What is Telematics?

If you’re asking “what is telematics?” the short answer is that it’s the basis of modern fleet management practices. But if you want to get technical, telematics is a system that marries information technology with telecommunications. Also, you could define it as the long-distance transmission of computerized information. It has evolved over the years and narrowly associates with GPS tracking or fleet management.

The system is based on devices installed inside vehicles, which then use cellular networks to transmit data back to servers either hosted by the provider, or a third-party cloud server. Then, the data stored in the cloud makes the information available to access from any device with an internet connection.

And the GNSS (Global Navigation Satellite System), a network of satellites that help triangulate the location of a device, is what makes all of this possible.

The rest of this article discusses how this technology is beneficial for organizations interested in solving challenges related to accountability, compliance, efficiency, and safety.

What Fleet Telematics Does

Fleet telematics empowers you with a solution to solve your unique business challenges.

The most common of these challenges is simply knowing where your vehicles and equipment are at all times. Also, there are numerous examples of using a fleet solution as a theft deterrent for companies and saving them thousands of dollars. The simple benefit of location information is the origin of this technology. Today, the technology has evolved to provide significant return on investment with more strategic initiatives such as safety.

If you approach fleet management from a strategic mindset — as a safety initiative or becoming a safer and more responsible fleet, for example — then you can begin thinking about how to use the technology to address bigger issues. These can include reducing the number of accidents, speeding instances, harsh acceleration, deceleration, etc.

Here are a few more examples of areas where your business could discover significant ROI:

• Cutting fuel costs
• Improving safety
• Reducing operating expenses
• Improving customer service

And cutting fuel costs, for example, can also cause a ripple effect that addresses several ways to save money: Fleet management software can address driving habits such as speeding. Encouraging drivers to slow down and being able to track their progress makes your vehicles run more efficiently. Also, the software allows you to improve your dispatching practices. You can assign the drivers and technicians who are closest to customer sites, which saves time and fuel. That can also extend the life of your vehicles.

Third-Level Fleet Management

Now that you understand how this technology works and some of the information it can provide, you can start considering business challenges you may face. If those challenges include high fuel costs, safety initiatives, etc., a fleet management solution can be a huge asset. You can learn more by reading our “Third Level Telematics” blog post. This post discusses why it’s important to approach this issue with a strategic mindset. And it provides an overview of the innovative ways companies can use this technology. You’ll get a better idea of how to approach fleet management on levels beyond “dots on a map.” Finally, you’ll discover ways to mitigate your risk, increase profits, and cut inefficiencies.