Technology is quickly evolving in every aspect and industry, including commercial vehicle management. In recent times, there has been a surge in telematics usage. Telematic systems are tools that help companies and organizations track movement, behavior, routes, and other areas of vehicle management.
Predictions show that the telematics market will be worth $103 Billion by 2022, pointing to an obvious surge in the use of such systems. Any company with a registered vehicle for commercial use can benefit greatly from using a telematics system.
What are the benefits and uses of telematics and why are they so compelling for businesses and even non-profit and government agencies? We’ll discuss that and more in this article.
Use Case Scenarios for Telematics
Telematics fleet management is invading various sectors of society, bringing a more efficient way of managing drivers, truck fleets, school buses, and practically all forms of transportation. One might struggle with imagining the use-case scenarios of telematics software and systems. Here are some of the most common ways that organizations and systems use telematics.
School bus systems
There has been an increase in fleet management for schools using cloud-based systems. Through telematics, school administrators and respective staff can study bus routes, driver behavior, and other factors to determine how schools can save money on gas consumption, which accounts for a large fraction of school costs. School bus systems can also give parents real-time information on the location and status of their children when riding the bus to school.
Field tech repair systems
Large corporations in telco, ISP, cable, or other home tech industries can use fleet management software to openly communicate with field technicians and contractors. It can also help monitor movement to help drivers navigate through the labyrinths of residential areas or deeper parts of cities with more intricate routes. Geofencing software can also alert management when a vehicle exits an authorized area, making sure that employees don’t use service fleets for unauthorized purposes.
Logistics services
Another common use case scenario for telematics is using it for logistics services. Anyone in the delivery and fulfillment business will find that using a fleet management system virtually can help improve operations, delivery time, driver management, and scheduling.
Public transportation
Governments and private institutions with public contracts can also make good use of fleet management systems to help manage public buses and other modes of public transportation. Taxi companies can also make good use of telematics to help better understand driver behavior, speeds at which they drive, and stoppages. These metrics help lessen or even avoid road mishaps through data-driven decisions.
Field sales departments
A company with field sales representatives that travel intra-city and inter-city can also use fleet management software to monitor the distances they travel and what locations they frequent. Fuel monitoring can also help in determining the returns per fuel liter spent to determine whether sales representatives help keep the company profitable. Anti-theft features also help improve vehicle, product, and personnel security.
7 Benefits of Fleet Telematics
There are many fleet telematics benefits that companies and their field employees and drivers can experience. Here are just seven of the most common ways a telematics system can improve business and operations.
#1 | Data-Driven Decision-Making
Telematics software helps monitor driving behavior, location, distance traveled, speed, fuel costs, engine temperature, and many other data points that help management and decision-makers create strategic ways to improve efficiency and cut costs when necessary. Data is the new currency of the future, and virtual telematics systems help track real-time and accurate information and turn them into meaningful insights to increase profit, cut operational expenses, and improve personal happiness and safety.
#2 | Better Vehicle Maintenance
Some telematics can track vehicle performances such as speed, engine temperature, A/C usage, and ignition time. All these help vehicle custodians track usage, which then helps determine the wear and tear and maintenance needs of each car. By measuring vehicle usage and performance, companies can determine when servicing is most necessary and avoid car breakdowns due to lack of monitoring.
#3 | Seamless Communications with Drivers
There’s a caveat to this benefit as we all know the dangers of communicating with drivers when they’re on the road. But with proper protocols in place such as responding only when a vehicle has fully stopped or is off the road can help turn communications into a plus for companies with fleet management software.
When advantages and disadvantages of telematics-based communications, the advantages can outweigh the risks with good road safety protocols in place. Driver to driver and driver to headquarter communications helps the company collaborate better, which will lead to better team performance for the most part. Just make sure to keep off the comms system when it’s unsafe.
#4 | Reduced Operations and Fuel Costs
Looking at the benefits of fuel monitoring systems, companies can help save thousands if not hundreds of thousands of dollars a year. Many companies suffer financially from fuel theft, whether from delinquent employees or non-employees. With a fuel monitoring system in place, companies take a step forward into lessening fuel expenses and writing it up to profits.
With better vehicle maintenance, businesses and organizations can also save money on unnecessary repairs due to a lack of stewardship and monitoring. Most companies using fleet management software and systems have reported returns of investments in a matter of months due to the amount of deadweight loss that a company sheds.
#5 | Better Route Management
A fleet telematics system can help drivers and supervisors better plot out routes to stay efficient with fuel, time, and manpower. This benefit can specifically help logistics companies that often work at a very tight schedule and have to find various means to maneuver through traffic, and multiple delivery routes every day.
Through location-tracking, drivers and other employees can also determine real-time locations and help map-out contingent routes in case of detours, traffic jams, or other unforeseen logistics issues.
#6 | Improved Safety and Security
According to the World Health Organization, approximately 1.35 million die each year due to road accidents. Through fleet management systems, companies can help alleviate that growing statistic by tracking driver behavior and determining whether staff violate safety protocols such as speed limits.
Fleet management systems also help improve car security through its anti-theft systems that alert personnel of unauthorized entry and vehicle immobilization in cases where carjackers might take off with a vehicle.
#7 | Higher End-User Satisfaction
Telematics doesn’t only provide benefits and satisfaction to companies and their staff. They also provide various benefits to end-users. A school bus system can provide parents with real-time alerts when their childrens’ school bus has already reached their home. A logistics company can alert a customer when delivery is on its way. A commuter can tell when the next bus will be arriving at the closest bus stop.
Technology exists to help improve the end user’s experience. Telematics works the same way and provides various advantages and conveniences to clients, customers, passengers, and service recipients.
Telematics on The Rise
Because people on mass media don’t really mention telematics as much, it doesn’t mean that the innovative technology isn’t on the rise. Fleet management systems are a quiet industry, but one that is increasing in usage by the year. In 2019, 86% of fleets now use telematics, up significantly from just 48% in 2017.
As more organizations, businesses, and companies start realizing the many benefits that fleet management software can bring, it’s likely that the number will continue to rise. It’s only a matter of time until every fleet uses a virtual system to manage drivers, vehicles, and routes.
