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You may know that it is the cornerstone of effective fleet management today. If you want a technical definition of telematics, it’s a system that employs communications and information processing to provide helpful information.

Fleet telematics, often known as vehicle GPS tracking systems, is associated with telematics in the fleet and logistics business. In this sense, telematics refers to the interoperability between GPS receivers and other telematics devices installed in a vehicle and the communication system and apps installed inside it.

For those unfamiliar, let’s define fleet telematics.

The field of Fleet Management is one of the most common consumers of telematics. Fleet management firms may benefit from telematics since it allows them to keep tabs on their cars, monitor their use, keep tabs on other assets, and extend their life.

Multiple communication devices (e.g., Vehicle Position) are a part of the Fleet system, with all that data eventually being sent to a single computer. Metrics applicable to the Fleet Management Company are derived from the data once it has been evaluated.

Fleet management firms may get valuable insights from data such as vehicle location, engine diagnostics, driver behavior, trip quality, and vehicle activity.

Let’s take a closer look at some of the most important uses of Fleet Telematics.

Principal Applications of Telematics in Fleet Administration

The most common uses of Telematics in fleet management are:

  • Vehicle and Asset Tracking Efficiency
  • Behaviour Monitoring for Drivers
  • Planning the most efficient routes for travel
  • Monitor and control fuel economy
  • Diagnostic System Monitoring

Now, let’s go further into each of these uses.

Telematics for Efficient Vehicle Tracking

The most basic use of telematics is the tracking of vehicles.

The location of each vehicle is an essential piece of information for any business using a fleet management system. With this information, the corporation can optimize its trip planning and reduce the idle time its trucks spend. To get the most out of a car, it has to be driven as often as possible.

Vehicle whereabouts at certain times are gathered with the help of telematics hardware and software. With this information, the command center can keep tabs on every vehicle in operation. Some of these gadgets may be installed in automobiles. These sensors’ readings are combined with information from other sources, such as drivers’ mobile phones, to get a more precise location fix.

There are several benefits to keeping tabs on location information. For instance, when a car breaks down or is involved in an accident, the firm may swiftly dispatch aid to the scene. Thefts of motor vehicles may also be easily monitored and stopped.

By routinely using telematics, the company can anticipate the arrival time of incoming automobiles and provide sufficient parking. Future vacations may also be planned using this tool.

Measurement of Driving Habits through Telematics

Fleet management firms now routinely employ telematics for not just vehicle monitoring but also Driver Behavior Assessment and driver training. Given that one driver may operate many cars, it is prudent to employ a smartphone telematics system to evaluate driving performance.

A constant stream of location data is sent from mobile devices to a centralized computing system to evaluate driver behavior. Acceleration, deceleration, night driving, and evasive maneuvers are all evaluated based on the location data stream, and they are then included in performance evaluations and safe-driving ratings.

The way you drive has a significant impact on how long your car lasts. Therefore, fleet management must be aware of all drivers’ ratings. Several applications exist for driver rating information, including:

  • Motivating motorists
  • Better planning for drivers’ trips
  • Information Sharing with Insurance Providers

Utilizing Telematics for Trip Planning

Route optimization is made more accessible with telematics support. The current speeds of all vehicles may be calculated by following their whereabouts throughout time. With this information, we can pinpoint the fleets whose speeds are consistently below average ( using data science-based models). If there is noise or traffic along the road, the car may take longer to get where it has to go.

Using an open-source route optimization API, the optimal vehicle paths may be understood from a birds-eye perspective. And from there, the drivers may be directed.

While driving, we also employ a system similar to this while consulting Google Maps or a similar app on our mobile devices. The mapping app compiles information from all the cars actively using the app to comprehend traffic patterns better. With this information, we may take the “blue route” and avoid the congested “red zones.”

Monitoring and Controlling Fuel Efficiency Using Telematics

The cost of gasoline is one of the most significant expenses for a business fleet, and any reduction in gas expenditures is a boon to bottom-line results. Businesses may reduce fuel expenditures using telematics by monitoring and optimizing fleet fuel efficiency.

Some drivers’ behaviors, inefficient routes, and unapproved use all contribute to a rise in fuel consumption.

Using telematics-based monitoring, all these reasons may be identified and adjusted for. It is possible to incentivize safe driving and punish those who waste gas. Generally, drivers who score higher on safety ratings also tend to be more economical behind the wheel.

Telematics-Based Monitoring of Vehicle Diagnostics

Vehicles and their critical components, including engines, may benefit from preventative maintenance to last a lot longer, and increased longevity may result in more visits and business.

Engine and other diagnostic concerns may be flagged by telematics devices, giving the organization time to intervene before things spiral out of hand.

Preventative maintenance may be planned using information like odometer readings and engine run times.


More and more fleets are turning to Telematics to improve fleet management. Also, both the problems and their remedies are evolving rapidly. In the past, people relied heavily on trackers installed in their cars. A demand for driver monitoring has arisen with the growth of fleets operated by gig economy aggregators like Uber. Tracking drivers and cars is a priority for fleets, even those who do not lease their vehicles.

You may use pre-existing software or create a custom solution as a fleet manager. Formerly, the latter was a complicated and expensive choice. However, with the emergence of Telematics API & SDK providers, this is now a straightforward possibility.