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- Managing vehicles can present a unique set of challenges. For example, the frequency and severity of commercial motor vehicle crashes has drastically increased in recent years.
- Telematics refers to technology that organizations can use to gather data regarding drivers, individual vehicles or an entire fleet.
- Telematics can help businesses in many industries lower costs and improve overall safety and efficiencies.
For many businesses, managing vehicles is a key element of their operations, and these logistics can present a unique set of challenges. For example, the frequency and severity of commercial motor vehicle crashes has drastically increased in recent years. According to the Federal Motor Carrier Safety Administration, the number of fatal crashes involving large trucks and buses has gone up by 42% since 2009. Furthermore, businesses must also contend with ongoing safety issues (e.g., distracted and impaired driving), traffic violations, driver shortages, medical expenses and vehicle repair costs.2
Telematics is a broad term that refers to technology that organizations can use to gather data regarding drivers, individual vehicles or an entire fleet.
In this challenging environment, businesses with fleets are continually looking for new ways to improve safety and reduce their exposures. One solution that more and more businesses are turning to is telematics. Telematics is a broad term that refers to technology that organizations can use to gather data regarding drivers, individual vehicles or an entire fleet. Specifically, businesses that leverage telematics can track information related to a vehicle's location, driver behavior, vehicle diagnostics and similar operating metrics.3
Telematics can help businesses lower costs and improve overall safety and efficiencies. And these benefits aren't limited to the transportation industry. Any business that manages a fleet of vehicles could benefit from telematics, including those in the agriculture, manufacturing and construction sectors.
How telematics works
Put simply, a telematics solution promotes the sharing of data between a fleet of commercial vehicles and a central location. Typically, data is gathered using telematics devices - such as GPS technology, sensors, mobile applications, dashcams and vehicle engine diagnostics solutions - that are used or installed in each vehicle in a fleet.3
These devices gather helpful insights regarding driver behavior, trip information and vehicle health, storing the data temporarily before transmitting it back to a central hub where a business can analyze it using software. Telematics devices can gather a host of useful information on a business's behalf:
- The speed of a vehicle
- The location of a vehicle
- The movement patterns of a vehicle
- Instances of aggressive acceleration, hard braking and erratic cornering
- Distracted driving incidents (e.g., smartphone usage)
- Diagnostics data related to fuel efficiency and vehicle performance
Telematics solutions are incredibly versatile and can be deployed in cars, cargo vans, tractor-trailer units, buses, heavy equipment and specialized vehicles such as construction and farming equipment.
Benefits of telematics
Telematics can benefit a business's operations in many ways6:
Considerations to keep in mind
Telematics offers businesses an unparalleled amount of data. While this is one of the biggest strengths of these solutions, it's also one of its greatest challenges. Insights gathered from telematics are just that - insights. The data is useful only if a business leverages it in meaningful ways. In some instances, businesses that implement a telematics solution may be overwhelmed by the sheer amount of data and unable to use it effectively. However, not all telematics solutions are overwhelming. Many modern telematics solutions are designed to be easy to implement, ensuring businesses are not overtaxed by the technology. Telematics solutions can fit various needs, from the smallest businesses to the largest trucking companies.
The organizations that best utilize telematics solutions are the ones that adopt and integrate them into their operations in ways that meet their individual needs. They use the functionality and data from telematics to make operational changes, focus on improving driving behavior and increase productivity.
- Telematics solutions are incredibly versatile and can be deployed in many different types of vehicles.
- From improved safety to increased productivity, telematics can benefit a business's operations.
- Telematics offer an unparalleled amount of data, but it's useful only if leveraged in meaningful ways.