematics is a method of monitoring a vehicle and can gather or store data from your remote assets. With the combination of onboard diagnostics and GPS, keeping an eye is possible as it records and maps exact details of your car, its driving speed, and cross-reference with how a car is behaving internally.
The technology works by using a SIM card. The fleet telematics device connected to the vehicle’s onboard diagnostics port allows communicating through a modem where data collected via a wireless network to a central server. Further, the data read by the server gets displayed on the other end through a secure website. Thus, it enables the end-user, like a fleet manager, to take appropriate actions by paraphrasing the data.
For instance, a vehicle’s location is provided to a vehicle telematics device through mounted hardware devices in cars. This device connects to the internet using a wireless network or satellite modems to the GPS satellite network. On the other hand, the telecommunications company manages information from the vehicle and telematics provider. It transfers the telematics provider’s data to a computer or mobile device for a fleet manager to access
Benefits of a Telematics System
From solving unique business challenges and making data-driven decisions, telematics data is designed to empower fleet managers and administrators. Moreover, any type or size of the fleet can benefit from the telematics device, as it provides essential information on each vehicle or asset’s location. For example, fleets gain visibility into operations, which in turn increases their efficiency and productivity. With advanced telematics, fleets may simplify operations, driver management, and a much better return on investment (ROI).
1. Increase operational efficiency and productivity
Get complete updates and understanding of your vehicles’ consumption with fleet telematics, as its equipment gives out valuable information about your car. It also helps in identifying where you could streamline your journeys with real-time vehicle location tracking — GPS. As a result, it speeds up deliveries, minimizes fuel expenditures, and acts as a time-saving instrument for drivers and fleet managers.
2. Monitor and optimize the driver’s performance
In the trucking and transportation industries, a small collision on the road can cripple a business; thus, vehicle or goods’ safety becomes a top priority for fleets of all types and sizes. Within this organization, drivers act as your company’s public face, and how they drive reflects on your business as a whole. At this very point, telematics can provide a way by monitoring your vehicle’s journey, minimizing personal tangents, and ensuring they are driving responsibly. Apart from this, the devices contribute to your company-wide safety culture by assisting the drivers with their road behavior feedback.
3. Cut-down operational expenses
There is a saying,’ every penny saved is every penny earned.’ Conserving even a few minutes of idling time across a fleet leads to substantial fuel savings. Nearly for every fleet manager, fuel is one of the largest expenses. Thus, providing smarter route planning can reduce fuel usage and save money. Connecting with drivers through mounted tablets, fleet managers can at once update truckers on detours, reroute them around heavy traffic and direct them to preferred fuel vendors.
4. Assist with preventative maintenance
Telematics systems can enable you not to monitor your drivers but on your vehicles’ condition. Based on odometer readings and engine run-time, certain products can provide quickly understandable reports and automated scheduling, resulting in valuable insight to assist in creating detailed and meticulous maintenance schedules. Apart from this, it also minimizes vehicle downtime and ensures that your fleet is running at peak capacity.
5. Cost Associated with Vehicle Telematics
The overall total cost of telematics adoption depends on various factors and the fleet management solution. These factors include cost for hardware, installation, cost of upkeep, and usage. Most of the telematics systems have fairly clear-cut values that you can evaluate as per current market standards
If you seek minimal actionable insight, then bare-bones GPS tracking on a map is the best choice as it is a relatively cheap option. On the other hand, linking a fully integrated telematics solution with other technologies such as electronic logging devices (ELDs), dash cams, smart route planning, and advanced driver management might be more expensive upfront but provides higher ROI.
6. Streamlined communication in the trucking industry
Within the transportation and trucking industry, communication between driver and fleet manager plays a vital role. Better communication, along with accurate vehicle location tracking and geofencing, can help you provide better delivery estimates to your customers, giving them complete satisfaction with the product. As in this competitive trucking industry, customer service is often an essential aspect of the business. At the time of the 2019 RoadCheck enforcement event, around 37.2 % of out-of-service violations were related to HOS tracking even after the December 2017 deadline for the ELD mandate. Fleets need to be more proficient with mobile telematics technologies to improve compliance. Thus, real-time vehicle telematics and smooth communication with drivers can help you gain a competitive advantage.
How Telematics Enhances Diverse Sectors?
Integration and data analytics turn telematics into a valuable, customizable tool that can enhance every part of a fleet’s operations. By now, most trucking and transportation industries may have integrated different versions of the technology for routing, safety, or remain competitive within your market. However, there is much more than GPS tracking or saving on fuel costs.
Telematics devices come with various features that can help increase your fleet’s productivity. According to the research study, around 59% of fleets said productivity significantly benefited by implementing telematics — falling just ahead of decreased fuel consumption and improved routing. Arguably, having telematics as a part of your business can result in increased productivity.
The Future of Telematics — Past & Present
In the 1960s, the U.S. Navy deployed six polar GPS satellites to track its nuclear missile submarines; this is where the telematics industry came into existence. Until 1994, the U.S. military expanded and upgraded the system till the last of 24 satellites became operational. Since then, more satellites have been added, bringing today’s total to 31. Moreover, it was made available for civilian use by the U.S. government in 1983.
However, until 1996, when GPS was designated an international utility, and the data became free, this usage took off. As a result, it led to an explosion of location-tracking devices and mapping services. From early hand-held devices that only coordinated on a black and white LCD to today’s Google Maps and in-car navigation systems, all of this functionality is based on GPS satellite data. In this era, to collect and send data, telematics relies on third-party hardware devices.
As a method or mode of tracking vehicles, telematics systems have come a long way from their commencement. Earlier, most businesses have embraced the device to solve their routing, scheduling, and fuel efficiency problems. However, there is a lot to be excited about in this space, with the open marketplaces enabling choice and connectivity, increasing focus on insights, integrating video, and the shift to becoming a business management platform.
More and more industry players in this competitive business world — from manufacturers and trucks- are developing their telematics solutions. According to a research study, a leading car manufacturer has developed an agnostic cloud-based platform used in any commercial vehicle model. The future we are talking about with telematics’ commencement in diverse industry sectors will see the autonomous vehicle acting as a chauffeur. Simultaneously, the driver concentrates on their role’s value-driven elements, such as customer relationships, invoicing, preparing parcels in advance of delivery, and more.
Through this telematic vehicle device, the carrier stays connected to the environment with its sensors and the fleet management system through the cloud. It also remains related to the Smart City environment, communicating with traffic management systems like those developed in foreign countries. These devices see data and analytics transmitted directly to the truck without human interaction. It guides and monitors the vehicle to be at the right place at a particular time to make the overall delivery process quicker and more efficient.
For the automotive industry, telematics’ rise has been a huge turning point for fleet performance and safety. It is vital to keep an eye on the emerging trends as this device continues to gain momentum in the near future. As telematics providers correlate to faster 4G or LTE networks, 3G Cellular is another trend that is likely to see a sharp rise. With the rising demand for connected platforms, telematics systems will enhance their integration capabilities with other services or software systems. Thus, for companies seeking to create more holistic fleet management, all they require is a telematics provider that seamlessly integrates with other parts of their business.
Hence, telematics is a versatile technology with a method of monitoring and harvesting data from any moving asset, like a car, truck, heavy equipment, or ship, using GPS and onboard diagnostics to record movements and vehicle conditions at points in time. It also has the power to measure location, time, and velocity, safety metrics such as excessive speed, sudden breakdown, rapid lane changes, or stopping in a precarious place, as well as maintenance requirements. According to the research study, the adoption of telematics is more widespread every year. Thus, for fleets looking to gain a competitive advantage in their business, telematics devices will continue to play a significant role, as data generated from the tool can help you become a more proactive and dynamic fleet administrator.
This article first appeared on the VegitOne Blog at:
https://www.vegitone.com/a-complete-guide-on-truck-and-fleet-telematics
