The quest to be in the know pushes fleet managers and owners to constantly stay in touch with drivers — an exhaustive exercise, especially if they own a large fleet of vehicles. So, how can fleet managers get real-time insights about their trucks, drivers, and cargo without having to push buttons on their cellphones constantly? Two words — Fleet Telematics.
Fleet telematics is a very simple-to-implement technology that can significantly boost your fleet operations efficiency while safeguarding fleet assets like drivers, vehicles, and machinery. No wonder telematics ranks as the #1 tech adopted by fleets across the world.
What are Telematics and Telematics Systems?
Telematics or telematics systems function with the help of two scientific disciplines — 1) Telecommunications and 2) Informatics. Telecommunications refers to the remote means of communication while informatics stands for information processing.
Telematics systems make use of GPS technology, sensors, and onboard diagnostic codes to collect data like real-time engine diagnostics, vehicle location, driver behaviour, vehicle activity, and more.
There are different types of telematics systems as well. The market has —
- OBD II telematics systems
- Bluetooth-powered telematics systems
- Smartphone-based telematics systems
- Black-box telematics systems
- OEM hard-wired telematics systems
- 12V plug-in self-installation telematics systems.
Fleet management is generally executed with the help of black-box telematics systems, which we will discuss later in the post.
However, one should not confuse telematics with GPS tracking. The GPS tracker is a part of the telematics system and is responsible for collecting real-time data on the vehicle’s location and status.
The telematics system functions collectively with other technologies to process the data, derive useful information, and help fleet managers make better decisions.
Key Hardware/Software Components of Fleet Telematics
Here are the key components involved in effective functioning of fleet telematics —
1. Fleet Telematics Control Unit (TCU)
The telematics control unit is responsible for collecting data from the sensors installed within the telematics system. This generally included a GPS receiver, a modem for cellular communication, and an onboard memory unit.
2. GPS receiver
The GPS receiver is the most common module in the fleet telematics system as it allows managers to determine the precise location of the vehicle with the help of satellite signals. It comes with an antenna and receiver module.
3. Vehicle sensors
Sensors are loaded onto the fleet vehicle to collect various types of operations-related data. Fleet vehicles can be equipped with speed sensors, fuel monitoring systems, engine diagnostic sensors, temperature sensors, tire pressure sensors, CCTV cameras, and more.
4. Onboard Diagnostics (OBD) port
The onboard diagnostics port enables access to the vehicle’s diagnostic information. It provides an interface for connecting the diagnostic tools to the vehicle’s computer system. It even helps managers track technical issues in the fleet vehicle.
5. Communication network
Once the telematics control unit accrues vehicle data, it needs to transmit the data to the central server. The system needs a communication network (2G/3G/4G/5G/WiFi/Satellite) in order to push the data to the server.
Besides, the telematics system will have features for emergency communication for example emergency buttons, collision detection sensors, and driver fatigue monitoring using Driver monitoring system (DMS). This way fleet managers and drivers are well connected.
6. Central server and data storage
The data transmitted has to be safely stored so that it can be accessed for processing. The central server will receive, process, and store data transmitted from the vehicle telematics system unit. It involves cloud-based servers, databases, and software for data processing.
7. User interface and data analytics software
The data received (location, usage, maintenance issues, fuel consumption, idling time, driving behaviour, speed) needs to be processed to achieve accurate data interpretation. Couple it with the data analytics software and fleet managers will have an interface full of insights and actionable information.
This module involves web-based dashboards, mobile apps, and reporting tools that run on algorithms for predictive maintenance, route optimization, fuel optimization, driver behaviour analysis, and more.
How do Fleet Telematics Work?
Here are the four critical steps involved in the effective working of fleet telematics systems. Let’s discuss them in detail —
1. Data Collection
The first step involves gathering data from various sources with the Help of Sensors, Engine Data, and GPS Module within the vehicle. Sensors are used to monitor different aspects of vehicle performance and condition, such as speed, fuel consumption, braking patterns, and tire pressure.
The engine control unit (ECU) provides detailed engine data, including diagnostics and operational status. A GPS module tracks the vehicle’s location, speed, and route. Together, these components collect a comprehensive set of data that gives a complete picture of the vehicle’s status and behaviour.
2. Data Storage
Once collected, the data is stored temporarily in the vehicle’s telematics unit, often referred to as the black box.
This unit acts as a local storage device, ensuring that data is preserved even if there is a delay in transmission.
The telematics unit is equipped with enough memory to store data for a specified period, which can be crucial for later analysis, especially if the vehicle is in an area with poor cellular connectivity.
3. Data Transmission
The stored data is then transmitted from the vehicle’s telematics unit to centralised servers. This transmission is typically done through cellular networks, ensuring that data can be sent in real-time or near real-time.
Using cellular networks allows for a wide range of coverage and reliability, enabling fleet managers to receive updates and monitor vehicles regardless of their location. The data transmission process is designed to be secure to protect sensitive information during transfer.
4. Fleet Management Software
The final step involves processing the transmitted data using fleet management software. This software aggregates and analyses the data, converting raw information into actionable insights. Fleet managers can use these insights to make informed decisions about vehicle maintenance, route optimization, driver behaviour improvement, and overall fleet efficiency.
The software provides various tools and dashboards for monitoring key performance indicators (KPIs), generating reports, and setting alerts for specific conditions or events.
Through these four steps — 1) data collection, 2) storage, 3) transmission, and 4) analysis — fleet telematics systems provide a comprehensive and real-time view of fleet operations. This enables fleet managers to enhance efficiency, improve safety, and reduce operational costs, ultimately leading to a more productive and well-managed fleet.
Benefits of Fleet Telematics for Fleet Management
Here are the most important benefits of fleet telematics for efficient fleet management —
1. Improves efficiency and productivity
The use of GPS tracking to know the fleet vehicle’s real-time location allows fleet managers to further process the data and use the information to discover safer and more efficient routes. This helps reduce fuel consumption and ensure drivers stick to the delivery schedules. The geofencing feature makes it easier to track deliveries and authenticate access remotely.
2. Reduces fuel and operational expenses
More than 37 percent of the companies cite fuel savings as a top benefit from using telematics, an 88 percent increase from 2023.
Fuel is the highest expense across all companies leveraging fleet operations. Thus, fuel consumption optimization is paramount to running a profitable business. With a fleet telematics system, you can track the vehicle idling events of all drivers and provide them with the necessary feedback. You can track mileage for every vehicle across the set routes and choose routes that are more mileage-friendly.
3. Automates payroll management
Traditionally, fleet managers were used to noting down the specifics like total vehicle running time and distance. Moreover, they trusted their drivers as the point of truth for such documentation.
For example, fleet managers would maintain a physical register with attributes like vehicle number, driver name, total run time, total distance, fuel expense, and more. Telematics systems can potentially automate this process with the help of fleet management software, reducing manual administrative tasks and associated errors.
4. Promotes preventive maintenance
Proactivity in maintaining fleet vehicles is critical to seamless fleet operations. With the help of telematics systems, managers can track vehicle maintenance issues and schedule preventive maintenance.
The system event alerts the managers of vehicle fault codes so that vehicle issues do not escalate and hamper operations. In this way, managers can boost vehicle lifespan, reduce the probability of large repairs, and ensure adherence to safety regulations.
5. Streamlines communication
As we mentioned earlier, managers and owners need to connect with drivers to collect fleet operation-related specifics. However, manually seeking such information proves to be exhaustive.
To streamline such communication, telematics systems can provide managers and drivers with real-time and two-way communication modules.
This way, staff, and drivers can share real-time data, ensure transparency in fleet operations, boost accountability, and provide better services.
6. Increases driver safety
Almost 96 percent of companies use telematics systems to reward drivers for their better performance.
Safety is a major concern for fleet managers across industries. In our previous posts, you can read how fleet asset safety impacts fleet operations and ways to significantly safeguard fleet assets.
Telematics systems and associated technologies are highly recommended to ensure fleet drivers safety. Managers can track driving behaviour on the road and provide drivers with constructive feedback to increase overall road safety.
7. Helps with driver exoneration
As a manager supervising hundreds of drivers and vehicles, it can become quite difficult to keep track of minor and major accidents.
Telematics systems, especially ones coupled with CCTV and dashcam solutions, can provide adequate evidence in support of drivers.
Without video telematics evidence, one cannot prove who was at fault. Telematics systems can help with driver exoneration and uphold the company’s reputation.
8. Ensures compliance
Telematics systems help fleet managers ensure compliance with regulations by removing the guesswork and focusing on the system-generated data.
For example, managers would have to monitor compliance by tracking driver qualifications, HOS, unsafe driving, crash indication, controlled substances, hazardous materials, documentation, pre/post trip inspection reporting, defect reporting, background checks, and others.
9. Helps focus on sustainability
Managers willing to promote sustainability across their fleets should consider telematics systems as their best bet. This is because they have the lowest possible environmental impact. Here are some of the ways telematics systems help with sustainability —
- Fuel usage optimisation
- Driver behaviour improvement
- Timely asset/energy transition
10. Scalability and expansion
For managers and business heads eyeing seamless fleet expansion and scalability, integration has to be a major factor.
Telematics systems future-proof your fleet operations since the system is easily integrated with advanced mobility-related technologies, CRM software, and other business applications.
Challenges and Future of Fleet Telematics
The future seems promising for the fleet telematics system. The telematics technology is set to grow and reach a global value of $129 billion by 2028. It stood at $59 billion in 2020, which shows that more and more companies are realising the importance of data-driven fleet operations.
However, there are certain challenges that the solution has to overcome to become a formidable force for fleet operations.
1. Power input reliability
Fleet telematics solution requires a powered GPS receiver. It can be powered using the vehicle battery through complex wiring or can have a dedicated battery unit. If discharged, these battery-driven modules might stop working and drivers won’t be able to summon help during urgent situations.
2. Data privacy
Several telematics systems in the market can be manipulated or jammed by miscreants with the intention of theft. We highly recommend you invest in a fleet telematics solution that is able to detect, report, and overcome signal jamming.
3. Installation downtime
Fleet operation downtime can also be an issue, especially if the entire fleet has to be equipped with a telematics system. This is because telematics system installation requires the dismantling of the vehicle dashboard. However, professional fleet management companies always make sure installation doesn’t cause much downtime.
Note: It is advised to consult fleet management experts to get a cost estimate and potential downtime before making a decision to invest in fleet telematics.
Conclusion
Fleet telematics systems are simple to understand and implement. Its simplicity allows for integration with the existing infrastructure without causing much downtime. This is one of the main reasons why it is becoming quite a staple in modern-day fleets.
Moreover, their evolution is incessantly shaping the future of the trucking and logistics industry. So, what are you waiting for? Implement fleet telematics across your fleets and future-proof your operational efficiency, productivity, and profitability. Stay tuned for more informative posts!
Stats Resource: https://www.teletracnavman.com.au/media/24250/ukaunz-ts24_rf-sm.pdf
