A Simple Guide to Telematics – and How It Can Improve Business Processes

With the e-commerce industry experiencing a boom in demand these past few years, the transportation and logistics sectors are seeing a corresponding increase in their demand as well. This has resulted in customers having higher expectations on service delivery – not only do they want it done quickly, but also safely and at a low cost. Therefore, in order to meet the changing demands of customers, businesses will have to incorporate and make intelligent use of technology. For businesses that heavily rely on vehicles, telematics is one thing that can help them improve operations and the quality of service delivery.

What Is Telematics? 

Telematics is a technology that integrates telecommunications, such as phone lines and cables, with informatics or computer-assisted information processing. In essence, it is ‘computerised telecommunications’ that involves the transmission of large volumes of data over long distances. In fleet management, telematics systems monitor a wide range of information related to the vehicles and visualise it on software platforms so that fleet managers can keep track of their fleet from anywhere.

Telematics works by collecting the data in the devices that are installed in the vehicle such as  GPS trackers, sensors, and engine diagnostics. These devices record information such as vehicle location, speed, movement, driver behaviours, environmental temperatures, and fuel levels. A telematics device installed in the vehicle stores all this information and transmits it over cellular networks to private and secure servers. At this point, the software translates the data into an easily readable format for fleet managers. As the data is stored in the cloud, it also enables fleet managers in Singapore to access it from any Internet-enabled device. This way, they can optimise their vehicle operations without having to be on-site, which improves efficiency and productivity.

What Are The Benefits?

Essentially, telematics is about deriving business intelligence and optimising operations by analysing data. As such, there are 4 main benefits to incorporating telematics in fleet management systems.

• Improve Vehicle Maintenance

Telematics can track vehicle hours of usage, schedule preventative maintenance, manage warranty recovery, and keep track of service records. The technology can also provide notifications to management when vehicles and equipment have mechanical faults, allowing them to solve these issues sooner and save downtime while keeping vehicles in safe operating conditions. As a result, fleet managers can reduce expenses while also staying on top of engine diagnostics and vehicle maintenance.

• Increased Safety

Road safety and asset protection are essential components of fleet management. With telematics, driver and operative behaviours can be easily monitored. As the telematics system generates concise reports of every aspect of vehicle operations, from its speed, trip journey and driver habits, they help fleet managers determine where improvements can be made in terms of driver safety standards and intelligent route planning. Telematics also provides real-time location tracking, which not only prevents vehicle thefts but also enables faster response times to emergencies such as the vehicle getting into an accident.

• Improve Fuel Efficiency

Fuel usage is one of the most significant areas of expenses for fleet managers. Therefore, monitoring and eliminating excessive fuel use is crucial for reducing fuel costs and ensuring overall efficiency. Telematics can assist fleet managers to detect waste areas, such as vehicle idling or fuel leakage, and resolve them quickly. Furthermore, fleet managers can avoid bottlenecks by using intelligent route planning to determine the most direct path, hence lowering fuel consumption. More than that, this also helps to improve the sustainability of the vehicles as reduced fuel consumption leads to a lower environmental impact.

Also Read: How Can Your Organisation Be More Sustainable with IoT Solutions?

• Optimise Vehicle Performance

Thanks to telematics, fleet managers will have access to comprehensive data-driven reports on all aspects of their vehicle fleet such as idle time, driver behaviours, delivery time, and engine performance. These reports make it simple for fleet managers to identify areas for improvement in order to optimise vehicle performance. By improving fuel efficiency and vehicle maintenance, they can reduce operational costs while scheduling more efficient deliveries, thus boosting their bottom line.

Improving Business Operations With Telematics

In an increasingly interconnected world, the integration of telematics in fleet management has already brought significant advantages to safety, productivity, efficiency, and ultimately revenue generation. Therefore, its sheer adaptability will ensure that it will be playing a key role in the future of fleet management and vehicle tracking. As a result, telematics is an essential tool that all fleet managers will need to thrive in a digitally-driven world.