Step into the world of modern fleet management and get unique insights into your fleet and drivers through vehicle telematics solutions. This article will help you get the most out of your fleet, and fully understand what vehicle telematics systems can do for you.
The telematics industry strives to benefit and make changes to every business it touches, and its efforts are evident in the field of fleet management. Vehicle telematics technology has grown immensely in recent years, encouraging businesses to implement the solution to improve safety, increase efficiency, and reduce costs.
This has seen the demand for innovative technology, prompting more businesses to grow curious about what telematics can be used for and how it can benefit them. This guide will answer all your questions and give you the information you need to make an informed decision about vehicle telematics.
Vehicle telematics (also known as fleet telematics) is a system used to collect GPS fleet tracking data along with a range of vehicle-specific information and store it in a database. It integrates both wireless telecommunications and information technology (informatics) to process and deliver actionable data, while efficiently conveying information over vast networks.
Vehicle telematics is often associated with fleet management and GPS tracking devices. With these fleet systems in mind, it can be defined as an onboard communication system where all fleet software applications can interact with each other and share vital information.
This powerful technology can also be seen as a new method of integrating all types of data, from vehicle equipment to driver behaviour.
A vehicle telematics system works by using different software & hardware to collect information such as the speed and location of your vehicles. The hardware technologies are connected to vehicles’ software, to translate the data and provide your fleet managers with insight.
For a vehicle telematics system to work, it needs several items:
Telematics systems function by connecting a GPS fleet tracking device, or other data logging tools, to an asset. The tool collects critical performance data about the asset, like real-time engine diagnostics, vehicle location, and vehicle activity.
After being collected, the device transmits the data to a data centre where it can be analysed, interpreted, and compiled. Fleet managers can access the uploaded data via the software of the telematics system once it’s been uploaded. However, the method of doing so may vary depending on the particular telematics solution.
Vehicle telematics devices are implanted via the vehicle’s on-board diagnostic (OBD) II port, or CANbus port, typically located under the steering wheel. These devices are installed in discrete places so that they’re hard to locate and tamper with. Here are three types of units available, together with their hiding spots:
After installing telematics units, the device collects GPS tracking data and a range of vehicle-specific information, where fleet managers can implement smart solutions to achieve the following:
A centralised server receives the information from the units via General Packet Radio Service (GPRS), 4G or 5G mobile data, cellular networks, or satellite communication. It then displays it through a secure website (usually the telematics system’s platform) accessed through tablets or smartphones.
Vehicle tracking is the most common use of telematics in most industries, especially in trucking and transportation.
This technology is preferred in vehicles because of the notable benefits it offers. It has the ability to map the exact location of your vehicles, their speed, and their maintenance status. It can do all this through the use of GPS systems, combined with onboard diagnostics.
Here’s a list of additional information gained through telematics.
To make good use of this information, the telematics system analyses the data for certain events and patterns, and creates reports on specific drivers and fleet vehicles, specifically for the convenience of fleet managers.
Typically, trucks, trailers and other fleet vehicles are sold without tracking systems installed, and are fitted with GPS tracking devices soon after they've been sold. If the vehicles don't come pre-equipped with this technology, many aftermarket companies offer GPS and telematics unit installation.
Some car dealerships also partner with telematics providers or vehicle tracking companies, such as Cartrack, to provide a seamless end-user experience and sell vehicles already fitted with Cartrack's tracking units.
You’ve now gathered a basic understanding of telematics software and decided to implement it into your business. To properly use this technological game-changer, here are a few key areas where vehicle telematics can boost your business.
Fleet telematics allows you to track vehicle location, speed, seatbelt use, and driving behaviour. You’ll receive a digital record of every aspect of your fleet vehicles' operations. This data provides insights into where and what improvements can be made to prevent accidents and improve driver safety.
A vehicle telematics solution can help you reduce instances of overtime and timesheet fraud by monitoring your fleet's electronic time logs and allocating resources based on real-time information. You can optimise your drivers' routes so that no driving time is wasted. You'll also know exactly how long and how far a vehicle has driven, making payroll calculations easier.
Telematics units can be used for more than just monitoring vehicles. You can attach a GPS tracking unit to trailers, expensive equipment, and non-motorised assets to prevent them from becoming lost. You can even help find them faster if they’re stolen or hijacked.
Alerts can also be created and sent to you if a trailer or other non-motorised asset is moved without your permission.
With the permission of the owners, telematics can be used by insurance companies to monitor driver behaviour, allowing them to better determine risk factors and adjust insurance premiums accordingly. If additional help is needed in getting insurance, Cartrack helps motorists find affordable insurance by viewing the current insurance package used, and then providing you with 14 quotes with better rates.
The vehicle telematics market size was valued at $24.3 billion in 2024 and is projected to reach $78.6 billion by 2034. With this amount of money on the table, it's safe to assume that not just the transportation and freight industries reap the benefits of this system. Almost every industry has space in its regime to integrate telematics into its business, and some of them use this technology a little bit differently than the rest.
Here’s a look at the industries making the most of telematics today.
Telematics works to help fleet managers oversee their vehicles, drivers and other fleet employees. With telematics, GPS devices work to track your vehicle, trailers and assets successfully.
They also help you in gathering vehicle data such as the full trip history of your vehicle and other actionable insights. Fleet managers can use this information to improve vehicle and driving conditions. Other noticeable improvements vehicle telematics can make in fleet management include:
Telematics technology works with other fleet software by collecting data from vehicles, and the fleet management software is the platform that uses the data to oversee fleet activities. Businesses are increasingly relying on telematics technology and fleet management software to assist them in managing their fleets.
Fleet management software, a branch of telematics, is popular among modern companies as a way to manage the vehicles of their organisation. Fleet management systems allow them to gain a comprehensive view of the health, profitability, and productivity of their entire fleet.
Many fleet managers use both fleet management systems and telematics to simplify and efficiently organise gathered information.
Fleet management software is a large information database where you can keep track of everything and anything linked to your fleet. These records may include:
The purpose of using both telematics and fleet management technologies is to reduce the administrative processes associated with managing all fleet lifecycle information. This helps make sense of a fleet in terms of operating costs and total cost of ownership. It also ensures that you’re operating legally, complying with regulations, and effectively maintaining assets.
These fleet systems usually have quite comprehensive reporting tools that can set alerts and send emails. Tools like Cartrack’s SARS-compliant logbook feature perfectly integrate with third-party systems that offer financial solutions like.
If you’re asking yourself if the use of both telematics and fleet management software is truly needed to optimise your business, the answer is a resounding, “Yes!”. These systems work together to improve fleet efficiency and productivity, and provide several benefits that can easily be observed as soon as the technology is integrated into a business.
These include:
By incorporating telematics and fleet management software into business practices, you can reduce investment and operating costs in a variety of areas. This includes fuel purchasing, leasing, maintenance, accident management, and accounting.
Use Cartrack’s fleet management solutions as well as the telematics technology to have your whole fleet under your control and watchful eye. Be informed about all the comings and goings of your fleet at any time and location.
Contact us and take the first step in achieving fleet efficiency.
Get a detailed breakdown of how vehicle telematics works and why it is a necessity for every business with a fleet of vehicles.
