What Is Telematics?

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Telematics refers to information technology related to the long-distance transmission of information. As a field of study, telematics encompasses telecommunications, vehicular technologies, electrical engineering, and computer science. The term telematics most commonly refers to telematics in vehicles used in logistics and fleet management, although it has applications across industries. Telematics can help businesses of all sizes reduce costs, increase visibility, and capture real-time data for improved efficiency. 

We’re going over what is telematics and everything you need to know about this technology below.

How telematics technology works

Telematics technology is the combination of telecommunications and informatics used to create a system that can track vehicles, monitor their performance, and provide a wealth of other information and analysis. At its best, telematics technology is a highly sophisticated computer that can output key data and insights to guide decision-making. 

In the modern age, data is power. Telematics devices provide companies with GPS tracking data and insights about speed, idle time, routes, fuel use, and low tire pressure. Telematics software can alert companies of maintenance needs and highlight inefficiencies, saving time and money. 

How is telematics technology used?

Telematics technology is used for logistics and transportation management, including monitoring the movement of fleets across land, air, and sea.  By combining telecommunication and informatics with computer science and data analytics, telematics integrates information to transmit, store, and receive information from devices and remote objects over a network. Telematics uses simple communication technologies to generate powerful datasets to improve management and efficiency. 

Types of telematics technologies

You’ve probably already come in contact with telematics in vehicles. Telematics technologies encompass a vast array of options from GPS tracking devices to fuel sensors that measure fuel efficiency and monitor driver behavior. Beyond these simple sensors, telematics in vehicles can monitor tire pressure and maintenance requirements as well as record idle time. Vehicle telematics also includes wireless safety communications, GPS navigation, integrated hands-free cell phones, and automatic driving assistance systems.

7 Benefits of telematics

If you’re considering implementing telematics devices in your business, here are a few things to consider:

Improved maintenance

Telematics technology can provide detailed information about the performance of vehicles, which can allow businesses and users to identify problems before they become costly repairs. Some telematics technology includes maintenance alerts to avert serious issues. Many telematics technologies also include features like tire pressure monitoring and fuel consumption monitors to offer better insights into vehicle performances and flag potential issues. 

Enhanced safety

Telematics technology can significantly improve fleet safety from several perspectives. In addition to monitoring vehicle performance, and alerting drivers to potential issues before they become problems, telematics technology can also monitor driver performance. Driver alerts from automatic driving assistance systems can help reduce the risk of accidents and promote safer driving behavior. 

Cost savings

By adopting telematics technology, businesses can reduce their fleet costs significantly by reducing idle time and other inefficiencies. Telematics provides businesses with real-time data about their vehicles, such as location, speed, and fuel consumption. Some telematics systems automatically generate reports to identify and address inefficient driving habits, such as speeding and idling, leading to improved fuel efficiency and reduced fuel costs.

Cost savings from telematics in vehicles come down to fuel savings, reduced idle time, and improved fleet operations. It can also give you leverage to negotiate lower insurance costs.

Reduces carbon emissions 

Consumers are increasingly demanding sustainable operations and reduced carbon emissions. While some fleets have achieved a net-zero operation through carbon credits, telematics technology can help companies reduce carbon emissions directly. By providing data on driving behavior, fuel usage, and idle time, telematics technology enables drivers and fleet managers to identify opportunities for improvement, reducing overall carbon emissions. Even a 10% reduction is a significant step toward sustainable operations. 

Better monitor and manage fleet operations

With telematics in vehicles, real-time data on driver behavior enables fleet managers to identify potential problems before they become serious. Fleet managers can gain a comprehensive insight into the fleet movement and locate bottlenecks or points for improvement. With data analytics, telematics software can help fleet managers identify points of improvement that may not otherwise be obvious. 

Better customer service

Telematics technology can be used to monitor the location of vehicles in real-time, allowing businesses to provide customers with accurate estimated arrival times. Customers now expect real-time data or, at minimum, regular updates on product delivery. Telematics technology keeps your business in line with the latest in delivery tracking and real-time arrival estimates.

Improved productivity

Improved data collection will allow businesses to make more informed decisions and improve their operations. By using telematics in vehicles, businesses can increase their productivity, streamlining the collection and analysis of important data. Telematics takes the guesswork out of data analysis, reducing the risk of human error and increasing actionable insights. 

Save your employees’ time for what they do well, and allow telematics technology to take the guesswork out of management, leading to greater business efficiency. 

Why Telematics Systems Matter

In a highly competitive logistics industry, improved efficiency can lead to a greater market share. A single accident can lead to both short-term and long-term company costs. Telematics devices and systems can give your company the edge you need, with enhanced insights and sustained growth. Wide-ranging benefits include improved fuel efficiency, enhanced safety, greater efficiency, and reduced carbon emissions for enhanced overall performance.  


What is a telematics system?

A telematics system combines communication and tracking technologies like fleet management and tracking. This usually includes GPS and other monitors installed in vehicles that send, receive, and store telemetry data.

What is the meaning of telematics?

Telematics refers to the branch of information technology that studies and uses communication technology with computer science in the long-distance transmission of information.

How are telematics for fleets used?

Telematics for fleets are used to improve fleet efficiency, including reduced fuel consumption, greater cost savings, increased safety, better customer service, and reduced carbon emissions.

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